Piper Jaffray Cuts Price Target on Zumiez, Inc. (ZUMZ) Following 2Q15
Piper Jaffray maintained a Neutral rating on Zumiez, Inc. (NASDAQ: ZUMZ), and cut the price target to $21.00 (from $25.00), following the company's 2Q15 earnings report and 3Q outlook. Management guided 3Q EPS in a range of $0.27 to $0.31.
Analyst Neely Tamminga commented, "We are updating our model to reflect the company's FQ2 earnings report and outlook for FQ3 in which guidance is a range of $0.27 to $0.31, below our prior estimate of $0.53. August comparable store sales posted a 10.7% decline and quarter-to-date "comps" including the benefit of the Labor Day shift are tracking down 7.4%. We are lowering estimates beyond FQ3 and into next year. As such, our price target moves from $25 to $21. Key issues impacting the company's ability to "comp" positive rests in the reality that the trends that appear to be working (i.e., denim) at retail are not necessarily conducive to ZUMZ's positioning within the landscape. Management is working diligently to manage inventory levels as well as identify new trends."
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Shares of Zumiez, Inc. closed at $21.66 yesterday.