10-Q · June 4, 2026
Zumiez Inc. reported Q1 results for the period ending May 2, 2026, showing a modest increase in net sales but continued net losses. Revenue was $193.3 million, up 4.9% year-over-year, primarily driven by comparable…
Earnings analysis · 10-Q
ZUMZ earnings analysis
Filed September 10, 2026 · Our reading of the company's report
The latest report
Zumiez delivered a sequential recovery in the second quarter, with revenue rising from $193 million to $208.964 million, gross margin improving to 35.3% from 31.7%, and operating margin improving to negative 0.6% from…
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Zumiez delivered a sequential recovery in the second quarter, with revenue rising from $193 million to $208.964 million, gross margin improving to 35.3% from 31.7%, and operating margin improving to negative 0.6% from negative 7.9%. However, revenue declined 2.5% year over year, EPS remained negative at $0.17, and six-month operating cash flow was negative $27.276 million. Liquidity weakened materially as cash and cash equivalents fell to $50.288 million, although management expects available liquidity to cover operations and planned capital expenditures for at least the next twelve months.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.17
What stood out
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Sequential Sales Recovery Despite YoY Decline
Second-quarter net sales were $208.964 million, down 2.5% from $214.275 million year over year but up from $193 million in the prior quarter. Comparable sales declined 2.1%, while other international sales increased 2.5%.
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Margin Rebounded Sequentially
Gross margin was 35.3%, down 20 basis points from 35.5% year over year but up from 31.7% in the prior quarter. Management cited a 50-basis-point benefit from tariff refunds, partly offset by 60 basis points of store-occupancy deleverage.
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Operating Loss Narrowed
Operating loss improved to $1.324 million, or a negative 0.6% margin, from a $16.516 million operating loss year over year and a negative 7.9% margin in the prior quarter.
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EPS Improved Sequentially, Remained Negative
The net loss was $2.743 million, or $0.17 diluted loss per share, compared with a $1.002 million loss, or $0.06 per share, a year earlier and a $0.82 loss per share in the prior quarter.
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International Sales Outperformed
International performance was mixed but generally stronger than North America: Europe sales rose to $29.327 million from $28.923 million, Canada rose to $11.423 million from $11.011 million, and Australia rose to $5.727 million from $5.262 million.
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Capex Remains Controlled
Six-month operating cash flow was negative $27.276 million versus negative $9.501 million a year earlier. Capital expenditures were $4.880 million, and management expects full-year fiscal 2026 capital expenditures of $13.0 million to $15.0 million.
What to watch
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Liquidity Deteriorated
Cash and cash equivalents declined to $50.288 million from $127.860 million at January 31, 2026, while six-month net cash used in operating activities was $27.276 million. Total cash, cash equivalents and restricted cash fell to $56.412 million from $134.113 million.
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Inventory and Purchase Commitments
Inventory increased to $157.282 million from $146.995 million, while receivables increased to $25.233 million from $13.957 million. Outstanding merchandise purchase orders were $206.4 million, creating potential inventory and working-capital exposure.
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North America Traffic Pressure
Second-quarter comparable sales declined 2.1%, driven by fewer transactions, and North America comparable sales declined 2.9%. The company also reported a net closure of 16 stores after August 2, 2025.
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Tariff and Trade Exposure
No material risk-factor changes were reported versus the January 31, 2026 Form 10-K. Existing risks remain material, including tariff exposure, with the filing stating that tariffs could raise merchandise costs and cause margin erosion.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance. Management expects fiscal 2026 capital expenditures of approximately $13.0 million to $15.0 million, with approximately 5 new stores planned; liquidity is expected to be sufficient for operations and planned capital expenditures for at least the next twelve months.
Earlier filings 4
10-K · March 12, 2026
Zumiez’s 10-K emphasizes an omnichannel specialty-retail strategy (Zumiez, Blue Tomato, Fast Times) centered on stores + ecommerce, category breadth and private‑label growth. The company finished the fiscal year with…
10-Q · December 4, 2025
Zumiez reported a strong Q3: net sales rose to $239,132,000 (from $222,475,000) and diluted EPS jumped to $0.55 (from $0.06), both beating expectations. Gross margin expanded to 37.6% and operating margin improved to…
10-Q · September 4, 2025
Zumiez reported quarterly net sales of $214,275 (thousands), up $4,096 from $210,179 in the prior-year quarter, with gross profit rising to $76,018 (gross margin ~35.5%). Operating profit swung to a small gain of $107…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.