$Zumiez (ZUMZ.US)$ On June 24, 2022, the review of the stock...

On June 24, 2022, the review of the stock reveals a price of 26.66.

New data: Q1 2023

Revenue, operating profit, and net income declined by 21%, 99%, and 102% respectively, with a quarterly net loss.
The reason for the decline in revenue is the end of the pandemic dividend. The decrease in operating profit is mainly due to a 30% decrease in gross margin, while expenses increased by 4.3%.

The end of the pandemic dividend will not return, and the data for the 2023 fiscal year is unlikely to improve. If the company's expenses remain at 72 million per quarter, i.e. 0.29 billion per year, assuming 80% of the revenue for the whole year in 2022, i.e. 0.95 billion, the gross margin is calculated at 33% from the latest quarter, the gross profit is only 0.31 billion, and the pre-tax net profit for the whole year is only 0.024 billion, corresponding to a PE of 22.

If the company manages to reduce expenses to 60 million for the remaining 3 quarters (ideal scenario), i.e. 0.25 billion for the whole year, the pre-tax net profit can reach 60 million for the whole year, 48 million after tax, corresponding to a PE of 11, which is still not low.

Small-cap stocks indeed fluctuate far more than sse mega-cap index with the economy, so this needs to be noted.

At present, this stock is not attractive at all.