Apparel retailer Zumiez Q3 sales beat expectations
Zumiez Q3 net sales rose 7.5% year-over-year, beating analyst expectations. EPS increased to $0.55 from $0.06, aided by one-time tax benefits. The company repurchased 0.3 million shares at $18.61 per share. For Q4, Zumiez projects net sales between $291 million and $296 million, EPS of $0.97 to $1.07, and operating margins between 8.0% and 8.5%. The Q3 results were driven by high-single digit comparable sales growth and strong North American sales. Analysts rate the stock as 'hold' with a median 12-month price target of $18.00.
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Overview
- Zumiez Q3 net sales rise 7.5% yr/yr, beating analyst expectations
- EPS increased to $0.55 from $0.06, aided by one-time tax benefits
- Company repurchased 0.3 mln shares in Q3 at $18.61 per share
Outlook
- Zumiez projects Q4 net sales between $291 mln and $296 mln
- Company expects Q4 EPS of $0.97 to $1.07
- Zumiez sees Q4 operating margins between 8.0% and 8.5%
Result Drivers
- COMPARABLE SALES GROWTH - Zumiez attributes Q3 results to high-single digit comparable sales growth and strong full-price selling
- NORTH AMERICAN SALES - North American comparable sales increased sharply, contributing to overall growth
- ONE-TIME TAX BENEFITS - Zumiez’s Q3 EPS was aided by one-time discrete tax items
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Sales Beat $239.13 $233.54
mln mln (3
Analysts
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Q3 EPS $0.55
Q3 Net $9.16
Income mln
Analyst Coverage
- The current average analyst rating on the shares is “hold” and the breakdown of recommendations is no “strong buy” or “buy”, 3 “hold” and no “sell” or “strong sell”
- The average consensus recommendation for the apparel & accessories retailers peer group is “buy.”
- Wall Street’s median 12-month price target for Zumiez Inc is $18.00, about 35.1% below its December 3 closing price of $27.75
- The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 35 three months ago
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
