Wash.-based retailer of sports-related teen apparel,
) reported 0.8% increase in comparable-store sales for the four
weeks ended Aug 3, 2013. This compares unfavorably with a comps
rise of 7.5% for the four weeks ended Jul 28, 2012. The marginal
comps growth was due to rise in dollars per transaction,
partially offset by lower comparable store transactions.
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Net sales for July increased 19.3% to $56.1 million from $47.0
million reported in the year-ago period.
Of late, the company's comps have been witnessing a declining
trend due to the persistent fall in comparable store
transactions. Looking at the trailing seven months' performance,
we observe that the company's comps growth rate has plunged lower
every month, with the exception of April when it rose 4.6% and
February, when the company posted negative 8.9% comps.
Further, the company posted a comps rise of 0.9% in the second
quarter of fiscal 2013 and 0.2% hike in year-to-date comparable
store sales. The reported performance was well within the
company's earlier guided range of flat to 2% increase. Zumiez is
slated to announce second-quarter 2013 earnings result on Aug 26,
The company had earlier projected revenues in the range of
$155-$158 million for the second quarter. Based on sales
projections, the company had anticipated earnings per share to be
We believe that the company's well-balanced store expansion and
e-Commerce strategies will drive its top line further. Moreover,
Zumiez aims to increase 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 Aug 3, 2013, the company operated 529 stores,
including 495 in the United States, 27 in Canada and 7 in Europe.
Zumiez currently carries a Zacks Rank #3 (Hold). Other stocks
worth considering among apparel/shoe retailers are
The Gap, Inc.
Citi Trends, Inc.
). All of them have a Zacks Rank #2 (Buy).