Zumiez (ZUMZ) Q2 2025 earnings summary

Executive summary

• Net sales increased 8.1% year-over-year to $210.2 million for Q2 2024, driven by strong North America performance and a calendar shift, while international sales declined.

• Comparable sales rose 3.6% in Q2 2024, with higher dollars per transaction but fewer transactions.

• Net loss narrowed to $0.8 million ($0.04 per share) from $8.5 million ($0.44 per share) in Q2 2023, significantly better than guidance.

• Gross margin expanded by 250 basis points to 34.2% in Q2 2024, mainly due to leverage in store occupancy and shipping costs.

• Back-to-school season drove high single-digit to double-digit comp sales growth, with Q3-to-date comps up 12.1%.

Financial highlights

• Q2 2024 net sales: $210.2 million, up from $194.4 million in Q2 2023.

• Gross profit: $71.8 million (34.2% of sales), up from $61.7 million (31.7%) year-over-year.

• Operating loss was $0.4 million (0.2% of sales), improved from $10.5 million (5.4%) last year.

• Net loss was $0.8 million ($0.04 per share) vs. $8.5 million ($0.44 per share) last year.

• Six-month net sales increased 2.7% to $387.6 million, with net loss narrowing to $17.6 million ($0.91 per share) from $26.9 million ($1.40 per share) year-over-year.

Outlook and guidance

• Q3 net sales projected at $221–$225 million, up 2–4% year-over-year; adjusted for calendar shift, growth expected at 7–9%.

• Q3 operating income as a percent of sales expected between 0.2% and 1.2%; EPS guidance ranges from a loss of $0.04 to income of $0.06.

• Full-year sales growth expected in the low single-digit range; product margin growth anticipated.

• Plans to open approximately 9 new stores and close about 25 stores in fiscal 2024.

• 2024 capex expected between $14 million and $16 million, down from $20.4 million in 2023.