The Washington-based retailer of sports-related teen apparel,
), reported a 2.0% improvement in comparable-store sales for the
four weeks ended Mar 1, 2014. This compares 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. Sales for the
month gained mainly from an improvement of traffic in stores due
to the clearance of surplus inventory passed on from the holiday
season. This resulted in lowered product margins versus the
Last month, the company reported dismal comps and sales results
due to the weak holiday season and an unfavorable weather. The
company reported a 7.6% decline in comparable-store sales for the
4 weeks ended Feb 1, 2014 compared with a 0.6% increase reported
for the 5 weeks ended Feb 2, 2013. Net sales for January dipped
24.3% to $38.1 million from $50.3 million reported in the
Zumiez is likely to report its fourth quarter and fiscal 2013
financial results on Mar 13, 2014. Given the company's recent
dismal sales performance in January, the company guided
fourth-quarter sales in the $226-$229 million range last month,
while comps are expected to decline in the low single digit
The company expects earnings per share to be 56-59 cents.
Currently, the Zacks Consensus Estimate for the fourth quarter
stands at 61 cents, higher than the company's forecasted earnings
range. The company's guidance for the fourth quarter includes
estimated charges of $1.7 million or 5 cents related to the Blue
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 Mar 1, 2014, the company operated
552 stores, including 512 in the United States, 28 in Canada and
12 in Europe.
Zumiez currently has a Zacks Rank #4 (Sell). Better-performing
stocks among apparel/shoe retailers are
Christopher & Banks Corp.
Iconix Brand Group Inc.
Skechers USA Inc.
). While Christopher & Banks and Iconix carry a Zacks Rank #1
(Strong Buy), Skechers sports a Zacks Rank #2 (Buy).
CHRISTOPHER&BNK (CBK): Free Stock Analysis
ICONIX BRAND GP (ICON): Free Stock Analysis
SKECHERS USA-A (SKX): Free Stock Analysis
ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
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