Jefferies Remains Sidelined on Zumiez, Inc. (ZUMZ) Following 4Q Results

Jefferies reiterated a Hold rating on Zumiez, Inc. (NASDAQ: ZUMZ), and raised the price target to $20.00 (from $17.00), as the company's 4Q results exceed expectations. Good expense control helped ZUMZ’s 4Q EPS come in 4c ahead of consensus expectations. However, the struggles that plagued the company’s top line in the quarter carried into FY17. February comps declined 8.6% (vs cons of neg 6%), prompting the company to walk down EPS expectations for 1Q to a loss of 7c-11c.

Analyst Randal Konik commented, "Although ZUMZ exceeded expectations for 4Q, the macro and fashion headwinds facing the company have yet to abate and should continue to take a toll at least through F1H17. We remain upbeat on ZUMZ's competitive edge in the action sports space, but prefer to stay on the sidelines until compares ease and evidence of traction emerges. Maintain Hold, PT to $20."

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 $21.88 yesterday.

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