Zumiez Increases Its 3rd-quarter Profit Guidance

EVERETT, Wash. (AP) — Zumiez Inc. boosted its fiscal third-quarter profit forecast Monday, citing better-than-expected sales and product margins for the quarter to date.

The apparel and footwear company's stock jumped 88 cents, or 5.6 percent, to $16.53 in morning trading. The shares have traded in a range of $4.50 to $28.84 over the last year.

Zumiez now expects net income for the quarter ending Oct. 31 in a range of 12 cents to 14 cents per share. Its prior outlook was for earnings of 5 cents to 7 cents per share.

Analysts predict third-quarter profit of 10 cents per share, according to a Thomson Reuters survey. Analysts' estimates generally exclude one-time items.

The company also said it now anticipates a high single digits to low double digits decline in sales at stores open at least a year. Zumiez previously predicted a drop-off in the low-to-mid teen range.

Randal Konik of Jefferies & Co. said in a client note that Zumiez's September sales edged up 0.8 percent on a shift of some back-to-school sales to September from August.

"We expect continued improvement in sales trends and earnings per share upside through the end of 2009 on easing comparisons and tight inventory and expense control," he wrote.

Konik raised the company's price target to $16 from $13.

Zumiez ran 376 stores as of Saturday.