Comparable store sales (comps) of
) - the Washington-based retailer of sports-related teen apparel
- increased 2.6% for the 5-weeks ended Feb 2, 2013, compared with
an increase of 11.1% in the 5-weeks ended Feb 4, 2012. Net sales
for the period surged 57.9% to $50.3 million from $31.8 million
reported in the year-ago period.
Further, the company's comps for the fourth quarter, ended on
Feb 2, 2013, edged down 1.0% due to weak performance during the
holiday selling season. However, for fiscal 2012 comps improved
On the other hand, the company's primary competitor,
Hot Topic Inc.
) posted healthy results for the fourth quarter ended Feb 2,
2013. Hot Topic recorded comps increase of 2.6% for the quarter,
compared with a rise of 1.9% in the fourth quarter of fiscal
2011. The company's net sales increased 11.0% year over year to
During Nov and Dec 2012, Zumiez's total revenue reached $53.6
million and $120.3 million, respectively. Therefore, the
company's total sales for the fourth-quarter came to $224.2
million, which is above its guidance range of $218.0-$221.0
Bolstered by better-than-expected sales, the company raised
its earnings expectation for the fourth quarter. It now
anticipates earnings to be between 65 cents and 66 cents per
share, up from earlier guidance range of 59-62 cents. The current
Zacks Consensus Estimate is pegged at 67 cents per share, which
is penny above the company's upper-end of the guidance range.
We believe that the company's well-balanced store expansion
and e-commerce strategies will drive its top line further.
Following 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. As of Feb 2, 2013, the company was
operating 500 stores.
Moreover, the recent acquisition of Blue Tomato facilitated
Zumiez to tap the European market. Steps like this provide the
company with a solid platform to effectively capitalize on the
Though the company's overall performance and store expansion
strategies are well appreciated, there is slight apprehension
surrounding its future comparable-store sales performances
following the recent weak comps growth.
Based on such mixed prospects, Zumiez currently carries a
Zacks Rank #3 (Hold). Dealing in action sports-related apparel,
footwear, equipment and accessories, Zumiez 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
HOT TOPIC INC (HOTT): Free Stock Analysis
ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
To read this article on Zacks.com click here.