UPDATE: D.A. Davidson Reiterates Neutral Rating, Lowers PT on Zumiez

In a report published Friday, D.A. Davidson & Co. reiterated its Neutral rating on Zumiez ZUMZ, but lowered its price target from $39.00 to $36.00. D.A. Davidson noted, “We are modestly disappointed that August sales strength, witnessed in monthly sales reports across retail today, did not translate into a strong performance for Zumiez. However, we believe this is largely a factor of Zumiez's customer base, which tends to shop in a very narrow window of time around key selling seasons. This year, that time appears to have shifted into late August, and will likely spill into early September as well. Missing August comp estimates will weigh on shares, but we do not believe this is indicative of a longer-term competitive issue. With numerous non-comp growth initiatives, including U.S. square footage growth, expansion into Canada and the Blue Tomato acquisition, we remain positive on ZUMZ's long-term growth prospects.” Zumiez closed on Thursday at $32.22.