Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Comparable-store sales (comps) of Zumiez Inc. (ZUMZ - Analyst Report) – the Washington-based retailer of sports-related teen apparel – declined 8.9% for the 4-weeks ended Mar 2, 2013, compared with an increase of 14.2% in the 4-weeks ended Feb 25, 2012.

However, net sales for the month surged 10.6% to $44.5 million from $40.2 million reported in the year-ago period.

Last month (5-weeks ended Feb 2, 2013), Zumiez reported comps increase of 2.6% compared with an increase of 11.1% in the 5-weeks ended Feb 4, 2012. Net sales for the period surged 57.9% to $50.3 million from $31.8 million reported in the year-ago period.

This Zacks Rank #2 (Buy) company is scheduled to report its fourth quarter and fiscal 2012 earnings on Thursday, Mar 14, 2013. Along with its January comps, Zumiez had earlier reported preliminary fourth quarter sales of $224.2 million, which was above its guidance range of $218.0–$221.0 million.

Further, the company anticipates fourth quarter earnings in the range of 65 cents – 66 cents per share. The current Zacks Consensus Estimate is pegged at 73 cents per share, well above the company’s guidance range.

We believe that the company’s well-balanced store expansion and e-Commerce strategies will drive its top line further. Following the footsteps of its competitors such as Abercrombie & Fitch Company (ANF - Analyst Report) and Foot Locker Inc. (FL - Snapshot Report), Zumiez is targeting to augment its store network to 600–700 stores in the long run. As of Mar 2, 2013, the company was operating 501 stores.

Moreover, the recent acquisition of Blue Tomato facilitated Zumiez to tap the European market. Such initiatives provide the company with a solid platform to effectively capitalize on the emerging opportunities.

Though Zumiez’s overall performance and store expansion strategies are well appreciated, there is slight apprehension surrounding its future comparable-store sales performances following the recent weak comps growth.

Dealing in action sports-related apparel, footwear, equipment and accessories, Zumiez, which competes primarily with Hot Topic Inc. , targets young men and women in the 12–24 year age group who seek popular lifestyle brands centered on extreme sports activities.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.75 +3.48%
ENLINK MIDST ENLC 36.68 +2.69%
BNC BANCORP BNCN 17.47 +2.40%
EXTERRAN HLD EXH 45.03 +1.97%
SMITH & SWHC 14.52 +1.83%