Net income fell 57% to $3,213,000 from $7,456,000 on 2% higher sales of $179,819,000 vs. $176,709,000 in the second quarter ended Aug. 1, as comp store sales declined 4.5% on lower transaction volume partially offset by higher AUR and units per transaction. Gross margin declined 234 basis points to 32.1%, reflecting deleverage in occupancy costs and lower product margins from promotional pricing. Results include $400,000 of Blue Tomato acquisition costs against $600,000 last year.
ZUMZ blamed the results on four headwinds: lackluster traffic from no clear fashion trend, weakness in seasonal product assortments; foreign exchange effects in Europe and cross-border locations; ... Log in to view full article.