Zumiez, Inc. Stock Shares Pop 14% On Q1 Earnings Beat

Shares of Zumiez, Inc. (ZUMZ) gained 14.81% to $31.00 before the opening bell on Friday after the company released its quarterly earnings results late Thursday. The Washington-based apparel retailer easily surpassed Wall Street revenue and earnings expectations.

They also announced same-store sales growth of 8.3% on a year-over-year basis and issued a strong guidance for the second-quarter based on the results. 

The stock ended regular trading session on Thursday with a gain of $0.35, or 1.31%. It has risen 30% since the start of the year.

ZUMZ Earnings & Outlook

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Zumiz Stock Chart

The company reported a net loss of $2.6 million, or $0.10 per share in the first quarter ended May 5, 2018. In the same period last year, the company had a net loss of $4.4 million, or $0.18 per share.

Sales were $206.3 million, up 14% from the year-ago figure of $181.2 million. Comparable-store sales grew 8.3%, versus a comparable-store sales growth of 1.8% last year.

Wall Street expected quarterly sales of $199 million and a loss of $0.12 per share, according to Thompson Reuters.

For the second quarter, the company anticipates net income per share of around $0.04 to $0.09. It expects sales in the range of between $213 million and $217 million, and comparable-store sales growth in the range of between 3% and 5%.

Zumiez CEO Comments

Commenting on the results, Zumiez chief executive officer Rick Brooks, said“Our new fiscal year is off to a very good start. The strong top-line momentum we achieved in 2017 accelerated during the first quarter fueled by the strength of our assortments and the seamless shopping experience we’ve created for consumers who interact with our brand.”

Brooks continued, “With comparable sales increasing 8.3%, we generated significant expense leverage and dramatically improved our bottom line performance year-over-year.  We are confident that we are on the right path to further expand our global market share and drive increased value for our customers, our employees, our brand partners, and our shareholders over the long-term.”

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