Zumiez (ZUMZ) AI Stock Analysis

• Market Cap: $445.99M
• Dividend Yield: N/A
• Average Volume (3M): 193.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: 1.64%
• EPS Growth: N/A
• Country: US
• Employees: 2,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -0.06
• Shares Outstanding: 17,153,528
• 10 Day Avg. Volume: 197,720
• 30 Day Avg. Volume: 193,354
• PEG Ratio: 1.81
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 53.00
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 1.04
• Enterprise Value/Ebitda: 16.41
• 1Y Price Target: $18.00
• Price Target Upside: -30.77% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $28.00 ▲(7.69% Upside)

Zumiez's strong revenue growth and cash flow generation are significant positives, supported by bullish technical indicators. However, profitability challenges and a negative P/E ratio weigh on the valuation. The positive earnings call sentiment adds to the overall score, but international market difficulties and overbought technical signals suggest caution.

Positive Factors

Private Label Growth

The growth in private label sales enhances profit margins and brand control, providing a competitive edge and supporting long-term profitability.

Comparable Sales Growth

Consistent growth in comparable sales indicates strong market demand and effective sales strategies, supporting sustained revenue growth.

Improved Gross Profit Margin

Improvement in gross profit margin reflects better cost management and pricing strategies, enhancing long-term financial stability.

Negative Factors

Declining Revenue

Declining revenue poses a risk to business sustainability, indicating challenges in market share retention and competitive positioning.

International Sales Decline

Declining international sales highlight challenges in global market expansion, affecting overall growth potential and diversification.

Higher SG&A Expenses

Rising SG&A expenses can erode profitability, indicating inefficiencies and potential strain on financial resources if not managed effectively.

Zumiez Business Overview & Revenue Model

Company Description

Zumiez 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 Money

Zumiez generates revenue primarily through the sale of action sports and lifestyle apparel, footwear, and accessories in its retail stores and online platform. The company's revenue model is driven by direct product sales, where it offers a mix of proprietary brands and third-party branded items. Key revenue streams include in-store sales, online sales through its e-commerce platform, and sales from promotional events and collaborations. The company often engages in partnerships with popular brands to create exclusive products, enhancing its market appeal. Additionally, Zumiez benefits from a strong brand loyalty and community engagement, which drives repeat purchases and customer retention, further contributing to its earnings.

Zumiez Financial Statement Overview

Summary

Zumiez demonstrates strong revenue growth and cash flow generation, but profitability remains a challenge. The balance sheet is stable, though leverage is slightly elevated. The company should focus on improving operational efficiency and profitability to enhance overall financial health.

Income Statement

Zumiez has shown a significant improvement in revenue growth with a TTM increase of 45.7%, indicating a strong recovery. However, profitability margins are weak, with a TTM net profit margin of only 0.06% and an EBIT margin of 0.39%. The gross profit margin is stable at 34.51%, but the company needs to improve its operational efficiency to enhance profitability.

Balance Sheet

The balance sheet reflects moderate leverage with a TTM debt-to-equity ratio of 0.71. The equity ratio stands at 46.91%, indicating a reasonable level of financial stability. However, the return on equity is low at 0.19%, suggesting limited profitability from shareholder investments.

Cash Flow

Zumiez's cash flow performance is strong, with a TTM free cash flow growth of 112.21%. The free cash flow to net income ratio is robust at 1.18, indicating efficient cash generation relative to net income. However, the operating cash flow to net income ratio is relatively low at 0.16, suggesting room for improvement in operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	900.25M	889.20M	875.49M	958.38M	1.18B	990.65M
Gross Profit	310.68M	303.04M	280.89M	324.68M	456.73M	350.01M
EBITDA	19.73M	24.11M	-39.12M	52.73M	180.74M	121.00M
Net Income	581.00K	-1.71M	-62.61M	21.03M	119.29M	76.23M
Balance Sheet
Total Assets	623.39M	634.88M	664.23M	747.90M	862.01M	998.36M
Cash, Cash Equivalents and Short-Term Investments	106.74M	147.56M	171.58M	173.49M	294.48M	375.54M
Total Debt	208.72M	199.82M	220.76M	254.29M	267.89M	313.12M
Total Liabilities	330.95M	305.90M	311.02M	340.57M	393.69M	445.77M
Stockholders Equity	292.44M	328.98M	353.21M	407.33M	468.32M	552.60M
Cash Flow
Free Cash Flow	31.29M	5.70M	-5.59M	-26.01M	119.20M	129.35M
Operating Cash Flow	26.62M	20.70M	14.76M	-379.00K	134.95M	138.41M
Investing Cash Flow	20.21M	32.60M	-8.55M	54.21M	101.64M	-110.54M
Financing Cash Flow	-37.74M	-24.60M	704.00K	-87.26M	-191.41M	-9.69M

Zumiez Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 26 is above the 20-day moving average (MA) of 22.78, above the 50-day MA of 21.53, and above the 200-day MA of 16.09, indicating a bullish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 76.04 is Negative, neither overbought nor oversold. The STOCH value of 97.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZUMZ.

Zumiez Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANF	78 Outperform	$4.61B	9.38	40.72%	―	7.57%	1.75%
URBN	77 Outperform	$6.96B	14.65	19.34%	―	11.09%	51.51%
AEO	73 Outperform	$3.45B	19.64	12.17%	2.45%	-2.73%	-16.71%
ZUMZ	66 Neutral	$445.99M	―	0.19%	―	1.64%	―
CRI	66 Neutral	$1.16B	12.95	10.27%	4.86%	-0.34%	-61.00%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TLYS	45 Neutral	$41.75M	―	-43.51%	―	-11.10%	-10.31%

Zumiez Corporate Events

Zumiez Shareholders Approve Key Proposals at Annual Meeting

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.