Last Updated: 13 Sep 2024
Executive Summary
Zumiez Inc. (ZUMZ) is a specialty retailer of clothing, footwear, accessories, and durable goods for young men and women. The company has been facing challenges in recent quarters due to macroeconomic headwinds and increased competition. Despite these challenges, Zumiez has a strong brand presence and a loyal customer base. The stock is currently trading at $23.22, below its 52-week high of $31.37. Analysts are generally neutral on the stock, with four analysts rating it a "Hold."
Company Overview
Zumiez was founded in 1978 and is headquartered in Lynnwood, Washington. The company operates over 700 stores in the United States, Canada, and Europe. Zumiez sells a variety of brands, including Nike, Adidas, Vans, and Hurley. The company also sells its own private label brands.
Fundamental Analysis
Zumiez's financial performance has been mixed in recent quarters. The company's revenue has grown in recent years, but its profitability has declined. In the most recent quarter, Zumiez reported a net loss of $2.76 per share. This was due to a number of factors, including increased costs and lower sales.
Zumiez's balance sheet is strong. The company has a low level of debt and a high level of cash and equivalents. This gives the company financial flexibility to invest in its business and weather economic downturns.
Technical Analysis
Zumiez's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. This indicates that the stock is in a bearish trend.
The stock's relative strength index (RSI) is currently at 35. This indicates that the stock is oversold. This could be a sign that the stock is due for a rebound.
Short Term Outlook
In the short term, Zumiez's stock is likely to continue to trade in a range. The stock is facing headwinds from macroeconomic factors and increased competition. However, the stock is oversold and could be due for a rebound.
Long Term Outlook
In the long term, Zumiez has a number of growth opportunities. The company is planning to open new stores in the United States and internationally. Zumiez is also expanding its e-commerce business. The company's strong brand presence and loyal customer base should help it to continue to grow in the long term.
Analyst Recommendations
Analysts are generally neutral on Zumiez's stock. Four analysts rate the stock a "Hold." No analysts rate the stock a "Buy" or "Sell." The average analyst target price is $25.50.
