Holiday season turned out to be a jolly good one for Zumiez Inc. (ZUMZ - Free Report) . The impressive performance prompted management to lift sales and earnings view for fourth-quarter fiscal 2019. Markedly, shares of this Lynnwood, WA-based company increased 5.4% during the after-market trading hours on Jan 13.
We note that, shares of this Zacks Rank #1 (Strong Buy) company have increased 33.2% in the past six months against the industry’s decline of 9.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s Take an Insight
Zumiez reported 6.8% comparable sales growth for the nine-week period (ended Jan 4, 2020) compared with 4% growth witnessed in the nine-week period (ended Jan 5, 2019).
The company has been gaining from providing differentiated assortments. Moreover, it has invested enough resources to boost localized merchandising assortments. The implementation of advanced technology has helped augment customers’ shopping experience across diverse channels. Further, it is boosting competitiveness by investing in logistics, planning and allocation along with omnichannel capabilities.
Also, the company has been striving to expand its e-commerce and omnichannel platforms to provide consumers with quick and easy access to its products and brands. In this regard, Zumiez has considerably improved customers’ experience by integrating its physical and digital networks. This allows customers to access inventories through all channels, alongside availing facilities like buy online, pick up in store, and reserve online and pay in store. We believe that the company’s well-balanced store expansion and e-commerce strategies will help it keep track of the evolving patterns and drive the top line.
The company now expects comparable sales for the final quarter to increase around 6% compared with prior view of 2-4% growth. Adjusted earnings per share for fiscal fourth quarter are anticipated to be $1.34-$1.38, up from prior view of $1.26-$1.32.
3 More Retailers’ Holiday Sales Report
Macy’s (M - Free Report) comparable sales, on an owned plus licensed basis, decreased 0.6% during November and December period combined, while on an owned basis, comparable sales fell 0.7%.
Urban Outfitters (URBN - Free Report) witnessed comparable Retail segment net sales increase of 3% for the two months ended Dec 31, 2019.
J. C. Penney (JCP - Free Report) reported comparable store sales decline of 7.5% for the combined nine-week period ending Jan 4, 2020.
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