Zumiez Inc. (NasdaqGS:ZUMZ - News), an action sports retailer in the United States, reported comparable store sales for the four-week period ended July 30, 2011. Total net sales for the period increased by a sharp 12.3% to $38.7 million from $34.4 million reported in the four-week period ended July 31, 2010.
For the reported period, comparable store sales inched up 4.9% compared with a rise of 9.4% in the prior-year period. The July results marked the 20th consecutive month of comparable store sales growth.
Prior to this, Zumiez reported first-quarter 2011 earnings of 6 cents a share, beating the Zacks Consensus Estimate of 2 cents a share. The company also outpaced a loss of 3 cents a share posted in the first quarter of fiscal 2010. Net income from operations was $1.9 million compared with a loss of $0.7 million in the prior-year quarter.
Net sales in the reported quarter climbed 18.8% year over year to $105.9 million from $89.1 million a year ago. Comparable store sales rose 12.6% in the quarter compared with an increase of 9.1% in first-quarter 2010. Total revenue also beats the Zacks Consensus Estimate of $101.0 million.
For the second quarter of 2011, management expects comparable store sales to increase in the mid-single-digit range and net income to be in the range of 2 to 4 cents per share.
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 seeks 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 entice customers to shop for extended periods. These 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.
Zumiez, which competes with Pacific Sunwear of California Inc. (NasdaqGS:PSUN - News) and Wet Seal Inc. (NasdaqGS:WTSLA - News), currently, holds a Zacks #2 Rank, implying a short-term Buy rating on the stock. This corresponds with our long-term 'Neutral' recommendation on the stock.
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