Zumiez (ZUMZ) AI Stock Analysis

• Market Cap: $343.76M
• Dividend Yield: N/A
• Average Volume (3M): 261.85K
• Price to Earnings (P/E): 1677.3
• Beta (1Y): 0.98
• 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: 283,696
• 30 Day Avg. Volume: 261,849
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 1.04
• Enterprise Value/Ebitda: 16.41
• 1Y Price Target: $20.50
• Price Target Upside: 4.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: $23.00 ▲(17.11% Upside)

Zumiez's strong technical momentum is a significant positive factor, indicating potential for short-term gains. However, the company's valuation is a major concern due to the extremely negative P/E ratio, suggesting underlying profitability issues. Financial performance is moderate, with strong revenue and cash flow growth but weak profitability margins. The absence of a dividend yield further impacts the overall attractiveness of the stock.

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 apparel, footwear, and accessories in its retail stores and e-commerce platform. The company employs a multi-channel retail strategy, which includes brick-and-mortar locations and online sales, allowing it to reach a broad customer base. Key revenue streams include sales from branded products from well-known action sports brands, as well as private label merchandise, which typically has higher profit margins. Additionally, Zumiez benefits from customer loyalty programs and promotional events that encourage repeat business. The company's partnerships with popular brands and participation in action sports events also contribute to brand visibility and sales growth.

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.

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.

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.

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: 19.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 19.64 is below the 20-day moving average (MA) of 19.77, above the 50-day MA of 16.90, and above the 200-day MA of 15.23, indicating a neutral trend. The MACD of 0.95 indicates Positive momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 17.87 is Positive, 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
BKE	81 Outperform	3.01B	14.75	46.12%	6.64%	1.62%	-2.57%
URBN	79 Outperform	6.39B	13.95	18.42%	―	9.63%	56.06%
ANF	77 Outperform	4.19B	8.32	41.86%	―	9.34%	10.61%
AEO	66 Neutral	3.03B	17.23	12.76%	2.81%	-2.73%	-16.71%
ZUMZ	64 Neutral	$343.76M	1,677.27	0.19%	―	1.64%	―
TLYS	49 Neutral	60.64M	-1.31	-45.83%	―	-11.10%	-10.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.