NEW YORK, Dec. 6, 2007 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that it is investigating possible securities and other legal violations regarding a recent announcement by Zumiez, Inc. ("Zumiez" or the "Company") (Nasdaq:ZUMZ) of favorable fiscal year guidance, which appears to have permitted the Company's President and CEO Richard Brooks to sell approximately 300,000 shares at prices in the $46-47 range for proceeds of nearly $14 million, and then, shortly after Brooks' sale of shares, the dissemination of revised fiscal 2007 guidance, which resulted in a huge decline in the Company's share price.
On August 22, 2007, the Company announced that it was increasing its earnings guidance for fiscal 2007 to $0.97 to $0.99 per diluted share, which caused the Company's stock price to materially rise. Thereafter, Brooks began to sell his own shares.
Then on November 7, 2007, the Company downgraded its 2007 earnings guidance. Zumiez shares dropped precipitously from $39.45 to $28.74 on the following trading day, on greatly increased volume of almost 6 million shares.
If you purchased Zumiez shares on or after August 22, 2007 and have experienced a decline in their value, or you have sold them at a loss, please contact Roy L. Jacobs. Mr. Jacobs will speak with you personally at no cost or obligation.