Zumiez posts better-than-forecasted August sales, shares gain 9%
Snowboarding apparel retailer Zumiez Inc. (Nasdaq:ZUMZ) reported better-than-expected comparable store sales for the month of August after Wednesday’s close sending shares up 9% in pre-market trading. Stores open for at least one year increased 0.2%, versus a comparable store sales increase of 17.4% in August 2007. Analysts were expecting a 3.8% decline in same store sales.
The retailer also reported a 13.1% increase in August sales to $53.2 million, compared with $47 million for the same month last year.
Susquehanna’s Tom Filandro upgraded the retailer to “positive” from “neutral” citing the positive comparable store sales figure in a challenging environment and against a difficult year-ago comparison. The analyst also noted that, “as the price of oil declines, investor interest in owning unique niche brands offering several years of growth will likely increase.”
Shares gained 9.3%, or $1.53, to $17.96 in pre-market trading. For detailed price information and news stories on Zumiez, click ZUMZ.
