The Washington-based retailer of sports-related teen apparel,
), reported a 2.9% decline in comparable-store sales for the five
weeks ended Apr 5, 2014, while it exceeded analyst expectations.
This compares with a comps increase of 2.1% for the five weeks
ended Apr 6, 2013.
Moreover, net sales for March rose 4.3% to $63.6 million from
$61.0 million reported in the year-ago period. Sales for the
month suffered mainly due to reduced purchases and lower spending
on each purchase. Sales trends remained strong in the accessories
and juniors categories while for the footwear, men's and boy's
departments it remained soft.
Last month, the company reported a 2.0% improvement in
comparable-store sales for the four weeks ended Mar 1, 2014,
compared with a comps decline of 8.9% for the four weeks ended
Mar 2, 2013. Moreover, net sales for February rose 8.8% to $48.4
million from $44.5 million reported in the year-ago period.
Along with its fourth-quarter results, on Mar 14, Zumiez
announced its sales and earnings guidance for the first quarter
of fiscal 2014. Management anticipates first-quarter revenues in
the range of $156-$160 million, while comps are likely to
decrease in the low single-digit range.
Based on sales projections for the quarter, the company
formulated a bottom-line guidance of net loss per share of 2
cents to earnings per share of 3 cents. The earnings expectation
also includes estimated charges of 2 cents per share related to
the Blue Tomato acquisition.
However, we believe that the company's well-balanced store
expansion and e-Commerce strategies will help drive its top line
going forward. Moreover, Zumiez aims to increase its store
network to 600-700 stores in the long run. As of Apr 5, 2014, the
company operated 555 stores, including 513 in the United States,
29 in Canada and 13 in Europe.
Zumiez currently has a Zacks Rank #3 (Hold). Better-performing
stocks among apparel/shoe retailers are
American Apparel Inc.
Foot Locker Inc.
), all of which carry a Zacks Rank #2 (Buy).
AMER APPAREL (APP): Free Stock Analysis
FOOT LOCKER INC (FL): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
To read this article on Zacks.com click here.