Zumiez revenue misses estimates as same-store sales growth slows

Thu Nov 29, 2012 5:08pm EST

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(Reuters) - Teen-focused retailer Zumiez Inc (ZUMZ.O) reported third-quarter sales below expectations as same-store sales growth slowed, sending its shares down 11 percent after the bell.

Sales growth at stores open at least a year eased to 3.7 percent in the quarter ended October 27 from 6 percent a year earlier.

"Our third quarter operating results reflect softer-than-expected sales trends in Europe and modest comparable-store sales for the post back-to-school period," Chief Executive Rick Brooks said in a statement.

November same-store sales fell 4.2 percent, hurt by superstorm Sandy, but Brooks said the company did brisk business over the Black Friday weekend.

Net sales for the four weeks ended November 24 rose 14.3 percent to $53.6 million.

The surfing and snowboarding merchandise retailer's third-quarter net income fell to $12.7 million, or 40 cents per share, from $14.1 million, or 45 cents per share, a year earlier.

Excluding items, the company earned 51 cents per share, while analysts on average had expected 47 cents, according to Thomson Reuters I/B/E/S.

Net sales rose 17 percent to $180.0 million, still falling short of estimates of $182.3 million.

The Everett, Washington-based company's shares closed at $20.75 on the Nasdaq on Thursday.

(Reporting by Siddharth Cavale in Bangalore; Editing by Don Sebastian)

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