Zumiez falls as Jefferies moves to sidelines citing a slowdown in skating

Zumiez

21/09/2021 16:19

** Shares of company  ZUMZ.O , which sells apparel and goods
for skaters, snowboarders and other action sports, fall 2% to
$39.88 after Jefferies downgrades ZUMZ to "hold" from "buy"
    ** Brokerage says the resurgence of appetite for skating
over the recent years is receding; cuts PT to $42 from $52,
implying an upside of 2.7% to stock's last close
    ** Hardgoods like skateboards and sporting equipments, which
amounted to 19% of ZUMZ's sales in FY 2021 helped by the
COVID-19 led boom, is now "tracking negative" - Jefferies 
    ** Adds apparel, while performing solidly, lacks a major
product catalyst to offset the slowing hardgoods trend
    ** 2 of 5 analysts covering ZUMZ rate it "buy" or higher,
while the rest rate it "hold"; their median PT is $46
    ** Stock is up ~9% YTD

 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com;))