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Zumiez Inc. (ZUMZ) - $25 value - yours FREE >>
American Eagle Outfitters, Inc. (AEO) - $25 value - yours FREE >>
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Zumiez: July Sales Rise, Comps Down 16th Time in a Row
Specialty retailer of apparel, footwear and accessories, Zumiez Inc. (ZUMZ - Free Report) recently posted its sales data for the four weeks ended Jul 30, 2016, wherein its comparable store sales (comps) marked the sixteenth consecutive monthly decline.
Zumiez’s comps for the four weeks ended Jul 30, 2016 dropped 2.9% compared with a 7.6% fall witnessed in the four-week period ended Aug 1, 2015. The primary reason for the decrease in comps was overall softness in consumer demand and the brunt of a tough retail environment which the company continued to bear.
Additionally, comps were impacted by slow mall traffic and the absence of defined fashion trends, which have been weighing on Zumiez’s top line for a while now. However, net sales for the month rose 1% to $61.9 million from $61.4 million in the year-ago period.
Comps for second-quarter fiscal 2016 fell 4.9%, which fared better than the company’s projection of a 6%–8% decline. Also the company expects earnings to be at the upper end or marginally better than its previous projection of -$0.09 to -$0.13 per share on account of better-than-expected sales.
ZUMIEZ INC Price
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Additionally, Zumiez is battling headwinds like foreign exchange volatility, which along with the aforementioned factors pose threats to the company’s future performance.
Nonetheless, Zumiez remains on track with its expansion strategies, which are aimed at placing it on the growth track and generating near-term profit. Also, the company’s investments in global expansion, enhancing omni-channel capacities and customer-centric approach bode well.
Currently, Zumiez carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the same industry include American Eagle Outfitters, Inc. (AEO - Free Report) , Christopher & Banks Corporation , both sporting a Zacks Rank #1 (Strong Buy) and The Children's Place, Inc. (PLCE - Free Report) , carrying a Zacks Rank #2 (Buy).
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