Zumiez: Weak Results But A Strong Balance Sheet Create A Long-Term Opportunity
Zumiez reported weak Q2 results with revenue down 2.5% and ongoing sales and margin pressure, particularly in footwear and the US market. Despite this, the company maintains a strong balance sheet with $97 million in cash, no debt, tangible equity of $16 per share, and continues accretive buybacks, with the share count down 6% year over year.
Why it matters — A Zumiez watcher would care because the stock trades below book value while the company targets accretive buybacks, evidenced by a reduced share count and the likely new authorization following its $40 million program in September.