Zumiez reports weaker sales trends in 3Q
LYNNWOOD, Wash. (AP) — Zumiez Inc.'s shares fell 7 percent in after-hours trading Thursday after the action-sports retailer reported weaker sales trends and issued a disappointing forecast.
The company said that its back-to-school sales and sales in Europe were softer in the fiscal third quarter. It also forecast that its key sales trends will fall in the current quarter due to the impact of Superstorm Sandy.
Zumiez reported net income of $12.7 million, or 40 cents per share, for the period that ended Oct. 29. This is down from $14.1 million, or 45 cents per share, in the third quarter of the prior year. The most recent quarter included 10 cents per share in costs tied to its acquisition of Blue Tomato and 1 cent per share of costs tied with its relocation of its corporate offices to Lynnwood, Wash.
Zumiez's total revenue increased 17 percent to $180 million. The company said that its revenue from stores open at least a year increased 3.7 percent for the quarter. This is considered a key measure as it strips away the impact of recently opened or closed stores.
Analysts polled by FactSet were expecting the company to earn 49 cents per share, excluding one-time items, on revenue of $180.2 million.
Zumiez said that revenue from its established stores fell 4.2 percent in November due to the impact of Superstorm Sandy but it was encouraged by brisk business over the Black Friday weekend. Total revenue for the four-week period increased 14.3 percent to $53.6 million.
The company said that it expects to earn between 59 and 62 cents per share for the fourth quarter on revenue in the range of $218 million to $221 million. The forecast includes about $3 million, or 8 cents per share, tied to the acquisition of Blue Tomato.
Analysts were expecting the company to earn an adjusted 71 cents per share on revenue $222.9 million.
Zumiez operates 502 stores in the U.S., Canada and Europe under its namesake brand or Blue Tomato.
Shares fell $1.52 to $19.23 in after-hours trading. Its stock lost 35 cents to close regular trading at $20.75.