Zumiez Inc. — Fiscal 2026 Second Quarter Earnings Summary

Financial Performance

• Net sales for the second quarter ended August 1, 2026, decreased 2.5% to $209.0 million from $214.3 million in the prior year period.
• Comparable sales for the second quarter decreased 2.1% year-over-year.
• Net loss for the second quarter was $2.7 million ($0.17 per share), compared to a net loss of $1.0 million ($0.06 per share) in the prior year.
• Total net sales for the first six months of fiscal 2026 increased 0.9% to $402.3 million from $398.6 million in the prior year.
• Comparable sales for the first six months increased 0.7% year-over-year.
• Net loss for the first six months was $16.0 million ($1.00 per share), compared to a net loss of $15.3 million ($0.88 per share) in the prior year.
• Gross profit margin for the second quarter was 35.3% (down from 35.5% in the prior year).
• Gross profit margin for the first six months was 33.6% (up from 32.9% in the prior year).
• Cash and current marketable securities totaled $97.3 million as of August 1, 2026, down from $106.7 million in the prior year.
• Cash flow from operations for the first six months was $35.7 million.
• Capital expenditures for the first six months were $10.6 million.
• The company repurchased 1.5 million shares year-to-date for a total cost of $29.5 million.

Guidance and Future Outlook

• Introduced guidance for the third quarter ending October 31, 2026.
• Third quarter net sales are projected to be between $222 million and $226 million.
• Third quarter earnings per share are expected to be between $0.00 and $0.10.
• Fiscal 2026 store plan includes opening approximately 5 new stores in North America and closing roughly 16 stores (10 in North America, 6 internationally).
• Management indicated a focus on refining merchandise assortments and deepening customer experience initiatives to improve the trajectory heading into the holiday season.

Business Segments and Product Lines

• U.S. business performance was weaker, driven by continued softness in footwear and lower traffic levels.
• International regions continued to show growth, partially offsetting the decline in the U.S.
• Back-to-school trends mirrored second quarter results, with the U.S. being the toughest performing market.
• The company operates 714 stores as of August 29, 2026, including 561 in the U.S., 45 in Canada, 81 in Europe, and 27 in Australia.
• Brands operated include Zumiez, Blue Tomato, and Fast Times.

Market and Competitive Landscape

• The U.S. market experienced two years of low double-digit comparable store sales growth prior to the current period's decline.
• International markets delivered comparable sales gains during the second quarter.
• Footwear category performance was identified as a specific area of softness impacting U.S. results.

Risks and Challenges

• The press release notes that actual results could differ materially from forward-looking statements due to risks and uncertainties, including those described in the Company's Form 10-K for the fiscal year ended February 1, 2025.
• Specific risks mentioned include predictions regarding future financial performance, brand diversity, product mix adjustments, and new store openings.

Management Commentary and Tone

• Rick Brooks, Chief Executive Officer, stated that second quarter results came in below last year due to weaker U.S. performance.
• Management highlighted the strength and diversification of the global business, noting growth across regions outside the U.S.
• The tone reflected a focus on refining assortments and customer experience to improve future performance.

Other Key Points

• Share repurchases in the second quarter totaled 1.2 million shares at an average cost of $19.30 per share, with a total cost of $23.2 million.
• The company operates e-commerce websites at zumiez.com, zumiez.ca, blue-tomato.com, and fasttimes.com.au.
• Conference call and webcast details were provided for interested parties.