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Zumiez (ZUMZ) Posts Favorable Comparable Sales in March
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Mall-based specialty retailer, Zumiez Inc. (ZUMZ - Free Report) reported increase in March comps following a decline in the month of February. The company recorded a rise of 1.1% in comps for the five-week period ended Apr 1, 2017 as against a 7.8% decline witnessed in the five weeks ended Apr 2, 2016.
Further, net sales for the same period (Mar 2017) grew 4.3% to $71.7 million from $68.8 million in the year-ago period.
However, not much movement was witnessed in after-hours trading session yesterday. However, the Zacks Rank #4 (Sell) company’s stock has declined 22.5% in the past one month, underperforming the Zacks categorized Retail – Apparel/Shoe industry’s decrease of 7.3%.
The sharp decline in share price in the past one month is primarily due to dismal outlook provided for first-quarter fiscal 2017. The company expects net sales for the quarter in the range of $178–$182 million, while comps growth is expected in the range of flat to 2% growth.
Further, consolidated operating margins are projected to range from negative 4% to negative 5%. Finally, the company projects a loss of 17–21 cents per share for the first quarter.
Management’s cautious stance weighed upon the Zacks Consensus Estimate for the first quarter, which has been trending downwards since the earnings announcement. In the past 30 days, the Zacks Consensus Estimate for first-quarter fiscal 2017 has declined to a loss of 18 cents from a loss of 3 cents. In the same time frame, earnings estimate for fiscal 2017 has decreased 11.3% to $1.02 per share.
Nevertheless, we note that the company’s strategic initiatives, focus on omni-channel growth, authentic lifestyle positioning and commitment to customer service position bode well.
Apart from Zumiez, Costco Wholesale Corporation (COST - Free Report) came up with March comps results. Comps for the five-week period ended Apr 2, 2017 increased 6%.
Kate Spade & Company has surpassed the Zacks Consensus Estimate of earnings in two of the trailing four quarters, with an average beat of 14.6%.
Foot Locker has long-term earnings growth rate of 9.7%.
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Zumiez (ZUMZ) Posts Favorable Comparable Sales in March
Mall-based specialty retailer, Zumiez Inc. (ZUMZ - Free Report) reported increase in March comps following a decline in the month of February. The company recorded a rise of 1.1% in comps for the five-week period ended Apr 1, 2017 as against a 7.8% decline witnessed in the five weeks ended Apr 2, 2016.
Further, net sales for the same period (Mar 2017) grew 4.3% to $71.7 million from $68.8 million in the year-ago period.
However, not much movement was witnessed in after-hours trading session yesterday. However, the Zacks Rank #4 (Sell) company’s stock has declined 22.5% in the past one month, underperforming the Zacks categorized Retail – Apparel/Shoe industry’s decrease of 7.3%.
The sharp decline in share price in the past one month is primarily due to dismal outlook provided for first-quarter fiscal 2017. The company expects net sales for the quarter in the range of $178–$182 million, while comps growth is expected in the range of flat to 2% growth.
Further, consolidated operating margins are projected to range from negative 4% to negative 5%. Finally, the company projects a loss of 17–21 cents per share for the first quarter.
Management’s cautious stance weighed upon the Zacks Consensus Estimate for the first quarter, which has been trending downwards since the earnings announcement. In the past 30 days, the Zacks Consensus Estimate for first-quarter fiscal 2017 has declined to a loss of 18 cents from a loss of 3 cents. In the same time frame, earnings estimate for fiscal 2017 has decreased 11.3% to $1.02 per share.
Nevertheless, we note that the company’s strategic initiatives, focus on omni-channel growth, authentic lifestyle positioning and commitment to customer service position bode well.
Apart from Zumiez, Costco Wholesale Corporation (COST - Free Report) came up with March comps results. Comps for the five-week period ended Apr 2, 2017 increased 6%.
Stocks to Consider
Better-ranked stocks worth considering in the retail sector include Kate Spade & Company and Foot Locker, Inc. (FL - Free Report) . Both these stocks carry a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kate Spade & Company has surpassed the Zacks Consensus Estimate of earnings in two of the trailing four quarters, with an average beat of 14.6%.
Foot Locker has long-term earnings growth rate of 9.7%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>