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3 Low-Volatility Stocks in Dangerous Territory
3 Low-Volatility Stocks in Dangerous Territory

Yahoo

time2 days ago

  • Business
  • Yahoo

3 Low-Volatility Stocks in Dangerous Territory

A stock with low volatility can be reassuring, but it doesn't always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere. Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. Keeping that in mind, here are three low-volatility stocks to steer clear of and a few better alternatives. Rolling One-Year Beta: 0.87 With store associates called 'Zumiez Stash Members', Zumiez (NASDAQ:ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories. Why Is ZUMZ Risky? Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand Poor expense management has led to operating margin losses Earnings per share have dipped by 57.7% annually over the past six years, which is concerning because stock prices follow EPS over the long term Zumiez is trading at $11.90 per share, or 45.1x forward P/E. To fully understand why you should be careful with ZUMZ, check out our full research report (it's free). Rolling One-Year Beta: 0.20 With roots dating back to 1877 when it introduced the first dental electric drill, Dentsply Sirona (NASDAQ:XRAY) manufactures and sells professional dental equipment, technologies, and consumable products used by dentists and specialists worldwide. Why Do We Avoid XRAY? Weak constant currency growth over the past two years indicates challenges in maintaining its market share Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 7% annually, worse than its revenue Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions At $16.16 per share, Dentsply Sirona trades at 8.5x forward P/E. Dive into our free research report to see why there are better opportunities than XRAY. Rolling One-Year Beta: 0.51 Powering the digital experiences of approximately 400 communications companies worldwide, Amdocs (NASDAQ:DOX) provides software and services that help telecommunications and media companies manage customer relationships, monetize services, and automate network operations. Why Do We Pass on DOX? New orders were hard to come by as its average backlog growth of 1.6% over the past two years underwhelmed Projected sales decline of 3.5% for the next 12 months points to an even tougher demand environment ahead Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.6 percentage points Amdocs's stock price of $92.92 implies a valuation ratio of 12.8x forward P/E. Read our free research report to see why you should think twice about including DOX in your portfolio, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.

ZUMZ Posts Wider-Than-Expected Q1 Loss, 5.5% Y/Y Rise in Comps
ZUMZ Posts Wider-Than-Expected Q1 Loss, 5.5% Y/Y Rise in Comps

Yahoo

time06-06-2025

  • Business
  • Yahoo

ZUMZ Posts Wider-Than-Expected Q1 Loss, 5.5% Y/Y Rise in Comps

Zumiez Inc. ZUMZ reported first-quarter fiscal 2025 results, wherein the top line surpassed and the bottom line lagged the Zacks Consensus Estimate. However, both metrics improved year over year. Comparable sales (comps) improved year over year. ZUMZ posted a quarterly loss of 79 cents per share, which is wider than the Zacks Consensus Estimate of a loss of 77 cents. However, the bottom line narrowed from a loss of 86 cents in the year-earlier quarter. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)Total net sales of $184.3 million surpassed the Zacks Consensus Estimate of $183 million and increased 3.9% from $177.4 million in the prior-year quarter. This growth was largely driven by strong performance in the North America business, which remained robust despite growing macroeconomic uncertainty, influenced by global trade policy rose 5.5% year over year, marking the fourth consecutive quarter of growth. The Zacks Consensus Estimate for comps growth was pegged at 4% for the quarter under review. The overall increase in comps was primarily driven by higher dollars per transaction, partially offset by a decline in the number of transactions. The rise in dollars per transaction was fueled by an increase in average unit retail and a higher number of units per transaction. Zumiez Inc. price-consensus-eps-surprise-chart | Zumiez Inc. Quote From a regional perspective, North America's net sales improved 4.9% year over year to $149.7 million. Other international sales, comprising Europe and Australia, declined 0.2% year over year to $34.6 million. Excluding the foreign currency translation impacts, North America's net sales rose 5.2%, while other international net sales slipped 0.1% from the prior-year in North America increased 7.4%, marking the fifth consecutive quarter of growth, while international comps declined 2.3% in the quarter under product categories, the women's category saw the highest comps increase, followed by men's, footwear and accessories. Conversely, hardgoods was the only category to post a decline in comps. Gross profit jumped 6.6% year over year to $55.3 million, whereas the gross margin expanded 70 bps to 30%. This improvement was mainly due to leverage on store occupancy costs, driven by higher general and administrative (SG&A) costs of $75.2 million increased 4.3% year over year. As a percentage of sales, SG&A costs increased 20 bps from the year-ago quarter to 40.8%. The rise was primarily due to one-time $2.9-million legal costs related to the settlement of a wage and hour lawsuit in California, which added 160 bps. This was partially offset by 70 bps of leverage in non-wage store operating costs, 30 bps in corporate costs, and 40 bps from efficiencies in areas such as wages, training and annual incentive reported an operating loss of $19.9 million versus an operating loss of $20.2 million in the year-ago quarter. ZUMZ Stock's Past 3-Month Performance Image Source: Zacks Investment Research As of May 3, 2025, cash and current marketable securities totaled $101 million, down from $146.6 million as of May 4, 3, 2024. The decline was primarily due to $50.4 million in share repurchases and $14.7 million in capital expenditure, partially offset by $17.2 million in cash generated from operating activities. The company had no debt at the end of the fiscal first shareholders' equity was $298.5 million. In the fiscal first quarter, 1.8 million shares were repurchased at an average price of $13.82 per share (including commissions) for total costs of $25.2 million, fully utilizing the buyback authorization approved by the company on March 25. On June 4, the company approved a share repurchase program of up to $15 million, set to continue through June 30, 2026, unless modified by the company ended the fiscal first quarter with $149.9 million in inventory, up 2.1% from the year-ago of May 31, 2025, Zumiez operated 731 stores, including 570 in the United States, 46 in Canada, 87 in Europe and 28 in Australia. Management intends to open nine stores in fiscal 2025, comprising six in North America, two in Europe and one in Australia. They also plan to close 20 stores in fiscal 2025, including up to 17 in the United States, two in Canada and one in Europe. Net sales for the four weeks ended May 31, 2025, increased 0.7% from the same period ended June 1, 2024. Comps rose 1.4% year over year. From a regional perspective, net sales in the North America business increased 2.9%, while net sales in the other international business declined 9.6%. Excluding the impacts of foreign currency translation, North America net sales increased 3%, and other international net sales decreased 12.7% from the prior-year in North America grew 5.1% in the period, whereas comps in the other international segment declined 14.8%. By category, women's was the strongest performing one in terms of comps, followed by hardgoods. Men's was the weakest performing category, followed by footwear and accessories. For the second quarter of fiscal 2025, the company expects total sales between $207 million and $214 million, indicating a decrease of 2% to an increase of 2% from the prior-year period's actual. Comps growth is anticipated to fall between a year-over-year decrease of 1% and an increase of 3%.The product margin is forecast to improve from that reported in the second quarter of fiscal 2024. However, the company projects an operating loss between $0.7 million and $4 million compared with a loss of $0.4 million in the second quarter of fiscal 2024. The loss per share is expected between 9 cents and 24 cents, whereas it incurred a loss of 4 cents in the prior-year period. For fiscal 2025, Zumiez anticipates year-over-year sales growth despite the closure of 33 stores in fiscal 2024 and 20 store closures planned in fiscal 2025, which combined are estimated to have a negative impact on sales of $14.7 million for the year. The company anticipates modest year-over-year growth in the product margin in fiscal 2025 on top of 70 bps of improvement in fiscal 2024. The company expects to drive additional gross margin leverage through other expenses, such as occupancy, distribution and logistics. Fiscal 2025 SG&A costs, excluding the one-time legal charges, are expected to remain relatively flat as a percentage of sales compared with that reported in fiscal capital expenditure for 2025 is expected between $14 million and $16 million, whereas it reported $15 million in fiscal 2024. Combined, these expectations are projected to drive a year-over-year increase in the operating margin and net profit for fiscal 2025, bringing the company back to profitability. The company stated that under current circumstances and tariff levels, Zumiez believes that achieving its previously mentioned annual expectations for fiscal 2025 is feasible despite increased uncertainty and volatility in the trade of this Zacks Rank #5 (Strong Sell) company have lost 8.9% in the past three months against the industry's growth of 5.9%. Some better-ranked stocks are Urban Outfitters Inc. URBN, Canada Goose GOOS and Allbirds Inc. Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home decor and gift products. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for URBN's fiscal 2025 earnings and sales implies growth of 20.9% and 8%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 29%.Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 (Buy) at Zacks Consensus Estimate for Canada Goose's current fiscal year's earnings and sales indicates growth of 10% and 2.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%.Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at Zacks Consensus Estimate for BIRD's current financial year's earnings suggests growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zumiez Inc. (ZUMZ) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report Allbirds, Inc. (BIRD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio

Zumiez: Fiscal Q1 Earnings Snapshot
Zumiez: Fiscal Q1 Earnings Snapshot

Yahoo

time05-06-2025

  • Business
  • Yahoo

Zumiez: Fiscal Q1 Earnings Snapshot

LYNNWOOD, Wash. (AP) — LYNNWOOD, Wash. (AP) — Zumiez Inc. (ZUMZ) on Thursday reported a loss of $14.3 million in its fiscal first quarter. The Lynnwood, Washington-based company said it had a loss of 79 cents per share. The results fell short of Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for a loss of 77 cents per share. The clothing retailer posted revenue of $184.3 million in the period, topping Street forecasts. Three analysts surveyed by Zacks expected $182.5 million. For the current quarter ending in July, Zumiez said it expects revenue in the range of $207 million to $214 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on ZUMZ at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Zumiez: Fiscal Q1 Earnings Snapshot
Zumiez: Fiscal Q1 Earnings Snapshot

Yahoo

time05-06-2025

  • Business
  • Yahoo

Zumiez: Fiscal Q1 Earnings Snapshot

LYNNWOOD, Wash. (AP) — LYNNWOOD, Wash. (AP) — Zumiez Inc. (ZUMZ) on Thursday reported a loss of $14.3 million in its fiscal first quarter. The Lynnwood, Washington-based company said it had a loss of 79 cents per share. The results fell short of Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for a loss of 77 cents per share. The clothing retailer posted revenue of $184.3 million in the period, topping Street forecasts. Three analysts surveyed by Zacks expected $182.5 million. For the current quarter ending in July, Zumiez said it expects revenue in the range of $207 million to $214 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on ZUMZ at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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