Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of action sports retailers Zumiez
So what: For the quarter, Zumiez reported a 23% rise in sales to $129.9 million as earnings more than doubled to $0.14. Both figures surpassed Wall Street's expectations for a profit of $0.11 on sales of just $128.3 million. The wipeout occurred when Zumiez forecasted earnings of just $0.04 to $0.06 in the second quarter on sales of $128 million to $130 million. The Street had expected Zumiez to earn $0.10 on $128.5 million in revenue. Partly to blame is a $0.03 charge to move its corporate headquarters.
Now what: Today's action goes to show that even double-digit same-store-sales growth, as Zumiez has become accustomed to, isn't enough to satisfy investors. An unusually warmer winter and tight consumer spending habits are making it difficult to really get behind retailers at the moment. Still, there's really no reason to believe that Zumiez won't succeed over the long term. Its primary competitor, Pacific Sunwear
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