Earnings To Watch: Zumiez (ZUMZ) Reports Q2 Results Tomorrow

Clothing and footwear retailer Zumiez (NASDAQ:ZUMZ) will be announcing earnings results tomorrow afternoon. Here’s what investors should know.

Zumiez beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $177.4 million, down 3% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EPS estimates.

Is Zumiez a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Zumiez’s revenue to grow 3.9% year on year to $202 million, a reversal from the 11.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.33 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zumiez has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.7% on average.

Looking at Zumiez’s peers in the apparel retailer segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Gap delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 2.5%, and Abercrombie and Fitch reported revenues up 21.2%, topping estimates by 4.1%. Gap’s stock price was unchanged after the results, while Abercrombie and Fitch was down 14.7%.

Read our full analysis of Gap’s results here and Abercrombie and Fitch’s results here.

Investors in the apparel retailer segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Zumiez is up 12.8% during the same time and is heading into earnings with an average analyst price target of $19.5 (compared to the current share price of $26.2).

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