Zumiez's April Comps Surge - Analyst Blog
May 09 2013 - 5:40AM
Zacks
Wash.-based retailer of sports-related teen apparel,
Zumiez Inc. (ZUMZ) reported a 4.6% increase in
comps for the 4-weeks ended May 4, 2013. This compares to a comps
rise of 10.1% reported for the 4-weeks ended Apr 28, 2012. Net
sales for April surged 12.1% to $43.0 million from $38.4 million
reported in the year-ago period.
Last month, Zumiez reported a 2.1% increase in comps for the
5-weeks ended Apr 6, 2013. This compares to a comps increase of
14.1% reported for the 5-weeks ended Mar 31, 2012. Net sales for
March surged 19.7% to $61.0 million from $50.9 million reported in
the year-ago period.
Further, this Zacks Rank #3 (Hold) company reported solid
fourth-quarter fiscal 2012 adjusted earnings of 75 cents per share
on Mar 15, surpassing the Zacks Consensus Estimate of 73 cents.
Bottom-line results benefited from the successful execution of the
growth strategies outlined at the onset of fiscal 2012 and
contributions from the Blue Tomato operations.
Net sales increased 22.1% to $224.4 million from $183.9 million in
the comparable year-ago quarter. Quarterly sales were above the
Zacks Consensus Estimate of $222.0 million. However, comps dipped
1.0% mainly due to a decline in comparable store transactions,
offset by an increase in dollars per unit.
Further, the company anticipates first-quarter fiscal 2013 earnings
in the range of 4 cents – 7 cents per share. The current Zacks
Consensus Estimate is pegged at 9 cents per share, above the
company’s guidance range.
Management anticipates first-quarter revenues in the range of
$141–$144 million, while comps are likely to decline in the
mid-single-digit range.
We believe that the company’s well-balanced store expansion and
e-Commerce strategies will drive its top line further. Treading on
the footsteps of its competitors such as Abercrombie &
Fitch Company (ANF) and Foot Locker Inc.
(FL), Zumiez is targeting to augment its store network to 600–700
stores in the long run.
The company plans to expand its store base by opening 60 new stores
in fiscal 2013, comprising up to 10 stores in Canada and 6 in
Europe. As of May 4, 2013, the company operated 505 stores,
including 475 in the United States, 22 in Canada and 8 in
Europe.
Dealing in action sports-related apparel, footwear, equipment and
accessories, Zumiez, which competes primarily with Hot
Topic Inc. (HOTT), 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 Report
HOT TOPIC INC (HOTT): Free Stock Analysis Report
ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
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