Piper Jaffray Cuts Price Target on Zumiez, Inc. (ZUMZ) Following 4Q Report

Piper Jaffray maintained a Neutral rating on Zumiez, Inc. (NASDAQ: ZUMZ), and cut the price target to $13.00 (from $17.00), following the company's 4Q earnings report. February sales were reported in tandem with the fourth-quarter conference call, in which comparable store sales declined 8.6% providing near-term perspectives that trends have not yet turned. The company is employing key strategies to attempt to combat against this anemic top line trend by launching new brands, testing more products, managing expenses and inventory levels while also making thoughtful, measured investments in the business.

Analyst Neely Tamminga commented, "We are updating our earnings estimates on ZUMZ and for now maintaining our Neutral rating on the shares until we gain better visibility in a positive comparable-store sales trend. To be clear, we believe ZUMZ has been doing what it can to offset what is clearly a paucity of fashion trends among the action sports lifestyle set. We applaud the management team for continuing to invest in their company so that when underlying fashion trends for their customer set do inflect positive, ZUMZ is solidly positioned to benefit from an acceleration in a profitability curve. February sales were reported in tandem with the fourth-quarter conference call, in which comparable store sales declined 8.6% providing near-term perspectives that trends have not yet turned. We are adjusting our estimates; price target moves from $17 to $19."

For an analyst ratings summary and ratings history on Zumiez, Inc. click here. For more ratings news on Zumiez, Inc. click here.

Shares of Zumiez, Inc. closed at $21.88 yesterday.

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