Overview

• Zumiez Q3 net sales rise 7.5% yr/yr, beating analyst expectations

• EPS increased to $0.55 from $0.06, aided by one-time tax benefits

• Company repurchased 0.3 mln shares in Q3 at $18.61 per share

Outlook

• Zumiez projects Q4 net sales between $291 mln and $296 mln

• Company expects Q4 EPS of $0.97 to $1.07

• Zumiez sees Q4 operating margins between 8.0% and 8.5%

Result Drivers

• COMPARABLE SALES GROWTH - Zumiez attributes Q3 results to high-single digit comparable sales growth and strong full-price selling

• NORTH AMERICAN SALES - North American comparable sales increased sharply, contributing to overall growth

• ONE-TIME TAX BENEFITS - Zumiez's Q3 EPS was aided by one-time discrete tax items

Key Details

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 $18.00, about 35.1% below its December 3 closing price of $27.75

• The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 35 three months ago

Press Release: ID:nGNX1LgmGQ

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)