Zumiez's April Comps Surge - Analyst Blog

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Wash.-based retailer of sports-related teen apparel, Zumiez Inc. ( ZUMZ ) reported a 4.6% increase in comps for the 4-weeks ended May 4, 2013. This compares to a comps rise of 10.1% reported for the 4-weeks ended Apr 28, 2012. Net sales for April surged 12.1% to $43.0 million from $38.4 million reported in the year-ago period.

Last month, Zumiez reported a 2.1% increase in comps for the 5-weeks ended Apr 6, 2013. This compares to a comps increase of 14.1% reported for the 5-weeks ended Mar 31, 2012. Net sales for March surged 19.7% to $61.0 million from $50.9 million reported in the year-ago period.

Further, this Zacks Rank #3 (Hold) company reported solid fourth-quarter fiscal 2012 adjusted earnings of 75 cents per share on Mar 15, surpassing the Zacks Consensus Estimate of 73 cents. Bottom-line results benefited from the successful execution of the growth strategies outlined at the onset of fiscal 2012 and contributions from the Blue Tomato operations.

Net sales increased 22.1% to $224.4 million from $183.9 million in the comparable year-ago quarter. Quarterly sales were above the Zacks Consensus Estimate of $222.0 million. However, comps dipped 1.0% mainly due to a decline in comparable store transactions, offset by an increase in dollars per unit.

Further, the company anticipates first-quarter fiscal 2013 earnings in the range of 4 cents - 7 cents per share. The current Zacks Consensus Estimate is pegged at 9 cents per share, above the company's guidance range.

Management anticipates first-quarter revenues in the range of $141-$144 million, while comps are likely to decline in the mid-single-digit range.

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 ( ANF ) and Foot Locker Inc. ( FL ), 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 60 new stores in fiscal 2013, comprising up to 10 stores in Canada and 6 in Europe. As of May 4, 2013, the company operated 505 stores, including 475 in the United States, 22 in Canada and 8 in Europe.

Dealing in action sports-related apparel, footwear, equipment and accessories, Zumiez, which competes primarily with Hot Topic Inc. ( HOTT ), targets young men and women in the 12-24 year age group who seek popular lifestyle brands centered on extreme sports activities.



ABERCROMBIE (ANF): Free Stock Analysis Report

FOOT LOCKER INC (FL): Free Stock Analysis Report

HOT TOPIC INC (HOTT): Free Stock Analysis Report

ZUMIEZ INC (ZUMZ): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ANF , FL , HOTT , ZUMZ

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