Aug 21, 2008
Zumiez Q2 profit beats estimates; cuts '08 view
Aug 21, 2008
Aug 21 (Reuters) - Snowboarding gear retailer Zumiez Inc posted a better-than-expected quarterly profit, but lowered its fiscal 2008 outlook citing a challenging macro environment, sending its shares down as much as 8 percent.
The retailer of action-sports-related apparel, footwear, equipment and accessories said it now expects earnings of about 80 cents to 82 cents a share for fiscal 2008.
It had earlier forecast a profit of about 90 cents to 93 cents a share.
In a conference call with analysts, Zumiez said it cut its sales outlook for the year to between $418 million and $425 million, from its prior view of $430 million to $445 million.
For the second quarter ended Aug. 2, the company, which sells popular youth brands like Billabong, Burton, Hurley and Quiksilver, earned $2.7 million, or 9 cents a share. It reported a profit of $3.1 million, or 11 cents a share, a year earlier.
The mall-based retailer, which caters to young men and women between ages 12 and 24 years, said sales rose 12.5 percent to $92.3 million. However, sales at stores open at least a year fell 1.7 percent in the quarter.
Analysts on average had expected earnings of 7 cents a share, before special items, on revenue of $92.6 million, according to Reuters Estimates.
Zumiez, whose rivals include Pacific Sunwear of California Inc and Hot Topic Inc , said it expects third quarter same-store sales to fall in the mid-single digit range. For the fourth quarter, it sees same-store sales to decline in the low single-digit range.
Shares of the Everett, Washington-based company fell to a low of $12.10 in trading after the bell. They pared some of the losses and were down 50 cents at $12.60.
The shares closed at $13.19 in regular trading Thursday on Nasdaq. (Reporting by Dilipp S. Nag in Bangalore; Editing by Anil D'Silva, Gopakumar Warrier)
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