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Zumiez: My No. 1 Retail Post-Pandemic Play

Aug. 02, 2021 11:24 PM ETZumiez Inc. (ZUMZ)5 Comments
Aquarius Research profile picture
Aquarius Research


  • As the country continues to reopen from the pandemic, America’s malls are likely to attract a wave of reinvigorated consumers, including teenagers.
  • ZUMZ has consistently grown revenue above 23% a year since 2015. Zumiez has continued churning out cash flow, surging FCF by almost 50% and EPS by 15% during the pandemic.
  • The company’s financial position looks strong. Zumiez has no long-term debt outside of leases and current assets (excluding inventory) of $430M – nearly half the current market cap.
  • My P/S, PEG, and DCF valuations imply significant undervaluation as they average to an intrinsic valuation of $90 (implying 100% upside).

Zumiez store in Orlando, Florida, USA. Zumiez Inc. is an American specialty clothing store.
JHVEPhoto/iStock Editorial via Getty Images


Zumiez (NASDAQ:ZUMZ) may be the perfect opportunity to take advantage of the hypothesis that mall reopenings will be fruitful for retail companies. While there are other opportunities for post-COVID retail plays, I believe Zumiez

This article was written by

Aquarius Research profile picture
I'm a current undergraduate at NYU Stern. My focus is on international equities, both long and short ideas. I tend to utilize a top-down approach, expanding from economic and consumer trends to create general trade ideas, and then seeking value and growth picks with strong capital structure, potential/increasing cash flows, and competitive advantages. I then model the company’s statements and forecast future revenue, EPS, and cash flows over the next few years, with the goal of determining if it is currently trading at discount to its intrinsic value using valuation methods that include DCF, P/S, PEG, or EV/EBITDA. In my research process and articles, I address risks, red flags, drivers/catalysts, revenue generation, costs, and basic technical analysis–among other factors.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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.

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