Zumiez (ZUMZ) Q2 2026 earnings summary

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 driving performance.

• North American comparable sales outperformed, increasing 4.2% in Q2 and 13.0% in the first 30 days of Q3, while international markets faced challenges.

• 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.

• Strategic focus remains on revenue growth, profitability optimization, and leveraging a strong financial foundation.

Financial highlights

• Q2 net sales were $214.3 million, up 1.9% year-over-year; North America net sales rose 2.1%, while international net sales increased 1%.

• Gross profit was $76 million (35.5% of sales), up 5.9% year-over-year; gross margin improved by 130 basis points.

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

• SG&A expense was $75.9 million (35.4% of sales), up 5.2% year-over-year and flat as a percent of sales.

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

Outlook and guidance

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

• Q3 product margin and operating income (2.3%–3.3% of sales) expected to improve; EPS guidance of $0.19–$0.29.

• Full-year 2025 sales growth projected at 3%–4%, with modest product margin gains and flat SG&A as a percent of sales (excluding one-time legal charges).

• Six new stores planned for 2025, 20 closures; capex expected at $11–$13 million.

• Management expects liquidity from operations and cash reserves to be sufficient for at least the next 12 months.