Zumiez Inc. ZUMZ reported a 5.5% improvement in comparable-store sales (comps) for the five-week period ended Apr 4, 2015, compared with a 2.9% dip recorded for the same period last year.
This Washington-based, sports-related teen apparel retailer’s net sales for March soared 11.1% to $70.7 million from the year-ago period.
Zumiez has posted positive comps throughout the trailing 12 months. The company reported a 12.3% and 6.9% rise in comps for the months of January and February 2015, respectively.
We believe that Zumiez’s constant focus on boosting productivity at existing stores, developing a leading omni-channel platform and enhancing its presence, both domestically and overseas, has resulted in an encouraging comps trend.
Recently, Zumiez reported fourth-quarter fiscal 2014 results, wherein adjusted earnings per share of 80 cents came in line with the Zacks Consensus Estimate, while rising 23.1% year over year. Net sales advanced 14% year over year to $258.6 million, beating the Zacks Consensus Estimate of $257 million, driven by better-than-expected comps.
The company is focusing on investment towards global expansion, enhancement of omni-channel capacities and customer-centric approach. Zumiez believes that with constant focus on these strategies it can deliver continued bottom-line growth and boost shareholder value in the future.
Following a strong fiscal 2014, Zumiez initiated its outlook for the first quarter of fiscal 2015. Management envisions net sales for the quarter to range from $176–$178 million, while comps are anticipated to grow in the range of 3–4% over the same time period.
Consequently, the company expects earnings per share for first-quarter fiscal 2015 in the band of 8–10 cents. This projection includes an expected 3 cents per share impact from charges related to the Blue Tomato acquisition.
Hence, adjusted earnings per share for the quarter are expected to range from 11–13 cents. The current Zacks Consensus Estimate is pegged at 13 cents.
Zumiez currently carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks in the industry include Citi Trends, Inc. CTRN, Express Inc. EXPR and American Eagle Outfitters, Inc. AEO. Wile Citi Trends and Express Inc. sport a Zacks Rank #1 (Strong Buy), American Eagle carries a Zacks Rank #2 (Buy).
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