Mall-based specialty retailer, Zumiez Inc.ZUMZ was hit again by the soft sales syndrome as its April sales data marked the thirteenth straight month of negative comparable-store sales (comps). The primary reason for the continued sales decline is the slowdown in traffic and the absence of defined fashion trends. Additionally, the company is battling headwinds like foreign exchange volatility that is affecting its business in borders and tourist spots.
The company posted comps decline of 6% for the four weeks ended Apr 30, 2016 against a 4% fall witnessed in the prior-year period. Net sales for Apr 2016 slipped 1.1% to $51.2 million from $51.8 million in the year-ago period.
Further, with its sluggish performance in the first quarter, the company expects to report loss per share at or slightly below the lower end of its previous guidance. The company had earlier guided first-quarter 2016 loss per share in the range of 7 cents to 11 cents. The company will report full first-quarter and May 2016 results on Jun 2, 2016.
Over the long term, Zumiez is confident about generating profits and boosting shareholder value, backed by its ongoing growth strategies.
This Zacks Rank #4 (Sell) company remains focused on turning its performance around by testing new brands, analyzing every aspect of its business across brands and geographical regions, reviewing its coordinated marketing and product plans, and revisiting its promotional strategies along with the strategic use of private label. Further, the company remains optimistic about its performance in the European market.
Stocks to Consider
Some better-ranked stocks in the same industry include Abercrombie & Fitch Co. ANF , sporting a Zacks Rank #1 (Strong Buy), and Urban Outfitters Inc. URBN and Express Inc. EXPR , each holding a Zacks Rank #2 (Buy).