Zumiez (ZUMZ) Q2 2027 earnings summary

Executive summary

• Net sales for Q2 2026 decreased 2.5% year-over-year to $209 million, primarily due to U.S. market softness and a 2.1% decline in comparable sales, while international entities delivered positive sales growth.

• U.S. sales deceleration was driven by declines in footwear and overall transactions, with footwear accounting for 70% of the U.S. sales decline.

• International business saw low single-digit positive comparable sales, supported by refreshed product mix and private label growth.

• Net loss for Q2 2026 was $2.7 million ($0.17 per share), compared to $1 million ($0.06 per share) in the prior year.

• For the six months ended August 1, 2026, net sales increased 0.9% to $402.3 million, with a net loss of $16 million ($1.00 per share).

Financial highlights

• Gross profit for Q2 2026 was $73.9 million, with gross margin at 35.3%, down 20 bps year-over-year.

• Operating loss for Q2 2026 was $1.3 million (0.6% of net sales), compared to prior year operating income of $0.1 million.

• SG&A expense was $75.2 million (35.9% of net sales), up 50 bps as a percentage of sales.

• Cash and marketable securities at quarter-end were $97.3 million; total assets were $627.4 million.

• Net cash used in operating activities for the six months was $27.3 million, up from $9.5 million in the prior year period.

Outlook and guidance

• Q3 FY26 net sales expected between $222 million and $226 million, a 5.5%-7% decline year-over-year.

• Comparable sales for Q3 projected between -5% and -6.5%; product margin expected down 20-40 bps.

• Q3 operating income expected at 1%-1.7% of sales; EPS forecasted between $0.00 and $0.10.

• Full-year sales expected to be down low single digits, including a $12 million negative impact from store closures.

• Five new stores planned and 16 closures for FY26; capital expenditures projected at $13–$15 million.