UPDATE: D.A. Davidson & Co. Reiterates Buy Rating, Raises PT on Zumiez on Encouraging 1Q Upside

In a report published Friday, D.A. Davidson & Co. analyst Andrew Burns reiterated a Buy rating on

, and raised the price target from $31.00 to $32.00. In the report, D.A. Davidson & Co. noted, “1Q exceeds guidance. Zumiez reported revenue and non-GAAP EPS of $162.9 million and $0.10 (GAAP EPS was $0.09), in excess of consensus at $161.2 million and $0.05, and our estimates of $162.6 million and $0.06. 1Q guidance called for a low single digit comp decline, revenue of $156-$160 million, and EPS of approximately $0.00-$0.05 (excluding ~$0.02 in acquisition costs). Gross margin of 31.0% was down 129bp year-over-year (y/y), reflecting a 130bp product margin decline driven by the discounting of excess inventory early in the quarter. Adjusted SG&A was $46.2 million, representing 28.4% of sales (flat y/y). Inventory was up 7.4% y/y.” Zumiez closed on Thursday at $27.22.