is inked in red on Friday, after the skate- and surf-apparel retailer was downgraded by an analyst.
Shares of the company tumbled 16% to $9.35, following Thursday's release that Zumiez narrowed its loss in the first quarter, but still anticipates a weak second quarter.
Zumiez now expects a quarterly loss of 14 cents to 17 cents per share, while analysts have been forecasting a much smaller loss of 7 cents a share.
As a result, Sharon Zackfia, analyst at William Blair & Co, cut her second-quarter estimate to a loss of 11 cents per share from a loss of 5 cents per share. She slashed her full-year profit forecast to 10 cents per share from 23 cents per share, but maintained a market perform rating.
The main concern is that Zumiez is expecting increased promotions in the second quarter, which could weaken sales results, Zackfia said in a note on Friday.
Jim Duffy of Thomas Weisel Partners also reduced his 2010 earnings forecast to 7 cents from 20 cents and lowered his 2011 outlook to 26 cents from 38 cents, saying Zumiez's second-quarter guidance "indicates further challenges are likely and suggests continued pressure on earnings going forward into the second half in spite of easing comparisons." He reaffirmed his market weight rating.
Zumiez recorded a loss during the quarter of $1.7 million, or 6 cents a share, compared with a profit of $1.4 million, or 5 cents, a year earlier. Analysts expected a loss of 8 cents in the first quarter.
Sales fell 2% to $76.8 million, while total same-store sales tumbled 15.3%.
Pacific Sunwear of California
also reported a smaller first-quarter loss while saying that it expects a bigger second-quarter loss than analysts' previously estimated.
Shares of Pacific Sunwear gave up 8% in morning trading to $3.83.
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