Wash.-based retailer of sports-related teen apparel,
) reported a 1.1% increase in comps for the 4-weeks ended Jun 1,
2013. This compares to a comps rise of 13.7% reported for the
4-weeks ended May 26, 2012. Net sales for May surged 16.7% to
$43.6 million from $37.4 million reported in the year-ago period.
Of late, the company's comps have been witnessing a declining
trend due to the continued fall in comparable store transactions.
Looking at the trailing five months performance, we note that the
company's comps have been increasing at a declining rate every
month, with exceptions to April where it rose 4.6% and February
where the company posted negative 8.9% comps.
Further, this Zacks Rank #3 (Hold) company reported comps decline
of 0.7% in the first-quarter fiscal 2013 compared with an
increase of 12.9% reported in the year-ago quarter. The company's
comps suffered due to a decline in comparable store transactions,
offset by an increase in dollars per transaction, which mainly
benefited from a higher average per unit retail price and
year-over-year increase in units per transaction.
Net sales for the quarter increased 14.3% to $148.5 million from
$129.9 million in the comparable last-year quarter. The
year-over-year growth in revenues was primarily driven by
excellent full price selling for the combined March/April month,
offset by a decline in comps. Quarterly sales were almost in line
with the Zacks Consensus Estimate of $148.0 million.
Looking in to the second quarter of fiscal 2013, the company
anticipates revenues in the range of $155-$158 million, while
comps are likely to range from flat to a 2% increase.
Now coming to earnings, Zumiez reported adjusted earnings of 13
cents per share in the first-quarter, marginally surpassing the
Zacks Consensus Estimate of 12 cents but declining 20% from 15
cents earned in the year-ago quarter. Bottom-line results
benefited from the successful execution of its long-term growth
strategies and the strength of its extremely distinguished and
Based on sales projections for the second-quarter, the company
expects earnings per share to come in the band of 12-14 cents.
We believe that the company's well-balanced store expansion and
e-Commerce strategies will drive its top line further. Treading
on the footsteps of its competitors such as
Abercrombie & Fitch Company
Foot Locker Inc.
), Zumiez is targeting to augment its store network to 600-700
stores in the long run.
The company plans to expand its store base by opening 58 new
stores in fiscal 2013, comprising 9 stores in Canada and 6 in
Europe. As of Jun 1, 2013, the company operated 509 stores,
including 479 in the United States, 23 in Canada and 7 in
ABERCROMBIE (ANF): Free Stock Analysis Report
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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