Zumiez Inc. reported a wider loss in the second quarter ended August 1 on a modest decline in sales, reflecting continued weakness in footwear and reduced in-store traffic. Comps were down 2.1 percent. Back-to-school sales have continued to run soft.
Results were still said to be “in line with guidance.” Sales of $214.3 million were at the high end of guidance that called for sales between $210 million and $215 million. The net loss of 17 cents was in line with guidance calling for a loss between 23 cents and 8 cents a share.
Net sales in the quarter decreased 2.5 percent to $209.0 million from $214.3 million in the second quarter ended August 2, 2025 (13 weeks). Comparable sales fell 2.1 percent. Net loss was $2.7 million, or 17 cents per share, compared to a net loss of $1.0 million, or 6 cents, in the second quarter of the prior fiscal year.
Total net sales for the six months increased 0.9 percent to $402.3 million from $398.6 million a year ago. Comparable sales increased 0.7 percent . Net loss for the first six months was $16.0 million, or $1.00 per share, compared to a net loss for the first six months of fiscal 2025 of $15.3 million, or 88 cents.
On August 1, the company had cash and current marketable securities of $97.3 million compared to cash and current marketable securities of $106.7 million on August 2, 2025. The decrease was primarily driven by $34.5 million related to share repurchases and $10.6 million of capital expenditures partially offset by $35.7 million of cash flow from operations. The company repurchased 1.2 million shares during the second quarter of 2026 at an average cost including commission of $19.30 per share and a total cost of $23.2 million. Fiscal year-to-date through August 1, the company has repurchased 1.5 million shares at an average cost including commission of $20.07 per share and a total cost of $29.5 million.
“Second quarter results came in below last year driven by weaker performance in the U.S., which was primarily driven by continued softness in footwear as well as lower traffic levels,” said Rick Brooks, chief executive officer of Zumiez Inc. “The decline in the U.S. business was partially offset by continued growth across our other regions, underscoring the strength and diversification of our global business. Our back-to-school trend was similar to our second quarter results with the U.S. being our toughest performing market after two years of low double digit comparable store sales growth for the same periods, partially offset by comparable sales gains internationally. As we look forward to the holiday season, we remain focused on refining our merchandise assortments and deepening our customer experience initiatives to improve the trajectory.”
Third Quarter To-Date
Third quarter-to-date net sales for the 37 days ending September 7, 2026, decreased 4.3 percent, compared with the 37-day period in the prior year ending September 8, 2025. Comparable sales over the same period are down 3.5 percent.
Fiscal 2026 Third Quarter Outlook
The company is introducing guidance for the three months ending October 31, 2026. Net sales are projected to be in the range of $222 to $226 million. Earnings per share are expected to be between break even to a profit of 10 cents.
In fiscal 2026 the company currently intends to open approximately fivenew stores all located in North America and close roughly 16 stores, including 10 in North America and 6 internationally.
Image courtesy Zumiez
