Wedbush Maintains Neutral Rating and $21 PT on Zumiez

A report from Wedbush reiterates its Neutral rating and $21 price target on Zumiez ZUMZ. The report states, “We look for ZUMZ to report November comps of +1-3%, generally consistent with consensus estimates of +3%. Given modest sales trends, we believe sales momentum may be more similar to October's slower run rate. While we continue to believe ZUMZ's unique product assortment may hold pricing power better than its retail peers (8 months of AUR gains), we note the intensified promotional cadence within the teen retail sector as we believe the company may face margin pressure, particularly around core basics and denim categories with BOGO and bundled-type promotions driving sales.” ZUMZ closed yesterday at $21.95.