Zumiez (ZUMZ) investor relations material

Executive summary

• Second quarter net sales rose 1.9% year-over-year to $214.3 million, with comparable sales up 2.5% and North America leading growth.

• Gross profit increased 5.9% to $76.0 million, with margin improving 130 basis points to 35.5% due to higher sales leverage and store closures.

• Net loss for Q2 was $1.0 million ($0.06 per share), compared to a $0.8 million loss last year.

• Six-month net sales increased 2.9% to $398.6 million, with a net loss of $15.3 million ($0.88 per share), improved from a $17.6 million loss last year.

• Third quarter-to-date comparable sales are up 11.2%, driven by strong back-to-school performance.

Financial highlights

• Q2 net sales: $214.3 million (+1.9% YoY); six months: $398.6 million (+2.9% YoY).

• Gross margin for Q2 improved to 35.5% from 34.2% year-over-year.

• Operating income for Q2 was $0.1 million (0.1% of sales), up from a $0.4 million loss last year.

• SG&A expenses increased 5.2% YoY in Q2, reaching $75.9 million (35.4% of sales).

• Cash and marketable securities at quarter-end: $106.7 million, with no debt.

Outlook and guidance

• Q3 net sales projected between $232–$237 million, with comparable sales growth of 5.5%–7.5%.

• Q3 product margin anticipated to increase, with operating income projected at 2.3%–3.3% of sales and EPS between $0.19 and $0.29.

• Full-year 2025 sales growth forecasted at 3%–4%, despite store closures impacting sales by $14 million.

• Six new stores planned for 2025, with 20 closures; capital expenditures expected between $11 million and $13 million.

• Full-year effective tax rate projected at 50%–60%.