Zumiez (ZUMZ) investor relations material

Executive summary

• Net sales for Q1 FY2026 increased 4.9% year-over-year to $193.3 million, driven by a 4.0% rise in comparable sales and favorable foreign exchange rates, with strength in North America and Europe.

• Gross profit rose 10.9% to $61.3 million, with gross margin improving by 170 basis points to 31.7% due to higher product margins, store occupancy leverage, and lower inventory shrinkage.

• Operating loss narrowed to $15.2 million (7.9% of sales) from $19.9 million (10.8% of sales) year-over-year.

• Net loss was $13.3 million ($0.82/share) vs. $14.3 million ($0.79/share) in the prior year, with improvement despite a slight decrease in EPS due to share buybacks.

• Private label penetration reached 34% of sales, the highest in company history, supporting margin expansion.

Financial highlights

• North America sales increased $5.8 million (3.9%), and international sales (Europe and Australia) rose $3.2 million (9.1%) year-over-year.

• Selling, general and administrative expenses were $76.5 million, up 1.8% year-over-year, but decreased as a percentage of sales to 39.6%.

• Cash and marketable securities ended at $124.2 million, up from $101 million a year ago, though cash and cash equivalents at quarter-end were $66.9 million.

• Net cash used in operating activities increased to $28.1 million from $22.1 million year-over-year, primarily due to unfavorable changes in working capital.

• Share count down 11% year-over-year due to repurchases.

Outlook and guidance

• Q2 sales expected between $210–$215 million, representing -2% to +0.5% growth year-over-year.

• Q2 EPS guidance: loss of $0.23 to $0.08, compared to a loss of $0.06 last year.

• Full-year sales expected to grow, but softer than previous low single-digit expectations; no specific EPS guidance.

• Five new stores planned (all U.S.), 26 closures (20 North America, 6 international); capex $14–$16 million.

• Management expects available liquidity from operations and cash reserves to be sufficient for at least the next twelve months.