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Zumiez, Inc. Message Board

  • smorcos83 smorcos83 Aug 8, 2012 6:48 PM Flag

    Why Would You...

    Invest in a company like Pac Sun over Zumiez when at many markets or malls that had both stores, Zumiez outsold Pac Sun and Pac Sun closed... ??

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    • Actually not sure why you would want either. ZUMZ is a more successful business, but it sells at a multiple that implies continued growth in the future. For a teen niche retailer, that is a mighty risky proposition.

      The pumpers laughed about 6 weeks ago, when the stock was around 39 bucks, and I stated that it was going down. I am patiently waiting for it to bottom, which I am estimating will be around 28 bucks or so. Until then, I would not touch it. Any disapointment in the next earnings report, even a small glitch, can send this thing tumbling in a heartbeat.

      • 1 Reply to joltingjosephine
      • I agree that teenage nich is risky... however Zumiez has been a great go to for snowboarding gear and clothes winter after winter for the last 10 years, and the beautiful thing about the timing of winter in terms of retail... Christmas. Every year around winter the store is so crowded you can't even move, and demand is so high that proper sizes are hard to find. Snowboarding isn't going anywhere, skateboarding appears to still be around, and the whole rocker/emo look appears to still be trendy with some youngsters from what I can tell. The only real concern is how fast and high the stock moved in the last year. Really fast... doubled. And technically, the stock settling in the high 20s looks realistic on a long term basis IMO. But who knows, it could snap up and continue to climb toward mid high 40s if earnings stay positive and the economy holds up. KORS killed it today, which I own as well... perhaps that's why ZUMZ is getting a little retail halo bump?

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