Zumiez is a leading global lifestyle retailer that adopts distinctive branding strategies to offer a diverse product range. The company has become a name o reckon with in the apparel industry that keeps changing rapidly. Taking cues from the drastic change in shopping patterns that now focuses more on online shopping; the company makes all efforts to keep pace with the evolving customer preferences. The company invests heavily in integrating the physical and virtual selling channels to provide customers with a seamless shopping experience. ZUMZ is at No. 3 (Hold) on the Zacks’ Rank, and its VGM score is A. The Zumiez stock market has been on fire in the past year as ZUMZ shares have zoomed 34.5% and hogged the limelight. The rise in stock price seems to correctly capture the company’s capabilities with solid fundamentals and robust business strategies.
Zumiez stock market forecast
The analysts have considerable faith in the retailer’s potential and optimistic about its future. The company seems well-poised for capitalizing on the trends in the apparel space backed by its advanced store fulfillment capabilities and single-channel concept. The company expects good growth. The company climbed up the ladder in Zack’s Ranking from 3 in October 2021 to 1 in January 2022. The Zumiez stock price rally comes against the backdrop of the industry showing a dip of 8.1%.
The excellent work of the company is paying back
We look at the company’s strengths that have helped generate high interest for Zumiez stock, which is among the most talked-about growth stocks. Zumiez caters to its customers through unique merchandise offerings, a seamless shopping experience, and reliable consumer services. The company deployed advanced technology to improve the customers’ shopping experience across multiple channels. The company heavily invests in planning, allocation, logistics, and Omni-channel capabilities to position itself for growth.
Optimizing the resources
Zumiez invested in resources for boosting the localized merchandising assortments with a complete focus on product enhancement. The company is outstanding in its men’s footwear and accessories category. The company has been reaping high dividends from its advanced in-store fulfillment capabilities, including Zumiez Delivery and Omni-channel approach. The company focuses on smart expense management to reduce shipping and fulfillment costs.
Store expansion efforts
The company has made ample capital expenditure on store openings and remodeling. It is aggressively optimizing the store base by opening stores in underpenetrated markets and, at the same time, closing the underperforming outlets. It planned to open 21 stores in 2021 and target to close six during the same year.
Ready to face the challenges
The Management is well aware of the ill effects on the business caused by the pandemic-induced crisis causing supply-chain headwinds, store closures, inflation, and the emergence of new risks due to Omicron. The Management is making strategic moves to navigate the company through choppy water and reach the safe shores by taking cognizance of the fast-changing apparel landscape and the business operations amid various constraints.
To capitalize on the strong consumer demand, Zumiez manages its inventory level with deft professionalism and consistency. The Management stated having solid inventory in hand and maintaining favorable selling margins. To mitigate the ongoing supply chain constraints, the Management is closely working with suppliers and retailers of the brand.
Stock price forecast
Investors who take an interest in Zumiez stock can take heart from the predictions of analysts based on the price history and trend of price movements of the ZUMZ stock. The stocks traded at $45.22 as of January 11, and according to the forecast of 3 analysts looking at the future of ZUMZ stock, the median target should be $50 with a high estimate of $56 and a low estimate of $47. Going by the Zumiez stock market forecast, it is pretty clear that buying the ZUMZ stock will be beneficial for investors. As the median represents a 10.57% rise from the last traded price, analysts consider the ZUMZ stock a buy stock.
