Tag - Zumz

Snowboarding apparel retailer Zumiez Inc. (Nasdaq:ZUMZ) reported better-than-expected comparable store sales for the month of August after Wednesday’s close sending shares up 9% in pre-market trading. Stores open for at least one year increased 0.2%, versus a comparable store sales increase of 17.4% in August 2007. Analysts were expecting a 3.8% decline in same store sales.

The retailer also reported a 13.1% increase in August sales to $53.2 million, compared with $47 million for the same month last year.

Susquehanna’s Tom Filandro upgraded the retailer to “positive” from “neutral” citing the positive comparable store sales figure in a challenging environment and against a difficult year-ago comparison. The analyst also noted that, “as the price of oil declines, investor interest in owning unique niche brands offering several years of growth will likely increase.”

Shares gained 9.3%, or $1.53, to $17.96 in pre-market trading. For detailed price information and news stories on Zumiez, click ZUMZ.

Chemgenex Pharm (Nasdaq:CXSP), LSB Corp (Nasdaq: LBSX) and Zumiez Inc (Nasdaq:ZUMZ) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $1 billion.     

Also included among the results: Cato Corp (Nasdaq:CTR), Deltek Inc (Nasdaq:PROJ), RXi Pharmaceuticals Corp (Nasdaq:RXII), Princeton National Bancorp Inc (Nasdaq:PNBC), Micromet Inc (Nasdaq:MITI) and Torch Energy Royalty Trust (Nasdaq:TRU).   

Here are the biggest percentage gainers among small caps:    

China Sunergy Co Ltd. (Nasdaq:CSUN), DrdGold (Nasdaq:DROOY) and Ascent Solar Technologies Inc. (Nasdaq:ASTI) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion. 

Also included among the results: Zumiez Inc. (Nasdaq:ZUMZ), Novatel Wireless Inc. (Nasdaq:NVTL), Micromet Inc. (Nasdaq:MITI), Royale Energy Inc. (Nasdaq:ROYL), TBS International Ltd. (Nasdaq:TBSI) and Fuel Tech Inc. (Nasdaq:FTEK).           

Here are the most actively traded companies among small caps:   

Small-cap shares opened flat and then edged higher, underpinned by news of a big-cap energy acquisition, a firm tone in the dollar, and ideas that Wednesday’s post-FOMC minutes slide was overdone. At 9:52 a.m. ET, the Russell 2000 (NYSE:IWM) was up 2.46, or 0.34%, at 729.56.

News that NRG Energy (NYSE:NRG) tendered a bid to buy Calpine Corp. (NYSE:CPN) for a stock deal worth $11 billion injected some enthusiasm back into the M&A picture this morning, and played a supportive role in market psychology. Calpine shares were up 7.1% shortly after the opening on the news. If there are large-cap merger deals to be done, then there are certainly bargains to be had within small caps.

There are several apparel retailers coming out with earnings today, which could ripple through the markets. Children’s Place Retail Stores (Nasdaq:PLCE), which is right on the upper end of small-cap market capitalization, reported solid quarterly results this morning and the stock was up 6.2% right after the open.

Large caps in the news early today include Pfizer Inc. (NYSE:PFE), which tumbled 1% on the opening on news that its anti-smoking drug had serious side effects. Also, NetApp Inc. (Nasdaq:NTAP) tumbled 5.7% as the company’s forward projections disappointed.

Crude oil prices shot above $135 dollars a barrel overnight, and continue to be a drag on the both the consumer pocketbook and the cost structure for corporations (just ask the battered airline industry). Goldman Sachs technical analyst Kevin Edgeley said in a research report overnight that crude oil momentum and trend strength are pointing higher, and that there is a long-term channel extension target for crude at $142.90. If crude oil were to close lower today, and well off that $135 record overnight peak, it could generate a topping reversal on charts, and is worth . . .

Small-cap stocks started out the week with a bang, with the Russell 2000 soaring 19.86, or 2.91%, to 701.28 on Monday. The surge lifted the index to the highest point since late February, and also provided some nice upside support for bullish patterns visible on weekly charts.

Look for resistance Tuesday at 705, 714 and 724. Meanwhile, support is just below the market at 694, 685 and 680. There could be some fireworks in the morning coinciding with the 10:00 a.m. ET release of consumer confidence data.

Action sports-related apparel and footwear retailer Zumiez Inc. (Nasdaq: ZUMZ) after Thursday’s close posted fourth-quarter earnings that beat the consensus on Wall Street and guided in line for fiscal 2008. Shares gained 13.5%, or $1.90, to $16 in pre-market trading.

For detailed price information and recent news stories about Zumiez, click ZUMZ. 

The Russell 2000 (NYSE: IWM) fell hard today as the stain from the subprime mortgage meltdown spread. The small-cap index let go 20.96 points, or 3.07%, to 662.78. The Dow Jones Industrial Average (INDU) declined 214.60 points, or 1.75%, to 12,040.39.

On a year-to-date basis, the Russell 2000 is down 13.48%, while the Dow has retreated 9.23% and the S&P 500 has shed 11.17%.

The bears completely dominated trading today on news before the start of trading that investment company Carlyle Capital Corp. Ltd. had failed to meet a margin call and received a notice of default from one of the banks that helps finance its portfolio of mortgage securities.

Similarly, Santa Fe, N.M.-based residential mortgage lender Thornburg Mortgage Inc. (NYSE: TMA) announced after the close on Wednesday that it had failed to meet a margin call of about $28 million.

A “margin call” is when banks call in their loans to investors, who are in turn forced to sell off assets to raise cash, leading to a reduction in the price of those assets and more margin calls and losses.

Today’s news raised fears that the credit squeeze and the consequences of the housing downturn will continue plaguing the financial system.

Zumiez Inc. (Nasdaq: ZUMZ), was downgraded today to “neutral” from “positive” by Susquehanna Financial after the action sports apparel and accessories retailer reported a decline in comparable store sales for the month of February after Wednesday’s close. 

“Zumiez is off to a sluggish start to the new fiscal year with a below-plan February comp decline,” Susquehanna Financial analyst Thomas Filandro wrote in a research note today.

For the four-week period ended March 1, the Everett, Wash.-based small cap reported comparable store sales decreased 2.6%, compared with a comparable store sales increase of 12.4% for the same four-week period in 2007.

Total net sales for February increased 11.5% to $23.1 million, compared with $20.7 million for February 2007.

The analyst said the retailer’s weak results were primarily due to a drop in average store transactions as well as negative results in footwear and men’s apparel. Filandro said positive results in the retailer’s skate hard goods category somewhat offset the weakness.

“Given the below plan start to the new year, combined with difficult prior year comparisons and a weak consumer environment, we are taking a more conservative view for the balance of 2008,” wrote Filandro.

Retailers experienced an anti-climatic end to 2007, as Wall Street began sounding the alarm for recession and caused consumers to pull in their purse strings. The cloud has continued to hang over retail stocks into 2008 and Susquehanna Financial’s outlook for the sector’s fourth quarter and fiscal 2008 cautions that the clouds haven’t dissipated.

“Given the weak consumer environment, we believe retailers that only reported holiday sales and did not provide additional commentary during their sales release have a greater chance of realizing greater volatility heading into fourth-quarter 2007 results,” Susquehanna Financial analyst Michael Thurow wrote in a retailer’s research report today. 

For January, Susquehanna Financial analyst Thomas Filandro is projecting a sector comp decline of 3% to 5%, compared with an increase of 2.5% last January, as the analyst says the majority of the sector employed aggressive promotions.
 
“Although it is unclear whether or not a recession will hit in 2008, it is clear that consumers remain on edge and extremely cautious regarding spending on apparel and accessories,” Filandro wrote.

Looking past January, the analyst says aside from dealing with a skittish consumer, retailers will be faced with an earlier Easter holiday this year that typically shortens the initial spring selling window and may result in higher seasonal markdowns.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are falling following news of a weak December jobs report.
 
At 10:31 a.m. ET, the small-cap index had retreated 15.51 points, or 2.08%, to 729.50. The Dow Jones Industrial Average (INDU) was off 165.58 points, or 1.27%, to 12,891.14.

Stocks are sinking on news before the start of trading that nonfarm payroll employment increased a paltry 18,000 in December, according to the U.S. Labor Department. Economists were expecting to see 70,000 new jobs following an upwardly revised level of 115,000 in November.

The unemployment rate jumped to 5% from 4.7% as job losses in construction and manufacturing offset gains in several service-providing industries. That translates to a total of 7.7 million unemployed people, an increase of 474,000 from the level in November.

Overall, the December job creation was the weakest since August 2003 and an obvious sign that U.S. economic growth is faltering amid tighter credit and the ongoing slump in the housing market.

Elsewhere in the same report, average hourly earnings of production and nonsupervisory workers on private nonfarm payrolls rose by 0.4% to a seasonally adjusted $17.71. That’s the same gain as in November.

The Russell 2000 (NYSE: IWM) is posting strong gains as investors react to the U.S. government’s plan to provide help to homeowners. At 2:39 p.m. ET, the small-cap index had added 17.16 points, or 2.24%, to 782.80. The Dow Jones Industrial Average (INDU) was up 107.87 points, or 0.80%, to 13,552.83.

The U.S. government and the lending industry have agreed to freeze the rates on some subprime mortgages to help cash-strapped borrowers and alleviate the prolonged slump in the housing sector. Some borrowers will be allowed to move to more favorable Federal Housing Administration mortgages.

The plan will affect borrowers with adjustable rate loans that are set to shift to higher rates, forcing many homeowners into foreclosure.

The relief comes just in time: the Mortgage Bankers Association reported today that 5.59% borrowers are now at least 30 days late making their mortgage payments, the highest percentage in more than 20 years. The trade group also said that the foreclosure process has been on 0.78% of mortgages in the three months ended Sept. 30, more than twice the rate a year ago.

Home prices began to stagnate in the second half of 2006 and the slump shows no signs of slowing down. The subsequent wave of foreclosures swelled the inventory of unsold homes, feeding the vicious cycle.

Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Methode Electronics, Inc. (MEI), up 31% on news that fiscal second-quarter profit beat expectations.
• Fleetwood Enterprises, Inc. (FLE), up 23% on news of a narrower fiscal second-quarter loss.
• Hoku Scientific, Inc. (HOKU), up 26% on news it will borrow up to $185 million for the construction of a polysilicon production plant.

Biggest percentage losers:

• Innovative Solutions and Support, Inc. (ISSC) down 20% on news of a wider fiscal fourth-quarter loss.
• Zumiez Inc. (ZUMZ) down 13% on news of an analyst downgrade.
• China Natural Resources Inc. (CHNR), down 12%.

Attention long-term investors, Zumiez Inc. (Nasdaq: ZUMZ) is on sale. Susquehanna Financial upgraded the action sports-related specialty retailer to “positive” from “neutral” on a positive risk/reward profile.

“With ZUMZ shares off 47% from a 52-week high set in October of this year, and currently trading at a P/E of 23 times our 2008 EPS projection, an 8% discount to the company’s stated minimum 25% per annum EPS growth target, we believe the shares offer a compelling risk/reward profile for longer term investors,” Susquehanna Financial analyst Thomas Filandro wrote in a client note today.

Although macroeconomic overtones are against this small-cap retailer, Filandro says it appears Zumiez’s underlying business is bucking the trend as the company’s Thanksgiving weekend comp jumped 14% to 16%. However, he notes that while shares are trading at a premium valuation to the sector, the shares are susceptible to downside risk if the broader consumer environment weakens further.

Zumiez reported third-quarter results after Thursday’s close in line with the Street and reiterated guidance. For the three months ended Nov. 3, the Everett, Wash.-based company posted net income for the quarter of $8.1 million, or $0.28 per diluted share, compared with $6.8 million or $0.24 per diluted share in the third quarter of 2006. Bottom-line results for the quarter were in line with the Thomson Financial mean estimate.