Zumiez Shares Slump on Quarterly Losses

Some wags on Wall Street are probably chirping about the “other shoe dropping”, for that certainly appears to be what happened Friday to shoe merchant Zumiez Inc. (NASDAQ: ZUMZ).

The Lynnwood, Washington-based company posted upbeat results for its first quarter Thursday, but issued a weak forecast for the current quarter. Zumiez posted a loss of 18 cents per share for the quarter, which was wider than the year-ago loss of eight cents, though it fared better than some estimates for a loss of 20 cents. This could be partly accountable to increased costs, and a challenging retail environment with sluggish store traffic.

Net sales advanced 4.7% year over year to $181.2 million, beating estimates of $179.4 million. The improvement in the top line was mainly attributable to 25 net new store additions since last year and favorable comps.

The Company is introducing guidance for the three months ending July 29 Net sales are projected to be in the range of $185 to $189 million resulting in net loss per diluted share of approximately -$0.06 to -$0.11. This guidance is based on an anticipated comparable sales increase in the 1% to 3% range for the second quarter of fiscal 2017. Zumiez currently intends to open approximately 19 new stores in fiscal 2017, including up to three stores in Canada, four stores in Europe and two in Australia.

Zumiez specializes in apparel, footwear, accessories and hardgoods for young men and women.

As a short trading week was about to come to an end, ZUMZ stock swooned $1.68, or 11.6%, to $12.78.