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By
Reuters
Published
May 21, 2009
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Zumiez posts Q1 loss, sees weak Q2

By
Reuters
Published
May 21, 2009

May 21 (Reuters) - Zumiez Inc (ZUMZ.O) posted a narrower-than-expected quarterly loss, helped by strong product margins, but shares fell 10 percent as the snowboarding gear retailer forecast a weak second quarter.



The company lost $1.7 million, or 6 cents a share, in the first quarter, compared with net income of $1.4 million, or 5 cents a share, a year earlier.

Analysts were expecting a loss of 8 cents a share, before special items, according to Reuters Estimates.

Net sales for the quarter ended May 2, fell 2.4 percent to $76.8 million.

For the second quarter, the mall-based retailer, which caters to young men and women between ages 12 and 24 years, sees a loss of 14 cents to 17 cents a share. Analysts were expecting a loss of 7 cents a share for the period.

Zumiez, whose rivals include Pacific Sunwear of California Inc (PSUN.O) and Hot Topic Inc (HOTT.O), said it expects comparable-store sales to decline in low-to-mid twenty percent range for the second quarter.

Shares of the Everett, Washington-based company were trading down 10 percent at $10.00 after the bell. They closed at $11.10 Thursday 21 May on Nasdaq. (Reporting by Amitha Rajan in Bangalore; Editing by Aradhana Aravindan)

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