NEW YORK (TheStreet) -- Zumiez(ZUMZ) - Get Report stock is plunging 12.02% to $19.25 on heavy trading volume on Friday afternoon after the apparel, footwear and accessories retailer set a lower-than-expected outlook for the fiscal 2016 first quarter.
After Thursday's market close, the Lynnwood, WA-based company said it expects to report a loss of 7 cents to 11 cents per share for the quarter ending April 30. Revenue guidance was set at $172 million to $175 million with comparable sales expected to fall 5% to 7%.
Analysts had estimated a loss of 1 cent per share on revenue of $177.8 million for the first quarter.
February comparable store sales declined 8.6%, making it the 11th consecutive month of negative same store sales "suggesting topline challenges will persist well into FY16," Credit Suisse said in an analysts note this morning.
"The absence of a clear product driver continues to hurt ZUMZ's ability to drive topline," analysts added.
Additionally, Zumiez posted earnings of 53 cents per share on revenue of $242.43 million for the fiscal 2015 fourth quarter, beating analysts' estimates.
Analysts surveyed by Thomson Reuters had estimated earnings of 49 cents per share on revenue of $241.1 million for the latest quarter.
So far today, 1.84 million shares of Zumiez have been traded, compared with its average daily volume of 463,539 shares.
Separately, Zumiez has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's strengths, such as attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins, and its weaknesses, including feeble earnings per share growth, deteriorating net income and disappointing return on equity.
You can view the full analysis from the report here: ZUMZ
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.