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Zumiez Inc (ZUMZ)
NASDAQ:ZUMZ
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Zumiez
(NASDAQ:ZUMZ)
52Neutral
Positive Factors
Financial Performance
EBIT surpassed expectations, reaching $20.1 million, which is 8.2% higher than analysts anticipated.
Gross Margins
Gross margins improved by 190 basis points over the prior-year quarter, aided by better product margins and reduced shipping costs.
Negative Factors
Holiday Results
Zumiez released weaker-than-expected holiday results, diverging from the solid demand environment seen elsewhere.
Revenue Guidance
Fourth-quarter revenue guidance was reduced by 3.5% due to weaker trends during the peak holiday weeks.
Sales Performance
Zumiez reported sales of $279.2 million, falling below consensus expectations and marking a 0.9% decline from the previous year.
Zumiez (ZUMZ) vs. S&P 500 (SPY)
Market Cap
$285.28M
Dividend YieldN/A
Average Volume (3M)366.41K
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth1.57%
EPS Growth98.64%
CountryUS
Employees2,400
SectorConsumer Cyclical
Sector Strength54
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.06
Shares Outstanding19,159,216
10 Day Avg. Volume449,823
30 Day Avg. Volume366,412
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.31
Price to Cash Flow (P/CF)1.30
P/FCF Ratio1.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.00Price Target Upside11.11% Upside
Rating ConsensusHold
Number of Analyst Covering2
Zumiez Business Overview & Revenue Model
Company DescriptionZumiez Inc., together with its subsidiaries, operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. Its hardgoods include skateboards, snowboards, bindings, components, and other equipment. As of February 26, 2022, the company operated 738 stores, including 602 stores in the United States, 52 stores in Canada, 67 stores in Europe, and 17 stores in Australia under the names of Zumiez, Blue Tomato, and Fast Times. The company also operates zumiez.com, zumiez.ca, blue-tomato.com, and fasttimes.com.au e-commerce websites. Zumiez Inc. was founded in 1978 and is headquartered in Lynnwood, Washington.
How the Company Makes MoneyZumiez generates revenue primarily through the sale of its diverse product offerings in apparel, footwear, accessories, and hard goods, catering specifically to the action sports lifestyle market. The company operates both physical retail stores and an e-commerce platform, allowing it to reach a broad audience. Revenue streams are primarily driven by in-store sales, but the growing importance of online shopping has increased the contribution of e-commerce to the company's earnings. Zumiez also collaborates with popular brands and artists to create exclusive merchandise, enhancing its product appeal and drawing customers in-store and online. Additionally, the company benefits from seasonal sales peaks, particularly around back-to-school and holiday shopping periods, which are significant contributors to its annual revenue.
Zumiez Financial Statement Overview
Summary
Zumiez is facing significant financial challenges, with declining revenue and profitability putting pressure on its financial health. While there is some improvement in cash flow and leverage management, overall stability is a concern due to negative net income and shrinking equity.Income Statement
Zumiez has experienced declining revenues over the past few years, with a significant drop from $1.18 billion in 2022 to $889.2 million in 2025. Gross profit margin has also decreased, highlighting pressures on cost management. The net profit margin turned negative in 2024 and remained negative in 2025, indicating ongoing struggles with profitability. EBIT and EBITDA margins reflect operational challenges, as they have remained low or negative in recent periods.45
Neutral
Balance Sheet
The balance sheet shows a decrease in total assets and stockholders' equity over time, which could indicate declining financial health. However, the debt-to-equity ratio has improved from 2020 to 2025, suggesting better leverage management. Despite this, the equity ratio has decreased, reducing financial stability. Return on equity was positive until 2023 but turned negative in subsequent periods, challenging the company's ability to generate returns for shareholders.60
Neutral
Cash Flow
Operating cash flow has been inconsistent, with occasional negative values, but improved in 2025. Free cash flow turned positive again in 2025, but its growth rate has been volatile. The company shows a positive operating cash flow to net income ratio in 2025, indicating potential for cash generation despite negative net income.55
Neutral
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 889.20M | 875.49M | 958.38M | 1.18B | 990.65M | Gross Profit |
| 303.04M | 280.89M | 324.68M | 456.73M | 350.01M | EBIT |
| 1.95M | -64.79M | 31.10M | 157.81M | 96.94M | EBITDA |
| 1.95M | -39.12M | 52.73M | 180.74M | 121.00M | Net Income Common Stockholders |
| -1.71M | -62.61M | 21.03M | 119.29M | 76.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 147.56M | 171.58M | 173.49M | 294.48M | 375.54M | Total Assets |
| 634.88M | 664.23M | 747.90M | 862.01M | 998.36M | Total Debt |
| 199.82M | 220.76M | 254.29M | 267.89M | 313.12M | Net Debt |
| 87.15M | 131.89M | 172.79M | 150.66M | 239.49M | Total Liabilities |
| 305.90M | 311.02M | 340.57M | 393.69M | 445.77M | Stockholders Equity |
| 328.98M | 353.21M | 407.33M | 468.32M | 552.60M |
| Cash Flow | Free Cash Flow | |||
| 5.70M | -5.59M | -26.01M | 119.20M | 129.35M | Operating Cash Flow |
| 20.70M | 14.76M | -379.00K | 134.95M | 138.41M | Investing Cash Flow |
| 32.60M | -8.55M | 54.21M | 101.64M | -110.54M | Financing Cash Flow |
| -24.60M | 704.00K | -87.26M | -191.41M | -9.69M |
Zumiez Technical Analysis
Positive
15.30
Price Trends
14.93
Positive
17.61
Negative
20.22
Negative
Market Momentum
<0.01
Negative
49.71
Neutral
42.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZUMZ, the sentiment is Positive. The current price of 15.3 is above the 20-day moving average (MA) of 14.41, above the 50-day MA of 14.93, and below the 200-day MA of 20.22, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 42.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZUMZ.
Zumiez Risk Analysis
Zumiez disclosed 31 risk factors in its most recent earnings report. Zumiez reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zumiez Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.84B | 12.44 | 17.56% | ― | 7.71% | 40.01% | |
75 Outperform | $42.60B | 20.44 | 40.28% | 1.17% | 3.69% | 13.71% | |
67 Neutral | $2.00B | 6.93 | 18.80% | 4.09% | 1.27% | 96.32% | |
61 Neutral | $3.85B | 7.36 | 47.77% | ― | 15.60% | 71.45% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
52 Neutral | $285.28M | ― | -0.50% | ― | 1.57% | 98.64% | |
48 Neutral | $67.24M | ― | -37.63% | ― | -5.59% | -287.73% |
* Consumer Cyclical Sector Average
Performance Comparison
ZUMZ
Zumiez
15.30
0.97
6.77%
ANF
Abercrombie Fitch
83.39
-47.34
-36.21%
AEO
American Eagle
12.65
-11.83
-48.33%
ROST
Ross Stores
132.37
-7.66
-5.47%
TLYS
Tilly's
2.19
-4.35
-66.51%
URBN
Urban Outfitters
55.42
13.51
32.24%
Zumiez Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: 19.72% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted positive trends in comparable sales growth, operating profitability, and strategic initiatives like private label expansion. However, challenges were noted in international markets and holiday season sales shortfalls. The company's strong cash position and margin improvements are positive, but the increased inventory levels and ongoing store closures present concerns.Highlights
Positive Comparable Sales Growth
Zumiez reported a 5.9% increase in comparable sales for the fourth quarter, marking the third consecutive quarter of positive comparable sales growth.
Significant Improvement in Operating Profitability
Operating profit more than doubled to $20 million, and EPS increased 95% to $0.78 after adjustments.
Strong Performance in Core Categories
Men's and women's categories showed strong momentum, with women's becoming the largest growth category for the quarter.
Private Label Expansion
Private label business grew to nearly 28% of total sales, up from 23% in 2023.
Gross Margin Expansion
Gross margin increased by 190 basis points to 36.2%, driven by improvements in product margin and web shipping costs.
SG&A Expense Reduction
SG&A expenses decreased by 1,690 basis points, with significant contributions from cost management and the absence of previous goodwill impairment charges.
Strong Cash Position
Zumiez ended the year with cash and current marketable securities of $147.6 million and no debt on the balance sheet.
Lowlights
Sales Shortfall During Holiday Season
Total sales were $7 million below the midpoint of initial guidance due to lower than planned sales in mid to late December in North America.
Challenges in International Markets
Other international net sales decreased by 6.4% in the fourth quarter, with Europe facing a 4.1% decline in comparable sales for the year.
Increased Inventory Levels
Inventory levels increased by 13.8%, driven by tariff-related inventory pull-forward and sales shortfalls.
Continued Store Closures
Zumiez closed 31 underperforming locations in 2024 and expects to close an additional 20 stores in 2025.
Company Guidance
During Zumiez Inc.'s Fourth Quarter Fiscal 2024 Earnings Conference Call, the company provided several key metrics and guidance for the upcoming year. The company reported a 5.9% increase in comparable sales for the fourth quarter, leading to total sales of $279 million, which was above the high end of their revised guidance. Operating profit more than doubled to $20 million, and EPS increased by 95% to $0.78 after adjustments. For the full fiscal year 2024, Zumiez reported net sales of $889.2 million, a 1.6% increase despite closing 33 stores, with a gross margin improvement to 34.1%. The company anticipates sales growth of 1% to 3% in Q1 2025, with comparable sales expected to rise between 3% and 5%. Looking ahead to fiscal 2025, Zumiez aims to grow total sales despite the planned closure of 20 stores and anticipates further leverage in gross margin and stable SG&A costs. The company plans capital expenditures between $14 million and $16 million and expects to increase operating margins for the year with a focus on strategic investments, private label expansion, and enhanced customer engagement.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.