Zumiez (ZUMZ) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2025 rose 3.9% year-over-year to $184.3 million, driven by a 5.5% rise in comparable sales, especially in North America, despite macroeconomic challenges and a net closure of 21 stores.

• Gross profit increased 6.6% to $55.3 million, with gross margin improving by 70 basis points to 30.0% due to leverage in store occupancy costs.

• Net loss narrowed to $14.3 million ($0.79 per diluted share), including a $2.9 million legal settlement charge (~$0.13 per share).

• Strategic priorities include accelerating top-line growth through new brands and private label expansion, maintaining profitability, and leveraging a strong balance sheet for growth and shareholder returns.

• The company completed a $25.2 million share repurchase in Q1 and approved a new $15 million buyback plan through June 2026.

Financial highlights

• Revenue for Q1 2025 was $184.3 million, up 3.9% year-over-year; North America net sales rose 4.9%, while international sales declined 0.2%.

• Gross profit: $55.3 million (30.0% of sales), up from $51.9 million (29.3%).

• Operating loss was $19.9 million (10.8% of sales), improved from $20.2 million loss last year.

• Net loss was $14.3 million ($0.79/share), improved from $16.8 million ($0.86/share) last year.

• Cash and marketable securities stood at $101 million at quarter-end, with no debt and a new $25 million credit facility available.

Outlook and guidance

• Q2 2025 sales expected between $207–$214 million, with comparable sales growth of -1% to 3% and loss per share forecasted at $0.09–$0.24.

• Product margin expected to increase year-over-year in Q2; operating loss forecasted between $0.7–$4 million.

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

• Plans to open approximately 9 new stores in 2025, with capex projected 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.