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Can Zumiez Sustain Comparable Sales Growth Amid Consumer Headwinds?
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Key Takeaways
Zumiez posted its eighth straight quarter of positive comparable sales, led by North America.
ZUMZ saw softer sales trends late in the quarter as discretionary spending came under pressure.
ZUMZ expects the back-to-school season to play a key role in second-quarter performance.
Zumiez, Inc. (ZUMZ - Free Report) delivered another quarter of positive comparable sales growth in the first quarter of fiscal 2026, supported by continued strength in its North American business. Comparable sales increased 4%, marking the company's eighth consecutive quarter of positive comparable sales growth. Management attributed the performance to sustained strength in its North American business, where comparable sales rose 4.4%.
However, sustaining this momentum faces immediate challenges. For the four weeks ended May 30, 2026, North American comparable sales decreased 1.5%. Management observed increasing pressure on consumer discretionary spending amid evolving macroeconomic headwinds. Despite the softer start, the company expects the North American run rate to improve to roughly flat for the second quarter of fiscal 2026.
Management indicated that a stronger performance later in the quarter could be supported by the back-to-school selling season. Approximately 40% of the quarter falls within the final four weeks, making this period particularly important for sales performance.
June, despite being a five-week month, accounts for only 34% of the quarter, leaving a significant portion of sales concentrated toward the end of the period. As a result, management expects to have a clearer view of fiscal second-quarter performance only after the end of July.
Additionally, Zumiez plans to close approximately 20 North American stores in fiscal 2026. The company remains focused on managing near-term consumer spending pressures while monitoring demand through the important back-to-school period.
The Zacks Rundown for ZUMZ
Shares of this Zacks Rank #3 (Hold) company have gained 25% in the past year against the industry’s decline of 2.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, ZUMZ trades at a forward price-to-earnings ratio of 17.10, higher than the industry’s average of 14.06.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ZUMZ’s current and next fiscal year earnings implies a year-over-year rise of 10.3% and 59.3%, respectively.
Image Source: Zacks Investment Research
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The Zacks Consensus Estimate for LEVI’s current fiscal-year sales and earnings implies growth of 6.4% and 14.9%, respectively, from the year-ago figures. LEVI has delivered a trailing four-quarter earnings surprise of 11.3%, on average.
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View the Zacks #1 Rank List
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Can Zumiez Sustain Comparable Sales Growth Amid Consumer Headwinds?
Key Takeaways
Zumiez, Inc. (ZUMZ - Free Report) delivered another quarter of positive comparable sales growth in the first quarter of fiscal 2026, supported by continued strength in its North American business. Comparable sales increased 4%, marking the company's eighth consecutive quarter of positive comparable sales growth. Management attributed the performance to sustained strength in its North American business, where comparable sales rose 4.4%.
However, sustaining this momentum faces immediate challenges. For the four weeks ended May 30, 2026, North American comparable sales decreased 1.5%. Management observed increasing pressure on consumer discretionary spending amid evolving macroeconomic headwinds. Despite the softer start, the company expects the North American run rate to improve to roughly flat for the second quarter of fiscal 2026.
Management indicated that a stronger performance later in the quarter could be supported by the back-to-school selling season. Approximately 40% of the quarter falls within the final four weeks, making this period particularly important for sales performance.
June, despite being a five-week month, accounts for only 34% of the quarter, leaving a significant portion of sales concentrated toward the end of the period. As a result, management expects to have a clearer view of fiscal second-quarter performance only after the end of July.
Additionally, Zumiez plans to close approximately 20 North American stores in fiscal 2026. The company remains focused on managing near-term consumer spending pressures while monitoring demand through the important back-to-school period.
The Zacks Rundown for ZUMZ
Shares of this Zacks Rank #3 (Hold) company have gained 25% in the past year against the industry’s decline of 2.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, ZUMZ trades at a forward price-to-earnings ratio of 17.10, higher than the industry’s average of 14.06.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ZUMZ’s current and next fiscal year earnings implies a year-over-year rise of 10.3% and 59.3%, respectively.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Urban Outfitters, Inc. (URBN - Free Report) offers lifestyle products and services in the United States and internationally. At present, URBN carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for URBN’s current fiscal-year sales and earnings implies growth of 8.8% and 12.7%, respectively, from the year-ago figures. URBN has delivered a trailing four-quarter earnings surprise of 12.2%, on average.
Levi Strauss & Co. (LEVI - Free Report) designs, markets, and sells apparel and related accessories for men, women, and children in the United States and internationally. At present, LEVI carries a Zacks Rank of 2.
The Zacks Consensus Estimate for LEVI’s current fiscal-year sales and earnings implies growth of 6.4% and 14.9%, respectively, from the year-ago figures. LEVI has delivered a trailing four-quarter earnings surprise of 11.3%, on average.
Boot Barn Inc. (BOOT - Free Report) operates specialty retail stores in the United States and internationally. At present, Boot Barn carries a Zacks Rank of 2.
The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.9% and 16.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 5.6%, on average.