Clothing and footwear retailer Zumiez (NASDAQ: ZUMZ) will be reporting earnings this Thursday after market close. Here’s what you need to know.
Zumiez beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $214.3 million, up 1.9% year on year. It was a stunning quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Zumiez a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Zumiez’s revenue to grow 6.1% year on year to $236.1 million, improving from the 2.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zumiez has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Zumiez’s peers in the apparel retailer segment, some have already reported their Q3 results, giving us a hint as to what we can expect. American Eagle delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 3.1%, and Urban Outfitters reported revenues up 12.3%, topping estimates by 2.6%. American Eagle traded up 13.5% following the results while Urban Outfitters was down 15.7%.
Read our full analysis of American Eagle’s results here and Urban Outfitters’s results here.
There has been positive sentiment among investors in the apparel retailer segment, with share prices up 5.2% on average over the last month. Zumiez is up 18.8% during the same time and is heading into earnings with an average analyst price target of $18 (compared to the current share price of $26.20).
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