Zumiez (ZUMZ) Stock Pummeled on Guidance
Shares of Zumiez Inc. (ZUMZ) were trading down -3.39 or -11.40 percent to $26.35 per share in Friday's premarket after the company announced earnings late yesterday. While earnings were in line with analyst expectations, the company issued weak second quarter guidance numbers. Zumiez Inc. stock closed at $29.74, down -0.16 or -0.54 percent in Thursday's regular trading session.
Founded in 1978, Lynnwood, Washington based Zumiez Inc. is a specialty retailer specializing in action sports apparel and equipment.
Zumiez reported net income for its fiscal first quarter ending on May 2nd, 2015 of $2.8 million or $0.12 per diluted share. Revenue came to $177.6 million. The analyst consensus was for the company to report earnings of $0.12 per share on revenue of $177.0 million.
The company reported comparable store sales for the first quarter increased +3.0 percent versus an increase of +1.8 percent in the same period one year ago. Net income for the first quarter came to $2.8 million or $0.09 per diluted share, compared to net income of $2.5 million or $0.09 per share for the first quarter of 2014.
The results for the first quarter of 2015 include costs of approximately $1.1 million, or $0.03 per diluted share, for charges associated with the takeover. 2014's first quarter included approximately $0.6 million, or $0.01 per diluted share, for charges associated with the acquisition of Blue Tomato.
The company also reported sales for the four week period ending on May 30th, 2015 which came to $51.5 million versus $49.5 million in the same period one year ago. Comparable store sales fell -2.2 percent in the month compared to an increase of +3.6 percent for the period ending on May 30th, 2014.
Rick Brooks, the company's Chief Executive Officer stated in a press release that, "We delivered first quarter results that were in-line with our expectations. While the pace of our domestic business slowed more than anticipated in April, this was offset by strong sales gains in Europe where growth momentum continues. Overall, we remain confident that our omnichannel strategy, authentic lifestyle positioning, and commitment to customer service provide us with strong competitive advantages that will deliver increased profitability and greater shareholder value over the long-term."
Zumiez guidance for second quarter results came to $0.12 to $0.15 per share on revenue of between $179 and $183 million. The analyst consensus was for the company to issue guidance of $0.30 per share on revenue of $193.7 million.
The company's stock is already down significantly and began selling off in yesterday's aftermarket. Shares will open below the stocks 52 week low of $26.56 this morning. Zumiez stock has declined significantly since trading above $40 per share in early March of this year.
Other News About ZUMZ
Zumiez Submission of Matters to a Vote of Security Holders
Company elected two directors to serve a three year term until 2018.
Zumiez Announces June Conference Schedule
Company will have presentations at two conferences this month, one in Chicago and one in New York City.
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