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In a challenging retail environment, Zumiez Inc . (NASDAQ:ZUMZ) stock has touched a 52-week low, dipping to $11.59. According to InvestingPro data, the company’s market capitalization stands at $223.4 million, with the stock trading at a price-to-book ratio of 0.69, suggesting potential undervaluation. The streetwear and action sports retailer, known for its apparel, footwear, and accessories, has faced significant headwinds over the past year, reflected in a substantial 1-year change with a decline of -31.17%. This downturn highlights the broader pressures within the retail sector, as companies grapple with shifting consumer trends and economic uncertainties. Despite these challenges, the company maintains a healthy current ratio of 2.07, indicating strong short-term liquidity. Analysts have set a consensus target price of $18, suggesting potential upside, and expect the company to return to profitability this year. For deeper insights into Zumiez’s financial health and growth prospects, investors can access comprehensive analysis through the Pro Research Report available on InvestingPro.
In other recent news, Zumiez Inc. reported its fourth-quarter 2024 earnings, showing mixed results. The company missed earnings per share (EPS) expectations, reporting $0.78 against a forecast of $0.82. However, Zumiez slightly exceeded revenue projections, bringing in $279.2 million compared to the expected $278.32 million. This quarter saw a 0.9% decrease in total sales year-over-year, yet comparable sales rose by 5.9%. Operating income improved significantly to $20.1 million, contrasting with a $32.8 million loss in the previous year. Zumiez plans to close 20 additional stores in 2025 while also opening nine new locations. The company remains focused on increasing product margins and maintaining stable selling, general, and administrative (SG&A) costs as a percentage of sales. Looking ahead, Zumiez anticipates a 1-3% sales growth for the first quarter of 2025, with expected total sales between $179 million and $183 million.
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