Zumiez Inc. (ZUMZ Free Report) is scheduled to report second-quarter fiscal 2019 results on Sep 5, after the market closes.

We note that in the trailing four quarters, the company has outperformed the Zacks Consensus Estimate, recording average positive earnings surprise of 46.3%. In the last reported quarter, this specialty retailer of action sports related apparel, footwear, equipment and accessories also outpaced the consensus mark by a wide margin. Let’s see how the company is positioned ahead of the upcoming quarterly results.

Estimates Look Bright

The Zacks Consensus Estimate for second-quarter earnings is pegged at 19 cents, indicating a rise of 11.8% from 17 cents reported in the year-ago quarter. The consensus mark has remained unchanged over the past 30 days.

For revenues, the consensus estimate stands at $223.2 million, suggesting an increase of approximately 2% from the year-ago quarter.

Zumiez Inc. Price, Consensus and EPS Surprise

Factors Likely to Influence Results

Zumiez remains focused on merchandising, integration of sales channels and the rollout of new customer engagement strategies. Also, the company is striving to expand its e-commerce and omni-channel platforms to provide consumers with the facility of quick and easy access to its products and brands. All these factors are likely to have a favorable impact on the to-be-reported quarter results.

Furthermore, the company considerably improved customers’ experience by integrating its physical and digital networks. This, in turn, allows customers to access inventories through all channels alongside availing facilities like buy online, pick up in store, reserve online and pay in store. We believe that the company’s well-balanced store expansion and e-commerce strategies will help it keep track of the evolving patterns and drive its top line in the impending quarter.

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The company’s robust comparable sales (comps) trend is an added positive. Also, management expects the positive comps trend to continue in the fiscal year. For second-quarter fiscal 2019, management expects comps to be in the range of flat to up 2%. Net sales are anticipated in the range of $220-$224 million, which showcases an improvement from $219 million recorded in the year-ago quarter.

Additionally, consolidated operating margins are projected in the range of 2.2-3.2%. Earnings per share for the fiscal second quarter are envisioned in the band of 14-20 cents.

What Does the Zacks Model Say?

Our proven model shows that Zumiez is likely to beat bottom-line estimates in the second quarter of fiscal 2019.  For this to happen, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Zumiez’s Earnings ESP of +12.50% combined with its Zacks Rank #2 makes us reasonably confident about an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With Favorable Combination

Here are some other companies you may want to consider as our model shows that these too have the right combination of elements to post earnings beat.

General Mills (GIS Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #2.

Costco (COST Free Report) has an Earnings ESP of +0.62% and a Zacks Rank #3.

lululemon athletica (LULU Free Report) has an Earnings ESP of +1.77% and a Zacks Rank #3.

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