Zumiez Falls Sharply on Missed Guidance

By Chris Lange Updated Jan 13, 4:28PM EST · Published Dec 4, 11:05AM EST

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Zumiez Falls Sharply on Missed Guidance — © Thinkstock

Zumiez Inc. (NASDAQ: ZUMZ) reported its fiscal third-quarter financial results before the markets opened on Friday. The company had $0.36 in earnings per share (EPS) on $204.3 million in revenue, compared to the consensus estimates that call for $0.29 in EPS on $203.5 million in revenue. The same period from the previous year had $0.54 in EPS on $213.3 million in revenue.

In terms of guidance, the company expects EPS in the range of $0.40 to $0.46 and net sales in the range of $226 million to $231 million. Consensus estimates call for $0.63 in EPS on $254.66 million in revenue.

During the quarter, Zumiez repurchased 0.7 million shares for roughly $16.7 million. So far in 2015, the company has purchased 3.0 million shares for a total $77.7 million. The board of directors authorized the repurchase of up to an additional $70 million of common stock.

Rick Brooks, CEO of Zumiez, commented on earnings:

We’ve moved quickly to reduce expenses to protect profitability in the face of challenging sales trends, which helped us exceed our bottom line guidance for the third quarter. With the fourth quarter off to a slow start combined with tougher sales comparisons ahead, we believe it’s prudent to maintain a cautious outlook for the remainder of fiscal 2015 and we are focused on managing expenses and inventory levels during this difficult time. Long-term we remain confident that the strategic course we have set for the company will deliver increased shareholder value in the years ahead.

On the books, cash, equivalents and marketable securities totaled $51.1 million, compared to $108.7 million in the same period from the previous year.

Shares of Zumiez were down 4.4% at $13.29 Friday, with a consensus analyst price target of $19.75 and a new 52-week trading range of $11.53 to $41.81.
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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.