ZUMZ, Jefferies Raise 3Q Estimates

Zumiez, Inc. ZUMZ is raising its 3Q guidance to $0.25-0.27 (from $0.21-0.24) based on its better than expected sales and product margins, Jefferies reports. Jefferies believes that September sales for the specialty retail brand are showing strong trends (including with promotions) and gross margins are also likely to prove strong as well. Jefferies has updated its 3Q estimate in response to ZUMZ's decision to do so, and thus now numbers have been raised to +9% SSS and EPS of $0.27 (from +5% SSS and EPS of $0.21) and has also raised the price target to $18 (from $16). Jefferies maintains its Hold rating for Zumiez, Inc., which closed yesterday at $17.41.