Yahoo Finance Zumiez (ZUMZ) International Revenue Performance Explored
Did you analyze how Zumiez (ZUMZ) fared in its international operations for the quarter ending April 2024? Given the widespread global presence of this clothing retailer, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
In our recent assessment of ZUMZ's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
For the quarter, the company's total revenue amounted to $177.39 million, experiencing a decline of 3% year over year. Next, we'll explore the breakdown of ZUMZ's international revenue to understand the importance of its overseas business operations.
A Closer Look at ZUMZ's Revenue Streams Abroad
Canada generated $8.83 million in revenues for the company in the last quarter, constituting 5.0% of the total. This represented a surprise of +13.01% compared to the $7.81 million projected by Wall Street analysts. Comparatively, in the previous quarter, Canada accounted for $13.31 million (4.7%), and in the year-ago quarter, it contributed $8.43 million (4.6%) to the total revenue.
During the quarter, Europe contributed $29.57 million in revenue, making up 16.7% of the total revenue. When compared to the consensus estimate of $27.21 million, this meant a surprise of +8.67%. Looking back, Europe contributed $60.33 million, or 21.4%, in the previous quarter, and $33.51 million, or 18.3%, in the same quarter of the previous year.
Australia accounted for 2.9% of the company's total revenue during the quarter, translating to $5.12 million. Revenues from this region represented a surprise of +15.84%, with Wall Street analysts collectively expecting $4.42 million. When compared to the preceding quarter and the same quarter in the previous year, Australia contributed $9.1 million (3.2%) and $5.39 million (3%) to the total revenue, respectively.
Anticipated Revenues in Overseas Markets
Wall Street analysts expect Zumiez to report $201.96 million in total revenue for the current fiscal quarter, indicating an increase of 3.9% from the year-ago quarter. Canada, Europe and Australia are expected to contribute 4.9% ($9.87 million), 12.6% ($25.37 million) and 2.5% ($4.96 million) to the total revenue, respectively.
For the full year, a total revenue of $877.63 million is expected for the company, reflecting an increase of 0.3% from the year before. The revenues from Canada, Europe and Australia are expected to make up 5%, 15.7% and 2.7% of this total, corresponding to $44.07 million, $137.94 million and $23.51 million respectively.
The Bottom Line
Relying on international markets for revenues, Zumiez faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Zumiez, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Look at Zumiez's Recent Stock Price Performance
Over the past month, the stock has gained 0.9% versus the Zacks S&P 500 composite's 2.9% increase. The Zacks Retail-Wholesale sector, of which Zumiez is a part, has risen 0.5% over the same period. The company's shares have increased 37.4% over the past three months compared to the S&P 500's 5% increase. Over the same period, the sector has risen 2.5%.
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Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
