Everybody's bent out of shape worrying about terrified consumers (and lower retail spending), but skaters and other board sports and action sports enthusiasts don't seem to pay the greater economy any mind, judging by Zumiez's
The retailer, which provides board sports-related apparel and merchandise, reported a September same-store sales increase of 13.9%, versus a strong showing last year this time, when it increased comps by 14.9%. Zumiez's total sales increased 11.8% to $32.1 million.
It's not much of a stretch to imagine this could bode well for Volcom
Shares of Zumiez, a small cap that also happens to be a Motley Fool Hidden Gems pick (as is Volcom), jumped in after-hours trading last night, and I'm not surprised; many investors have been expecting a modest or maybe even dour September from many retailers. I find Zumiez a pretty compelling stock idea, but buying shares at 40 times forward earnings, which outpaces expected growth, sounds like a bit of a daredevil move to me (and no, I could never even stand on a skateboard). I'd rather wait for a bit of a discount -- it's been known to happen, after all.
Maybe I'm just chicken, though; I know Zumiez shareholders have been enjoying this wild ride, and the company's definitely showing solid signs of ongoing growth and success.
Zoom through some related Foolishness on Zumiez:
- Zumiez skated through August.
- Last quarter, it mellowed out a bit.
- Zumiez was zooming in July.