Zumiez stock price target cut to $17 by Jefferies

EditorLina Guerrero
Published 01/13/2025, 03:32 PM
ZUMZ
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In light of the mixed holiday sales, Zumiez (NASDAQ:ZUMZ) management has revised its fourth-quarter sales and earnings per share (EPS) projections downward. This prompted Jefferies to adjust their estimates and price target to align with the company's updated guidance.The lowered expectations reflect the challenges faced by Zumiez during the holiday period, which is typically a significant time for retail sales.

The adjustment in the price target and estimates by Jefferies aims to account for the revised sales and EPS figures provided by Zumiez management. For deeper insights into Zumiez's valuation and financial metrics, including exclusive ProTips and comprehensive analysis, visit InvestingPro. For deeper insights into Zumiez's valuation and financial metrics, including exclusive ProTips and comprehensive analysis, visit InvestingPro.

In light of the mixed holiday sales, Zumiez management has revised its fourth-quarter sales and earnings per share (EPS) projections downward. This prompted Jefferies to adjust their estimates and price target to align with the company's updated guidance.The lowered expectations reflect the challenges faced by Zumiez during the holiday period, which is typically a significant time for retail sales.

The adjustment in the price target and estimates by Jefferies aims to account for the revised sales and EPS figures provided by Zumiez management. For deeper insights into Zumiez's valuation and financial metrics, including exclusive ProTips and comprehensive analysis, visit InvestingPro.

In light of the mixed holiday sales, Zumiez management has revised its fourth-quarter sales and earnings per share (EPS) projections downward. This prompted Jefferies to adjust their estimates and price target to align with the company's updated guidance.

The company saw a 5.6% increase in comparable sales for a nine-week period ending in early January 2025, with North America leading the growth at 6.9%. Despite these gains, the company revised its fourth-quarter revenue forecast downward to a range of $275 million to $277 million, from the previously stated range of $284 million to $288 million.

In addition to this, Zumiez adjusted its earnings per share (EPS) expectations for the quarter to between $0.72 and $0.77, compared to the prior guidance of $0.83 to $0.93. These changes are due in part to the company's performance falling short of expectations during the crucial holiday shopping period, as stated by CEO Rick Brooks.

On a more positive note, Zumiez outperformed expectations with its third-quarter earnings, reporting an adjusted EPS of $0.06, surpassing the projected $0.03. Revenue for the quarter increased by 2.9% year-over-year to $222.5 million, slightly missing the consensus estimate of $222.85 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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