William Blair analyst Dylan Carden has maintained their neutral stance on ZUMZ stock, giving a Hold rating on November 28.
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Dylan Carden has given his Hold rating due to a combination of factors that reflect both positive momentum and potential challenges for Zumiez. The company has shown strong performance in the third quarter with a 7.6% increase in comparable sales, driven by higher transactions and spending per transaction. This growth was particularly notable in North America, where sales increased by double digits, although international sales saw a slight decline.
Despite these positive results, Carden’s Hold rating suggests caution due to the potential risks and uncertainties that remain. While Zumiez has set optimistic guidance for the fourth quarter, with expectations of continued sales growth and improved margins, the international segment’s performance remains a concern. Additionally, the company’s valuation and the impact of past store closures present challenges that may affect future growth. Therefore, the Hold rating reflects a balanced view of the company’s current strengths and the risks it faces moving forward.
In another report released on November 28, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $28.00 price target.