Skateshop rival Zumiez says skateboard hardgoods are gaining traction again across global markets, and the renewed activity arrives alongside a strong third quarter for the retailer.
According to reports, third quarter net sales reached two hundred thirty nine point one million dollars, up from two hundred twenty two point five million dollars last year.
Comparable sales rose more than seven percent and net income climbed to nine point two million dollars from one point two million dollars a year earlier.
A tax item added a small boost, though results were already ahead of expectations.
For the first nine months of the fiscal year, total net sales were six hundred thirty seven point seven million dollars compared to six hundred ten million dollars last year.
Comparable sales increased more than five percent and the company narrowed its net loss to six point two million dollars from sixteen point five million dollars.
The period included a charge tied to a wage and hours case in California.
Zumiez ended the quarter with more than one hundred four million dollars in cash and marketable securities.
Strong cash flow from operations and the release of restricted funds supported that position, even with spending on share repurchases and capital projects.
The company bought back about three hundred thousand shares in the quarter and two point seven million shares year to date with a small amount remaining on the current authorization.
Chief Executive Officer Rick Brooks highlighted full price selling, better margins, expense control and stronger results in North America.
He said early holiday performance is also encouraging with comparable sales up six point six percent so far and up eight point seven percent across the Black Friday to Cyber Monday stretch.
While the retail climate remains uneven, he said the company feels good about its momentum heading into the close of the fiscal year.
Fourth quarter results so far reflect similar trends. Sales for the thirty one day period ending December second increased seven point five percent and comparable sales rose six point six percent.
For the full fourth quarter, the company expects net sales between two hundred ninety one million dollars and two hundred ninety six million dollars.
Operating margins are projected to be between eight percent and eight and a half percent with diluted earnings per share between ninety seven cents and one dollar and seven cents.
Zumiez opened six new stores this year with most of them in North America and one in Australia.
With the business strengthening across multiple areas, the return of momentum in skateboard hardgoods stands out as a key highlight of the latest quarter.