Zumiez 2026 Q3 Earnings Record Net Income Surges 690%

Zumiez (ZUMZ) reported fiscal 2026 Q3 earnings on Dec 4, 2025, with results far exceeding expectations. The company’s 7.5% revenue growth and 850% EPS surge highlight robust performance, while updated guidance aligns with its strong trajectory.

Revenue

Zumiez’s total revenue rose 7.5% year-over-year to $239.13 million, outpacing the $222.47 million reported in 2025 Q3. This growth was driven by double-digit comp sales acceleration in North America and strong full-price selling, reflecting effective pricing strategies and operational efficiency.

Earnings/Net Income

Earnings per share (EPS) skyrocketed to $0.57 in 2026 Q3 from $0.06 in the prior-year period, a 850% increase. Net income surged to $9.16 million, a 690.3% leap from $1.16 million in 2025 Q3. The substantial rise in EPS and net income underscores Zumiez’s strong earnings performance.

Price Action

Zumiez’s stock price declined 1.48% in the latest trading day but gained 5.05% over the past week and 25.97% month-to-date, indicating mixed short-term sentiment.

Post-Earnings Price Action Review

The strategy of buying Zumiez shares following a revenue increase quarter-over-quarter and holding for 30 days yielded a 3.66% return over three years, significantly lagging the benchmark’s 71.33% return. This resulted in an excess return of -67.67% and a CAGR of 1.21%, with high volatility marked by a 0.00% maximum drawdown and a Sharpe ratio of 0.03, signaling a challenging risk-return profile.

CEO Commentary

Richard Brooks, CEO & Director, emphasized Q3’s 7.6% comp sales growth, driven by North America’s double-digit acceleration and strong full-price sales. He highlighted strategic priorities: expanding new/emerging brands and private-label offerings, optimizing profitability via premium pricing, and leveraging financial strength to fund growth. Brooks expressed optimism about holiday sales, citing strong Black Friday/Cyber Monday results and improving European trends.

Guidance

Zumiez guided fourth-quarter 2025 sales between $291 million and $296 million (4%-6% growth), with EPS of $0.97-$1.07, up from $0.78 in the prior year. North America comp sales are projected at 4.5%-6.5%, while international sales may decline low single digits. Full-year 2025 guidance includes 4.5%-5% total sales growth, EPS of $0.57-$0.67 (vs. a $0.09 loss in 2024), and capital expenditures of $10 million-$12 million. The company plans 6 new stores (5 in North America, 1 in Australia) and 21 closures, with 33 total store closures since 2024.

Additional News

Zumiez’s share repurchase program continued, with 0.3 million shares bought back in Q3 at $18.61 average cost, leaving $1.7 million remaining under the current authorization. The company also announced plans to open 6 new stores in fiscal 2025, including 5 in North America and 1 in Australia, while closing 21 underperforming locations. Capital expenditures are projected at $10 million-$12 million for the year, reflecting a focus on optimizing store portfolio and operational efficiency.

Key Takeaways:

• Zumiez’s Q3 2026 results reflect significant profitability improvements, driven by comp sales growth and margin expansion.

• The company’s strategic focus on customer-centric initiatives and operational efficiency positions it for sustained growth.

• While stock volatility persists, long-term guidance and store expansion plans signal confidence in overcoming macroeconomic challenges.