Zumiez (ZUMZ) PT, Estimates Cut at Piper Jaffray Post Q3

Piper Jaffray maintained a Neutral rating on Zumiez, Inc. (NASDAQ: ZUMZ), and cut the price target to $17.00 (from $21.00), following the company's 3Q earnings report. ZUMZ released FQ4 guidance in a range of $0.40 to $0.46, below Piper Jaffray's prior estimate of $0.68. The guidance reflects a comparable store sales decline of 14% to 16%. The company is employing key strategies to try to combat against this anemic sales trend by launching new brands, revisiting promotional strategies, accelerating a rollout of positively trending items across more stores, and adjusting spending in the near-term to protect profitability.

Analyst Neely Tamminga commented, "We are updating our model to reflect the company's FQ3 earnings report and outlook for FQ4 in which guidance is a range of $0.40 to $0.46, below our prior estimate of $0.68. November comparable store sales posted a 13.8% decline and FQ4 EPS guidance reflects a comparable store sales decline of 14% to 16%. We are lowering estimates beyond FQ4 and into next year. As such, our price target moves from $21 to $17. The company is employing key strategies to try to combat against this anemic sales trend by launching new brands, revisiting promotional strategies, accelerating a rollout of positively trending items across more stores, and adjusting spending in the near-term to protect profitability. That said, the magnitude of these sales declines give us pause despite the stock's inexpensive valuation; we remain Neutral on ZUMZ shares."

For an analyst ratings summary and ratings history on Zumiez, Inc. click here. For more ratings news on Zumiez, Inc. click here.

Shares of Zumiez, Inc. closed at $13.90 yesterday.

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