Zumiez Shares Scored: What You Need to Know

Updated

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of sports apparel retailer Zumiez (NAS: ZUMZ) are scoring major gains, up as much as 26%, after the company reported third-quarter earnings yesterday.

So what: Third-quarter revenue jumped 13.3% to $154 million, while diluted earnings per share rose 12.5% to $0.45, topping the market's expectation of $0.42. Comparable store sales jumped 8.4% in November.

Now what: Fourth-quarter outlook also topped estimates, as the company expects comps to rise into the mid-range of the single digits, with sales of $174 million-$177 million. Zumiez expects earnings of $0.52-$0.54, compared to the estimate of $0.52. The retailer has opened all 45 stores it had planned for the year, including its first foray into Canada.

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At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Zumiez. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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