Zumiez Inc. (NASDAQ:ZUMZ), a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women company yesterday reported their second quarter fiscal 2016 financial results. Zumiez reported second quarter earnings of a loss of $0.03 per share which beat analyst expectations of a loss of $0.08 per share. Zumiez reported second quarter revenues of $178.3 million which beat analyst expectations of $178.1 million. Zumiez projects for the current quarter for revenues to be in between $209 and $213 million which is beat analyst projections of $205.8 million.
Zumiez Inc. CEO’s Comments
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We continue to navigate through the current retail environment with a balanced approach to executing our strategic growth objectives and protecting near-term profitability in the face of challenging consumer demand. While our monthly comparable sales improved as the quarter progressed led by solid gains in our men’s category, our overall business continues to underperform versus our long-term expectations. Therefore, we continue to manage our expense structure to better align with current trends, which is what allowed us to exceed our bottom line guidance for the quarter. We are confident that we are making the right decisions that will allow us to best serve our customers and expand our global market share while delivering sustained growth and increased shareholder value well into the future.” Market Wired
ZUMZ Technical Analysis
ZUMZ opened trading yesterday at $16.73 which was up from the previous days trading of $16.61. ZUMZ closed trading yesterday at $16.61 and spiked up after market to $17.50, equivalent to a 5% increase from the closing price. Taking a look at the daily chart we can see the last time ZUMZ traded above these levels we have to go back to August 1st when it traded at $17.56. Taking a closer look at the daily chart we can see that ZUMZ has been in an overall upward trend dating back to July 5th when it traded at $13.90. ZUMZ has a float of 17.45 million shares and traded 1.45 times the normal daily trading volume on Thursday. For trading purposes, I would like to see ZUMZ open trading on Friday above $17.20 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Zumiez Inc. operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. Its hardgoods include skateboards, snowboards, bindings, components, and other equipment. As of April 30, 2016, the company operated 663 stores, including 596 in the United States, 43 in Canada, and 24 in Europe under the names Zumiez and Blue Tomato; and zumiez.com and blue-tomato.com ecommerce Websites. Zumiez Inc. was founded in 1978 and is headquartered in Lynnwood, Washington.