Zumiez Inc.
(
ZUMZ
), a U.S. Specialty retailer selling action sports related apparel,
footwear, equipment and accessories, reported comparable store
sales (comps) and sales results for the four-week period ended
February 25, 2012.
Zumiez's comps for the month of February 2012 rose 14.2%, above
the February 2011 comps increase of 12.8% on account of higher
prices realized during the period. Net sales for the period marked
an increase of 23.0% to $40.2 million from $32.7 million reported
in the four weeks ended February 26, 2011.
Quarterly results of the mall-based specialty retailer have been
consistently outperforming the Zacks Consensus Estimate over the
last year. The company's Zacks average surprise for the last
four quarters was 68.5%. Zumiez posted solid results in the last
quarter (third quarter 2011) on the back of strong merchandising,
new store opening and e-commerce strategies along with improved
margins. Quarterly earnings of 45 cents per share beat the
Zacks Consensus Estimate of 41 cents and surged 12.5% from the
prior-period level of 40 cents.
Net sales for the quarter climbed 13.3% to $154 million from
$135.9 million a year ago, surpassing the Zacks Consensus Estimate
of $153 million. Comparable store sales rose 6.0% in the quarter
compared with an increase of 14.4% in third-quarter 2010.
Everett, Washington-based Zumiez targets young men and women in
the age group of 12 to 24 years, who seek popular brands that
represent a lifestyle centered on extreme sports activities. The
company competes head-to-head with
Hot Topic Inc.
(
HOTT
) and
Pacific Sunwear of California Inc.
(
PSUN
).
Zumiez's stores span across 2,900 square feet on an average, and
feature couches and video game stations to entice customers to shop
for extended periods. These stores are strategically located near
busy areas of the mall, such as food courts, movie theatres,
music/game stores and other popular teenage hang-out destinations.
As of February 25, 2012, the company operated 434 stores in the
United States and 10 stores in Canada.
Moreover, Zumiez's niche focus on teenage action-sport based
merchandise, commitment toward store expansion and a healthy
balance sheet augur well for future operating performance.
Currently, Zumiez holds a Zacks #2 Rank, implying a short-term
'Buy' rating on the stock. However, we retain our long-term
'Neutral' recommendation on the stock.
HOT TOPIC INC (
HOTT
): Free Stock Analysis Report
PAC SUNWEAR CAL (
PSUN
): Free Stock Analysis Report
ZUMIEZ INC (
ZUMZ
): Free Stock Analysis Report
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