Zumiez shares jump as key sales figure for end of year rises, when forecast was for a plunge

Zumiez shares jump as sales figure beats forecast

EVERETT, Wash. — Zumiez Inc., which sells action sports clothes and gear, said Wednesday that its sales at stores open at least a year rose 0.3 percent in the five weeks that ended Jan. 2, much better than the 6.4 percent decline predicted by analysts.

Zumiez shares jumped almost 16 percent after the company raised its profit estimate for the fourth quarter above Wall Street’s estimate.

Shares of Zumiez, based in Everett, Wash., rose $2, or 15.8 percent, to $14.68 in after-hours trading after closing at $12.68, up 3 percent from Tuesday’s close.

The chain’s total sales rose 7.7 percent to $77.6 million for the holiday period.

The company said it raised its expectation for fourth-quarter profit to 24 cents to 27 cents per share from 18 cents to 22 cents per share. Analysts polled by Thomson Reuters expect Zumiez to earn 22 cents per share.

Sales at stores open at least a year is a key measure of a retailer’s performance because it is not skewed by new store openings and closings.