Zumiez Profit Misses Street, Outlook Weak; Shares Down 9%

(RTTNews) - Sports apparel retailer Zumiez Inc. (ZUMZ), Thursday reported an increase in profit for the first quarter, as sales increased 9 percent. Nevertheless, both earnings and revenues for the quarter fell short of estimates.

The company also detailed a weak outlook for the second quarter, sending its shares down by about 9 percent in the after-hours trade on the Nasdaq.

Lynnwood, Washington-based Zumiez's first-quarter profit rose to $2.8 million or $0.09 per share from $2.5 million or $0.09 per share a year ago.

Results for the quarter include costs of $1.1 million for charges associated with the acquisition of Blue Tomato, while last year results included charges of $0.6 million.

On average, 18 analysts polled by Thomson Reuters expected earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the first quarter grew 9 percent to $177.6 million from $162.9 million last year. Analysts had a consensus revenue estimate $179.32 million for the quarter.

Same-store sales for the first quarter increased 3.0 percent.

Gross margin for the quarter improved to 31.8 percent from 31.0 percent last year.

Looking forward to the second quarter, the company expects earnings of $0.12 to $0.15 per share and net sales of $179 to $183 million. Analysts currently expect earnings of $0.30 per share on revenues of $193.7 million for the quarter.

Zumiez expects second-quarter same-store sales to decrease 5 to 3 percent.

ZUMZ closed Thursday's trading at $29.74, down $0.16 or 0.54%. The stock further dropped $2.55 or 8.57% in the after-hours trading.