Zumiez: Reliable Niche Audience Is A Strength

Seeking Alpha2020-11-18

SummaryZumiez has no debt and increasing net incomes in these uncertain times.Even though competition from apparel online retailers in increasing, Zumiez has a niche audience that is reliable.The ...

网页链接

免责声明：本文观点仅代表作者个人观点，不构成本平台的投资建议，本平台不对文章信息准确性、完整性和及时性做出任何保证，亦不对因使用或信赖文章信息引发的任何损失承担责任。

精彩评论

我们需要你的真知灼见来填补这片空白

发表看法

{"i18n":{"language":"zh_CN"},"isChannel":false,"data":{"share":"https://www.laohu8.com/m/news/2084942666?lang=zh_CN&edition=full","thumbnail":"https://static.tigerbbs.com/39a199af535042dfebd27ef56f398707","is_english":false,"pubTime":"2020-11-18 04:56","share_image_url":"https://static.laohu8.com/9a95c1376e76363c1401fee7d3717173","id":"2084942666","market":"us","top_or_hot":-1,"title":"Zumiez: Reliable Niche Audience Is A Strength","media":"Seeking Alpha","content":"<div>\n<p>SummaryZumiez has no debt and increasing net incomes in these uncertain times.Even though competition from apparel online retailers in increasing, Zumiez has a niche audience that is reliable.The ...</p>\n\n<a href=\"http://gu.qq.com/resources/shy/news/detail-v2/index.html#/?id=nesSN202011181516087981f780&s=b\">网页链接</a>\n\n</div>\n","source":"tencent","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Zumiez: Reliable Niche Audience Is A Strength</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nZumiez: Reliable Niche Audience Is A Strength\n</h2>\n\n<h4 class=\"meta\">\n\n\n2020-11-18 04:56 北京时间&nbsp;&nbsp;&nbsp;<a href=http://gu.qq.com/resources/shy/news/detail-v2/index.html#/?id=nesSN202011181516087981f780&s=b><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryZumiez has no debt and increasing net incomes in these uncertain times.Even though competition from apparel online retailers in increasing, Zumiez has a niche audience that is reliable.The ...</p>\n\n<a href=\"http://gu.qq.com/resources/shy/news/detail-v2/index.html#/?id=nesSN202011181516087981f780&s=b\">网页链接</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ZUMZ","symbol_name":"Zumiez Inc","start_time":0,"source_url":"http://gu.qq.com/resources/shy/news/detail-v2/index.html#/?id=nesSN202011181516087981f780&s=b","article_id":"2084942666","we_media_id":null,"thumbnails":["https://static.tigerbbs.com/39a199af535042dfebd27ef56f398707"],"rights":{"source":"tencent","url":"http://gu.qq.com/resources/shy/news/detail-v2/index.html#/?id=nesSN202011181516087981f780&s=b","rn_cache_url":null,"customStyle":"body{padding-top:10px;}#news_title{font-weight:bold;#titleStyle#;}#news_description span{font-size:12px;#descriptionStyle#;}.footer-note{#statement#}","selectors":".mod-LoadTzbdNews, body","filters":".relate-stock, .hot-list, .recom-box, .wx-sou","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2084942666","pubTimestamp":1605646589,"columns":[],"sourceInfo":{"source_id":"tencent","name":"腾讯"},"weMediaInfo":null,"summary":"SummaryZumiez has no debt and increasing net incomes in these uncertain times.Even though competition from apparel online retailers in increasing, Zumiez has a niche audience that is reliable.The stoc","collect":0,"end_time":0,"defaultTopTitle":"qq.com","property":[],"viewcount":null,"language":"zh","relate_stocks":{"ZUMZ":"Zumiez Inc"},"translate_title":"Zumiez: Reliable Niche Audience Is A Strength","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ADNC":1,"ZUMZ":0.9},"content_text":"SummaryZumiez has no debt and increasing net incomes in these uncertain times.Even though competition from apparel online retailers in increasing, Zumiez has a niche audience that is reliable.The stock is priced high at the moment and could come down in the future. Investment Thesis Zumiez (ZUMZ) is a very strong stock. The company caters to a niche audience with few competitors in the same style of clothing, has an incredibly strong balance sheet, and delivers strong returns. However, at the moment, it is priced relatively high and has almost regrouped its entire stock value from the April pandemic lows. Additionally, with the rise of online retailers such as PrettyLittleThing and Missguided, many traditional retailers are facing more social media integrated brands that do not follow traditional marketing methods. Despite all this, Zumiez has what it takes to navigate this crisis, and when priced accordingly, will be an excellent buy. Social Media Social media-focused brands have been a big winner in recent years. These online stores have garnered large followings, and as such, have captured a previously unbeknownst audience. Stores like Zumiez were slow to the social media party and ended up losing a lot of steam against these heavily integrated platforms. While followers on social media aren’t everything, precious marketing streams that have known to benefit bigger brands have now fallen to these companies that have never been heard of before. They are influencer-driven and represent a cohort of young buyers that eat up the edgier aesthetic.(Source: Instagram)(Source: Instagram)Consumers still like in-person stores, but the in-person stores need to offer the clothes they want to buy. The online-only stores represent an edgier, flirty style of clothing, while Zumiez has a more urban vibe to it. Zumiez definitely still has its audience who favors the grungier style, as comparable-store sales increased 20% and digital comp sales for the quarter were over 122%. However, in today’s retail environment, diversification is key. Getting spread too thin is also an issue, but appealing to one subset is an increasingly difficult thing to do.(Source: PrettyLittleThing) Core Audience Zumiez had a blockbuster quarter - in the middle of a pandemic - however, attacks are coming from all sides. As consumers diversify their outlets to more avenues, dollars are getting split up more and more. More than anything, the advantage for these retailers is not the fact that they are online-only, but that they offer the clothes people want to buy. Zumiez still has a core demographic, and understandably, it isn’t trying to alienate its base by appealing to another subset, but it can increase quantities of certain items that fit its base and also the next customers. The company has an incredibly loyal customer base, and not many retailers make the same style of clothing as it does (edgier, darker theme) at the mass market. Zumiez could face more pressure from online retailers that create similar styles of clothing at lower costs. But the company has a loyal audience and a niche market. Zumiez has the trendy clothing that these online retailers sell, indicating more social media integration is key. It has incredibly trendy clothing but is being overshadowed by these companies that make fairly boring clothing, only because these online retailers know how to market well to consumers.More importantly, these online retailers such as MissGuided and PrettyLittleThing sell cheap clothing, well within the price range of many people, making it very difficult to compete against. There’s nothing unique about these clothes either. What these online shops specialize is in is cheap ready-to-go fashion that fits into the general trend, whether it's loungewear or heightened formal wear - they move fast and make incredibly inexpensive products available for mass consumption.(Source: Missguided)(Source: Zumiez) Valuation and Longevity Don’t get me wrong, the longevity of these online retailers is questionable, considering ultra-trendy companies face major headwinds at times, however, Zumiez also has an incredibly specific artistic style, giving it a slim audience.Nevertheless, with all this bad news in play, Zumiez does have a remarkably unique style of clothing. There's not necessarily anything proprietary about the clothing the company offers, but it understands what its consumers want. There will always be someone who follows the Zumiez style of clothing, and as long as that core demographic remains strong, the company will be ok. It can always expand its style of clothing, and having physical stores is not a disadvantage. Malls are here to stay, and people constantly change their minds over what they like, and Zumiez's revenue growth numbers have been remarkably steady. Valuation-wise (in terms of P/E ratio), while Zumiez is priced slightly above American Eagle Outfitters (AEO) and Urban Outfitters (URBN), the company has a 13.85% cash flow yield compared to 5.9% for Urban Outfitters and 3.16% for American Eagle, and it has shown larger revenue growth. Zumiez is not the most exciting stock on the market, but it has a core, diligent audience that keeps coming back, as the company doesn’t really have that many competitors in the space.Data by YChartsData by YChartsData by YCharts Financials Zumiez has no debt as of August 1, 2020, and inventory is down, from $151.1 million for the same period last year compared to $126.7 million now. It is in an enviable financial position for any retailer, as net income for Q2 2020 was $25.4, compared to $9 million in Q2 2019. Overall, this completely blows away fairly negative expectations. Zumiez also has zero debt, a major advantage for the company. In terms of EPS, Zumiez frankly blows away the competition, and the Return on Invested Capital is extraordinarily high considered the circumstances. This could be chalked up to the fact that the company has been able to maintain its margins and to the idea that Zumiez does not face much competition in the field and it caters to that niche audience to a tee. Overall, what Zumiez has is not ordinary - the returns it delivers are stellar in normal times, but are even more eye-catching in times like these.Data by YChartsData by YCharts Conclusion Despite all the competition Zumiez is a good, reliable stock. However, the 52-week low is $13.13 and the 52-week high is $35.68. At the moment, the stock is priced at $33.25, almost reaching its previous highs. Even though the P/E ratio is at an attractive point at ~13, the stock could easily go lower, especially with holiday uncertainty. Additionally, just since November 6th, the stock has run up 9%. This is a strong stock, but at the moment, the price is high. Retail stocks frequently fluctuate in price, and this could come down very soon. At the moment, I would hold off, although this is a strong stock to hold. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":false,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"laohu8","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2084942666"}