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Zumiez, Inc. Message Board

  • eon902 eon902 Jan 7, 2011 4:19 PM Flag

    Trading multiple for ZUMZ

    I'm new to ZUMZ. What justifies this stock trading at such a high PE multiple? At 15 times 2011 earnings, the stock would be trading at $13. At 15 times 2012 earnings, the stock would trade at $15.45. Any comments would be appreciated.

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    • Likely because they just grew eps by 135% in the October qtr.

      EPS should grow by about 50% in the current qtr. That alone will give a stock some decent momentum.

      In the April qtr estimate is only for sales to be .03 above last year's unspectacular 0.0 profit. Chances are they will beat that by a sound margin. Especially if the economy in places like California pick up. Competitors like PSUN also in trouble.

      With 400 stores there is still likely room to grow that by maybe another 200 stores. There are 13 States that have no ZUMZ stores at all.

      ANF PE for 2011/2012 is around 20.

      LULU PE for 2011 is around 40 and 30 for 2012. However they have a lot of room to add more stores. Still looks steep.

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