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Can Zumiez's Product Newness Keep Driving Sales Momentum?

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Key Takeaways

  • Zumiez saw positive comparable sales across key categories, led by Men's and followed by hardgoods.
  • More than 150 new brands added in fiscal 2025 continue to support product newness and customer interest.
  • Private-label sales reached a record 34% of first-quarter sales, supporting margins.

Zumiez, Inc. (ZUMZ - Free Report) delivered broad-based performance in the first quarter of fiscal 2026, with positive comparable sales growth across several key categories. Men’s led the growth, followed by hardgoods, women’s and accessories, highlighting the strength and diversity of demand across the assortment. This performance reflects the effectiveness of the company’s merchandising strategy and the benefits of continued investments in product newness and private label expansion. Strength across multiple categories also provides a balanced foundation for overall comparable sales performance.

The company continues to prioritize product newness, with innovative and distinctive offerings remaining a key part of its strategy. The momentum generated by introducing more than 150 new and emerging brands in fiscal 2025 has continued into 2026. This ongoing refresh of the product mix is receiving strong customer response and is becoming an increasingly important contributor to the company’s sales mix. The continued focus on introducing fresh brands and offerings helps maintain customer interest while supporting the broader merchandising strategy.

In addition, Zumiez’s private label continues to be a standout success, accounting for 34% of sales in the first quarter and reaching the highest penetration level in company history. The sustained expansion reflects the company’s ability to identify emerging trends and develop compelling products that resonate with customers. At the same time, the private label business enhances the margin profile and provides flexibility while delivering the distinctive products customers expect.

Overall, Zumiez’s ability to continuously refresh its assortment could help preserve customer interest and strengthen brand relevance, potentially supporting repeat visits and sustained sales momentum as consumer preferences evolve.

The Zacks Rundown for ZUMZ

Shares of this Zacks Rank #3 (Hold) company have gained 14% in the past year compared with the industry’s growth of 1.1%.

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From a valuation standpoint, ZUMZ trades at a forward price-to-earnings ratio of 15.83, higher than the industry’s average of 13.51.

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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.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks have been discussed below:

FIGS, Inc. (FIGS - Free Report) operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. At present, FIGS 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 FIGS’s current fiscal-year sales and earnings implies growth of 18.2% and 57.9%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average.

Fossil Group, Inc. (FOSL - Free Report) designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2.

The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the same for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average.
 
Boot Barn Holdings, 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 15.7% and 22.6%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.

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