Zumiez Inc. (ZUMZ), an action sports retailer in the United States, reported better-than-expected total net sales result for the four-week period ended February 26, 2011. Total net sales for the period increased 18.3% to $32.7 million compared with $27.6 million.
For the reported period, comparable store sales increased 12.8% compared with a rise of 11.2% in the prior-year period. The February results marked the fifteenth consecutive month of comparable store sales growth. In after hour trading, the company’s shares rose 5.82% to $27.45.
Hot Topic Inc. (HOTT), which competes with Zumiez, reported a decline of 1.4% in February comparable stores sales, with total sales declining 1.5%. In after hour trading, the company’s shares increased 0.95% to $5.33.
Prior to this, the company reported third-quarter earnings of 40 cents a share compared with 17 cents a share in the third quarter of 2009, beating the Zacks Consensus Estimate of 37 cents. Net income from operations was $1.1 million compared with a loss of $1.8 million in the prior-year quarter.
Net sales in the third quarter increased 20.0% year over year to $135.9 million from $113.2 million a year ago. Comparable store sales increased 14.4% in the quarter compared with a decrease of 8.0% in the third quarter of 2009.
Zumiez is a mall-based specialty retailer of action-sports related apparel, footwear, equipment, and accessories. The company targets young men and women in the age group of 12 to 24 years, who seek popular brands that represent a lifestyle centered on extreme sports activities. Zumiez’s stores span across 2,900 square feet on an average, and feature couches and video game stations to encourage customers to shop for extended periods. The company’s stores are strategically located near busy areas of the mall, such as food courts, movie theatres, music/game stores and other popular teenage hang-out destinations.
The company will announce its fourth-quarter and fiscal 2010 year-end financial results on Thursday, March 10, 2011. Management in its third-quarter 2010 results provided earnings guidance in the range of 43 cents and 47 cents for fourth-quarter 2010. The Zacks Consensus Estimate for fourth-quarter 2010 earnings is 47 cents per share. For full-year 2010 and 2011, the Zacks Consensus Estimates are 87 cents and $1.04 per share, respectively.
Zumiez, which competes with Pacific Sunwear of California Inc. (PSUN) and Wet Seal Inc. (WTSLA), currently, holds a Zacks #3 Rank, implying a short-term ‘Hold’ rating on the stock. Besides, the company retains a long-term ‘Neutral’ recommendation on the stock.
HOT TOPIC INC (HOTT): Free Stock Analysis Report
PAC SUNWEAR CAL (PSUN): Free Stock Analysis Report
WET SEAL INC -A (WTSLA): Free Stock Analysis Report
ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
Zacks Investment Research
