Shares of Zumiez Inc. (NASDAQ:ZUMZ) were getting pounded again last month as the surf-and-skate apparel retailer reported weak sales for the month of April and got caught up in the general sell-off in apparel retail. According to data from S&P Global Market Intelligence, the stock finished May down 21%.
As the chart below shows, the stock fell consistently throughout the month.
Zumiez's worst day during the month came on May 4 as the stock fell 8% after the company reported sales for April. Comparable sales actually increased 7.8%, lapping a 6% decline in the month a year ago, while overall revenue rose 10.3% $56.5 million. However, the retailer said that due to a higher-than-expected tax rate, its net loss per share for the quarter would come in at the lower end of its range of minus $0.17 to minus $0.21.
There was little news out on the retailer over the rest of the month, but the downbeat reports from department store chains and other apparel retailers seemed to weigh on the stock as investors are quickly losing confidence in the brick-and-mortar apparel industry. As one of the smaller and weaker operators in the sector, it's not surprising to see Zumiez stock slide along with them.
Investors hoping the stock would bounce back following its June 1 earnings report got another round of disappointment as shares tumbled again on weak guidance.
Zumiez said comparable sales increased 1.8% in the quarter, but its loss per share widened from minus $0.08 a year ago to minus $0.18. For the current quarter, management said it anticipated a loss per share between minus $0.06 and minus $0.11, compared to analyst estimates of a penny profit per share.
Shares of Zumiez fell 12% on the news and are down 11.4% thus far in June. The stock is now trading at a seven-year low. While it is profitable on a full-year basis and modestly valued, it's hard to see a reason to invest as long as profits continue to fall, especially considering the status of the overall apparel retail industry.