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Factors Setting the Tone for Zumiez's (ZUMZ) Q1 Earnings
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Zumiez Inc. (ZUMZ - Free Report) is likely to register an increase in the bottom line when it reports first-quarter fiscal 2021 numbers on Jun 3, after the closing bell. We note that the Zacks Consensus Estimate for earnings for the quarter under review has been stable at 1 cent over the past 30 days. The figure suggests sharp improvement from a loss of 79 cents reported in the year-ago period.
Notably, this Lynnwood, WA-based company has a trailing four-quarter earnings surprise of 46.5%, on average. In the last reported quarter, the company delivered an earnings surprise of 4.4%.
Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $215.9 million, indicating an increase of 56.7% from the prior-year reported figure.
Key Factors to Note
Undeniably, Zumiez has been striving to expand e-commerce and omni-channel platforms to provide consumers with the facility of quick and easy access to its products and brands. No wonder, the company has been bolstering competitiveness by making investments in logistics, planning and allocation. Evidently, management has been taking every measure to mitigate the impact of the pandemic. These include optimizing capital expenditures and minimizing operating costs among others.
The aforementioned factors are likely to have favorably impacted Zumiez’s first-quarter performance. Meanwhile, easing pandemic-related restrictions, mass inoculation drive and massive stimulus package are likely to have triggered spending across the board. Cumulatively, these are likely to have played a significant role in driving the company’s top line.
However, the impact of costs associated with digital fulfilment and supply chain, and COVID-19 related expenses on margins cannot be ruled out.
On its last earnings call, management notified that first quarter to date sales for the 35 days ended Mar 6, 2021 were down approximately 3.8%, while comparable sales during the said period declined 0.4%. By channel, open store comparable sales fell 6.9% while e-commerce sales surged 29.5%. We believe that the sales trend is likely to have improved after early March owing to a fresh round of stimulus checks and other positive steps taken by the government.
Our proven model does not conclusively predict an earnings beat for Zumiez this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Zumiez has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Dave & Buster's Entertainment (PLAY - Free Report) has an Earnings ESP of +107.90% and a Zacks Rank #3.
Domino's Pizza (DPZ - Free Report) has an Earnings ESP of +0.38% and a Zacks Rank #3.
Time to Invest in Legal Marijuana
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After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.
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Image: Bigstock
Factors Setting the Tone for Zumiez's (ZUMZ) Q1 Earnings
Zumiez Inc. (ZUMZ - Free Report) is likely to register an increase in the bottom line when it reports first-quarter fiscal 2021 numbers on Jun 3, after the closing bell. We note that the Zacks Consensus Estimate for earnings for the quarter under review has been stable at 1 cent over the past 30 days. The figure suggests sharp improvement from a loss of 79 cents reported in the year-ago period.
Notably, this Lynnwood, WA-based company has a trailing four-quarter earnings surprise of 46.5%, on average. In the last reported quarter, the company delivered an earnings surprise of 4.4%.
Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $215.9 million, indicating an increase of 56.7% from the prior-year reported figure.
Key Factors to Note
Undeniably, Zumiez has been striving to expand e-commerce and omni-channel platforms to provide consumers with the facility of quick and easy access to its products and brands. No wonder, the company has been bolstering competitiveness by making investments in logistics, planning and allocation. Evidently, management has been taking every measure to mitigate the impact of the pandemic. These include optimizing capital expenditures and minimizing operating costs among others.
The aforementioned factors are likely to have favorably impacted Zumiez’s first-quarter performance. Meanwhile, easing pandemic-related restrictions, mass inoculation drive and massive stimulus package are likely to have triggered spending across the board. Cumulatively, these are likely to have played a significant role in driving the company’s top line.
However, the impact of costs associated with digital fulfilment and supply chain, and COVID-19 related expenses on margins cannot be ruled out.
On its last earnings call, management notified that first quarter to date sales for the 35 days ended Mar 6, 2021 were down approximately 3.8%, while comparable sales during the said period declined 0.4%. By channel, open store comparable sales fell 6.9% while e-commerce sales surged 29.5%. We believe that the sales trend is likely to have improved after early March owing to a fresh round of stimulus checks and other positive steps taken by the government.
Zumiez Inc. Price, Consensus and EPS Surprise
Zumiez Inc. price-consensus-eps-surprise-chart | Zumiez Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Zumiez this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Zumiez has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Signet Jewelers (SIG - Free Report) has an Earnings ESP of +2.84% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dave & Buster's Entertainment (PLAY - Free Report) has an Earnings ESP of +107.90% and a Zacks Rank #3.
Domino's Pizza (DPZ - Free Report) has an Earnings ESP of +0.38% and a Zacks Rank #3.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Today, Download Marijuana Moneymakers FREE >>