Wedbush Comments On Zumiez Solid May Checks

According to Wedbush, Zumiez ZUMZ has a price target of $28. Wedbush said that with solid May checks, it anticipates May same store sales of +8-10% vs. +7.1% LY which would suggest upside to management's Q2 +MSD guidance and consensus forecast of +6.3%. “Thus far in Q2 and approaching H2, we believe the company's distinctive product mix could allow ZUMZ to withstand and potentially pass through elevated input costs better than other retailers and recognize AUR gains (following two consecutive months in March and April). Moreover, we note the mix of hardgoods and accessories also diminishes exposure to cotton price hikes. With our expectation for upbeat May sales to set the tone for Q2 and eventually lead to an earnings beat, we believe the stock should maintain its premium multiple.” Zumiez closed on Friday at $30.28.