Zumiez Inc. | $ZUMZ Stock | Shares Fall as Company Posts Q1 Loss


Zumiez Inc. (NASDAQ: ZUMZ)


Zumiez Inc. (ZUMZ), a specialty retailer of apparel, footwear, accessories and hardgoods company yesterday reported their first quarter fiscal 2017 financial results. Zumiez reported a first quarter loss of $4.4 million.

Zumiez reported first quarter earnings of loss of $0.18 per share which beat analyst expectations of a loss of  $0.20 per share. Zumiez reported first quarter revenues of $181.2 million which beat analyst expectations of $179.4 million.


Zumiez Inc. CEO’s  Comments

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “The combination of our authentic brand positioning, on-trend merchandise assortments, engaging sales experiences and advanced omni-channel capabilities contributed to first quarter comparable sales that were towards the high-end of our guidance range. Our teams are doing a good job striking a balance between achieving near-term targets in a challenging retail environment and executing strategies that are laying the foundation for long-term profitable growth. I am confident we are on the right course to grow both sales and earnings to generate value for our shareholders.”  Market Wired


ZUMZ Technical Analysis

ZUMZ opened trading yesterday at $14.20 which was down from the previous day’s trading close of $14.25. ZUMZ closed trading yesterday at $14.45 and crashed down after market to $13.30, equivalent to a 8% decrease from the closing price. Taking a look at the daily chart we can see the last time ZUMZ traded below these levels we have to go all the way back to the month of January 2010, when it traded at $12.73.

Taking a closer look at the daily chart we can see that before the spike down ZUMZ had already been in an overall downward trend dating back to December 8th, 2016 when it traded at $25.95. ZUMZ has a float of 18.12 million shares and traded 1.63 times the normal daily trading volume on Thursday.

For day trading purposes, I would like to see ZUMZ open trading on Friday below $13.65 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


Company Profile

Zumiez Inc., incorporated on April 6, 2005, including its subsidiaries, is a specialty retailer of apparel, footwear, accessories and hardgoods for young men and women through the fashion, music, art and culture of action sports, streetwear and other lifestyles. The Company operates under the names Zumiez, Blue Tomato and Fast Times. Additionally, it operates e-commerce Websites at www.zumiez.com, www.blue-tomato.com and www.fasttimes.com.au.

It offers various categories of shoes, such as skate shoes, casual shoes, high tops, sandals, slip ons, runners, boots and shoe accessories, such as socks. It also offers flannels, baseball tees, hoodies, baseball hats, windbreakers, shirts, jackets, jerseys, sweaters and tanks, among others. For women, it offers t-shirts, tank tops, hoodies and sweatshirts, cardigans, jackets, skirts, jeans, joggers, leggings and dresses, among others.

The Company provides various accessories, including watches, sunglasses, bracelets, earrings, rings, beanies, hats, belts, wallets, phone accessories, Bluetooth speakers, magazines, headphones, grooming, hair and beauty, purses, bags, backpacks, pillows, blankets, toys, gloves and scarves. As of January 28, 2017, the Company had operated 685 stores; 603 in the United States, 48 in Canada, 29 in Europe and five in Australia. The Company owns Snowboard Dachstein Tauern GmbH and Blue Tomato Graz Handel GmbH (collectively, Blue Tomato).

Blue Tomato is a European specialty retailer of apparel, footwear, accessories and hardgoods. In addition, the Company supplements its merchandise mix with a select offering of private label apparel and products. The Company imports merchandise from foreign countries.  Reuters