Zumiez, Inc. ZUMZ delivered another quarter of positive comparable sales growth in the first quarter of fiscal 2026, supported by continued strength in its North American business. Comparable sales increased 4%, marking the company's eighth consecutive quarter of positive comparable sales growth. Management attributed the performance to sustained strength in its North American business, where comparable sales rose 4.4%.
However, sustaining this momentum faces immediate challenges. For the four weeks ended May 30, 2026, North American comparable sales decreased 1.5%. Management observed increasing pressure on consumer discretionary spending amid evolving macroeconomic headwinds. Despite the softer start, the company expects the North American run rate to improve to roughly flat for the second quarter of fiscal 2026.
Management indicated that a stronger performance later in the quarter could be supported by the back-to-school selling season. Approximately 40% of the quarter falls within the final four weeks, making this period particularly important for sales performance.
June, despite being a five-week month, accounts for only 34% of the quarter, leaving a significant portion of sales concentrated toward the end of the period. As a result, management expects to have a clearer view of fiscal second-quarter performance only after the end of July.
Additionally, Zumiez plans to close approximately 20 North American stores in fiscal 2026. The company remains focused on managing near-term consumer spending pressures while monitoring demand through the important back-to-school period.
The Zacks Rundown for ZUMZ
Shares of this Zacks Rank #3 (Hold) company have gained 25% in the past year against the industry’s decline of 2.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, ZUMZ trades at a forward price-to-earnings ratio of 17.10, higher than the industry’s average of 14.06.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ZUMZ’s current and next fiscal year earnings implies a year-over-year rise of 10.3% and 59.3%, respectively.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Urban Outfitters, Inc. URBN offers lifestyle products and services in the United States and internationally. At present, URBN carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for URBN’s current fiscal-year sales and earnings implies growth of 8.8% and 12.7%, respectively, from the year-ago figures. URBN has delivered a trailing four-quarter earnings surprise of 12.2%, on average.
Levi Strauss & Co. LEVI designs, markets, and sells apparel and related accessories for men, women, and children in the United States and internationally. At present, LEVI carries a Zacks Rank of 2.
The Zacks Consensus Estimate for LEVI’s current fiscal-year sales and earnings implies growth of 6.4% and 14.9%, respectively, from the year-ago figures. LEVI has delivered a trailing four-quarter earnings surprise of 11.3%, on average.
Boot Barn Inc. BOOT operates specialty retail stores in the United States and internationally. At present, Boot Barn carries a Zacks Rank of 2.
The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.9% and 16.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 5.6%, on average.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant 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
Zumiez Inc. (ZUMZ): Free Stock Analysis Report
Urban Outfitters, Inc. (URBN): Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report
Levi Strauss & Co. (LEVI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).