Stock Earnings Roundup: Zumiez, Inc. (NASDAQ:ZUMZ)

Zumiez, Inc. (NASDAQ:ZUMZ) reported earnings for the three months ended April 2016 on June 02, 2016. The company earned $-0.08 per share on revenue of $172.97M. Analysts had been modeling earning per share of $-0.11 with $172.42M in revenue.

Zumiez, Inc. (NASDAQ:ZUMZ) reported results for the first quarter ended April 30, 2016.

Total net sales for the first quarter ended April 30, 2016 (13 weeks) decreased 2.6% to $173.0 million from $177.6 million in the first quarter ended May 2, 2015 (13 weeks). Comparable sales for the thirteen weeks ended April 30, 2016 decreased 7.5% compared to a comparable sales increase of 3.0% in the first quarter of 2015. Net loss in the first quarter of fiscal 2016 was $2.1 million, or ($0.08) per diluted share, compared to net income of $2.8 million, or $0.09 per diluted share, in the first quarter of the prior fiscal year. The results for the first quarter of 2015 include approximately $1.1 million, or $0.03 per diluted share, for charges associated with the acquisition of Blue Tomato.

At April 30, 2016, the Company had cash and current marketable securities of $62.1 million, compared to cash and current marketable securities of $150.9 million at May 2, 2015. The decrease in cash and current marketable securities is primarily a result of stock repurchases and capital expenditures, partially offset by cash generated through operations.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “While our monthly comparable sales trends improved as the quarter progressed, the quarter was more challenging than expected. We did experience pockets of strength within our merchandise assortments, however it wasn’t enough to offset the general weakness in consumer demand for our major categories. During this period of instability for the retail industry, we are taking actions aimed at preserving near-term profitability while continuing to make the necessary investments in the business to best position the company for future success. We remain confident that we have the right strategies in place to capitalize on the domestic and international growth opportunities that lie ahead and return greater value to our shareholders over the long-term.”

Fiscal 2016 Second Quarter Outlook
The Company is introducing guidance for the three months ending July 30, 2016. Net sales are projected to be in the range of $172 to $176 million resulting in net loss per diluted share of approximately -$0.09 to -$0.13. This guidance is based on an anticipated comparable sales decrease in the 6% to 8% range for the second quarter of fiscal 2016. The Company currently intends to open approximately 29 new stores in fiscal 2016, including up to 6 stores in Canada and 7 stores in Europe.

Zumiez, Inc. earnings per share showed a decreasing trend of -29.5% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 96%.Analysts project EPS decline over the next 5 years at -1.67%. It has EPS annual growth over the past 5 fiscal years of 5.8% when sales grew 10.9. It reported -2.6% sales drop, and -190.3% EPS decline in the last quarter.

The stock is trading at $14.86, up 28.88% from 52-week low of $11.53. The stock trades down -48.3% from its peak of $28.12 and % below the consensus price target of $14.3. Its volume clocked up at 0.36 million shares which is lower than the average volume of 0.46 million shares. Its market capitalization currently stands at $377.07M.

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