Zumiez (ZUMZ) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2025 rose 3.9% year-over-year to $184.3 million, with comparable sales up 5.5%, driven by strong North America performance despite a net closure of 21 stores.

• North America led with 4.9% net sales growth and 7.4% comparable sales growth, while international sales declined slightly.

• Net loss narrowed to $14.3 million ($0.79 per share), including a $2.9 million legal settlement charge.

• SG&A expenses increased to $75.2 million, mainly due to the legal settlement.

• Board completed a $25 million share repurchase and approved a new $15 million buyback plan through June 2026.

Financial highlights

• Gross profit rose 6.6% to $55.3 million (30.0% of sales), with gross margin improving by 70 basis points year-over-year.

• Operating loss improved to $19.9 million (-10.8% of sales) from $20.2 million (-11.3%).

• Cash and marketable securities ended at $101 million, down from $146.6 million a year ago.

• Net cash used in operating activities was $22.1 million, up from $18.6 million year-over-year.

• May 2025 net sales up 0.7% and comparable sales up 1.4% year-over-year for the four-week period.

Outlook and guidance

• Q2 FY2025 net sales expected between $207–$214 million, with loss per share forecasted at $0.09–$0.24.

• Comparable sales for Q2 forecasted between -1% and 3%; product margin expected to increase.

• Full-year 2025 guidance anticipates sales and product margin growth, with operating margins and net profit expected to improve, returning to profitability.

• Plans to open approximately 9 new stores in 2025, with 20 closures; capex expected at $14–$16 million.

• Management expects existing liquidity and cash flow to be sufficient for operational and capital needs for at least the next twelve months.