Zumiez Inc. (ZUMZ), a U.S. Specialty retailer with focus on teenage action-sports based merchandise, came up with strong comparable store sales (comps) and sales results for the four-week period ended April 28, 2012.
Zumiez’s April 2012 comps rose 10.1% compared with April 2011 comps increase of 17.5%. Net sales for the period jumped 19.8% to $38.4 million from $32.0 million reported in the four weeks ended April 30, 2011.
First-quarter 2012 comps at Zumiez were up 12.9% compared with an increase of 12.6% reported in the year-ago quarter.
Quarterly results of the mall-based specialty retailer have been consistently outperforming the Zacks Consensus Estimate with the average surprise for the last four quarters standing at 67.9%. Zumiez posted solid results in the last quarter (fourth quarter 2011) on the back of strong merchandising, new store opening and e-commerce strategies along with improved margins.
Quarterly earnings of 60 cents per share beat the Zacks Consensus Estimate of 59 cents and surged 22.4% from the prior-period level of 49 cents.
Net sales in the reported quarter climbed 17.7% year over year to $183.9 million, surpassing the Zacks Consensus Estimate of $182 million. Comparable store sales rose 9.7% in the quarter compared with an increase of 13.0% in fourth-quarter 2010.
Zumeiz is scheduled to release its first-quarter 2012 financial results on Thursday, May 17, 2012.
Everett, Washington-based Zumiez 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. The company competes head-to-head with Hot Topic Inc. (HOTT) and Pacific Sunwear of California Inc. (PSUN).
Zumiez's stores span across 2,900 square feet on an average, and offers 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. As of April 28, 2012, the company operated 444 stores in the United States and 11 stores in Canada.
Currently, Zumiez holds a Zacks #1 Rank, implying a short-term Strong Buy rating on the stock. We retain our long-term Outperform recommendation on the stock.
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