Zumiez (ZUMZ) Lowers Q4 Sales Outlook to $287M-$290M Amid Mixed Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
0mins
Source: seekingalpha
- 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.
Analyst Views on ZUMZ
Wall Street analysts forecast ZUMZ stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZUMZ is 18.00 USD with a low forecast of 18.00 USD and a high forecast of 18.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 25.880
Low
18.00
Averages
18.00
High
18.00
Current: 25.880
Low
18.00
Averages
18.00
High
18.00
About ZUMZ
Zumiez Inc., including its wholly owned subsidiaries, is a specialty retailer of apparel, footwear, accessories and hardgoods for young men and women through the fashion, music, art and culture of action sports, streetwear and other lifestyles. It operates under the names Zumiez, Blue Tomato and Fast Times. It operates ecommerce websites at zumiez.com, zumiez.ca, blue-tomato.com and fasttimes.com.au. It operates approximately 729 stores, including 569 in the United States, 46 in Canada, 87 in Europe and 27 in Australia. Its women's clothing includes t-shirts, jeans, pants, sweatshirts, shorts, and swimmers. Its accessories include backpacks, hats, bags, watches and jewelry, socks, underwear, beanies, and belts. It also offers skateboards and skate parts, including decks, completes, longboards, cruisers, trucks, wheels, and helmets and pads. It provides snowboarding gear and snowboard equipment, such as bindings, snowboards, boots, jackets, pants, goggles, and gloves and mittens.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
