The 10-second takeaway
For the quarter ended April 28 (Q1), Zumiez met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins grew across the board.
Zumiez booked revenue of $129.9 million. The 11 analysts polled by S&P Capital IQ wanted to see net sales of $128.7 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $105.9 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 $0.15. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.11 per share. GAAP EPS of $0.14 for Q1 were 133% higher than the prior-year quarter's $0.06 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 32.4%, 80 basis points better than the prior-year quarter. Operating margin was 5.6%, 320 basis points better than the prior-year quarter. Net margin was 3.5%, 170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $129.3 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $645.5 million. The average EPS estimate is $1.53.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 722 members out of 789 rating the stock outperform, and 67 members rating it underperform. Among 290 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 274 give Zumiez a green thumbs-up, and 16 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 $36.36.
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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.