Zumiez to buy Austrian retailer Blue Tomato

Tue Jun 19, 2012 5:32am EDT

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(Reuters) - Teen-focused retailer Zumiez Inc (ZUMZ.O) has agreed to buy Austria-based Blue Tomato for 59.5 million euros ($75 million) to beef up its sports goods offering in Europe, it said on Tuesday, as it raised its second-quarter revenue outlook.

Under the deal, the snowboarding and surfing merchandise retailer will also pay 22.1 million euros based on certain milestones over the next three years.

The Everett, Washington-based company expects the deal to be modestly accretive to earnings per share in 2012.

Blue Tomato sells branded snowboarding and skating gear, apparel and footwear through its e-commerce website and 5 stores in Austria. For the year ended April 2012, it reported net sales of 29.4 million euros with more than two-thirds generated through its website.

Zumiez raised its second-quarter revenue outlook to $134-$136 million from $128-$130 million. It maintained its 4 cent to 6 cent per share earnings view for the second quarter.

Analysts, on average, are expecting earnings of 10 cents per share, on revenue of $131.9 million, according to Thomson Reuters I/B/E/S.

Shares of Zumiez closed at $39.37 on Monday on the Nasdaq.

($1 = 0.7949 euros)

(Reporting by Siddharth Cavale in Bangalore; Editing by Mark Potter)

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