Zumiez Inc.
ZUMZ
is likely to post a decrease in the top and the bottom line from the respective year-ago fiscal quarter’s reported figures in its
third-quarter fiscal 2022 earnings
on Dec 1, after the closing bell. The Zacks Consensus Estimate for quarterly sales is pegged at $224.9 million, indicating a decline of 22.3% from the last fiscal-year period’s tally.
The Zacks Consensus Estimate for quarterly earnings is pegged at 16 cents a share, suggesting an 87% plunge from the year-ago fiscal period’s tally. The consensus mark has been stable in the past 30 days.
This Lynnwood, WA-based player came up with a negative earnings surprise of 46.1% in the trailing four quarters, on average.
Key Factors to Note
Zumiez’s quarterly performance might have been hurt by a challenging operating landscape, including numerous headwinds like supply-chain bottlenecks, inflation, higher logistics costs and a tight labor market. Any deleverage in SG&A costs might have been added deterrents.
On its last earnings call, management had predicted third-quarter fiscal 2022 net sales between $220 million and $228 million, suggesting a decline from $289.5 million reported in the year-ago fiscal period. It had projected consolidated operating margins in the range of 0.5-2.5% with earnings per share of $1.25 for the fiscal quarter under review.
Management had earlier stated that net sales for the fiscal third quarter to date for 37 days ended Sep 5, 2022, tumbled 18.1% from the year-ago fiscal quarter’s reported number and 12.6% from the level during the same period in fiscal 2019. The total comparable sales for the aforementioned period declined 19.7% from the comparable period’s level in the prior fiscal year and 15.3% from the comparable period’s reading in fiscal 2019.
The net sales for the North America business fell 19.5% from the year-ago fiscal quarter’s tally in the 37-day period, while the metric at the Other international business dipped 2.7% from the last fiscal year’s quarterly level. For the fiscal third quarter through Sep 5, all categories were down in total sales from the year-ago fiscal period’s level. The men’s category remained the most negative, followed by hard goods, women’s, accessories and footwear.
On the positive front, Zumiez’s consumer-centric approach, merchandise initiatives and expense management remain encouraging. ZUMZ’s store-expansion and omni-channel efforts are other positives.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Zumiez this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as elaborated below. You can uncover the best stocksbefore they’re reported with our
Earnings ESP Filter
.
Zumiez Inc. Price, Consensus and EPS Surprise
Zumiez Inc. price-consensus-eps-surprise-chart
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Zumiez Inc. Quote
Zumiez has a Zacks Rank #2 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are three companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:
lululemon athletica
LULU
currently has an Earnings ESP of +1.50% and a Zacks Rank of 2. LULU is likely to register an increase in the bottom line from the year-ago fiscal quarter’s reported figure when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.95 per share over the past 30 days, suggesting 20.4% growth from the year-ago quarter’s reported number. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
lululemon athletica’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.80 billion, suggesting a 24.4% rise from the figure reported in the prior-year fiscal quarter. LULU delivered an earnings beat of 10.4%, on average, in the trailing four quarters.
Dollar General
DG
has an Earnings ESP of +2.35% and a Zacks Rank #3, currently. DG is likely to register top-line growth from the year-ago fiscal quarter’s tally in its third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, suggesting 10.7% growth from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for Dollar General’s earnings in the fiscal third quarter is pegged at $2.54 per share, suggesting 22.1% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.
Dollar Tree
DLTR
has an Earnings ESP of +6.57% and a Zacks Rank of 3, currently. DLTR is likely to register top-line growth from the year-earlier fiscal quarter’s actuals when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.83 billion, suggesting 6.5% growth from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for Dollar Tree’s earnings in the fiscal third quarter is pegged at $1.16 per share, suggesting 20.8% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DLTR delivered an earnings beat of 8.6%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
.
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