Zumiez Inc. (ZUMZ - Free Report) decent comparable-store sales (comps) trend is commendable. After delivering positive comps last year, the company commenced 2019 with the same momentum. Zumiez reported a 3.5% comps growth for the four-week period (ended Feb 2, 2019) compared with 6.3% growth witnessed in the five weeks (ended Feb 3, 2018).
However, total net sales for January decreased 18.3% to $53.9 million from $66 million in the year-ago period. Prior to this, net sales grew a respective 2.9%, 9.4% and 0.6% in December, November and October last year.
Apart from monthly comps, the company came out with comps results for the fourth quarter of fiscal 2018. Comps grew 3.9% in the quarter, up from the company’s forecast of 3% growth. This marked its 10th straight quarter of positive comps. Certainly, Zumiez’s differentiated product offerings, seamless multi-channel shopping experience and superior customer service positions it well. In the third, second and first quarters of fiscal 2018, this specialty retailer of apparel, footwear and accessories delivered comps growth of 4.8%, 6.3% and 7.5%, respectively.
Better-than-anticipated sales prompted management to raise its earnings projection for the fourth quarter. Management now expects earnings per share in the range of $1.10-$1.12 compared with $1.08-$1.10 guided earlier. Furthermore, the Zacks Consensus Estimate for earnings is pegged at $1.11, in line with the company’s upbeat view.
In the past three months, this Zacks Rank #1 (Strong Buy) stock has gained approximately 10% against the industry’s 14.7% decline.
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