How did Zumiez's revenue and expenses shift in Q4 2025 compared to previous quarters?

Zumiez's revenue and expenses in Q4 2025 showed notable shifts compared to previous quarters, reflecting both challenges and opportunities for the company:

1. **Revenue Shift**:
- **Q4 2024 Context**: Zumiez's revenue for Q4 CY2024 was $279.2 million, which was flat year-on-year. This was in line with analysts' estimates.
- **Q3 2025 Projection**: For Q3 CY2025, revenue was projected to be around $181 million, indicating a slight decline from the previous quarter's revenue.

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|ZUMZ|ZUMZ.O|Zumiez|2024 Q4|0.6111884616757702|2.81822E8|185|
|ZUMZ|ZUMZ.O|Zumiez|2025 Q1|-3.006774675072586|1.77388E8|185|
|ZUMZ|ZUMZ.O|Zumiez|2025 Q2|8.09563974120285|2.10179E8|185|
|ZUMZ|ZUMZ.O|Zumiez|2025 Q3|2.836289342189804|2.22475E8|185|

2. **Expense Shift**:
- **Q3 2025 Context**: In Q3 CY2025, Zumiez's expenses were not detailed in the available data.
- **Q4 2024 Improvement**: In Q4 CY2024, Zumiez experienced a significant improvement in profitability. The company's gross margin expanded by 190 basis points to 36.2%, reflecting better cost management and pricing power. Additionally, the company reported a meaningful reduction in operating expenses, which contributed to the improved operating profitability.
3. **Comparative Insights**:
- **Sales Performance**: Despite a decline in net sales (0.9% decrease year-on-year), comparable sales increased by 5.9% in Q4 2024. This indicates strong consumer demand and effective sales strategies, particularly in the men's and women's categories.
- **Profitability**: Zumiez's net income for Q4 2024 was $14.8 million, or $0.78 per share, a turnaround from a net loss in the same quarter of the previous year. This improvement was driven by gross margin expansion and reduced operating expenses.
- **Future Projections**: For Q1 CY2025, Zumiez expects revenue to be between $179 million and $183 million, with an EPS loss of $0.72 to $0.82. This reflects typical seasonality in the specialty retail sector and does not indicate a deterioration of business fundamentals.

In conclusion, Zumiez's Q4 2025 showed resilience in revenue growth, driven by strategic initiatives and improved profitability, despite facing some challenges in international sales and inventory management. The company's focus on cost management and customer engagement is evident in its financial performance, with a strong finish to the fiscal year and optimistic outlook for the next quarter.