Discussion in 'Stocks' started by vanzandt, Sep 5, 2016.

  1. vanzandt


    Opinions? lol.
  2. Baron

    Baron ET Founder

    It's hard for me to get excited about Zumiez because their competition is crazy. There are just too many other retailers selling the exact same brands like Pacific Sunwear, CCS, Tilly's, Buckle, etc.

    And recently I noticed that even the manufacturers are now competing with their own retailers. Just the other day I went to O'neill's site to look for some shorts, and sure enough, you can buy them straight from O'neill now. And in some cases, they even have styles that you can't even find at their retailers.

    So for me, Zumiez isn't the greatest bet because of competition, and also because the barrier to entry to get into that business just isn't very high to begin with so the competition will just get worse. I remember way back there was a time that I entertained the possibility of starting a skate shop back in North Carolina. So I inquired to various clothing and shoe manufacturers about their wholesale price lists, and let me tell you, these companies will wholesale their stuff to anybody who is breathing and went to the trouble of getting a business license.

    So if you want to make a bet on that industry, I'd bet on the manufacturers because at the end of the day, they are the ones making all the money.
  3. vanzandt


    lol :D
  4. Expecting an earnings beat.