D.A. Davidson Sees Solid 3Q Revenue For Zumiez

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

. In the report, D.A. Davidson noted, “October results positions 3Q revenue slightly above high end of range. ZUMZ's +3.1% October comp compares to consensus at +2.6% (Retail Metrics) and our +2.0% estimate. The positive comp was driven by an increase in dollars per transaction (gains in both AUR and UPT), offset slightly by a decrease in transactions. Sales increased 11.7% y/y to $51.7 million. October's results bring final 3Q comps and revenue to 3.7% and $212.0 million, which compares to guidance for a low-single digit comp gain and revenue of $207-$211 million. EPS guidance stands at $0.49-$0.52 (excluding $0.02 acquisition charges). Excluding a shift in timing of a Blue Tomato snow sale (into September from November), the 3Q comp would have been 3.5%. By category hardgoods, juniors, men's, and accessories were up, while footwear and boys were down.” Zumiez closed on Wednesday at $33.63.