Wedbush Neutral On Zumiez

Wedbush has a Neutral rating and a $28 price target on shares of Zumiez ZUMZ. In a note to clients, Wedbush writes, "Following softer May sales results, we look for June comparable-store sales of +5-7% vs. +10.9% LY to deliver slight upside to consensus estimate of +5.3% and demonstrate a sequential pickup. We anticipate continued AUR gains (given strength of accessories) after 3 consecutive months and as we witness encouraging upticks in conversion and traffic suggesting the retailer's unique assortments may hold pricing power and pass-through increased input costs to consumers in H2. We highlight that a large percentage of the company's merchandise, such as accessories and hardgoods, are non-cotton based products and mute ZUMZ's exposure to inflationary pressure. Given potential for an earnings beat on positive sales momentum in Q2, we believe the stock should maintain its premium multiple." Shares of ZUMZ closed at $25.73 on Friday.