Zumiez Inc. Announces Fiscal 2025 Second Quarter Results

Rhea-AI Summary

Zumiez (NASDAQ: ZUMZ) reported mixed Q2 2025 results with net sales increasing 1.9% to $214.3 million. The company posted a net loss of $1.0 million, or $0.06 per share, compared to a $0.8 million loss in Q2 2024. Comparable sales grew 2.5%, with North American sales showing strength at 4.2% growth.

The company's cash position decreased to $106.7 million from $127.0 million year-over-year, primarily due to $38.3 million in share repurchases and capital expenditures. Third quarter-to-date performance shows strong momentum with comparable sales up 11.2%, led by 13.0% growth in North America. For Q3 2025, Zumiez projects net sales between $232-237 million with comparable sales growth of 5.5-7.5%.

Positive

• Comparable sales increased 2.5% in Q2, with North America showing strong 4.2% growth
• Third quarter-to-date comparable sales up significantly by 11.2%
• Gross margin improved to 35.5% from 34.2% year-over-year
• Strong share repurchase program with 2.4 million shares bought back year-to-date
• Operating loss improved to -5.0% from -5.3% for the six-month period

Negative

• Net loss increased to $1.0 million from $0.8 million in Q2 2024
• Cash position declined to $106.7 million from $127.0 million year-over-year
• $3.6 million negative impact from California wage lawsuit settlement
• Operating expenses as percentage of sales increased to 35.4% from 34.4%

Insights

Retail Financial Analyst

Zumiez shows North American sales strength with improving trajectory despite posting Q2 net loss; guidance indicates continued momentum through back-to-school season.

Zumiez delivered a 1.9% increase in Q2 net sales to $214.3 million, with 2.5% comparable sales growth on top of 3.6% growth in the year-ago period. North American comparable sales were particularly strong at 4.2%, indicating regional strength despite broader retail challenges.

While the company reported a quarterly net loss of $1.0 million ($0.06 per share), this represents only a slight deterioration from last year's $0.04 per share loss. Notably, gross margin improved 130 basis points to 35.5%, suggesting better inventory management and reduced promotional activity.

The most encouraging sign is the acceleration in sales throughout the quarter, culminating in third quarter-to-date comparable sales growth of 11.2%, with North America showing robust 13.0% growth during the critical back-to-school period. This demonstrates the effectiveness of merchandise and customer experience initiatives in resonating with their young consumer demographic.

On the capital allocation front, Zumiez continues aggressive share repurchases, buying back 2.4 million shares year-to-date at an average cost of $13.64 per share for a total of $32.8 million. Cash position remains healthy at $106.7 million, though down from $127.0 million a year ago, primarily due to these repurchases.

Q3 guidance appears conservative relative to current performance, projecting sales of $232-237 million with comparable sales growth of 5.5-7.5% and earnings per share of $0.19-0.29. Management's comments about balancing momentum with "near-term conservatism" suggest potential upside if consumer spending remains resilient despite tariff concerns.

For specialty retailers in the challenging teen/young adult segment, Zumiez's ability to deliver positive comparable sales growth across multiple quarters demonstrates effective merchandising and brand positioning, with particular strength in their core North American market.

Second Quarter Comparable Sales Increased 2.5%
North American Second Quarter Comparable Sales Increased 4.2%
Third Quarter-to-date Comparable Sales up 11.2%

LYNNWOOD, Wash., Sept. 04, 2025 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ: ZUMZ) a leading specialty retailer of apparel, footwear, equipment and accessories for young men and women, today reported results for the second quarter ended August 2, 2025.

Net sales for the second quarter ended August 2, 2025 (13 weeks) increased 1.9% to $214.3 million from $210.2 million in the second quarter ended August 3, 2024 (13 weeks). Comparable sales for the thirteen weeks ended August 2, 2025, increased 2.5% on top of a 3.6% increase in the year ago period. Net loss in the second quarter of fiscal 2025 was $1.0 million, or $0.06 per share, compared to a net loss of $0.8 million, or $0.04 per share, in the second quarter of the prior fiscal year.

Total net sales for the six months (26 weeks) ending August 2, 2025 increased 2.9% to $398.6 million from $387.6 million reported for the six months (26 weeks) ending August 3, 2024. Comparable sales increased 3.9% for the twenty-six weeks ended August 2, 2025. Net loss for the first six months of fiscal 2025 was $15.3 million, or $0.88 per share, compared to a net loss for the first six months of fiscal 2024 of $17.6 million, or $0.91 per share. The first six months of 2025 was negatively impacted by $3.6 million, or approximately $0.15 per share related to the settlement of a wage and hours lawsuit in California.

On August 2, 2025, the Company had cash and current marketable securities of $106.7 million compared to cash and current marketable securities of $127.0 million on August 3, 2024. The decrease was primarily driven by $38.3 million related to share repurchases and $14.1 million of capital expenditures partially offset by $26.6 million of cash flow from operations and the release of $3.0 million in restricted cash. The Company repurchased 0.6 million shares during the second quarter of 2025 at an average cost including commission of $13.10 per share and a total cost of $7.8 million. Fiscal year-to-date through August 2, 2025, the Company has repurchased 2.4 million shares at an average cost including commission of $13.64 per share and a total cost of $32.8 million. $7.2 million remains on the current open repurchase authorization.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We are encouraged with our second quarter results which exceeded expectations driven by outperformance in North America. Sales trends accelerated throughout the quarter even as we faced more difficult comparisons, underscoring the success of our recent merchandise and customer experience initiatives in what continues to be a challenging operating environment. We are seeing further acceleration third quarter-to-date led by an 11.2% comparable sales gain during back-to-school on top of a double-digit increase in the year ago period. With back-to-school performing well, we are optimistic about our prospects for the holiday season. However, we think it is prudent to balance our current momentum with some near-term conservatism given the uncertainty around tariffs and overall consumer demand.”

Third Quarter To-Date
Third quarter-to-date net sales for the 30 days ending September 1, 2025, increased 10.6%, compared with the 30-day period in the prior year ending September 2, 2024. Comparable sales over the same period are up 11.2% led by strong comparable sales growth in North America of 13.0%.

Fiscal 2025 Third Quarter Outlook
The Company is introducing guidance for the three months ending November 1, 2025. Net sales are projected to be in the range of $232 to $237 million including anticipated comparable sales growth of between 5.5% and 7.5%. Consolidated operating margins are expected to be between 2.3% and 3.3% resulting in earnings per diluted share of approximately $0.19 to $0.29.  

The Company currently intends to open approximately 6 new stores in fiscal 2025, including up to 5 stores in North America and 1 store in Australia.

Conference call Information
To access the conference call, please pre-register using this link (Registration Link). Registrants will receive confirmation with dial-in details. The conference call will also be available to interested parties through a live webcast at https://ir.zumiez.com. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at https://ir.zumiez.com.

About Zumiez Inc.

Zumiez is a leading specialty retailer of apparel, footwear, accessories and hardgoods for young men and women who want to express their individuality through the fashion, music, art and culture of action sports, streetwear, and other unique lifestyles. As of August 30, 2025, we operated 730 stores, including 570 in the United States, 46 in Canada, 86 in Europe and 28 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at zumiez.com, blue-tomato.com and fasttimes.com.au.

Safe Harbor Statement

Certain statements in this press release and oral statements relating thereto made from time to time by representatives of the Company may constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, predictions and guidance relating to the Company's future financial performance, brand and product category diversity, ability to adjust product mix, integration of acquired businesses, growing customer demand for our products and new store openings. In some cases, you can identify forward-looking statements by terminology such as, "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based on management's current expectations, but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation, those described in the Company’s annual report on Form 10-K for the fiscal year ended February 1, 2025 as filed with the Securities and Exchange Commission and available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(In thousands, except per share amounts)
(Unaudited)
	Three Months Ended
	August 2, 2025				% of Sales				August 3, 2024			% of Sales
Net sales	$	214,275			100.0	%		$	210,179			100.0	%
Cost of goods sold		138,257			64.5	%			138,385			65.8	%
Gross profit		76,018			35.5	%			71,794			34.2	%
Selling, general and administrative expenses		75,911			35.4	%			72,187			34.4	%
Operating profit (loss)		107			0.1	%			(393	)		-0.2	%
Interest income, net		753			0.3	%			1,128			0.5	%
Other income (expense), net		52			0.0	%			(179	)		0.0	%
Profit before income taxes		912			0.4	%			556			0.3	%
Provision for income taxes		1,914			0.9	%			1,403			0.7	%
Net loss	$	(1,002	)		-0.5	%		$	(847	)		-0.4	%
Basic loss per share	$	(0.06	)					$	(0.04	)
Diluted loss per share	$	(0.06	)					$	(0.04	)
Weighted average shares used in computation of loss per share
Basic		16,698							19,284
Diluted		16,698							19,284
	Six Months Ended
	August 2, 2025				% of Sales				August 3, 2024			% of Sales
Net sales	$	398,618			100.0	%		$	387,567			100.0	%
Cost of goods sold		267,285			67.1	%			263,874			68.1	%
Gross profit		131,333			32.9	%			123,693			31.9	%
Selling, general and administrative expenses		151,098			37.9	%			144,240			37.2	%
Operating loss		(19,765	)		-5.0	%			(20,547	)		-5.3	%
Interest income, net		3,008			0.8	%			2,449			0.6	%
Other expense, net		1,895			0.5	%			(946	)		-0.2	%
Loss before income taxes		(14,862	)		-3.7	%			(19,044	)		-4.9	%
Provision for (benefit from) income taxes		471			0.1	%			(1,417	)		-0.4	%
Net loss	$	(15,333	)		-3.8	%		$	(17,627	)		-4.5	%
Basic loss per share	$	(0.88	)					$	(0.91	)
Diluted loss per share	$	(0.88	)					$	(0.91	)
Weighted average shares used in computation of loss per share:
Basic		17,403							19,375
Diluted		17,403							19,375

ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
	August 2, 2025					February 1, 2025						August 3, 2024
	(Unaudited)											(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	78,804				$	112,668					$	65,766
Marketable securities		27,936					34,890						61,194
Receivables		22,042					12,825						23,129
Inventories		157,722					146,648						158,753
Prepaid expenses and other current assets		14,258					15,354						17,939
Total current assets		300,762					322,385						326,781
Fixed assets, net		77,756					80,178						87,573
Operating lease right-of-use assets		193,809					183,235						203,744
Goodwill		15,334					15,258						15,358
Intangible assets, net		14,853					13,577						14,196
Deferred tax assets, net		8,781					8,684						9,928
Other long-term assets		12,093					11,564						11,947
Total long-term assets		322,626					312,496						342,746
Total assets	$	623,388				$	634,881					$	669,527
Liabilities and Shareholders’ Equity
Current liabilities
Trade accounts payable	$	69,181				$	49,389					$	75,016
Accrued payroll and payroll taxes		21,443					21,962						20,517
Operating lease liabilities		55,608					56,009						62,759
Other current liabilities		24,777					28,154						22,472
Total current liabilities		171,009					155,514						180,764
Long-term operating lease liabilities		153,115					143,812						161,663
Other long-term liabilities		6,827					6,578						7,296
Total long-term liabilities		159,942					150,390						168,959
Total liabilities		330,951					305,904						349,723
Shareholders’ equity
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding		—					—						—
Common stock, no par value, 50,000 shares authorized; 17,221 shares issued and outstanding at August 2, 2025 and 19,159 shares issued and outstanding at February 1, 2025		207,388					203,581						199,763
Accumulated other comprehensive loss		(15,684		)			(23,778			)			(18,844	)
Retained earnings		100,733					149,174						138,885
Total shareholders’ equity		292,437					328,977						319,804
Total liabilities and shareholders’ equity	$	623,388				$	634,881					$	669,527

ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
	Six Months Ended
	August 2, 2025				August 3, 2024
Cash flows from operating activities:
Net loss	$	(15,333	)		$	(17,627	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and accretion		10,707				11,052
Noncash lease expense		31,452				32,169
Deferred taxes		(81	)			(1,688	)
Stock-based compensation expense		3,621				3,391
Impairment of long-lived assets		777				298
Other		(693	)			949
Changes in operating assets and liabilities:
Receivables		(6,768	)			(7,067	)
Inventories		(7,540	)			(30,665	)
Prepaid expenses and other assets		(1,836	)			(937	)
Trade accounts payable		18,682				34,650
Accrued payroll and payroll taxes		(1,070	)			2,102
Income taxes payable		(4,775	)			(1,346	)
Operating lease liabilities		(35,065	)			(36,817	)
Other liabilities		(1,579	)			(3,886	)
Net cash used in operating activities		(9,501	)			(15,422	)
Cash flows from investing activities:
Additions to fixed assets		(5,317	)			(6,266	)
Purchases of marketable securities		(8,044	)			(1,967	)
Sales and maturities of marketable securities and other investments		16,881				24,145
Net cash provided by investing activities		3,520				15,912
Cash flows from financing activities:
Proceeds from revolving credit facilities		—				3,220
Payments on revolving credit facilities		—				(3,220	)
Proceeds from issuance and exercise of stock-based awards		377				357
Payments for tax withholdings on equity awards		(192	)			(130	)
Repurchase of common stock, including taxes		(32,682	)			(19,581	)
Net cash used in financing activities		(32,497	)			(19,354	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		1,614				(213	)
Net decrease in cash, cash equivalents, and restricted cash		(36,864	)			(19,077	)
Cash, cash equivalents, and restricted cash, beginning of period		121,529				94,284
Cash, cash equivalents, and restricted cash, end of period	$	84,665			$	75,207
Supplemental disclosure on cash flow information:
Cash paid during the period for income taxes	$	5,452			$	1,805
Accrual for purchases of fixed assets		1,180				3,326
Accrual for repurchase of common stock		426				479

Company Contact:
Darin White
Director of Finance &
Investor Relations
Zumiez Inc.
(425) 551-1500, ext. 1337

Investor Contact:
ICR
Brendon Frey
(203) 682-8200

FAQ

What were Zumiez (ZUMZ) Q2 2025 earnings results?

Zumiez reported Q2 2025 net sales of $214.3 million (up 1.9%) with a net loss of $1.0 million ($0.06 per share). Comparable sales increased 2.5%.

How much cash does Zumiez (ZUMZ) have in Q2 2025?

As of August 2, 2025, Zumiez had $106.7 million in cash and current marketable securities, down from $127.0 million year-over-year.

What is Zumiez's (ZUMZ) Q3 2025 guidance?

Zumiez expects Q3 2025 net sales of $232-237 million with comparable sales growth of 5.5-7.5% and earnings per share of $0.19-$0.29.

How many shares did Zumiez (ZUMZ) repurchase in Q2 2025?

Zumiez repurchased 0.6 million shares at an average cost of $13.10 per share, totaling $7.8 million in Q2 2025.

What are Zumiez's (ZUMZ) current comparable sales trends?

Third quarter-to-date comparable sales are up 11.2%, with North America showing strong growth of 13.0%.