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Zumiez (ZUMZ) Up on Robust December Comps & Upbeat View

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Zumiez Inc. (ZUMZ - Free Report) continues to impress investors with its positive comparable-store sales (comps) trend amid a competitive retail backdrop. Impressively, the company’s December comps marked 10th straight month of growth. Also, management raised guidance for fourth-quarter fiscal 2017 owing to solid quarter-to-date performance. Consequently, shares of this Zacks Rank #2 (Buy) company were up 16.8% in after-hours trading on Jan 3.

This mall-based specialty retailer recorded a rise of 7.9% in comps for the five-week period ended Dec 30, 2017 compared with a 3.4% increase witnessed in the five weeks ended Dec 31, 2016. Further, total net sales for December advanced 11.4% to $160 million from $143.6 million in the year-ago period.

Driven by higher-than-anticipated quarter-to-date sales and product margin performance, the company raised earnings and comps forecasts for the fiscal fourth quarter. Management now anticipates comps growth of roughly 7% compared with the previous guidance of 3-5%. Moreover, earnings are envisioned in the band of 88-90 cents per share. This marks a considerable increase from the prior guidance of 78-84 cents per share. The Zacks Consensus Estimate for the quarter is pegged at 80 cents, which is likely to witness an uptrend in the coming days.

Below is the graphical representation of the comps positive trend:


 

Notably, Zumiez has been riding on its robust merchandise strategies, solid store-expansion endeavors and e-commerce platform. Although the company posted in-line earnings in third-quarter fiscal 2017, it delivered a positive earnings surprise in the preceding eight quarters. Also, sales topped estimates for the sixth straight quarter.

Backed by its strategic initiatives and sturdy comps performance, Zumiez’s shares have gained a whopping 67.4% in the last six months, substantially outperforming the industry’s growth of mere 15.8%.



Another retailer that has also reported positive comps for the month of December is Costco Wholesale Corporation (COST - Free Report) . It has recorded comps growth of 11.5%.

Not Done Yet? Looking For More, Check These

Some other stocks worth considering from the same space are Shoe Carnival, Inc. (SCVL - Free Report) and American Eagle Outfitters, Inc. (AEO - Free Report) .

Shoe Carnival with a long-term earnings growth rate of 12% has pulled off an average positive earnings surprise of 20.8% in the last four quarters. Also, the stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

American Eagle is a Zacks Rank #2 stock with a long-term earnings growth rate of 7.5%. Also, the company has delivered an average positive earnings surprise of 2.6% in the trailing four quarters.

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