Zumiez Inc. reported second-quarter net sales of $214.3 million, up 1.9 percent year over year, with comparable sales rising 2.5 percent. North America comps increased 4.2 percent. Gross margin expanded to 35.5 percent from 34.2 percent, and operating margin turned slightly positive at 0.1 percent. The company remained unprofitable, posting a net loss of $1.0 million, or $0.06 per share, versus a $0.8 million loss a year ago. For the first half, sales grew 2.9 percent to $398.6 million, while the net loss narrowed to $15.3 million; results included a $3.6 million wage-and-hours legal settlement.
“We are encouraged with our second quarter results which exceeded expectations, driven by outperformance in North America,” said CEO Rick Brooks.
Back-to-school fuels Q3 outlook
Momentum strengthened into back-to-school: for the 30 days ended Sept. 1, third-quarter-to-date net sales rose 10.6 percent and comps increased 11.2 percent, led by a 13.0 percent comp gain in North America. Store traffic benefited from seasonal demand and targeted merchandising, with higher conversion rates supporting top-line gains. E-commerce also contributed meaningfully, reflecting the ongoing integration of digital and physical sales channels. Management guided Q3 net sales to $232–$237 million, implying comparable growth of 5.5–7.5 percent, operating margin of 2.3–3.3 percent, and earnings per share of $0.19–$0.29.
Cash position dips, store count steady
Cash and current marketable securities totaled $106.7 million at quarter’s end, down from $127.0 million a year earlier, reflecting $32.8 million of year-to-date share repurchases and $14.1 million in capex, partly offset by $26.6 million of operating cash flow. Inventory was $157.7 million, roughly flat year over year. As of Aug. 30, Zumiez operated 730 stores: 570 in the US, 46 in Canada, 86 in Europe and 28 in Australia.
North America strong, international mixed
The quarter shows steady demand recovery in core North American markets and improving merchandise margins, aided by tighter promotional discipline. The US and Canada posted healthy growth; Europe and Australia, by contrast, delivered weaker results, with flat or negative comps reflecting sluggish consumer sentiment and currency headwinds. Guidance suggests further operating leverage in Q3, but management cautioned that tariff uncertainty, particularly in US–China trade relations, could weigh on holiday-season ordering and margins in import-heavy categories.
