You rarely see a company's performance correlate with its line of business. But for action-sports related retailer Zumiez
For the month, Zumiez increased comps by 17%, easily thrashing estimates calling for 9.8% comps growth. That's a big enough accomplishment all on its own. But when you consider how high the bar was raised after last year's 14.3% gain, you begin to see how strong Zumiez is these days. Overall, sales were up 53.7% to $28.3 million for this fast-growing retailer.
Zumiez is undoubtedly on top of its game right now. With awesome fourth-quarter results and climbing sales, it seems incapable of doing wrong. Unfortunately, that's exactly when it's most prone to taking a fall. Last summer, its earnings doubled, yet its stock price took a dive. However, after that nasty spill, its stock bounced right back up; it's now within reach of its all-time high.
What separates Zumiez from its competitors, including Pacific Sunwear
Unfortunately, it's already been chosen by many, making its stock far from cheap. As of this writing (before the open), its trailing P/E is more than 55. I'm hoping Zumiez will slow down for a moment to catch its breath. If it does, I'll eagerly jump on board.
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Fool contributor Mike Cianciolo welcomes feedback and doesn't own any of the companies in this article. Pacific Sunwear is a Motley Fool Stock Advisor selection. The Fool's disclosure policy goes to all the hip kids' parties.