Why Zumiez Earnings Are So Great
Zumiez shares were up sharply since it reported its fiscal second-quarter financial results after the markets closed Thursday.
When Zumiez Inc. (NASDAQ: ZUMZ) reported its fiscal second-quarter financial results late Thursday, the retailer said that it had a net loss of $0.02 per share and $192.2 million in revenue. That compared with consensus estimates of a net loss of $0.06 per share and revenue of $190.8 million. In the same period of last year, Zumiez posted a net loss of $0.03 per share and $178.3 million in revenue.
Comparable sales for the quarter increased 4.7% compared to a comparable sales decrease of 4.9% in the fiscal second quarter of last year.
Total net sales for the four-week period ended August 26, 2017, increased 10.1% to $98.6 million, compared to $89.5 million last year. The company’s comparable sales also increased 7.4% in this four-week span.
In terms of the outlook for the fiscal third quarter, management expects EPS in the range of $0.43 to $0.48 and revenues between $236 million and $241 million.
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On the books, Zumiez cash and current marketable securities totaled $70.7 million at the end of the quarter, compared to $52.3 million in the same period of last year.
Rick Brooks, CEO of Zumiez, commented:
Our business outperformed our expectations during the second quarter highlighted by a 4.7% comparable sales increase. I am extremely pleased with how well our teams continue to execute in the current environment. Our intense focus on serving our consumer with differentiated assortments and great service is fueling market share gains and strengthening our leadership position in the industry. We will continue to invest in our people and omni-channel capabilities while tightly controlling expenses as we look to consistently drive profitable growth and increased shareholder value over the long-term.
Shares of Zumiez were last seen up 20% at $15.85, with a consensus analyst price target of $15.40 and a 52-week range of $11.43 to $26.55
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
