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Zumiez shares soar after March revenue report

The Associated Press

Shares of Zumiez Inc. soared Thursday, a day after the action-sports clothing and equipment retailer reported March revenue that came in better than analysts expected.

THE SPARK: The Lynwood, Wash., company said late Wednesday its revenue from stores open at least a year increased 2.1 percent. That is considered a key measure of a retailer's financial performance as it strips away the impact of recently opened or closed sites.

It trumped the 7.5 percent decline that analysts polled by FactSet had anticipated for the company.

Total revenue for the five-week period that ended April 6 increased nearly 20 percent to $61 million.

THE BIG PICTURE: Zumiez said it benefited from higher prices and more items sold during the month. It saw improved sales in its juniors and hard goods departments, while sales in its juniors, boys, men, accessories and footwear departments were softer.

The company runs 502 stores in North America and Europe under the Zumiez and Blue Tomato banners.

THE ANALYSIS: Roth Capital Partners analyst Dave King said in a research note he expected a 6 percent decline in revenue from stores open at least a year. The analyst attributed the performance in part to more dollars per transaction and a shift to spring merchandise, given that lackluster winter goods sales had been weighing on comparisons.

SHARE ACTION: Shares started climbing after markets closed on Wednesday. The stock then rose more than 15 percent, or $3.89, to $28.79 by Thursday afternoon while broader trading indexes were nearly flat.

The company's stock price has jumped 48 percent since closing 2012 at $19.41.