- Zumiez reported earnings yesterday which beat the first call consensus estimates of $0.45 vs. $0.42 expected
- Gross margins were up and drove most of the earnings beat
- Sales trends were also solid with Q3 same store sales of +6% and November same store sales of +8.4%.
- While ZUMZ results were solid, and ahead of expectations, a key factor in the surge is the high short interest.
- Short interest as a % of the float is 25%, amounting to 14 days to cover.
- The outsized tail risks to short positions are just as large as they are to long positions in this year’s manic markets.
