Zumiez (ZUMZ) Reports Q1: Everything You Need To Know Ahead Of Earnings

Clothing and footwear retailer Zumiez (NASDAQ:ZUMZ) will be announcing earnings results tomorrow after market hours. Here’s what you need to know.

Zumiez met analysts’ revenue expectations last quarter, reporting revenues of $279.2 million, flat year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations significantly.

Is Zumiez a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Zumiez’s revenue to grow 2.6% year on year to $182.1 million, a reversal from the 3% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.77 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zumiez has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Zumiez’s peers in the apparel retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Urban Outfitters delivered year-on-year revenue growth of 10.7%, beating analysts’ expectations by 2.5%, and Gap reported revenues up 2.2%, topping estimates by 1.3%. Urban Outfitters traded up 23% following the results while Gap was down 20.1%.

Read our full analysis of Urban Outfitters’s results here and Gap’s results here.

There has been positive sentiment among investors in the apparel retailer segment, with share prices up 13.9% on average over the last month. Zumiez is up 8.2% during the same time and is heading into earnings with an average analyst price target of $18 (compared to the current share price of $12.62).

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