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Zumiez's (ZUMZ) Q4 Earnings Coming Up: Key Factors at Play
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Zumiez Inc. (ZUMZ - Free Report) is likely to post decreases in the top and bottom lines from the year-ago quarter’s reported figures in its fourth-quarter fiscal 2023 results on Mar 14 after the closing bell. The Zacks Consensus Estimate for quarterly sales is pegged at $276.6 million, indicating a decline of 1.2% from last year’s actual.
The consensus estimate for quarterly earnings is pegged at 26 cents a share, suggesting a year-over-year decline of 56%. The consensus mark has been raised by a penny in the past seven days.
This Lynnwood, WA-based player witnessed an average earnings surprise of 18.5% in the trailing four quarters.
Zumiez’s quarterly performance is likely to have been hurt by a challenging operating landscape, as consumer demand continues to be pressured by the ongoing impacts of inflation on discretionary spending. Zumiez's performance in its largest market, North America, paints a concerning picture. These factors, coupled with challenges in maintaining product margins, are likely to have presented substantial hurdles to revenue generation.
On its last reported quarter’s earnings call, management projected fourth-quarter fiscal 2023 sales of $275-$281 million, the mid-point of which, $278 million, suggest a decline from the $280.1 million reported in the year-ago period. The company guided a product margin decline of 110 basis points.
ZUMZ projected a consolidated operating margin of 1.5-2.5%, indicating a sharp decline from the 5.4% reported in the year-ago period. The bottom line is also likely to have been under pressure. Zumiez anticipated earnings of 24-34 cents per share, implying a dip from the 59 cents posted in the prior-year quarter.
The decrease in earnings is likely to have resulted from the restructuring of the cost framework amid reduced sales, compounded by margin constraints. Elevated costs are expected to have arisen from higher fixed expenses, including occupancy costs, store operating hours dictated by mall schedules, fixed payroll outlays across the company and other corporate expenditure. These are expected to have weighed on the earnings performance in the to-be-reported quarter.
Nonetheless, Zumiez's ability to adjust its merchandise mix and brand assortments in response to changing market dynamics demonstrates its agility and foresight in staying relevant to customer preferences. These factors, coupled with its strategic priorities like investment in people, the optimization of its performance and international expansion, are likely to have positioned Zumiez for growth. In response to the challenging backdrop, Zumiez has been adjusting its merchandise mix and brand assortments to bring newness to its offering. This strategic move shows the company's proactive approach to meeting evolving customer demands and preferences.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Zumiez this time. 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. This is the case here, as elaborated below.
Zumiez has an Earnings ESP of +10.69% and a Zacks Rank of 3. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies that you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this season:
American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +18.85% and currently flaunts a Zacks Rank of 1. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of 24 cents suggests a rise of 41.2% from the year-ago quarter’s actual.
American Eagle Outfitters’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.12 billion, indicating growth of 3.7% from the figure reported in the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 22.7%, on average.
Guess (GES - Free Report) has an Earnings ESP of +4.25% and a Zacks Rank of 2 at present. The company is likely to register top-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $855.5 million, which indicates a decline of 4.6% from the year-ago quarter.
The consensus mark for GES’ fourth-quarter fiscal 2023 earnings per share is pegged at $1.55, suggesting a 10.9% year-over-year decline. The consensus estimate for earnings has been unchanged in the past 30 days. GES has a trailing four-quarter earnings surprise of 43.1%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.67 implies a rise of 7% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $57.4 billion, which calls for an increase of 7% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.6%, on average.
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Zumiez's (ZUMZ) Q4 Earnings Coming Up: Key Factors at Play
Zumiez Inc. (ZUMZ - Free Report) is likely to post decreases in the top and bottom lines from the year-ago quarter’s reported figures in its fourth-quarter fiscal 2023 results on Mar 14 after the closing bell. The Zacks Consensus Estimate for quarterly sales is pegged at $276.6 million, indicating a decline of 1.2% from last year’s actual.
The consensus estimate for quarterly earnings is pegged at 26 cents a share, suggesting a year-over-year decline of 56%. The consensus mark has been raised by a penny in the past seven days.
This Lynnwood, WA-based player witnessed an average earnings surprise of 18.5% in the trailing four quarters.
Zumiez Inc. Price, Consensus and EPS Surprise
Zumiez Inc. price-consensus-eps-surprise-chart | Zumiez Inc. Quote
Factors to Note
Zumiez’s quarterly performance is likely to have been hurt by a challenging operating landscape, as consumer demand continues to be pressured by the ongoing impacts of inflation on discretionary spending. Zumiez's performance in its largest market, North America, paints a concerning picture. These factors, coupled with challenges in maintaining product margins, are likely to have presented substantial hurdles to revenue generation.
On its last reported quarter’s earnings call, management projected fourth-quarter fiscal 2023 sales of $275-$281 million, the mid-point of which, $278 million, suggest a decline from the $280.1 million reported in the year-ago period. The company guided a product margin decline of 110 basis points.
ZUMZ projected a consolidated operating margin of 1.5-2.5%, indicating a sharp decline from the 5.4% reported in the year-ago period. The bottom line is also likely to have been under pressure. Zumiez anticipated earnings of 24-34 cents per share, implying a dip from the 59 cents posted in the prior-year quarter.
The decrease in earnings is likely to have resulted from the restructuring of the cost framework amid reduced sales, compounded by margin constraints. Elevated costs are expected to have arisen from higher fixed expenses, including occupancy costs, store operating hours dictated by mall schedules, fixed payroll outlays across the company and other corporate expenditure. These are expected to have weighed on the earnings performance in the to-be-reported quarter.
Nonetheless, Zumiez's ability to adjust its merchandise mix and brand assortments in response to changing market dynamics demonstrates its agility and foresight in staying relevant to customer preferences. These factors, coupled with its strategic priorities like investment in people, the optimization of its performance and international expansion, are likely to have positioned Zumiez for growth. In response to the challenging backdrop, Zumiez has been adjusting its merchandise mix and brand assortments to bring newness to its offering. This strategic move shows the company's proactive approach to meeting evolving customer demands and preferences.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Zumiez this time. 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. This is the case here, as elaborated below.
Zumiez has an Earnings ESP of +10.69% and a Zacks Rank of 3. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies that you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this season:
American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +18.85% and currently flaunts a Zacks Rank of 1. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of 24 cents suggests a rise of 41.2% from the year-ago quarter’s actual.
You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.12 billion, indicating growth of 3.7% from the figure reported in the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 22.7%, on average.
Guess (GES - Free Report) has an Earnings ESP of +4.25% and a Zacks Rank of 2 at present. The company is likely to register top-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $855.5 million, which indicates a decline of 4.6% from the year-ago quarter.
The consensus mark for GES’ fourth-quarter fiscal 2023 earnings per share is pegged at $1.55, suggesting a 10.9% year-over-year decline. The consensus estimate for earnings has been unchanged in the past 30 days. GES has a trailing four-quarter earnings surprise of 43.1%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.67 implies a rise of 7% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $57.4 billion, which calls for an increase of 7% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.