Zumiez Q4 revenue, EPS jumps on strong full-price selling

Overview

• US specialty apparel retailer's Q4 revenue rose 4.4% yr/yr, EPS up 48.7%

• Company attributes results to strong full-price selling and margin gains in North America and Europe

• Zumiez board approved new $40 mln stock repurchase on March 11

Outlook

• Zumiez projects fiscal Q1 net sales between $189 mln and $193 mln

• Company expects Q1 EPS between a loss of $0.77 and a loss of $0.87

• Zumiez plans to open 5 new stores and close 25 stores in fiscal 2026

Result Drivers

• FULL-PRICE SELLING - Co said strong full-price selling in North America fueled comparable sales growth and gross margin expansion

• EUROPEAN PRODUCT MARGIN - Co said focus on assortment and full-price selling in Europe led to 250 basis points of improvement in product margin yr/yr

• MERCHANDISE AND EXPENSE MANAGEMENT - Co cited success of recent merchandise assortments and expense management as supporting Q4 results

Company press release: ID:nGNXc2WK5f

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

• Wall Street's median 12-month price target for Zumiez Inc is $24.00, about 3.5% above its March 11 closing price of $23.18

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 41 three months ago

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