Piper Jaffray Comments On Zumiez, Reiterates $27 PT

Piper Jaffray is reiterating its $27 price target on Zumiez ZUMZand views recent pullback relative to the group as a unfair. While Piper reminds investors the company did benefit in FY11 from a change in the accounting for depreciation of leasehold improvements, management disclosed the effect of these changes in its first quarter earnings call in 2010 and quarterly regulatory filings. While Piper believes yesterday's near-term pressure on the stock is unfair, it remains Neutral until it gets greater visibility on the impact from Easter shifting from March into April this year and potential impact on margins. While near-term visibility may be clouded due to this year's Easter shift, Piper Jaffray believes trends remain solid relative to management's plan for FQ1 of same store sales guidance of +MSD-HSD. As a reminder, management plans to grow the store base by 10% in FY12 including the first stores outside the U.S. Piper Jaffray is reiterating its $27 price target as it believes shares will continue to trade based on topline momentum and remind investors the company does not face a positive two year comp comparison until September of this year. Piper has a Neutral rating on ZUMZ. ZUMZ closed Tuesday at $23.79