ZUMZ Stock Gains 14% After Posting Q3 Earnings Beat & Y/Y Comps Growth

Core Insights - Zumiez Inc. (ZUMZ) reported strong third-quarter fiscal 2025 results, with both top and bottom lines exceeding Zacks Consensus Estimates and showing year-over-year improvement [1][2][11] Financial Performance - Quarterly earnings were 55 cents per share, surpassing the Zacks Consensus Estimate of 27 cents, and increased from 6 cents in the same quarter last year [3] - Total net sales reached $239.1 million, exceeding the Zacks Consensus Estimate of $234 million and reflecting a 7.5% increase from $222.5 million in the prior-year quarter [4] - Comparable sales (comps) rose 7.6% year over year, marking the sixth consecutive quarter of growth, with the Zacks Consensus Estimate for comps growth at 4% [5] Regional and Category Performance - North America's net sales were $202.8 million, up 8.6% year over year, while other international sales were $36.3 million, up 1.7% year over year [6] - Comps in North America increased by 10%, while international comps declined by 3.9% [7] Margins and Costs - Gross profit increased by 14.7% year over year to $89.8 million, with gross margin expanding by 240 basis points to 37.6% [8] - Selling, general and administrative (SG&A) costs rose to $78 million, a 2.7% increase from $75.9 million in the prior-year quarter, with SG&A as a percentage of sales at 34.1% [9][10] Financial Health - As of November 1, 2025, the company held $104.5 million in cash and current marketable securities, up from $99.3 million a year earlier, with no debt [13] - Total shareholders' equity was $298.5 million, and the company repurchased 0.3 million shares at an average cost of $18.61 per share [14] Future Guidance - For the fourth quarter of fiscal 2025, total sales are expected to be between $291 million and $296 million, indicating growth of 4-6% [20] - For fiscal 2025, Zumiez anticipates 4.5-5% year-over-year sales growth, despite planned store closures [25] - Earnings per share for fiscal 2025 are projected to range between 57 cents and 67 cents, compared to a loss of 9 cents in fiscal 2024 [28]