Clothing and footwear retailer Zumiez (NASDAQ: ZUMZ) will be reporting earnings this Thursday after market hours. Here’s what you need to know.
Zumiez met analysts’ revenue expectations last quarter, reporting revenues of $193.3 million, up 4.9% year on year. It was a slower quarter for the company, with EPS guidance for next quarter missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations.
Is Zumiez a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Zumiez’s revenue to decline 1% year on year, a reversal from the 1.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Zumiez has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Zumiez’s peers in the apparel retailer segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Tilly's delivered year-on-year revenue growth of 8.1%, beating analysts’ expectations by 4.1%, and Abercrombie and Fitch reported revenues up 4.8%, topping estimates by 1.8%. Tilly's traded up 15.5% following the results while Abercrombie and Fitch was also up 33.8%.
Read our full analysis of Tilly’s results here and Abercrombie and Fitch’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the apparel retailer stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.6% on average over the last month. Zumiez is down 9.4% during the same time.
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