ZUMZ Stock Gains 15% on Narrower-Than-Expected Q2 Loss, Comps Rise Y/Y

Core Insights - Zumiez Inc. reported second-quarter fiscal 2025 results with net sales of $214.3 million, surpassing estimates and showing a year-over-year increase of 1.9% [4][19] - The company experienced a quarterly loss of 6 cents per share, which was narrower than the expected loss of 11 cents but wider than the loss of 4 cents in the previous year [3][19] - Comparable sales rose 2.5% year over year, marking the fifth consecutive quarter of growth, driven by higher dollars per transaction despite a decline in the number of transactions [5][19] Financial Performance - Total net sales of $214.3 million exceeded the Zacks Consensus Estimate of $211 million, with North America sales contributing $180 million, up 2.1% year over year [4][6] - Gross profit increased by 5.9% to $76 million, with gross margin expanding by 130 basis points to 35.5% due to improved product margins and leveraging store occupancy costs [8][9] - Selling, general and administrative (SG&A) costs rose 5.2% to $75.9 million, representing 35.4% of sales, an increase of 100 basis points from the previous year [9][10] Regional and Category Performance - North America comparable sales increased by 4.2%, while international comparable sales declined by 5.5% [7] - The women's category saw the highest increase in comparable sales, while footwear experienced the largest decline [7] Cash Flow and Shareholder Equity - As of August 2, 2025, cash and current marketable securities totaled $106.7 million, down from $127 million a year earlier, primarily due to share repurchases and capital expenditures [11][12] - Total shareholders' equity stood at $292.4 million, with the company repurchasing 0.6 million shares at an average price of $13.10 per share [12] Store Operations - Zumiez operated 730 stores as of August 30, 2025, with plans to open six new stores and close 20 stores in fiscal 2025 [13] Future Guidance - For Q3 fiscal 2025, total sales are expected to be between $232 million and $237 million, with comparable sales growth anticipated at 5.5-7.5% [19] - The company forecasts 3-4% year-over-year sales growth for fiscal 2025, despite planned store closures [20][21]