Shares of Zumiez (NASDAQ: ZUMZ) plummeted 18.5% in pre-market trading on Friday as the specialty retailer of apparel, accessories, and footwear reported disappointing Q2 results.
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The retailer’s net sales in Q2 declined 18.1% year-over-year to $220 million falling short of analysts’ estimates by $11.5 million. Earnings came in at $0.16 versus $0.94 per diluted share in the same period last year. Analysts had forecasted Zumiez’s earnings to come in at $1.13 per share.
Rick Brooks, CEO of Zumiez commented, “As the second quarter progressed, we experienced continued pressure on our U.S. business as macroeconomic headwinds, led by inflation weighed on consumer discretionary spending.”
Zumiez has projected its net sales in fiscal Q3 to range from $220 to $228 million. Earnings are forecasted to come between $0.03 and $0.18 per share.
The company’s management added that it believed it was “prudent to adopt a more cautious view on the remainder of 2022.”
Is Zumiez a Good Stock?
Wall Street analysts remain sidelined on Zumiez with a Hold consensus rating. Only two analysts have covered the stock in the past three months.
ZUMZ’s average price forecast of $27.50 implies that the stock has an upside potential of 3.6%
