Zumiez slashed its fourth quarter comp store and earnings projections yesterday after weak October sales. The company also said it expects 2009 to remain challenging, and is lowering its inventory commitments, slowing store growth and reducing capital expenditures in response.
October comp store sales: down 13.1 percent.
Comps in week 1: down 10.3 percent
Week two: down 11.8 percent
Week three: down 9.7 percent
Week four: down 20.4 percent (impacted by shift of a snow event from October to November)
Q3 earnings guidance: 22 cents to 23 cents per share, vs. 28 cents in Q3 2007.
Q4 comps guidance: down mid teens, lower than the negative low-single digits previously forecast.
FY earnings guidance: 52 cents to 57 cents per share, down from 80 cents to 82 cents previously forecast.
Balance sheet: The company expects to end the year with $75 million in cash and marketable securities and no debt.