Latest news with #Zumiez
Yahoo
3 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.
Yahoo
06-06-2025
- Business
- Yahoo
Why Zumiez (ZUMZ) Stock Is Falling Today
Shares of clothing and footwear retailer Zumiez (NASDAQ:ZUMZ) fell 7.9% in the afternoon session after the company reported mixed first quarter 2025 results: its EBITDA missed and its EPS guidance for next quarter fell short of Wall Street's estimates. On the other hand, Zumiez narrowly topped analysts' revenue expectations and its revenue guidance for next quarter slightly exceeded Wall Street's estimates. Still, this was a softer quarter. The shares closed the day at $11.54, down 10.3% from previous close. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Zumiez? Access our full analysis report here, it's free. Zumiez's shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 10 days ago when the stock gained 5.8% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. Zumiez is down 39% since the beginning of the year, and at $11.58 per share, it is trading 60.2% below its 52-week high of $29.11 from August 2024. Investors who bought $1,000 worth of Zumiez's shares 5 years ago would now be looking at an investment worth $383.70. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. 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
Yahoo
06-06-2025
- Business
- Yahoo
Zumiez (NASDAQ:ZUMZ) Posts Better-Than-Expected Sales In Q1, Quarterly Revenue Guidance Slightly Exceeds Expectations
Clothing and footwear retailer Zumiez (NASDAQ:ZUMZ) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 3.9% year on year to $184.3 million. Guidance for next quarter's revenue was better than expected at $210.5 million at the midpoint, 1.3% above analysts' estimates. Its GAAP loss of $0.79 per share was 3% below analysts' consensus estimates. Is now the time to buy Zumiez? Find out in our full research report. Revenue: $184.3 million vs analyst estimates of $182.1 million (3.9% year-on-year growth, 1.2% beat) EPS (GAAP): -$0.79 vs analyst expectations of -$0.77 (3% miss) Adjusted EBITDA: -$12.66 million vs analyst estimates of -$11.77 million (-6.9% margin, 7.5% miss) Revenue Guidance for Q2 CY2025 is $210.5 million at the midpoint, above analyst estimates of $207.8 million EPS (GAAP) guidance for Q2 CY2025 is -$0.16 at the midpoint, missing analyst estimates by 391% Operating Margin: -10.8%, in line with the same quarter last year Free Cash Flow was -$24.3 million compared to -$21.12 million in the same quarter last year Locations: 731 at quarter end, down from 751 in the same quarter last year Same-Store Sales rose 5.5% year on year (-2.4% in the same quarter last year) Market Capitalization: $246.2 million Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, 'Our North American business showed resilience during the first quarter despite increased macroeconomic uncertainty following the implementation of higher tariffs. Consumers continue to respond positively to our merchandise assortments and shopping experience evidenced by strong full price selling that drove sales growth above the Q4 run rate for North America. In response to the current global trade environment, we have further diversified our North America supply chain and expect a meaningful reduction in exposure to China by the end of this year. While the potential impact on consumer sentiment from ongoing trade negotiations is unknown, we are pleased with our current momentum in North America and confident in our ability to outperform the market over the remainder of the year. Internationally, our business was tougher in the first quarter with sales turning slightly negative. We remain focused on introducing new and unique products to drive demand while controlling costs to improve margins. Consolidated results, removing the previously mentioned unplanned legal charge, exceeded the high end our guidance for both Sales and loss per share while also showing meaningful improvement to the prior year.' With store associates called 'Zumiez Stash Members', Zumiez (NASDAQ:ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories. Reviewing a company's long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. With $896.2 million in revenue over the past 12 months, Zumiez is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers. As you can see below, Zumiez's revenue declined by 1.6% per year over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as it closed stores. This quarter, Zumiez reported modest year-on-year revenue growth of 3.9% but beat Wall Street's estimates by 1.2%. Company management is currently guiding for flat sales next quarter. Looking further ahead, sell-side analysts expect revenue to remain flat over the next 12 months. While this projection implies its newer products will catalyze better top-line performance, it is still below the sector average. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. The number of stores a retailer operates is a critical driver of how quickly company-level sales can grow. Zumiez operated 731 locations in the latest quarter. Over the last two years, the company has generally closed its stores, averaging 1.1% annual declines. When a retailer shutters stores, it usually means that brick-and-mortar demand is less than supply, and it is responding by closing underperforming locations to improve profitability. The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales provides a deeper understanding of this issue because it measures organic growth at brick-and-mortar shops for at least a year. Zumiez's demand within its existing locations has barely increased over the last two years as its same-store sales were flat. This performance isn't ideal, and Zumiez is attempting to boost same-store sales by closing stores (fewer locations sometimes lead to higher same-store sales). In the latest quarter, Zumiez's same-store sales rose 5.5% year on year. This growth was a well-appreciated turnaround from its historical levels, showing the business is regaining momentum. It was good to see Zumiez narrowly top analysts' revenue expectations this quarter. We were also glad its revenue guidance for next quarter slightly exceeded Wall Street's estimates. On the other hand, its EBITDA missed and its EPS guidance for next quarter fell short of Wall Street's estimates. Overall, this was a softer quarter. The stock traded down 3.2% to $12.45 immediately following the results. The latest quarter from Zumiez's wasn't that good. One earnings report doesn't define a company's quality, though, so let's explore whether the stock is a buy at the current price. When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. 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
Yahoo
06-06-2025
- Business
- Yahoo
Zumiez Inc (ZUMZ) Q1 2025 Earnings Call Highlights: Strong North American Sales and Private ...
Release Date: June 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Zumiez Inc (NASDAQ:ZUMZ) reported a 5.5% increase in comparable sales, marking the fourth consecutive quarter of positive growth. The company's North American business showed resilience with a 7.4% increase in comparable sales. Zumiez Inc (NASDAQ:ZUMZ) exceeded the high end of its guidance ranges for both sales and profitability. The private label expansion reached 30% of total sales in the first quarter of 2025, up from 23% in 2023. The company maintains a strong financial position with over $101 million in cash and marketable securities and no debt. Other international net sales, including Europe and Australia, decreased by 0.2% from the previous year. The company faced a one-time legal cost of $2.9 million associated with a settlement, impacting SG&A expenses. Operating loss for the first quarter was $19.9 million, slightly improved but still significant. The European market remains challenging, with a slow start in 2025 and a 14.8% decrease in May comparable sales. The ongoing tariff situation adds uncertainty and complexity to pricing and could impact consumer spending. Warning! GuruFocus has detected 3 Warning Sign with ZUMZ. Q: Can you provide more details on how tariffs are impacting your cost of goods sold (COGS), particularly regarding your private label and third-party brands? A: Unidentified_3 (CFO): We've been proactive in addressing tariffs, starting last November. About 30% of our products are private label, which we control, while 70% are branded, requiring collaboration with our partners. We've reduced our China exposure from 50% and aim to lower it further by year-end. We've worked with brands to manage costs and have adjusted pricing and bundling strategies to offset tariff impacts. Q: Despite tariffs, you anticipate product margin growth. How do tariffs on private labels factor into this? A: Unidentified_3 (CFO): We've employed strategies like collaborating with brands and manufacturers to manage costs, adjusting private label strategies, and selectively increasing prices. These efforts should allow us to achieve modest product margin growth, despite the tariff environment. Q: Regarding your international operations, particularly in Europe, what challenges are you facing, and what strategies are you implementing to improve profitability? A: Unidentified_3 (CFO): We've slowed unit growth in Europe to focus on profitability. Despite a slow start in 2025, we're focusing on product innovation and margin expansion. The fourth quarter is crucial, and we're aligning our strategies to drive top-line growth and manage expenses effectively. Q: How are you managing inventory levels, especially with the potential impact of tariffs? A: Unidentified_3 (CFO): We pulled inventory receipts forward in anticipation of tariffs, aligning our inventory levels with prior years. We expect to end fiscal 2025 with inventory levels down from fiscal 2024, ensuring quality and alignment with demand. Q: Can you elaborate on your share repurchase program and its impact on financials? A: Unidentified_3 (CFO): We repurchased 1.8 million shares in Q1, fully utilizing the previous buyback authorization. A new $15 million buyback plan has been approved, expected to continue through June 2026. While it impacts quarterly EPS, it is expected to positively affect full-year and future earnings. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 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
Washington Post
05-06-2025
- Business
- Washington Post
Zumiez: Fiscal Q1 Earnings Snapshot
LYNNWOOD, Wash. — LYNNWOOD, Wash. — 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.
