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Zumiez (ZUMZ) Reports Holiday Sales, Sees Comps Rise 6%

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Zumiez Inc. (ZUMZ - Free Report) released data and shared information about its performance during the holiday period. Despite the ongoing volatile conditions, ZUMZ managed to deliver sales and comparable sales growth in the said phase. It has been benefiting from its consumer-centric approach, including merchandising strategy and advanced in-store fulfillment capabilities for a while.

This renowned apparel and footwear retailer’s chief executive officer Rick Brooks said, “Our 2021 holiday sales pattern resembled pre-pandemic seasons with volume focused around peak periods and a strong return to physical shopping providing our customers human to human experiences with our best in class sales teams”. Going ahead, Zumiez remains focused on generating record annual results.

Delving Deeper

Total net sales grew 9% during the nine weeks ended Jan 1, 2022 from the level recorded in the nine-week period ended Jan 2, 2021. Comparable sales also jumped 6% for the aforementioned period. Also, total net sales increased 6.6% from  the reading taken in the nine-week period ended Jan 4, 2020. ZUMZ’s stores were open nearly 97% of the available days during the said period in 2021 compared with 96% in the comparable period of 2020 and 100% in the comparable period of 2019.

Regionwise, fourth-quarter-to-date North America net sales climbed 5.1% while Other international net sales comprising Europe and Australia surged 36.6% despite persistent closures and headwinds related to the pandemic. Excluding the foreign-currency translation impacts, North America net sales rose 5% and Other international net sales soared 44.5% for the nine-week period from the respective prior-year readings.

In the period under review, ZUMZ’s Men’s category registered largest comparable sales growth followed by Footwear, Accessories and Women’s. Hardgoods remained the negative comping category.

Management projects total net sales increase for the fiscal fourth quarter, indicating growth from the actuals recorded in the last fiscal year’s comparable quarter. The same is, however, expected to be below the fourth-quarter-to-date trends. This was owing to the stimulus gains in January of the last fiscal year and the persistent coronavirus impacts. Zumiez reaffirmed net sales growth from the last fiscal-year level, which is to be just over 20% for fiscal 2021.

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What’s More?

Zumiez has been effectively catering to customers’ demand via its unique merchandise offering, solid consumer services and a seamless shopping experience for a while. The implementation of advanced technology helped augment customers’ shopping experience across diverse channels. Further, ZUMZ continues boosting its competitive edge by investing in logistics, planning, allocation and omni-channel capabilities, which bodes well for the long haul. Shares of this currently Zacks Rank #1 (Strong Buy) player have risen 10.2% in the past three months against the industry’s 12% decrease. You can see the complete list of today’s Zacks #1 Rank stocks here.

More Key Picks in Retail

Some other top-ranked stocks are Costco (COST - Free Report) , Tapestry (TPR - Free Report) and Capri Holdings (CPRI - Free Report) .

Costco, a general merchandise retailer, has a Zacks Rank #2 (Buy) at present. COST has a trailing four-quarter earnings surprise of 8.3%, on average.

The Zacks Consensus Estimate for Costco’s fiscal 2022 sales and earnings per share (EPS) suggests growth of 7.6% and 9.5%, respectively, from the year-ago corresponding figures. COST has an expected EPS growth rate of 8.8% for three-five years.

Tapestry, the leading accessories designer, presently carries a Zacks Rank of 2. TPR has a trailing four-quarter earnings surprise of 29%, on average.

The Zacks Consensus Estimate for Tapestry’s fiscal 2022 sales and EPS suggests growth of 14.8% and 17.9%, respectively, from the corresponding year-ago levels. TPR has an expected EPS growth rate of 12.3% for three-five years.

Capri Holdings, a global fashion luxury group, carries a Zacks Rank #2. CPRI’s bottom line has outperformed the Zacks Consensus Estimate by an average surprise of 1,024.9% in the trailing four quarters.

The Zacks Consensus Estimate for Capri Holdings’ current financial year sales and EPS suggests growth of 33.2% and 181.1%, respectively, from the year-ago period. CPRI has an expected EPS growth rate of 32.2% for three-five years.