Out of the Gate: Zumiez Rises

The stock rose 79 cents, or 4.1 percent, to $19.99.

Profit for the quarter ended May 3 declined on higher expenses, but still topped the average estimate of analysts polled by Thomson Financial, along with sales.

Thomas Weisel Partners analyst Jim Duffy raised his price target by $3 to $19, but warned that the economy is still hurting a number of markets. Duffy said business in California, Arizona and Florida, which bring in 31 percent of total sales, is sluggish.

"Given lingering economic woes related to the housing situation in these markets we expect these markets remain challenged at least until comps ease, beyond September," Duffy wrote in a client note.

Duffy, who rates the stock "Market Weight," said he was impressed by the company's ability to manage expenses.