Mizuho Securities Cuts Price Target on Zumiez, Inc. (ZUMZ) Following Comp Miss and 2Q Guide
Mizuho Securities maintains a Neutral rating on Zumiez, Inc. (NASDAQ: ZUMZ), and cut the price target to $29.00 (from $35.00), following May comp and 2Q guide. May comps of (2.2)%, compared to +3.6% last year, missed Street’s +2.6%. Analyst Betty Chen said that management’s 2Q comp guidance of (3-5)% implies further deceleration in upcoming months.
Chen commented, "We are lowering our estimates and PT to $29 from $35 to reflect the May comp miss and below consensus 2Q guide that implies a step down in future trends. While management believes improved traffic during BTS/Holiday along with solid trends in long-bottom pants may accelerate 2H sales, we remain skeptical given (1) multi-year declines in mall traffic, (2) tougher 2H compares, and (3) the possibility that action sports is shifting out of favor as peers also cited recent slowdowns."
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Shares of Zumiez, Inc. closed at $29.74 yesterday.