Zumiez's (ZUMZ) Q2 Earnings Coming Up: What's in the Offing?
Zumiez Inc. ZUMZ is likely to post a decrease in the top and the bottom line from the respective year-ago fiscal quarter’s reported figures in its second-quarter fiscal 2023 earnings on Sep 7, after the closing bell. The Zacks Consensus Estimate for quarterly sales is pegged at $190 million, indicating a decline of 13.6% from the last fiscal-year period’s tally.
The consensus estimate for quarterly earnings is pegged at a loss of 67 cents a share against earnings of 16 cents per share from the year-ago fiscal period’s tally. The consensus mark has been stable in the past 30 days.
This Lynnwood, WA-based player witnessed an average earnings surprise of 14% in the trailing four quarters.
Key Factors to Note
Zumiez’s quarterly performance is likely to have been hurt by a challenging operating landscape, including numerous issues like inflationary pressures, a promotional landscape, increased operating costs and foreign currency headwinds. Any deleverage in SG&A costs are likely to have been added deterrents.
On its last earnings call, management projected second-quarter sales to be $187-$192 million and product margins to be down 50-70 basis points year over year. It had expected consolidated operating loss as a rate of sales for the same quarter to be negative 7.7% and negative 9.2% and loss per share to be 63-73 cents for the fiscal second quarter.
Management had earlier said that net sales for the four-week period ended May 27, 2023, tumbled 12.8% from the year-ago period while comparable sales declined 14.3% year over year. From a regional perspective, net sales for the North American business fell 17% from the year-ago fiscal quarter’s tally in the four weeks that ended May 27, while the metric for the international business decreased 12.7%. Excluding foreign currency impacts, North American sales were down 16.7%. Comparable sales for North America dropped 17.5% for the same four-week period. The footwear category remained the most negative, followed by hard goods, accessories, men's and women's. The consensus estimate for the overall comparable sales is likely to decline 14.5% in the fiscal second quarter.
On the positive front, Zumiez’s consumer-centric approach and merchandise initiatives remain encouraging. ZUMZ’s store expansion and omnichannel efforts are other positives. These positives are likely to have provided some cushion to the quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Zumiez this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as elaborated below. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zumiez Inc. Price and EPS Surprise
Zumiez Inc. price-eps-surprise | Zumiez Inc. Quote
Zumiez has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks With The Favorable Combination
Here are some companies, which according to our model, have the right combination of elements to beat on earnings:
Skechers SKX currently has an Earnings ESP of +0.41% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register a bottom-line increase when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 77 cents suggests a rise of 40% from the year-ago quarter.
Skechers’ top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $2.01 billion, which indicates a rise of 6.8% from the figure reported in the prior-year quarter. SKX has a trailing four-quarter earnings surprise of 39.1%, on average.
American Eagle Outfitters AEO currently has an Earnings ESP of +8.52% and a Zacks Rank of 2. The company is expected to register bottom-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 15 cents suggests a surge of 275% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $1.19 billion, indicating a drop of 0.9% from the figure reported in the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 9.2%, on average.
Casey's General Stores CASY currently has an Earnings ESP of +1.29% and a Zacks Rank of 3. The company is expected to register a bottom-line decrease when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.36 suggests a decline of 17.9% from the year-ago quarter.
Casey's top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $3.85 billion, indicating a drop of 13.5% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
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Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
