Zumiez Q2 2026 Results Miss Expectations
Zumiez Q2 2026 results showed revenue and EPS misses as U.S. footwear softened, shifting trader focus to guidance, buybacks and balance sheet strength.
KEY TAKEAWAYS
- Q2 net sales were $209 million and comparable sales fell 2.1%.
- Net loss widened to $2.7 million, or $0.17 per diluted share.
- Weakness centered in U.S. footwear and lower store traffic offset international gains.
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Zumiez Inc. (ZUMZ) reported fiscal 2026 second-quarter results on September 10, showing weaker U.S. demand and a wider net loss driven by softness in footwear and store traffic. Management highlighted international sales growth and a strong balance sheet with no debt and ongoing share repurchases.
Quarter Results and Margins
Zumiez reported results for the 13 weeks ended August 1, 2026, issuing a press release from Lynnwood, Washington, on September 10 and filing a Form 8-K with the SEC the same day.
Net sales declined 2.5% year over year to $209.0 million, with comparable sales down 2.1%. The company posted a net loss of $2.7 million, or $0.17 per diluted share, widening from a $1.0 million loss a year earlier. These results missed analyst expectations on both revenue and earnings.
North American net sales fell 3.4% to about $174.0 million, weighed down by U.S. softness, while international sales in Europe and Australia rose 2.5% to $35.1 million, or 0.8% excluding currency effects. Comparable sales dropped 2.9% in North America but increased 2.1% in Europe and Australia. CEO Richard Brooks Jr. said, "We are encouraged by the diversification of our global business." Management described the quarter as soft in the U.S., with Canada, Europe, and Australia showing positive comparable sales growth.
Category performance was mixed. Accessories and men’s apparel posted positive comparable sales, while footwear, hardgoods, and women’s categories declined. Gross profit fell to $73.9 million from $76.1 million, and gross margin slipped 20 basis points to 35.3% of net sales. Management attributed the margin decline mainly to about 60 basis points of deleverage in store-occupancy costs from lower sales, partially offset by roughly 50 basis points from tariff refunds.
Selling, general, and administrative expenses totaled $75.2 million, or 35.9% of net sales, compared with $75.9 million, or 35.4%, a year earlier. The company recorded an operating loss of $1.3 million, or 0.6% of sales, versus operating income of $0.1 million (0.1%) in the prior-year quarter. For the first six months ended August 1, 2026, net sales rose 0.9% to $402.3 million, with comparable sales up 0.7%. The six-month net loss widened slightly to $16.0 million, or $1.00 per share.
Balance Sheet, Buybacks, and Outlook
Zumiez ended the quarter with $97.3 million in cash and marketable securities, down from $106.7 million a year earlier. The company reported no debt and maintained a fully available $25 million revolving credit facility.
Cash flow from operations for the first six months totaled $35.7 million, while capital expenditures were $10.6 million. The company repurchased 1.2 million shares for $23.2 million in the quarter and 1.5 million shares for $29.5 million year to date, reducing the share count compared with the start of the year.
Management noted that trends leading up to Labor Day reflected continued U.S. softness and international resilience. A 37-day sales snapshot through September 7 showed net sales down 4.3% and comparable sales down 3.5%, with North America comps falling 3.9% and Europe/Australia comps rising 0.5%. A filing summary referenced third-quarter net sales guidance in the range of $222 million to $226 million.
