Will Zumiez's North American Success Lead to a Sustainable Recovery?
Strong Sales Growth: Zumiez Inc. reported a 2.1% increase in North American net sales to $180 million in Q2, with comparable sales rising 4.2%, marking six consecutive quarters of positive growth. August saw a significant boost, with comparable sales growing in the low teens.
Strategic Improvements: The company's success is attributed to a refined merchandising strategy, including the introduction of over 120 new brands and a record 30% of sales from private-label products, alongside effective pricing strategies and increased transaction volume during the back-to-school season.
Positive Financial Outlook: Zumiez anticipates continued growth, projecting comparable sales growth of 5.5% to 7.5% for Q3, supported by a strong start to the fall season and plans for new store openings despite some closures.
Valuation and Earnings Estimates: Zumiez shares have increased by 4.5% year-to-date, with a forward price-to-sales ratio significantly lower than the industry average. Earnings estimates for fiscal 2025 and 2026 have been revised upward, indicating expected growth of 566.7% and 63.5%, respectively.
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Zumiez (ZUMZ) Lowers Q4 Sales Outlook to $287M-$290M Amid Mixed Results
- Sales Outlook Cut: Zumiez has lowered its Q4 net sales forecast from $291M-$296M to $287M-$290M due to weak international sales, resulting in stock pressure and reaching a one-month low.
- Mixed Performance: For the nine-week period ending January 4, Zumiez reported a 2.9% increase in comparable sales, driven by a 6.5% rise in North America, while international markets saw an 8.9% decline, indicating uneven regional performance.
- Earnings Forecast Raised: Despite the sales outlook cut, Zumiez expects earnings per share to rise to $1.05-$1.10, up from the previous range of $0.97-$1.07, reflecting improved expense management and full-price selling in Europe.
- Margin Improvement: With a 600 basis point increase in product margin, Zumiez demonstrates stronger cost control amid sales challenges, which is expected to enhance future profitability and competitive positioning.

Zumiez Inc. (ZUMZ) Raises Q4 Guidance Amid 2.9% Sales Growth
- Sales Growth: Zumiez reported a comparable sales increase of 2.9% for the nine-week period ending January 3, indicating stable demand in the apparel and accessories market, which enhances its competitive position.
- Earnings Guidance Raised: The company has revised its fourth-quarter earnings per share guidance to $1.05 to $1.10, up from the previous range of $0.97 to $1.07, reflecting improved product margins in North America and Europe as well as effective expense management.
- Sales Forecast Adjustment: Despite the earnings guidance increase, Zumiez has lowered its fourth-quarter sales forecast to between $287 million and $290 million, down from $291 million to $296 million, primarily due to softer international sales.
- Positive Market Reaction: ZUMZ shares rose by 6.86% to $27.66 in pre-market trading on Nasdaq, reflecting investor optimism regarding the company's outlook.






