Zumiez Inc. Announces Fiscal 2025 Second Quarter Results

September 04, 2025 16:05 ET | Source: Zumiez Inc Second Quarter Comparable Sales Increased 2.5%North American Second Quarter Comparable Sales Increased 4.2%Third Quarter-to-date Comparable Sales up 11.2% LYNNWOOD, Wash., Sept. 04, 2025 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ: ZUMZ) a leading specialty retailer of apparel, footwear, equipment and accessories for young men and women, today reported results for the second quarter ended August 2, 2025. Net sales for the second quarter ended August 2, 2025 (13 weeks) increased 1.9% to $214.3 million from $210.2 million in the second quarter ended August 3, 2024 (13 weeks). Comparable sales for the thirteen weeks ended August 2, 2025, increased 2.5% on top of a 3.6% increase in the year ago period. Net loss in the second quarter of fiscal 2025 was $1.0 million, or $0.06 per share, compared to a net loss of $0.8 million, or $0.04 per share, in the second quarter of the prior fiscal year. Total net sales for the six months (26 weeks) ending August 2, 2025 increased 2.9% to $398.6 million from $387.6 million reported for the six months (26 weeks) ending August 3, 2024. Comparable sales increased 3.9% for the twenty-six weeks ended August 2, 2025. Net loss for the first six months of fiscal 2025 was $15.3 million, or $0.88 per share, compared to a net loss for the first six months of fiscal 2024 of $17.6 million, or $0.91 per share. The first six months of 2025 was negatively impacted by $3.6 million, or approximately $0.15 per share related to the settlement of a wage and hours lawsuit in California. On August 2, 2025, the Company had cash and current marketable securities of $106.7 million compared to cash and current marketable securities of $127.0 million on August 3, 2024. The decrease was primarily driven by $38.3 million related to share repurchases and $14.1 million of capital expenditures partially offset by $26.6 million of cash flow from operations and the release of $3.0 million in restricted cash. The Company repurchased 0.6 million shares during the second quarter of 2025 at an average cost including commission of $13.10 per share and a total cost of $7.8 million. Fiscal year-to-date through August 2, 2025, the Company has repurchased 2.4 million shares at an average cost including commission of $13.64 per share and a total cost of $32.8 million. $7.2 million remains on the current open repurchase authorization. Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We are encouraged with our second quarter results which exceeded expectations driven by outperformance in North America. Sales trends accelerated throughout the quarter even as we faced more difficult comparisons, underscoring the success of our recent merchandise and customer experience initiatives in what continues to be a challenging operating environment. We are seeing further acceleration third quarter-to-date led by an 11.2% comparable sales gain during back-to-school on top of a double-digit increase in the year ago period. With back-to-school performing well, we are optimistic about our prospects for the holiday season. However, we think it is prudent to balance our current momentum with some near-term conservatism given the uncertainty around tariffs and overall consumer demand.” Third Quarter To-DateThird quarter-to-date net sales for the 30 days ending September 1, 2025, increased 10.6%, compared with the 30-day period in the prior year ending September 2, 2024. Comparable sales over the same period are up 11.2% led by strong comparable sales growth in North America of 13.0%. Fiscal 2025 Third Quarter OutlookThe Company is introducing guidance for the three months ending November 1, 2025. Net sales are projected to be in the range of $232 to $237 million including anticipated comparable sales growth of between 5.5% and 7.5%. Consolidated operating margins are expected to be between 2.3% and 3.3% resulting in earnings per diluted share of approximately $0.19 to $0.29. The Company currently intends to open approximately 6 new stores in fiscal 2025, including up to 5 stores in North America and 1 store in Australia. Conference call Information To access the conference call, please pre-register using this link (Registration Link). Registrants will receive confirmation with dial-in details. The conference call will also be available to interested parties through a live webcast at https://ir.zumiez.com. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at https://ir.zumiez.com. About Zumiez Inc. Zumiez is a leading specialty retailer of apparel, footwear, accessories and hardgoods for young men and women who want to express their individuality through the fashion, music, art and culture of action sports, streetwear, and other unique lifestyles. As of August 30, 2025, we operated 730 stores, including 570 in the United States, 46 in Canada, 86 in Europe and 28 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at zumiez.com, blue-tomato.com and fasttimes.com.au. Safe Harbor Statement Certain statements in this press release and oral statements relating thereto made from time to time by representatives of the Company may constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, predictions and guidance relating to the Company's future financial performance, brand and product category diversity, ability to adjust product mix, integration of acquired businesses, growing customer demand for our products and new store openings. In some cases, you can identify forward-looking statements by terminology such as, "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based on management's current expectations, but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation, those described in the Company’s annual report on Form 10-K for the fiscal year ended February 1, 2025 as filed with the Securities and Exchange Commission and available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. ZUMIEZ INC.CONDENSED CONSOLIDATED STATEMENTS OF LOSS(In thousands, except per share amounts)(Unaudited) Three Months Ended August 2, 2025 % of Sales August 3, 2024 % of SalesNet sales$214,275 100.0% $210,179 100.0%Cost of goods sold 138,257 64.5% 138,385 65.8%Gross profit 76,018 35.5% 71,794 34.2%Selling, general and administrative expenses 75,911 35.4% 72,187 34.4%Operating profit (loss) 107 0.1% (393) -0.2%Interest income, net 753 0.3% 1,128 0.5%Other income (expense), net 52 0.0% (179) 0.0%Profit before income taxes 912 0.4% 556 0.3%Provision for income taxes 1,914 0.9% 1,403 0.7%Net loss$(1,002) -0.5% $(847) -0.4%Basic loss per share$(0.06) $(0.04) Diluted loss per share$(0.06) $(0.04) Weighted average shares used in computation of loss per share Basic 16,698 19,284 Diluted 16,698 19,284 Six Months Ended August 2, 2025 % of Sales August 3, 2024 % of SalesNet sales$398,618 100.0% $387,567 100.0%Cost of goods sold 267,285 67.1% 263,874 68.1%Gross profit 131,333 32.9% 123,693 31.9%Selling, general and administrative expenses 151,098 37.9% 144,240 37.2%Operating loss (19,765) -5.0% (20,547) -5.3%Interest income, net 3,008 0.8% 2,449 0.6%Other expense, net 1,895 0.5% (946) -0.2%Loss before income taxes (14,862) -3.7% (19,044) -4.9%Provision for (benefit from) income taxes 471 0.1% (1,417) -0.4%Net loss$(15,333) -3.8% $(17,627) -4.5% Basic loss per share$(0.88) $(0.91) Diluted loss per share$(0.88) $(0.91) Weighted average shares used in computation of loss per share: Basic 17,403 19,375 Diluted 17,403 19,375 ZUMIEZ INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands) August 2, 2025 February 1, 2025 August 3, 2024 (Unaudited) (Unaudited)Assets Current assets Cash and cash equivalents$78,804 $112,668 $65,766 Marketable securities 27,936 34,890 61,194 Receivables 22,042 12,825 23,129 Inventories 157,722 146,648 158,753 Prepaid expenses and other current assets 14,258 15,354 17,939 Total current assets 300,762 322,385 326,781 Fixed assets, net 77,756 80,178 87,573 Operating lease right-of-use assets 193,809 183,235 203,744 Goodwill 15,334 15,258 15,358 Intangible assets, net 14,853 13,577 14,196 Deferred tax assets, net 8,781 8,684 9,928 Other long-term assets 12,093 11,564 11,947 Total long-term assets 322,626 312,496 342,746 Total assets$623,388 $634,881 $669,527 Liabilities and Shareholders’ Equity Current liabilities Trade accounts payable$69,181 $49,389 $75,016 Accrued payroll and payroll taxes 21,443 21,962 20,517 Operating lease liabilities 55,608 56,009 62,759 Other current liabilities 24,777 28,154 22,472 Total current liabilities 171,009 155,514 180,764 Long-term operating lease liabilities 153,115 143,812 161,663 Other long-term liabilities 6,827 6,578 7,296 Total long-term liabilities 159,942 150,390 168,959 Total liabilities 330,951 305,904 349,723 Shareholders’ equity Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding — — — Common stock, no par value, 50,000 shares authorized; 17,221 shares issued and outstanding at August 2, 2025 and 19,159 shares issued and outstanding at February 1, 2025 207,388 203,581 199,763 Accumulated other comprehensive loss (15,684) (23,778) (18,844)Retained earnings 100,733 149,174 138,885 Total shareholders’ equity 292,437 328,977 319,804 Total liabilities and shareholders’ equity$623,388 $634,881 $669,527 ZUMIEZ INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited) Six Months Ended August 2, 2025 August 3, 2024Cash flows from operating activities: Net loss$(15,333) $(17,627)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation, amortization and accretion 10,707 11,052 Noncash lease expense 31,452 32,169 Deferred taxes (81) (1,688)Stock-based compensation expense 3,621 3,391 Impairment of long-lived assets 777 298 Other (693) 949 Changes in operating assets and liabilities: Receivables (6,768) (7,067)Inventories (7,540) (30,665)Prepaid expenses and other assets (1,836) (937)Trade accounts payable 18,682 34,650 Accrued payroll and payroll taxes (1,070) 2,102 Income taxes payable (4,775) (1,346)Operating lease liabilities (35,065) (36,817)Other liabilities (1,579) (3,886)Net cash used in operating activities (9,501) (15,422)Cash flows from investing activities: Additions to fixed assets (5,317) (6,266)Purchases of marketable securities (8,044) (1,967)Sales and maturities of marketable securities and other investments 16,881 24,145 Net cash provided by investing activities 3,520 15,912 Cash flows from financing activities: Proceeds from revolving credit facilities — 3,220 Payments on revolving credit facilities — (3,220)Proceeds from issuance and exercise of stock-based awards 377 357 Payments for tax withholdings on equity awards (192) (130)Repurchase of common stock, including taxes (32,682) (19,581)Net cash used in financing activities (32,497) (19,354)Effect of exchange rate changes on cash, cash equivalents, and restricted cash 1,614 (213)Net decrease in cash, cash equivalents, and restricted cash (36,864) (19,077)Cash, cash equivalents, and restricted cash, beginning of period 121,529 94,284 Cash, cash equivalents, and restricted cash, end of period$84,665 $75,207 Supplemental disclosure on cash flow information: Cash paid during the period for income taxes$5,452 $1,805 Accrual for purchases of fixed assets 1,180 3,326 Accrual for repurchase of common stock 426 479 Company Contact:Darin WhiteDirector of Finance & Investor RelationsZumiez Inc.(425) 551-1500, ext. 1337 Investor Contact:ICRBrendon Frey (203) 682-8200

Zumiez Inc. Announces Fiscal 2025 Second Quarter Results

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