The 10-second takeaway
For the quarter ended July 28 (Q2), Zumiez met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped.
Gross margins improved, operating margins shrank, net margins dropped.
Zumiez logged revenue of $135.1 million. The 17 analysts polled by S&P Capital IQ anticipated net sales of $135.6 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $112.2 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 $0.17. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. GAAP EPS of $0.07 for Q2 were 13% lower than the prior-year quarter's $0.08 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 34.4%, 120 basis points better than the prior-year quarter. Operating margin was 2.8%, 40 basis points worse than the prior-year quarter. Net margin was 1.5%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $183.1 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $675.5 million. The average EPS estimate is $1.58.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 713 members out of 778 rating the stock outperform, and 65 members rating it underperform. Among 261 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 245 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 $42.00.
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