Zumiez, Inc. Second Quarter Earnings Sneak Peek

Zumiez, Inc. (NASDAQ:ZUMZ) will unveil its latest earnings on Wednesday, August 31, 2011. Zumiez Inc. is a mall based specialty retailer of action sports related apparel, footwear, equipment and accessories operating under the Zumiez brand name.

Zumiez, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 5 cents per share after the company broke even in the year earlier quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged and it has not changed during the last month. For the year, analysts are projecting profit of $1.12 per share, a rise of 27.3% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 4 cents, reporting net income of 6 cents per share against a mean estimate of profit of 2 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $112.2 million in revenue this quarter, a rise of 14.8% from the year ago quarter. Analysts are forecasting total revenue of $545.9 million for the year, a rise of 14% from last year’s revenue of $478.9 million.

Analyst Ratings: Analysts are bullish on Zumiez as nine analysts rate it as a buy, one rates it as a sell and 10 rate it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 17.9%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 20% from the year earlier quarter.

The company raised its gross margin by 2.7 percentage points in the in the first quarter. Revenue rose 18.8% while cost of sales rose 14.3% to $72.4 million from a year earlier.

Competitors to Watch: Pacific Sunwear of California, Inc. (NASDAQ:PSUN), Aeropostale, Inc. (NYSE:ARO), American Eagle Outfitters (NYSE:AEO), Abercrombie & Fitch Co. (NYSE:ANF), Urban Outfitters, Inc. (NASDAQ:URBN), The Buckle, Inc. (NYSE:BKE), The Wet Seal, Inc. (NASDAQ:WTSLA), Hot Topic, Inc. (NASDAQ:HOTT), Jos. A. Bank Clothiers, Inc. (NASDAQ:JOSB), and The Men’s Wearhouse, Inc. (NYSE:MW).

Stock Price Performance: During June 1, 2011 to August 25, 2011, the stock price had fallen $11.05 (-37.6%) from $29.40 to $18.35. The stock price saw one of its best stretches over the last year between June 13, 2011 and June 21, 2011 when shares rose for seven-straight days, rising 11.6% (+$2.60) over that span. It saw one of its worst periods between March 10, 2011 and March 18, 2011 when shares fell for seven-straight days, falling 17% (-$4.79) over that span. Shares are down $8.52 (-31.7%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.