Zumiez, Inc. ZUMZ is emphasizing private-label growth and distinctive merchandise as it pursues international growth while addressing softness in the U.S. business. In the second quarter of fiscal 2026, comparable sales increased in Canada, Europe and Australia. Net sales in Europe and Australia rose 2.5% year over year to $35.1 million, while comparable sales in those markets increased 2.1%.
For its international operations, Zumiez continues to pursue strategic priorities that management said had supported improvements since the fourth quarter of the previous year. These include refreshing the product mix with innovative, distinctive merchandise and expanding private-label offerings that supplement branded products and have resonated with customers. The company is also working to improve its margin profile and optimize profitability across individual markets through premium pricing and expense management.
Meanwhile, changing apparel trends have prompted Zumiez to work with brand partners and its private-label brands to introduce fresh products and update merchandise assortments. Management views trend identification as a longstanding driver of the company's success and believes its teams must continue responding to evolving customer preferences. In footwear, which has weighed on U.S. performance, Zumiez is working with partners to develop more distinctive products and identify emerging brands that could help drive future growth in the category.
Overall, Zumiez is relying on product newness, private-label expansion and differentiated assortments to support international sales, while premium pricing and expense management remain part of its profitability efforts. The company has also emphasized the need to respond quickly to changing trends as it works to improve performance in the fourth quarter and fiscal 2027.
The Zacks Rundown for ZUMZ
ZUMZ’s shares have plunged 20.4% in the past three months compared with the industry’s decline of 6.2%.
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From a valuation standpoint, ZUMZ trades at a forward price-to-earnings ratio of 19.25, higher than the industry’s average of 12.97. The company currently carries a Zacks Rank #3 (Hold).
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The Zacks Consensus Estimate for ZUMZ’s current fiscal year earnings implies a year-over-year decline of 41%, and the same for the next fiscal year earnings implies a year-over-year rise of 91.3%.
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Stocks to Consider
Some better-ranked stocks have been discussed below:
FIGS, Inc. FIGS operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. At present, FIGS 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 FIGS’s current fiscal-year sales and earnings implies growth of 19.8% and 89.5%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average.
Fossil Group, Inc. FOSL designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the same for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average.
Boot Barn Holdings, 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 15.8% and 23.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.
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Zumiez Inc. (ZUMZ): Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report
Fossil Group, Inc. (FOSL): Free Stock Analysis Report
FIGS, Inc. (FIGS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).