Zumiez shares drop as earnings outlook disappoints
LYNNWOOD, Wash. (AP) — Shares of Zumiez Inc. plummeted in afterhours trading Thursday after the specialty sports equipment retailer reported lower fiscal second-quarter earnings and forecast third-quarter profit below Wall Street expectations.
Net income slipped to $2.1 million, or 7 cents per share, from $2.6 million, or 8 cents per share, in the previous quarter. Earnings in the recent quarter include 10 cents per share in acquisition costs and expenses related to relocating the company's ecommerce fulfillment center and corporate offices.
Total sales increased 20 percent to $135.1 million. Selling and other administrative expenses rose to account for nearly 32 percent of sales.
Analysts polled by FactSet expected a profit of 13 cents per share on sales of $134.9 million.
Zumiez estimated earnings of 42 to 45 cents per share in the current quarter on sales of $181 million to $185 million. Analysts forecast profit of 56 cents per share on sales of $183 million.
Zumiez, based in Lynwood, Wash., operates 486 stores, focusing on sportswear for skateboarding, snowboarding, surfing and mountain biking. The company plans to open about 50 new stores in fiscal 2012, including as many as 10 in Canada.
Zumiez shares plunged $4.47, or 13.9 percent, to $27.75 in afterhours trading. They rose 65 cents to close at $32.22 in the regular session.