Why Zumiez, Genesco, and Overstock.com Slumped Today
The stock market lost ground on Friday, but things ended up a lot better than it appeared they would earlier in the day. The Dow and S&P 500 finished down less than a quarter percent after having seen declines of well over 1% at their worst levels of the day, as news about special counsel Robert Mueller's plea agreement with the Trump administration's former national security advisor sent stocks plunging briefly. After an initial panic, investors seemed to revert to a buy-the-dip mentality. Still, some companies weren't able to make up lost ground, and Zumiez (NASDAQ: ZUMZ), Genesco (NYSE: GCO), and Overstock.com (NASDAQ: OSTK) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Zumiez stock finished down 8.5% despite the company's fairly solid third-quarter financial report. Several of the skateboard-focused retailer's business metrics looked good, including an 11% jump in quarterly revenue and a nearly 8% rise in comparable sales. November looked particularly strong for the company, matching the same 8% rise in comps. Yet even though Zumiez did a good job of reining in overhead expenses and other operating costs, a decline in gross margin suggested that the retailer still faces some pricing pressures with its merchandise. To get moving in the right direction, Zumiez will have to keep delivering strong results and make further progress toward controlling costs.
Image source: Zumiez.
Source: Fool.com
Genesco Inc. Stock
The community is currently still undecided about Genesco Inc. with 1 Buy predictions and 0 Sell predictions.
As a result the target price of 39 € shows a very positive potential of 78.9% compared to the current price of 21.8 € for Genesco Inc..
