Zumiez (ZUMZ) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 7.5% to $239.1M, with 7.6% comparable sales growth and North America up 8.6%–10%, while international sales improved but remained challenged.

• Q3 EPS increased to $0.55 from $0.06, with net income at $9.2M, aided by a one-time tax item.

• Gross profit rose 14.7% to $89.8M, with margin up 240 bps to 37.6% due to higher sales and store closures.

• Q4-to-date comps up 6.6%, with Black Friday/Cyber Monday period up 8.7% and a strong holiday start.

• For the nine months ended November 1, 2025, net sales grew 4.5% to $637.7M, with net loss narrowing to $6.2M from $16.5M.

Financial highlights

• Q3 gross margin was 37.6%, up from 35.2% last year; SG&A expense was 32.7% of sales, down from 34.1%.

• Q3 operating income was $11.8M (4.9% of sales), up from $2.4M (1.1% of sales) last year.

• Q3 net income margin was 3.8%, up from 0.6% last year.

• Cash and marketable securities at quarter-end were $104.5M; inventory was $180.7M, down 3.5% year-over-year.

• For the nine months, gross profit margin increased to 34.7% from 33.1%.

Outlook and guidance

• Q4 sales expected at $291M–$296M (4%–6% growth), with comparable sales planned at 2.5%–4%.

• Q4 EPS guidance is $0.97–$1.07, up from $0.78 last year; operating margins expected at 8.0%–8.5%.

• Full-year 2025 sales growth expected at 4.5%–5%, with EPS of $0.57–$0.67, compared to a loss of $0.09 in 2024.

• 2025 capex planned at $10M–$12M; six new stores to open, 21 closures planned.

• Liquidity expected to be sufficient for operational and capital needs for at least the next twelve months.