Zumiez Inc. ZUMZ is benefiting from better price management, increasing penetration of e-commerce business, sturdy comparable sales (comps) performance and investments in logistics and omni-channel endeavors. Notably, the company’s comps have risen in the trailing 12 quarters.
The company boasts a sturdy comps trend, backed by higher transaction volume and growth in dollars per transaction. During the second quarter of fiscal 2019, comps grew 3.6%, faring better than the company’s guided range of flat to up 2%. Management now projects comps for the fiscal third quarter to grow 3-5%. For fiscal 2019, comps are expected to rise 2-4% compared with the prior view of low single-digit growth.
Certainly, Zumiez’s focus on providing differentiated assortments bode well. The company has invested resources to boost localized merchandising assortments. The implementation of advanced technology has helped to augment customers’ shopping experience across diverse channels. Further, it is boosting competitiveness through investments in logistics, planning and allocation along with omni-channel capabilities, which position it for growth in the long term. Management is also on track with managing costs across different verticals.
Apart from these, Zumiez, which shares space with Boot Barn Holdings BOOT, The Buckle BKE and The Gap GPS, is striving to expand its e-commerce and omni-channel platforms to provide consumers with the facility of quick and easy access to its products and brands. In this regard, it has considerably improved customers’ experience by integrating its physical and digital networks. This allows customers to access inventories through all channels alongside availing facilities like buy online, pick up in store, reserve online and pay in store. We believe that the company’s well-balanced store expansion and e-commerce strategies will help it keep track of the evolving patterns and drive top-line growth.
Driven by such strategic initiatives and impressive second-quarter performance, management provided upbeat third-quarter and fiscal 2019 view. For fiscal third quarter, the company anticipates net sales in the range of $258-$263 million, which showcases an improvement from $249 million recorded in the year-ago quarter. Earnings per share for the fiscal third quarter are envisioned in the band of 55-61 cents. The company had delivered earnings of 55 cents per share in the prior-year quarter.
For fiscal 2019, adjusted earnings per share are anticipated in the band of $2.10-$2.20, up from the prior view of $1.84-$1.94. The company had delivered earnings of $1.79 per share in the prior year.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
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
The Gap, Inc. (GPS): Free Stock Analysis Report
Buckle, Inc. (The) (BKE): Free Stock Analysis Report
Zumiez Inc. (ZUMZ): Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.