Clothing and footwear retailer Zumiez (NASDAQ: ZUMZ) will be reporting earnings this Thursday after the bell. Here’s what to look for.
Zumiez beat analysts’ revenue expectations last quarter, reporting revenues of $291.3 million, up 4.4% year on year. It was a mixed quarter for the company, with revenue guidance for next quarter beating analysts’ expectations but EPS guidance for next quarter missing analysts’ expectations significantly.
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 grow 4.5% year on year, in line with the 3.9% increase it recorded in the same quarter last year.
The majority of analysts covering the company have 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 Q1 results, giving us a hint as to what we can expect. Victoria's Secret delivered year-on-year revenue growth of 15.3%, beating analysts’ expectations by 2.6%, and Urban Outfitters reported revenues up 11.4%, topping estimates by 1.4%. Urban Outfitters traded up 2.9% following the results.
Read our full analysis of Victoria's Secret’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 2.8% on average over the last month. Zumiez is up 1.8% during the same time and is heading into earnings with an average analyst price target of $24 (compared to the current share price of $23.28).
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