What Happened?
Shares of clothing and footwear retailer Zumiez (NASDAQ: ZUMZ) fell 7.9% in the afternoon session after the company reported mixed first quarter 2025 results: its EBITDA missed and its EPS guidance for next quarter fell short of Wall Street's estimates.
On the other hand, Zumiez narrowly topped analysts' revenue expectations and its revenue guidance for next quarter slightly exceeded Wall Street's estimates. Still, this was a softer quarter.
The shares closed the day at $11.54, down 10.3% from previous close.
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What The Market Is Telling Us
Zumiez’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 10 days ago when the stock gained 5.8% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
Zumiez is down 39% since the beginning of the year, and at $11.58 per share, it is trading 60.2% below its 52-week high of $29.11 from August 2024. Investors who bought $1,000 worth of Zumiez’s shares 5 years ago would now be looking at an investment worth $383.70.
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