How does Zumiez's North American comparable sales growth compare to its peers in the specialty retail sector?

Fundamental perspective

Zumiez reported a 4.2 % increase in North‑American comparable sales for Q2. In the same period, the broader specialty‑retail universe (e.g., Urban Outfitters, Lululemon, Foot Locker, and the “Apparel & Accessories” segment of the S&P 500) has been posting mid‑single‑digit growth of roughly 2‑3 % on a comparable‑sales basis. Thus, Zumiez’s North‑American performance is 1–2 percentage points above the sector median, signaling that the brand is gaining market share faster than its peers—particularly notable given the historically “soft” demand environment for teen‑focused apparel.

Market & technical take‑away

The above‑average sales momentum translates into a higher earnings‑growth outlook for FY 2025, which has already been priced in by a modest price‑to‑earnings expansion (the stock trades at ≈ 15× forward‑est. EPS versus the specialty‑retail average of ~ 13×). On the chart, ZUMZ is holding the 20‑day EMA near the $41‑$42 level and has recently broken a short‑term resistance line at $41.80, forming a bullish flag. If comparable‑sales growth continues to outpace the sector, the stock could test the 52‑week high around $45–$46, while a pull‑back below $39 would likely reopen a short‑cover‑risk scenario.

Actionable insight

Given the sector‑leading 4.2 % North‑American sales growth, coupled with supportive technicals, a long‑position (or addition to existing holdings) is warranted for traders with a short‑ to medium‑term horizon. Consider entering on a break of $41.70 with a stop just under $38 to limit downside, while targeting $45–$46 as the upside objective if the sales trajectory holds and broader consumer sentiment stays intact.