Zumiez Cuts Q4 Outlook, Shares Fall - Update

(RTTNews) - Sports goods retailer Zumiez Inc. (ZUMZ) Tuesday reported a modest rise in sales for December, and cut its fourth-quarter outlook, citing lower than planned sales as well as merchandise margins. The stock fell over 7 percent in the extended trade.

Total net sales for the five-week period ended January 4 increased 4.2 percent to $125.3 million from $120.3 million in the five-week period ended December 29, 2012.

The company's comparable store sales decreased 2.4 percent, compared to a decrease of 1 percent in the prior-year period.

Based primarily on lower than planned sales quarter-to-date, as well as lower than planned merchandise margins, the company lowered its guidance for fourth-quarter revenue and profit.

The firm now sees net income per share of $0.56 to $0.59, compared to the previous forecast of $0.60 to $0.66.

On average, 19 analysts polled by Thomson Reuters expect earnings of $0.69 per share for the quarter. Analysts' estimates typically exclude special items.

The company now expects sales in the range of $226 million to $229 million, lower than its previous projection of $230 million to $237 million. Wall Street expect revenues of $235.13 million.

Zumiez said this revised guidance is now predicated on a low single digit comparable store sales decrease for the fourth quarter and includes a previously disclosed estimate of $1.7 million, or $0.05 per share for charges associated with the acquisition of Blue Tomato.

ZUMZ fell 1.6 percent on Wednesday to close at $26.18 and declined 7.4 percent in the extended trade.