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Here's How Zumiez (ZUMZ) is Poised Ahead of Q4 Earnings

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Zumiez Inc. (ZUMZ - Free Report) is likely to post an increase in the top and the bottom line from the respective year-ago quarter’s reported figures when it announces fourth-quarter fiscal 2021 earnings on Mar 10, after the closing bell. The Zacks Consensus Estimate for quarterly sales is pegged at $353.2 million, indicating growth of about 7% from the last fiscal-year period’s tally.

The Zacks Consensus Estimate for quarterly earnings is pegged at $1.80, suggesting a rise of 7.1% from the year-ago fiscal period’s tally. The consensus mark has been stable in the past 30 days. A glimpse of this Lynnwood, WA-based player’s performance shows that it delivered a significant positive earnings surprise in the trailing four quarters, on average.

For fiscal 2021, The Zacks Consensus Estimate for sales is pinned at $1.2 billion, indicating an increase of 20.2% from the last fiscal-year level. The Zacks Consensus Estimate for earnings is pegged at $4.97, suggesting a sharp rise from $3.05 earned last fiscal year.

Key Factors to Note

Zumiez’s customer-centric business model, differentiated product assortments and improved omni-channel solutions are likely to have favorably impacted its top-line performance in the fiscal fourth quarter. Also, its one-channel concept and advanced in-store fulfillment capabilities are tailwinds. ZUMZ’s men’s, accessories and footwear categories are performing well.

Additionally, Zumiez’s strategy to optimize its store base, including expansion in the underpenetrated markets, looks appealing. These strengths coupled with its efforts to meet robust demand for the distinct merchandise offering might have contributed to its performance in the to-be-reported quarter.

Zumiez performed well during the holiday season. We note that total net sales rose 9% for the nine-week period ended Jan 1, 2022 from the level reported in the nine-week period ended Jan 2, 2021. For the same period, ZUMZ reported comparable sales growth of 6%. Region-wise, North America net sales rose 5.1%, while Other international net sales comprising Europe and Australia surged 36.6%. In the period under review, ZUMZ’s Men’s category registered the largest comparable sales growth, followed by Footwear, Accessories and Women’s.

Following the holiday results released on Jan 10, management reaffirmed fiscal 2021 net sales growth projection of just above 20% from the year-ago fiscal’s reported figure. Zumiez continues to expect fourth-quarter net sales to be higher than the last fiscal-year quarter’s reported number.

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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zumiez Inc. Price and EPS Surprise

Zumiez Inc. Price and EPS Surprise

Zumiez Inc. price-eps-surprise | Zumiez Inc. Quote

Although Zumiez has a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.

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 beat on earnings this season:

Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +5.19% and a Zacks Rank #2. CASY is anticipated to register a top-line increase when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for Casey's General Stores’ revenues is pegged at $3,061 million, indicating a rise of 52.3% from the figure reported in the prior fiscal-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Casey's General Stores’ quarterly earnings is pegged at $1.45 per share, suggesting an improvement of 39.4% from the year-ago fiscal quarter’s reported figure. CASY delivered an earnings beat of 20.1%, on average, in the trailing four quarters.

Dollar General (DG - Free Report) currently has an Earnings ESP of +0.68% and a Zacks Rank of 3. DG is likely to register a bottom-line decrease when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.56 suggests a fall of 2.3% from the year-ago fiscal quarter’s reported figure.

Dollar General’s top line is expected to rise from the year-ago fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $8,701 million, indicating an improvement of 3.4% from the figure reported in the prior-year fiscal quarter. DG has a trailing four-quarter earnings surprise of 8.8%, on average.

lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.09% and a Zacks Rank of 3. LULU is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for LULU’s quarterly revenues is pegged at $2.13 billion, suggesting growth of 23.4% from the prior-year fiscal quarter’s level.

The Zacks Consensus Estimate for lululemon’s quarterly earnings is pegged at $3.27 per share, suggesting a 26.7% increase from the year-ago fiscal period’s reported number. LULU delivered an earnings beat of 21%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.