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Thursday, November 16, 2006

A Little Fiasco At Zumiez (ZUMZ)

Retailer Zumiez announced earnings that looked good on paper. Revenue for the period ending October 28 rose 43% to $82 million. Same store sales were up over 10%, but that slowed a bit from over 13% for the first nine months.

Net income for the three month period was $6.8 million. That was up from $5.3 million in the same quarter a year ago. Not much movement there.

Guidance was lackluster. "The company stated that it is maintaining guidance for fiscal 2006 to $0.66 to $0.67 in diluted earnings per share." Not much of an endorsement for Q4 action.

The stock was beaten to within an inch of its life on the news. It fell 13% almost immediately and was down to $27.30. The company's 52-week high/low is $38.85/$18.06.

There should be a lot of unhappy shareholders come this morning.

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