Clothing retail chains Zumiez (ZUMZ) and Quiksilver (ZQK) are having a bad morning, with share prices for one falling sharply on the heels of disappointing earnings and the other losing ground on an analyst downgrade.
Zumiez sank 6.1% to $19.43 after Bank of America-Merrill Lynch cut the stock to Underperform from Buy and lowered its price target to $19 from $31. It seems the snow-related apparel Zumiez sells isn�t moving due to the moderate weather, putting earnings at risk. Last month, the stock hit a 14-month low after the retail chain reported disappointing November sales and offered a weak forecast for the fourth quarter.
Quiksilver, meanwhile, fell nearly 16% to $3.43 a share in Friday morning market action. Late Thursday, the retailer reported operating earnings of 7 cents a share on revenue of $559 million, missing expectations for 10 cents a share on sales of $564 million.
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