Zumiez Q3 Profit Down, Outlook Weak, Shares Fall 13%

(RTTNews) - Sports apparel retailer Zumiez Inc. (ZUMZ), Thursday said its third-quarter profit declined, hurt largely by lower same-store sales and weak margins. Moving ahead, the company detailed a poor outlook for the fourth quarter, sending its shares plunging 13 percent in after-hours trade on the Nasdaq.

Lynnwood, Washington-based Zumiez's third-quarter profit dropped to $9.7 million or $0.36 per share from $15.7 million or $0.54 per share last year.

On average, 16 analysts polled by Thomson Reuters expected earnings of $0.29 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter were $204.3 million, down 4.2 percent from $213.3 million last year. Analysts had a consensus revenue estimate $204.03 million for the quarter.

Comparable sales decreased 7.3 percent compared with a comparable sales increase of 3.7 percent last year.

Gross margins declined to 34.3 percent from 36.5 percent last year.

Chief Executive Rick Brooks said, " 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."

Looking forward, the company expects earnings of about $0.40 to $0.46 per share on sales of $226 million to $231 million. Analysts currently expect earnings of $0.63 per share on revenues of $254.66 million for the quarter.

Zumiez expects fourth-quarter same-store sales to decrease 14 to 16 percent.

ZUMZ closed Thursday's trading at $13.90, down $1.04 or 6.96% on the Nasdaq. The stock further dropped $1.90 or 13.67%, in the after-hours trade.