Oppenheimer Believes Zumiez's 1H Guidance Is Conservative

Oppenheimer has published a research report on Zumiez ZUMZ and believes that initial 1H guidance is conservative.

In the report, Oppenheimer writes "ZUMZ reported FY4Q10 EPS of $0.49, above both our/consensus estimates of $0.47/$0.48. Revenues rose 17.9% on a 13.0% comp (vs. -1.7% LY) and inventories were well-controlled (+4.3%/sf on 6.1% sf growth). GM increased 270 bps driven equally by strong merchandise margins and store occupancy leverage while SG&A leveraged 290 bps on strong sales and a $1.8M impairment charge LY, resulting in a 560 bp rise in operating margin to 15.4%."

Oppenheimer maintains its Outperform rating and $35 price target.

Zumiez closed yesterday at $28.18.