×
228
Fashion Jobs
SMART SOURCE
Buyer & Merchandiser With a Top Brand-Mumbai
Permanent · Mumbai
MURUGAPPA GROUP
Area Sales Manager - Commercial Vehicle
Permanent · Ahmedabad
CREATIVE SOLUTIONS
Mechanical Production Manager Sheet Metal Industry (1 - 6yrs)
Permanent · Chennai
H&M
Content Production Manager
Permanent · NEW DELHI
CAPITAL PLACEMENT SERVICES
Production Manager For Agrochemical Industry in Saykha,Gujarat
Permanent · Bharuch
ADITYA SAMRAJ NATURAL FOODS PVT. LTD.
Area Sales Manager / Regional Sales Manager
Permanent · Ambala
AIRTEL
Area Manager
Permanent · Kanchipuram
ADIDAS
Senior Tech Project Manager
Permanent · GURUGRAM
CORPORATE MANPOWER
Requirement - Operations Manager
Permanent · Kolkata
DR LAL PATHLABS
Area Sales Manager - Vijayawada
Permanent · Vijayawada
SNAPSEAARCH
sr Production Manager For Hyderabad _api
Permanent · Hyderabad
ALLEGIS GROUP
Opening For Sales Manager - Chennai
Permanent · Chennai
GOODWEAR FASHIONS
Fresh Trainee Customer Service
Permanent · NEW DELHI
SV MANAGEMENT CONSULTANTS
dy. Manager/ Shift in Charge - Production - Indore
Permanent · Indore
UNISON INTERNATIONAL CONSULTING
Garment Technician
Permanent · National Capital Region
WAYCOOL FOODS AND PRODUCTS
Area Sales Manager/ Sales Officer
Permanent · Chennai
VAMSHA RETAIL VENTURES
Foor Manager - Retail Garment Showroom
Permanent · Mayiladuthurai
VAMSHA RETAIL VENTURES
Branch Manager - Retail Garment Showroom
Permanent · Mayiladuthurai
HERITAGE FOODS
Required Area Sales Manager - Vijayawada @ Heritage Foods Ltd
Permanent · Vijayawada
RASHMI GROUP MUMBAI
Sales Managers/ Executives (Real Estate) Location: Vasai
Permanent · Mumbai
DTDC EXPRESS
Sales Manager
Permanent · National Capital Region
RJCUBE STAFFING SOLUTIONS
Senior Garment Technician For Buying House, Noida Sector 59
Permanent · Noida
By
Reuters
Published
Aug 5, 2010
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Zumiez July same-store sales beat, Hot Topic misses

By
Reuters
Published
Aug 5, 2010

BANGALORE, Aug 4 (Reuters) - Teen apparel retailer Zumiez Inc's (ZUMZ.O) July same-store sales topped estimates, while that of Hot Topic Inc (HOTT.O) fell short of analysts' expectations as it sold fewer higher-ticket items and increased promotional spending.

zumiez


Zumiez, which sells clothing and equipment for skaters, snowboarders and the like, saw robust sales for its accessories, footwear and at its men's and boy's categories, the company said on a pre-recorded call.

Warmer weather also helped drive more traffic to Zumiez stores, but a boost from the crucial back-to-school shopping season will only be seen in August, Wedbush Securities analyst Betty Chen said.

U.S. consumers are expected to delay back-to-school shopping into August this year as well in the hopes of finding good bargains, which could hurt July numbers for a lot of other teen apparel retailers that are slated to report comparable sales on Thursday.

"(The hot weather) drove a little bit more of mall traffic and compelled people to buy some wear-now clothes -- like T-shirts and shorts, especially since a lot of these items were on sale," Chen added.

Same-store sales rose 9.4 percent in July, compared with analysts' estimate of an increase of 8.5 percent, according to Thomson Reuters Data.
Total July sales at Zumiez jumped 15 percent, prompting the company to raise its second-quarter outlook.

Zumiez now sees a quarterly loss in the range of 2 cents a share to 3 cents a share, up from its previous expectation of a loss of between 7 cents a share and 10 cents a share.

Bundling promotions -- where consumers get a discount for purchasing a specific number of units from a designated category -- also lifted July same-store sales at Zumiez, MKM Partners analyst Linda Tsai said. But Zumiez's bundling promotions, a major business driver till now, could be pressured with other retailers raising the bar on their promotional offers, Wedbush analyst Chen said.

The Thomson Reuters Same-Store Sales Index is expected to post a 3.1 percent rise in July 2010 comparable sales, reversing last year's fall of 5.1 percent, and making July the 11th straight month of improving sales.

However, Hot Topic failed to live up to expectations, posting a 9 percent drop in same-store sales, much wider than analysts' estimate of a 2.6 percent fall.

Citing lower-than-expected sales, the retailer also forecast a loss of 14 cents a share for the second quarter.

On a pre-recorded call, the company said sales for accessories and fashion apparel slumped 9 percent and 24 percent respectively in July.

Comparable sales at its Torrid stores fell 7.2 percent.

Hot Topic continues to expect consolidated inventory to be down in the low single digit percentage range at the end of this quarter, the company said on the call.

The company, which sells rock 'n' roll-inspired apparel and accessories, was a great success last year when it began selling "Twilight" related merchandise.

However, as the movie gained popularity, other retailers have done the same, eating into Hot Topic's exclusivity, and with time, the unique-quotient has died down.

Hot Topic shares were down at $5.04 in trading after the bell, while Zumiez shares were down slightly at $17.84 Wednesday on Nasdaq.

(Reporting by Shradhha Sharma and Nivedita Bhattacharjee in Bangalore; Editing by Roshni Menon)

© Thomson Reuters 2023 All rights reserved.