Zumiez(ZUMZ) - 2026 Q2 - Quarterly Results

Fiscal 2025 Second Quarter Results Overview Zumiez Inc. reported its second quarter and year-to-date financial performance, highlighting sales growth, net losses, liquidity, and future outlook Second Quarter Financial Highlights Zumiez Inc. reported a 1.9% increase in net sales for the second quarter of fiscal 2025, reaching $214.3 million, alongside a net loss of $1.0 million Fiscal 2025 Second Quarter Financial Performance | Metric | Q2 FY25 (13 weeks) | Q2 FY24 (13 weeks) | Change (YoY) | | :-------------------------------- | :----------------- | :----------------- | :------------- | | Net Sales | $214.3 million | $210.2 million | +1.9% | | Comparable Sales Growth | +2.5% | +3.6% | -1.1 pp | | Net Loss | $(1.0) million | $(0.8) million | +25.0% | | Diluted Loss Per Share | $(0.06) | $(0.04) | +50.0% | - North American comparable sales increased by 4.2% in the second quarter[1] Year-to-Date Financial Highlights For the first six months of fiscal 2025, net sales grew by 2.9% to $398.6 million, with a net loss of $15.3 million, an improvement from the prior year Fiscal 2025 Year-to-Date Financial Performance (Six Months) | Metric | YTD FY25 (26 weeks) | YTD FY24 (26 weeks) | Change (YoY) | | :-------------------------------- | :------------------ | :------------------ | :------------- | | Net Sales | $398.6 million | $387.6 million | +2.9% | | Comparable Sales Growth | +3.9% | N/A | N/A | | Net Loss | $(15.3) million | $(17.6) million | -13.07% | | Diluted Loss Per Share | $(0.88) | $(0.91) | -3.3% | - The first six months of 2025 were negatively impacted by $3.6 million, or approximately $0.15 per share, related to the settlement of a wage and hours lawsuit in California[3] Liquidity and Share Repurchases Zumiez held $106.7 million in cash and marketable securities as of August 2, 2025, a decrease primarily due to share repurchases and capital expenditures Cash and Current Marketable Securities (Millions) | Date | Amount | | :---------------- | :---------------- | | August 2, 2025 | $106.7 | | August 3, 2024 | $127.0 | - The decrease in cash and marketable securities 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[4] Share Repurchase Activity (Fiscal 2025) | Period | Shares Repurchased (Millions) | Average Cost Per Share | Total Cost (Millions) | | :-------------------- | :---------------------------- | :--------------------- | :-------------------- | | Second Quarter | 0.6 | $13.10 | $7.8 | | Fiscal Year-to-Date | 2.4 | $13.64 | $32.8 | CEO Commentary CEO Rick Brooks expressed satisfaction with Q2 results, attributing outperformance to North American strength and successful initiatives, while maintaining a cautious outlook - Q2 results exceeded expectations, driven by outperformance in North America[5] - Sales trends accelerated throughout the quarter, underscoring the success of recent merchandise and customer experience initiatives[5] - Optimistic about prospects for the holiday season due to strong back-to-school performance, but maintaining near-term conservatism given uncertainty around tariffs and overall consumer demand[5] Third Quarter To-Date Performance For the first 30 days of Q3 FY25, net sales increased by 10.6%, with comparable sales up 11.2%, driven by strong North American growth Third Quarter To-Date Sales Performance (30 days ending Sept 1, 2025) | Metric | Growth Rate | | :------------------------ | :---------- | | Net Sales | +10.6% | | Comparable Sales | +11.2% | | North America Comparable Sales | +13.0% | Fiscal 2025 Third Quarter Outlook Zumiez projects Q3 FY25 net sales between $232 million and $237 million, with comparable sales growth of 5.5% to 7.5% and diluted EPS of $0.19 to $0.29 Fiscal 2025 Third Quarter Guidance | Metric | Range | | :-------------------------- | :-------------------- | | Net Sales | $232 to $237 million | | Comparable Sales Growth | 5.5% to 7.5% | | Consolidated Operating Margins | 2.3% to 3.3% | | Earnings Per Diluted Share | $0.19 to $0.29 | Store Expansion Plans The company plans to open approximately 6 new stores in fiscal 2025, primarily in North America and one in Australia - Zumiez intends to open approximately 6 new stores in fiscal 2025, including up to 5 in North America and 1 in Australia[8] Company Information This section provides details on accessing the conference call, an overview of Zumiez Inc., and a safe harbor statement regarding forward-looking information Conference Call Details Information is provided for accessing the conference call via pre-registration or live webcast, with a replay also available online - Participants can pre-register for the conference call or access a live webcast at https://ir.zumiez.com[9](index=9&type=chunk) - A replay of the webcast will be available for a limited time at https://ir.zumiez.com[9](index=9&type=chunk) About Zumiez Inc. Zumiez Inc. is a specialty retailer focusing on apparel, footwear, accessories, and hardgoods for young men and women, operating 730 stores globally - Zumiez is a leading specialty retailer for young men and women, expressing individuality through action sports, streetwear, and unique lifestyles[10] - As of August 30, 2025, the company operated 730 stores globally: 570 in the United States, 46 in Canada, 86 in Europe, and 28 in Australia[10] - The company operates under the names Zumiez, Blue Tomato, and Fast Times, with corresponding e-commerce websites[10] Safe Harbor Statement This disclaimer indicates that forward-looking statements are subject to risks and uncertainties, and the company does not undertake to update them - Statements regarding future financial performance, brand diversity, product mix, acquisitions, customer demand, and new store openings are forward-looking[11] - Forward-looking statements involve risks and uncertainties, and actual results could differ materially from expectations[11] - The company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances[11] Condensed Consolidated Financial Statements This section presents the company's condensed consolidated statements of loss, balance sheets, and cash flows for the reported periods Condensed Consolidated Statements of Loss The statements of loss show a net loss for both the three and six months ended August 2, 2025, impacted by selling, general, and administrative expenses Condensed Consolidated Statements of Loss (Q2 and Six Months Ended August 2, 2025, Amounts in thousands) | Metric | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Net sales | $214,275 | $210,179 | $398,618 | $387,567 | | Gross profit | $76,018 | $71,794 | $131,333 | $123,693 | | Selling, general and administrative expenses | $75,911 | $72,187 | $151,098 | $144,240 | | Operating profit (loss) | $107 | $(393) | $(19,765) | $(20,547) | | Net loss | $(1,002) | $(847) | $(15,333) | $(17,627) | | Basic loss per share | $(0.06) | $(0.04) | $(0.88) | $(0.91) | | Diluted loss per share | $(0.06) | $(0.04) | $(0.88) | $(0.91) | Condensed Consolidated Balance Sheets The balance sheet as of August 2, 2025, indicates a decrease in total assets and shareholders' equity, with a decline in cash and marketable securities Condensed Consolidated Balance Sheet Highlights (Amounts in thousands) | Metric | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :-------------------------- | :------------- | :--------------- | :------------- | | Cash and cash equivalents | $78,804 | $112,668 | $65,766 | | Marketable securities | $27,936 | $34,890 | $61,194 | | Inventories | $157,722 | $146,648 | $158,753 | | Total current assets | $300,762 | $322,385 | $326,781 | | Total assets | $623,388 | $634,881 | $669,527 | | Total current liabilities | $171,009 | $155,514 | $180,764 | | Total liabilities | $330,951 | $305,904 | $349,723 | | Total shareholders' equity | $292,437 | $328,977 | $319,804 | Condensed Consolidated Statements of Cash Flows For the six months ended August 2, 2025, Zumiez reported net cash used in operating activities, with significant cash used in financing activities Condensed Consolidated Statements of Cash Flows (Six Months Ended, Amounts in thousands) | Cash Flow Activity | August 2, 2025 | August 3, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | | Net cash used in operating activities | $(9,501) | $(15,422) | | Net cash provided by investing activities | $3,520 | $15,912 | | Net cash used in financing activities | $(32,497) | $(19,354) | | Net decrease in cash, cash equivalents, and restricted cash | $(36,864) | $(19,077) | - Repurchase of common stock, including taxes, amounted to $32.682 million for the six months ended August 2, 2025[19] Contact Information This section provides contact details for Zumiez Inc.'s finance and investor relations departments Company and Investor Contacts Contact details are provided for Zumiez Inc.'s Director of Finance & Investor Relations and for investor inquiries through ICR - Company Contact: Darin White, Director of Finance & Investor Relations, Zumiez Inc. (425) 551-1500, ext. 1337[20] - Investor Contact: Brendon Frey, ICR (203) 682-8200[20]