Zumiez Inc. (ZUMZ): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report
Summary:
We have upgraded our long-term recommendation on Zumiez driven by its solid comparable store sales performance for the past three months and encouraging fourth quarter guidance. The company reported comps growth of 6.3%, 8% and 12.3% respectively, for November, December and January. Further, the company expects fourth quarter sales in the range of $255 $256 million, along with 7% comps growth and earnings of $0.75 $0.77 per share. All this, coupled with an upward revision in estimates, further strengthen our confidence in the company's upcoming fourth quarter results. Zumiez's strength is also evident from its positive earnings surprise history. Moreover, we believe the company's store expansion policy, along with the improvement of its omni-channel capabilities will help boost its top and bottom lines.
Overview:
Zumiez Inc. is a mall-based specialty retailer of action sports related apparel, footwear, equipment and accessories. The company targets the youth both men and women between the ages of 12 to 24, who seek popular brands that symbolize a lifestyle representing extreme sports. Zumiez's stores span 2,900 square feet on an average, and feature couches and video game stations to encourage customers to shop for extended periods. The company's stores are strategically located near busy areas of a mall, such as food courts, movie theatres, music/game stores and other popular teenage hang-out destinations.
Zumiez also offers branded products, such as Adidas, Nike 6.0, Burton, Supra, Circa, Element, Etnies, Empyre, Glamour Kills and Volcom, as well as private-label brands. The company's merchandise mix consists of both apparel and hard goods, such as skateboards, snowboards and ancillary gears including boots and bindings. The company has a wholly owned subsidiary, Blue Tomato, which is one of the leading European multi-channel retailers, providing board sports as well as related apparel and footwear.
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