The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Zumiez met expectations on both revenue and earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share improved significantly.
Gross margin dropped, operating margin grew, and net margin improved.
Zumiez booked revenue of $183.9 million. The 14 analysts polled by S&P Capital IQ looked for revenue of $183.2 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $156.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.60. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.60 per share. GAAP EPS of $0.60 for Q4 were 22% higher than the prior-year quarter's $0.49 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.9%, 30 basis points worse than the prior-year quarter. Operating margin was 17%, 130 basis points better than the prior-year quarter. Net margin was 10.2%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $123.7 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $632.9 million. The average EPS estimate is $1.44.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 721 members rating the stock outperform and 69 members rating it underperform. Among 307 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 287 give Zumiez a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zumiez is outperform, with an average price target of $30.49.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.