Yahoo Finance Zumiez's (ZUMZ) Q1 Earnings Coming Up: What's in the Cards?
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 first-quarter fiscal 2023 earnings on Jun 1, after the closing bell. The Zacks Consensus Estimate for quarterly sales is pegged at $182 million, indicating a decline of 17.5% from the last fiscal-year period’s tally.
The consensus estimate for quarterly earnings is pegged at a loss of 87 cents a share, wider than a loss of 2 cents per share from the year-ago fiscal period’s tally. The consensus mark has been stable in the past 30 days.
This Lynnwood, WA-based player witnessed an average negative earnings surprise of 15.6% in the trailing four quarters.
Key Factors to Note
Zumiez’s quarterly performance is likely to have been hurt by a challenging operating landscape, including numerous issues like inflationary pressures, a tight labor market, increased operating costs and foreign currency headwinds. Any deleverage in selling, general and administrative costs are likely to have been added deterrents.
On its last earnings call, management highlighted that the first quarter to date results are likely to have remained consistent with the fourth-quarter 2022 results and are expected to have been impacted by higher inflationary pressures in discretionary spending. It projected first-quarter total sales between $178 million and $184 million, and product margins are expected to be down 100-115 basis points year over year. The company had anticipated consolidated operating loss as a rate of sales for the same quarter to be in the range of 10.7-12.7% and loss per share to be in the range of 85-95 cents.
Management had earlier said that net sales for the fiscal first quarter to date for 35 days ended Mar 4, 2023, tumbled 15.5% from the year-ago fiscal period. Total comparable sales for the aforementioned period declined 16.6% from the comparable period in the prior fiscal year. From a regional perspective, net sales for the North America business fell 21.9% from the year-ago fiscal quarter’s tally in the 35-day period, while the metric at the international business increased 13.9% from last fiscal year’s quarterly level. Excluding foreign currency impacts, North American sales were down 21.7% while the other international sales grew 19.2%.
For the aforementioned period, all categories were down in comparable sales from the year-ago fiscal period’s level. The mens category remained the most negative one, followed by women's, footwear, accessories and hard goods.
On the positive front, Zumiez’s consumer-centric approach and merchandise initiatives remain encouraging. ZUMZ’s store expansion and omnichannel efforts are other positives. These positives are likely to have provided some cushion to the quarter.
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 stocks before they’re reported with our Earnings ESP Filter.
Zumiez Inc. Price and EPS Surprise
Zumiez Inc. price-eps-surprise | Zumiez Inc. Quote
Zumiez has an Earnings ESP of -1.62% and a Zacks Rank of 3.
Stocks Poised to Beat Earnings Estimates
Here are a few companies, which according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:
Casey's General Stores CASY currently has an Earnings ESP of +0.05% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CASY is expected to register bottom-line growth when it reports fiscal fourth-quarter 2023 results. The Zacks Consensus Estimate for earnings is pinned at $1.61 per share, indicating a rise of 0.6% from the year-ago quarter’s number.
The company’s revenues are anticipated to decrease year over year. The consensus mark for the same stands at $3.42 billion, indicating a deterioration of 1.2% from that reported in the year-ago quarter. CASY has a trailing four-quarter average earnings surprise of 9.9%.
lululemon athletica LULU currently has an Earnings ESP of +0.24% and a Zacks Rank of 3. LULU is likely to record top-line growth when it reports fiscal first-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $1.9 billion, indicating a 19.5% improvement from the prior-year quarter’s reported actual. The consensus mark for earnings stands at $1.93 per share, implying a 30.4% increase from that reported in the comparable period of 2022. LULU has a trailing four-quarter earnings surprise of 6.8%, on average.
PVH Corp PVH currently has an Earnings ESP of +0.09% and a Zacks Rank of 3. PVH is likely to register a decrease in the bottom line from the year-ago fiscal quarter’s reported figure when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.93 per share over the past 30 days, suggesting a 0.5% drop from the year-ago fiscal quarter’s reported number.
PVH Corp’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $2.13 billion, suggesting a 0.3% rise from the figure reported in the prior-year fiscal quarter. PVH delivered an earnings beat of 23.4%, on average, in the trailing four quarters.
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Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
PVH Corp. (PVH) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
