Zumiez (ZUMZ) Stock | Zooms Lower on Earnings Guidance

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Zumiez,Inc. (NASDAQ: ZUMZ)

 

On Thursday, September 10th 2015, shares of Zumiez, Inc,  the widely popular company that manufactures and sells everything that lets a consumer “zoom” in their leisure time; think skateboards,surfboards, snowboards, motocross, BMX, as well as apparel and footwear fell nearly 21% in afterhours trading. The drop wasn’t primarily due to current earnings, but more of a reaction to the forward earnings expectations the company forecasted for their upcoming Quarter as sales are seen to be extremely soft when they next report.

During the regular trading session, shares were down 3% at $21.66 and fell to close at $17.26, or down -20.31% at 8 P.M., the close of aftermarket trading. Since the beginning of this year, shares are down roughly 44% from a high of $41.81.

 

The Raw Numbers

The company reported earnings of $0.12 a share for the fiscal second quarter, which was in line with analysts’ estimates. Revenue grew 1.8% year over year to $179.82 million for the quarter, compared to analysts’ estimates of $180 million. They expect to report earnings of $0.27 to $0.31 a share and revenue of $202 million to $206 million for the fiscal third quarter while analysts had expected the company to report earnings of $0.53 a share and revenue of $224.7 million for the third quarter.

 

ZUMZ Technical Analysis

ZUMZWarrior

The daily price chart displays the recent price action while the red trend lineshave grown steeper on a downward angle indicating that Zumiez has been underperforming for investors since the beginning of the year. We will have to update this chart as we go forward to see if new, more aggressive angled trend has begun for shares of Zumiez.

 

CEO Comments

During a conference Call discussion,  CEO Rick Brooks  said,

“We remain confident that our strategic course continues to provide us with compelling opportunities to grow our business and return greater value to our shareholders over the long-term. That said we are disappointed in our recent performance which reflects a slowdown in domestic sales. The response to our merchandise offering fell short of expectations, requiring us to become more promotional than planned to clear slow moving inventory ahead of the back-to-school selling season. We are working hard to quickly address the lack of trend right fashion in our U.S. channels. On a more positive note, the momentum in our European business continues to be strong, reinforcing our confidence in the long-term prospects of this market.”

 

Company Profile

Zumiez Inc. operates as a multi-channel specialty retailer of apparel, footwear, accessories and hardgoods. The company’s stores focuses on the skateboarding, snowboarding, surfing, motocross, and bicycle motocross for young men and women. Its hardgoods include skateboards, snowboards, bindings, components, and other equipment. As of May 30, 2015, the company operated 627 stores, including 567 in the United States, 38 in Canada, and 22 in Europe under the names Zumiez and Blue Tomato; and www.zumiez.com and www.blue-tomato.com ecommerce websites. Zumiez Inc. was founded in 1978 and is headquartered in Lynnwood, Washington. Yahoo! Finance

 

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