65 534
Fashion Jobs
Jun 19, 2012
Download the article
Click here to print
Text size
aA+ aA-

Zumiez to buy Austrian retailer Blue Tomato

Jun 19, 2012

Teen-focused retailer Zumiez Inc has agreed to buy Austria-based Blue Tomato for 59.5 million euros ($75 million) to beef up its sports goods offering in Europe, it said on Tuesday, as it raised its second-quarter revenue outlook.

Photo: Blue Tomato

Under the deal, the snowboarding and surfing merchandise retailer will also pay 22.1 million euros based on certain milestones over the next three years.

The Everett, Washington-based company expects the deal to be modestly accretive to earnings per share in 2012.

Blue Tomato sells branded snowboarding and skating gear, apparel and footwear through its e-commerce website and 5 stores in Austria. For the year ended April 2012, it reported net sales of 29.4 million euros with more than two-thirds generated through its website.

Zumiez raised its second-quarter revenue outlook to $134-$136 million from $128-$130 million. It maintained its 4 cent to 6 cent per share earnings view for the second quarter.

Analysts, on average, are expecting earnings of 10 cents per share, on revenue of $131.9 million, according to Thomson Reuters I/B/E/S.

Shares of Zumiez closed at $39.37 on Monday on the Nasdaq.

© Thomson Reuters 2023 All rights reserved.