Value Investing News

Over the past week, we surveyed Zumiez (ZUMZ) locations to gauge trends in the surf wear and skate wear clothing market.  We asked the following questions: 

1. Has there been an increase in sales as summer approaches?
2. What is the most popular brand for teenagers?
3. Is the most popular brand products in stock or are they sold out?
4. What is the average sales receipt at this location?
5. Do you have an items on clearance?

• 70% have said that sales are increasing as summer approaches.  30% said they have not.
• The strongest teen brand was listed as Volcom according to 17%, 10% cited Empyre, 10% cited DC, 7% said earthquake and 7% said Bilabong.
• 100% of store reps said that the most popular teen brand (cited above) was in-stock.
• The average sales receipt at Zumiez shops were said to be $58.23 with a range of $25-$150.
• Winter gear was the primary category of clothes and accessories cited as being in “clearance” mode.

Conclusion of Channel Check:  Sales activity, clearance items, and lack of strong dominant brands suggest that business is not extremely strong at Zumiez stores now. The average customer receipt is respectable but again does not suggest that business is booming.

For access to the underlying survey or for more information, please contact Jason Katz at 415.867.0959 or jason@thechannelcheckers.com