The Washington-based retailer of sports-related teen apparel,
), reported an 8.2% rise in comparable-store sales (comps) for the
four-week period ended May 3, 2014, compared with a comps increase
of 4.6% for the four weeks ended May 4, 2013.
Moreover, net sales for April rose 17.6% to $50.6 million from
$43.0 million reported in the year-ago period. We believe sales for
the month have mainly benefited from strong Easter-related sales
during the month due to the Easter shift to April this year.
The shift in Easter timings had earlier negatively impacted the
company's March 2014 sales. Last month, the company reported a 2.9%
decline in comps for the five weeks ended Apr 5, 2014, compared
with a comps increase of 2.1% for the five weeks ended Apr 6, 2013.
Sales for the month suffered mainly due to reduced purchases and
lower spending on each purchase.
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
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, of which 513 are 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.
Iconix Brand Group, Inc.
The Buckle, Inc.
), all of which carry a Zacks Rank #2 (Buy).
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