Zumiez (ZUMZ) Q4 2025 earnings summary

Executive summary

• Fourth quarter comparable sales rose 5.9%, with gross margin up 190 basis points to 36.2%, and total sales at $279.2 million, slightly below initial guidance but above revised expectations.

• Operating profit more than doubled to $20.1 million (7.2% of sales), and adjusted EPS increased 95% to $0.78, reversing a prior year net loss that included a $41.1 million goodwill impairment.

• Full-year net sales grew 1.6% to $889.2 million, with comparable sales up 4% and net loss narrowing to $1.7 million ($0.09 per share), a significant improvement from the prior year.

• Strategic initiatives included launching over 120 new brands, expanding private label to 28% of sales, and enhancing customer engagement through service and technology investments.

• First quarter-to-date comparable sales up 4.3%, led by North America at 6.4%, while international comparable sales declined 3.7%.

Financial highlights

• Q4 net sales were $279.2 million, down 0.9% year-over-year due to a shorter quarter; comparable sales rose 5.9%.

• Q4 gross margin improved 190 basis points to 36.2%, driven by product margin and lower web shipping costs.

• Q4 operating income was $20.1 million (7.2% of sales) versus a prior year loss, and net income was $14.8 million ($0.78 per share).

• Year-end cash and marketable securities totaled $147.6 million, down from $171.6 million, mainly due to share repurchases and capital expenditures.

• Full-year net sales grew 1.6% to $889.2 million; comparable sales up 4%.

Outlook and guidance

• Q1 2025 sales expected between $179–$183 million (1–3% growth); comparable sales up 3–5%.

• Q1 product margin expected flat to slightly down; operating loss projected between $16.5–$18.5 million; EPS loss $0.72–$0.82.

• Full-year 2025: cautious optimism for sales and margin growth despite store closures; no specific annual guidance.

• Nine new stores planned for 2025: up to 6 in North America, 2 in Europe, and 1 in Australia; capital expenditures expected at $14–$16 million.