Wedbush Reiterates Neutral Rating on Zumiez

According to a recent report from Wedbush, the same-stores sales for Zumiez ZUMZ were inline with expectations and above consensus estimates in May. Moving forward, Wedbush believes ZUMZ will continue the strong sales momentum and the company reiterates a Neutral rating and a $28.00 price target on Zumiez. In the report, Wedbush said, "we believe ZUMZ continues to experience solid sales trends following stellar momentum in Q1 (comps of +12.6% vs. +9.1% LY). In addition, ZUMZ indicated continued benefit from AUR and transactions gains, which may support same-store sales and merchandise margin gains throughout F11, particularly in the difficult sourcing environment." ZUMZ closed yesterday at $29.40.