Nov 20, 2009
Zumiez third quarter beats view, sees fourth quarter below Street
Nov 20, 2009
Nov 19 (Reuters) - Zumiez Inc (ZUMZ.O) posted a quarterly profit that beat market estimates, helped by lower inventory and improving sales trends in its western markets, but forecast a weak fourth quarter.
Hoobie Boomerang Top and Bottom at Zumiez
For the fourth quarter, the skate and snow-boarding inspired retailer sees earnings per share of about 18 cents to 22 cents, on sales of $122 million to $126 million, based on recent sales trends.
Analysts on average were expecting the company to earn 25 cents a share on revenue of $131.1 million, according to Thomson Reuters I/B/E/S.
Zumiez's outlook follows rival Pacific Sunwear of California Inc's (PSUN.O) forecast for a wider-than-expected fourth-quarter loss earlier this week. [ID:nBNG53054]
Zumiez expects same-store sales to fall in the high-to-mid single digit range in the fourth quarter.
For the third quarter ended Oct. 31, the mall-based retailer earned $5.1 million, or 17 cents a share, compared with $6.8 million, or 23 cents a share, a year ago.
Net sales rose marginally to $113.2 million. Same-store sales fell 8 percent.
Analysts expected the company to earn 15 cents a share on revenue of $112.1 million.
Inventory in the quarter fell 6.7 percent, while inventory on a per square foot basis fell 16 percent over the year ago period.
Shares of the Everett, Washington-based company were down 2 percent at $10.90 in trading after the bell. They closed at $11.12 Thursday 19 November on Nasdaq. (Reporting by Abhishek Takle in Bangalore; Editing by Unnikrishnan Nair, Maju Samuel)
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