D.A. Davidson Sees September Comp Trends Accelerate For Zumiez

In a report published Thursday, D.A. Davidson analyst Andrew Burns reiterated a Buy rating and $36.00 price target on

. In the report, D.A. Davidson noted, “ZUMZ's +6.6% September comp exceeded consensus at +2.7% (Retail Metrics) and our +2.2% estimate. The positive comp was driven by an increase in both transactions and dollars per transaction, with gains in both AUR and UPT. Sales increased 12.5% y/y to $66.3 million. September's results bring 3Q QTD comps to 3.9%, which compares to guidance for low-single digit comp improvement. Excluding the shift in timing of an annual snow expo (Blue Tomato), which occurred in November last year, the monthly comp would have been 5.8%, or 3.6% QTD. 3Q guidance was not updated and calls for revenue of $207-$211 million and EPS of $0.49-$0.52 (excluding ~$0.02 in acquisition costs). By category, hardgoods, men's, junior's, and accessories were all up, while footwear and boy's were down.” Zumiez closed on Wednesday at $28.55.