Shaun Currie, CFA
Long/short equity, hedge fund analyst, momentum

Zumiez: The Bull And Bear Case After Recent Quarterly Earnings

Zumiez (NASDAQ:ZUMZ) recently reported Q2 earnings on September 5, 2013. There were some very interesting developments on the call, so I decided to lay out the bull and bear cases for the company going forward. Let's first give a high level overview of the bull and bear cases:

Bull Case - in a very difficult environment, the company was able to achieve positive comps (off a strong 2012 number) in the back-to-school season. The company is clearly taking share in a space that looks to be consolidating. Above-average store growth, combined with a different product and over $3 a share in net cash make the company's valuation reasonable going forward.

Bear Case - The company saw a very...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO." Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else." Patrick Rice, Mainstay Capital Management
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details