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Zumiez Inc (ZUMZ)
NASDAQ:ZUMZ

Zumiez (ZUMZ) AI Stock Analysis

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Zumiez

(NASDAQ:ZUMZ)

Rating:56Neutral
Price Target:
$14.50
▼(-0.14%Downside)
Zumiez's overall stock score reflects significant financial challenges, marked by declining revenues and profitability. While positive technical indicators and strategic initiatives, such as share repurchase and private label growth, provide some optimism, the high P/E ratio and profitability concerns weigh heavily on the score.
Positive Factors
Financial performance
Gross margins were in line with consensus expectations at 36.2% of sales and represented a 190-basis-point improvement over the prior-year quarter.
Sales growth
Management noted quarter-to-date sales growth of 1.7% and comp growth of 4.3%.
Negative Factors
Earnings guidance
Losses per share are being guided below the prior year, and below prerelease expectations.
International business
International comp declines of 2.3% offset the North American comp growth.
Revenue guidance
Fourth-quarter revenue guidance was lowered by 3.5% due to softer trends in the peak weeks of the holiday season.

Zumiez (ZUMZ) vs. SPDR S&P 500 ETF (SPY)

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 branded and private-label merchandise in its physical retail stores and online platform. The company's revenue streams include apparel, footwear, accessories, and hardgoods like skateboards and snowboards. Zumiez's business model focuses on catering to the dynamic tastes of its young consumer base by offering a curated selection of products from popular and emerging brands. Key factors contributing to its earnings include its ability to identify and capitalize on trends in youth culture, foster strong relationships with vendors, and maintain a vibrant in-store experience. Additionally, Zumiez may engage in strategic partnerships with brands and artists to host events and exclusive product releases that drive foot traffic and online sales.

Zumiez Earnings Call Summary

Earnings Call Date:Jun 05, 2025
(Q1-2025)
|
% Change Since: 12.91%|
Next Earnings Date:Sep 04, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced performance with strong growth in the North American market and private label sales, alongside challenges in international markets and legal costs impacting the bottom line.
Q1-2025 Updates
Positive Updates
North American Business Resilience
Comparable sales for the company grew 5.5%, marking the fourth consecutive quarter of positive comparable sales growth. North America net sales increased by 4.9% from 2024, with comparable sales up 7.4%.
Increase in Private Label Sales
Private label sales reached nearly 30% of total sales in the first quarter of 2025, up from 28% in 2024 and 23% in 2023.
Successful Share Repurchase Program
The company bought back 1.8 million shares or 9.4% of the company based on year-end 2024 outstanding shares and announced a new buyback plan for an additional $15 million.
Strong Financial Position
Zumiez ended the quarter with $101 million in cash and current marketable securities and no debt.
Negative Updates
Challenges in Other International Markets
Other international net sales decreased 0.2% from last year, with comparable sales for other international markets down 2.3% in the first quarter and 14.8% in May.
Legal Settlement Impact
SG&A expense increased due to a onetime $2.9 million legal cost associated with a settlement of a wage and hour lawsuit in California.
Operating Losses
Operating loss for the first quarter of 2025 was $19.9 million or 10.8% of net sales compared to an operating loss of $20.2 million or 11.3% of net sales last year.
Company Guidance
During Zumiez Inc.'s First Quarter Fiscal 2025 Earnings Conference Call, the company reported a 5.5% growth in comparable sales, marking the fourth consecutive quarter of positive growth. North American net sales reached $149.7 million, a 4.9% increase from the previous year, while international sales saw a slight decrease. Private label sales increased to 30% of total sales, up from 28% in 2024. Despite a reported net loss of $14.3 million for the quarter, the company maintained a strong balance sheet with $101 million in cash and current marketable securities. Inventory levels increased by 2.1%, reaching $149.9 million, while gross profit rose by 6.6% to $55.3 million. The company plans to open nine new stores and close approximately 20 stores in 2025, with expectations of a modest year-over-year growth in product margin and operating margins. The company also announced a new $15 million share repurchase authorization.

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. The company's ability to navigate these issues will be crucial for future success in the competitive retail industry.
Income Statement
45
Neutral
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.
Balance Sheet
60
Neutral
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.
Cash Flow
55
Neutral
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue896.16M889.20M875.49M958.38M1.18B990.65M
Gross Profit306.46M303.04M280.89M324.68M456.73M350.01M
EBITDA18.59M24.11M-39.12M52.73M180.74M121.00M
Net Income736.00K-1.71M-62.61M21.03M119.29M76.23M
Balance Sheet
Total Assets599.10M634.88M664.23M747.90M862.01M998.36M
Cash, Cash Equivalents and Short-Term Investments100.96M147.56M171.58M173.49M294.48M375.54M
Total Debt201.79M199.82M220.76M254.29M267.89M313.12M
Total Liabilities300.62M305.90M311.02M340.57M393.69M445.77M
Stockholders Equity298.48M328.98M353.21M407.33M468.32M552.60M
Cash Flow
Free Cash Flow14.75M5.70M-5.59M-26.01M119.20M129.35M
Operating Cash Flow17.19M20.70M14.76M-379.00K134.95M138.41M
Investing Cash Flow20.42M32.60M-8.55M54.21M101.64M-110.54M
Financing Cash Flow-49.86M-24.60M704.00K-87.26M-191.41M-9.69M

Zumiez Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.52
Price Trends
50DMA
12.54
Positive
100DMA
13.35
Positive
200DMA
16.82
Negative
Market Momentum
MACD
0.41
Negative
RSI
68.59
Neutral
STOCH
85.40
Negative
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 14.52 is above the 20-day moving average (MA) of 12.74, above the 50-day MA of 12.54, and below the 200-day MA of 16.82, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 68.59 is Neutral, neither overbought nor oversold. The STOCH value of 85.40 is Negative, 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ANANF
79
Outperform
$4.36B9.0246.98%12.54%25.47%
79
Outperform
$6.59B15.4219.55%8.38%52.18%
BKBKE
78
Outperform
$2.44B12.2744.55%2.94%-1.08%-8.20%
AEAEO
69
Neutral
$1.78B10.5212.19%4.85%-0.95%-10.51%
62
Neutral
$16.85B11.50-7.38%2.96%1.59%-23.36%
56
Neutral
$258.03M1,320.000.23%3.01%
47
Neutral
$52.16M-47.54%-8.79%-15.17%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZUMZ
Zumiez
14.52
-6.04
-29.38%
ANF
Abercrombie Fitch
91.60
-86.93
-48.69%
AEO
American Eagle
10.28
-8.93
-46.49%
BKE
Buckle
47.66
14.26
42.69%
TLYS
Tilly's
1.73
-3.76
-68.49%
URBN
Urban Outfitters
73.57
29.91
68.51%

Zumiez Corporate Events

Executive/Board ChangesShareholder Meetings
Zumiez Shareholders Approve Key Proposals at Annual Meeting
Neutral
Jun 6, 2025

At the Annual Meeting, Zumiez shareholders voted on three proposals as outlined in the 2025 Proxy Statement. On the first proposal, Travis D. Smith and Guy M. Harkless were elected as directors for a three-year term until the 2028 Annual Meeting. The second proposal saw shareholders approve an advisory, non-binding vote on executive compensation. Lastly, the third proposal involved the ratification of Moss Adams LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2026.

The most recent analyst rating on (ZUMZ) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Zumiez stock, see the ZUMZ Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Zumiez Reports Q1 2025 Sales Increase Amid Challenges
Neutral
Jun 5, 2025

Zumiez Inc. reported a 3.9% increase in net sales for the first quarter of fiscal 2025, ending May 3, 2025, with comparable sales rising by 5.5%. Despite a net loss of $14.3 million, the company showed resilience in its North American operations amid macroeconomic uncertainties and tariffs, while international sales faced challenges. The company announced a stock repurchase program of up to $15 million, expected to continue through June 30, 2026, and plans to open approximately 9 new stores in fiscal 2025.

The most recent analyst rating on (ZUMZ) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Zumiez stock, see the ZUMZ Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 02, 2025