Zumiez (ZUMZ) investor relations material

Executive summary

• Net sales for Q2 2026 decreased 2.5% year-over-year to $209.0 million, primarily due to U.S. market softness and a 2.1% decline in comparable sales, while international entities delivered positive sales growth.

• Net loss for Q2 2026 widened to $2.7 million ($0.17 per share), compared to $1.0 million ($0.06 per share) in Q2 2025.

• For the six months ended August 1, 2026, net sales increased 0.9% to $402.3 million, with a net loss of $16.0 million ($1.00 per share).

• U.S. sales deceleration was driven by declines in footwear and overall transactions, while international business saw low single-digit positive comparable sales.

• Net closure of 16 stores contributed to the sales decline.

Financial highlights

• Gross profit for Q2 2026 was $73.9 million, with gross margin at 35.3%, down 20 basis points year-over-year.

• SG&A expense was $75.2 million (35.9% of sales), up 50 basis points as a percentage of sales.

• Operating loss for Q2 2026 was $1.3 million, compared to operating income of $0.1 million last year.

• Cash and marketable securities at quarter-end were $97.3 million, down from $106.7 million a year ago.

• Net cash used in operating activities for the six months was $27.3 million, up from $9.5 million in the prior year period.

Outlook and guidance

• Q3 2026 net sales expected between $222 million and $226 million, a 5.5%-7% decline year-over-year.

• Comparable sales for Q3 projected between -5% and -6.5%.

• EPS for Q3 2026 expected between $0.00 and $0.10, down from $0.55 last year.

• Plans to open 5 new stores and close 16 stores in fiscal 2026; capital expenditures projected at $13–$15 million.

• Liquidity is expected to be sufficient for operational and capital needs for at least the next twelve months.