Zumiez to buy Austrian retailer Blue Tomato
(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)
HELSINKI - Finnish start-up Next Games has raised $6 million in funding in the latest of several venture capital investments in the Nordic country's booming mobile games industry, the company said on Wednesday.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.