Zumiez 2026 Q1 Earnings Resilience with Net Loss Reduced by 14.6%

Zumiez (ZUMZ) reported its fiscal 2026 Q1 earnings on June 5th, 2025. The company delivered a better-than-expected performance for the first quarter of 2026, narrowing its net losses significantly compared to the previous year. Zumiez's guidance for the next quarter appears in-line with expectations, reflecting cautious optimism amid ongoing market uncertainties. The strategic initiatives and strong comparable sales growth contributed to this resilience, and the company remains focused on achieving modest growth in product margins for the full year.

Revenue

The total revenue of Zumiez increased by 3.9% to $184.34 million in 2026 Q1, up from $177.39 million in 2025 Q1.

Earnings/Net Income

Zumiez narrowed losses to $0.79 per share in 2026 Q1 from a loss of $0.86 per share in 2025 Q1 (8.1% improvement). Meanwhile, the company successfully reduced its net loss to $-14.33 million in 2026 Q1, a 14.6% improvement compared to the $-16.78 million net loss reported in 2025 Q1. Despite the improvement, EPS figures indicate continued financial challenges.

Price Action

The stock price of Zumiez has edged up 2.14% during the latest trading day, has edged down 0.31% during the most recent full trading week, and has climbed 7.26% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing ZUMZ shares following a revenue miss and holding them for 30 days has proven ineffective, demonstrating poor performance. A backtest revealed a significant loss of -51.98%, alongside an excess return of -130.24%. The strategy also experienced a maximum drawdown of -74.28% and a volatility rate of 50.93%, indicating considerable risk and substantial losses. These results highlight the challenges of relying on a singular approach in volatile market conditions.

CEO Commentary

Richard M. Brooks, CEO & Director, highlighted that Zumiez's first quarter results show resilience, with comparable sales growth of 5.5% and successful execution of strategic initiatives despite a complex macroeconomic backdrop. He emphasized the importance of diversifying the sourcing base to reduce exposure to China, aiming for a significant decrease by the end of 2025. Brooks outlined three strategic priorities: accelerating top-line expansion through unique product assortments, maintaining a disciplined focus on profitability, and leveraging the company's strong financial position to navigate uncertainty while investing in growth. He expressed optimism about the team's adaptability and the company's ability to deliver value amid ongoing challenges.

Guidance

Zumiez expects second quarter sales to range between $207 million and $214 million, reflecting a potential sales change of negative 2% to positive 2% year-over-year. For the full year 2025, the company anticipates modest year-over-year growth in product margin despite store closures impacting sales by approximately $14.7 million. Capital expenditures are projected between $14 million and $16 million, with an effective tax rate of approximately 50% to 60%. The diluted share count is estimated at around 17.5 million shares, not accounting for future share repurchases.

Additional News

Zumiez Inc. has announced a new stock repurchase program following the approval to repurchase up to $15 million of common stock through June 2026. This move signifies the company’s confidence in its long-term value proposition. The repurchase program underlines Zumiez's commitment to enhancing shareholder value amid volatile market conditions. Additionally, the company plans to open approximately nine new stores in fiscal 2025, including six in North America, two in Europe, and one in Australia, as part of its expansion strategy. The expansion reflects Zumiez's aim to strengthen its brand presence and capture growth opportunities in diverse markets.