US stock futures muted with Jackson Hole, retail earnings on tap
Zumiez Inc . (NASDAQ:ZUMZ), a leading specialty retailer of apparel, footwear, equipment, and accessories, has seen its stock price touch a 52-week low, trading at $12.89. According to InvestingPro analysis, the stock appears undervalued at current levels, with management actively buying back shares to support shareholder value. This latest price level reflects a significant downturn from the company’s performance over the past year, with Zumiez experiencing a 1-year change of -14.91%. The decline to this 52-week low underscores the challenges faced by the retail sector, with the company’s gross profit margin at 33.63% and analysts not anticipating profitability this year. Three analysts have recently revised their earnings expectations downward, though the company maintains a healthy current ratio of 1.87x, indicating strong short-term liquidity. Investors and analysts are closely monitoring Zumiez’s strategic initiatives to navigate the current retail landscape and drive a recovery in its stock value. For deeper insights into Zumiez’s financial health, valuation metrics, and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro, along with 10+ additional ProTips and detailed financial metrics.
In other recent news, Zumiez Inc. reported a mixed performance during the holiday season, prompting the company to revise its fourth-quarter revenue and earnings forecasts downward. The retailer now expects revenue between $275 million and $277 million, a decrease from the previously projected $284 million to $288 million range. Similarly, Zumiez adjusted its earnings per share (EPS) expectations to a range of $0.72 to $0.77, down from the earlier guidance of $0.83 to $0.93. The company’s comparable sales increased by 5.6% for the nine-week period ending January 4, 2025, with North America leading the growth at 6.9%. However, the performance was uneven across product categories, with Women’s, Men’s, and Footwear seeing gains, while Accessories and Hardgoods lagged.
In response to these developments, Jefferies revised Zumiez’s stock price target from $22.00 to $17.00, maintaining a Hold rating. The revision aligns with the company’s updated guidance following its mixed holiday sales performance. Despite the challenges, Zumiez CEO Rick Brooks remains optimistic about the company’s strategies for merchandise assortments and customer engagement. Brooks believes these adjustments could lead to potential gains in fiscal 2025.
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