Zumiez Soars Despite Dour Outlook

NEW YORK (TheStreet) -- Zumiez(ZUMZ Quote) is zooming despite issuing a lower-than-expected holiday forecast.

Shares are soaring 11.5% to $12.40, a day after the company said third-quarter profit tumbled 25% to $5.1 million, or 17 cents a share, from $6.8 million, or 23 cents a share, a year ago. Analysts expected Zumiez to earn 14 cents a share.

Revenue rose about 1% to $113.2 million from $112.3 million last year, but same-store sales tumbled 8%, steeper than the 5.8% decline Wall Street forecast.

Zumiez predicts fourth-quarter earnings in the range of 18 cents to 22 cents a share, below consensus estimates of 25 cents a share.

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This disappointing outlook follows a similar message given by rivals Hot Topic(HOTT Quote) and Pacific Sunwear of California(PSUN Quote).

Hot Topic said it expects fourth-quarter earnings between 23 cents to 26 cents a share, missing analysts' forecast of 30 cents a share.

Similarly, PacSun foresees a loss of 28 cents to 35 cents a share, significantly wider than analysts' estimates of an 11-cent loss. The skate- and surf-inspired retailer already announced that same-store sales in the fourth quarter have tanked by as much as 20%.

-- Reported by Jeanine Poggi in New York

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