Zumiez 2026 Q2 Earnings Wider Losses Amid Revenue Growth

Generated by AI AgentAinvest Earnings Report Digest
Thursday, Sep 4, 2025 11:20 pm ET2min read
Aime RobotAime Summary

- Zumiez reported 1.9% revenue growth to $214.28M in Q2 2026 but widened its net loss to $1M, a 18.3% YoY increase.

- Management raised full-year sales guidance to 3-4% growth, planning six new stores and $11-13M in capital expenditures.

- CEO Richard Brooks highlighted 2.5% comparable sales growth, emphasizing brand expansion and operational efficiency amid macroeconomic challenges.

- Shares surged 30.2% month-to-date post-earnings, reflecting investor optimism about long-term strategies despite short-term losses.

Zumiez(ZUMZ) reported its fiscal 2026 Q2 earnings on Sep 04th, 2025. The company posted a revenue increase but saw losses widen, with management offering cautious optimism and updated guidance for the remainder of the year.

Despite a modest revenue increase, Zumiez's earnings missed expectations with a deepened net loss, marking a 18.3% year-over-year deterioration. The company, however, raised its full-year sales growth outlook and signaled plans for new store openings and capital investments.

Revenue
Zumiez’s total revenue rose 1.9% to $214.28 million in the second quarter of 2026, compared to $210.18 million in the same period a year earlier.

Earnings/Net Income
The company's net loss widened to $1 million in 2026 Q2, a 18.3% increase from the $847,000 loss recorded in 2025 Q2. On a per-share basis, the loss expanded to $0.06 from $0.04 a year earlier, representing a 50% increase in the loss per share.

Price Action
The stock price of has climbed 3.07% during the latest trading day, has edged up 1.15% during the most recent full trading week, and has surged 30.20% month-to-date.

Post Earnings Price Action Review
Following the earnings report, Zumiez’s stock has seen a strong month-to-date increase, though the broader market remains cautious. Investors appear to be reacting positively to the company’s forward-looking guidance and operational performance, particularly given the challenging economic backdrop. While the earnings report highlighted wider losses, the management’s focus on long-term profitability and market expansion may be bolstering investor sentiment.

CEO Commentary
Richard Brooks, CEO & Director, highlighted Zumiez’s strong Q2 performance, with 2.5% comparable sales growth and a 300-basis-point acceleration in the 2-year stack. He credited the success to resilient North American operations, effective merchandise and customer experience initiatives, and the introduction of over 120 new brands. Brooks emphasized strategic priorities: driving revenue through customer-focused innovation, maintaining profitability via premium pricing and operational efficiency, and leveraging financial strength for expansion and shareholder returns. He expressed cautious optimism amid macroeconomic uncertainties, including tariffs, but remained confident in Zumiez’s ability to adapt and execute its long-term vision.

Guidance
Zumiez expects Q3 2025 net sales of $232–237 million, with comparable sales growth of 5.5%–7.5%, and anticipates operating income of 2.3%–3.3% of sales and EPS of $0.19–$0.29. For full-year 2025, it projects 3%–4% sales growth, modest product margin improvements, and SG&A cost discipline excluding one-time charges, aiming to return to profitability. Capital expenditures are expected to be $11–13 million, with six new store openings and 20 closures planned.

Additional News
Nigeria and China have deepened cooperation in the marine sector, signaling new opportunities for trade and infrastructure development. In a political development, police in Kaduna State summoned former governor Nasir El-Rufai and six ADC leaders over allegations of criminal conspiracy. In the entertainment sector, Grammy-nominated rapper 50 Cent is set to host a new true crime series titled "50 Ways to Catch a Killer." Additionally, Nigerian actor Phyna deactived her Instagram account days after the tragic loss of her sister.

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