Zumiez Sales Fall 2.5% After First-Quarter Gain
The specialty retailer posted a $2.7 million net loss, or $0.17 a share, in the 13 weeks ended August 1, 2026.
Zumiez Inc. (ZUMZ), a specialty retailer of apparel, footwear, equipment and accessories for young men and women, reversed a first-quarter sales gain in the second quarter of fiscal 2026. Net sales for the 13 weeks ended August 1, 2026, decreased 2.5% to $209.0 million from $214.3 million a year earlier, after rising 4.9% to $193.3 million in the quarter ended May 2, 2026. Comparable sales fell 2.1% after increasing 4.0% in the first quarter.
Chief Executive Officer Rick Brooks said second-quarter results came in below last year because of weaker performance in the United States, which he attributed primarily to continued softness in footwear and lower traffic. He said the U.S. decline was partially offset by continued growth in other regions. In the first quarter, U.S. comparable sales had remained positive and North America had led the 4.0% comparable-sales increase, with mid-single-digit comps in Europe.
The company swung from an operating profit of $0.1 million in the year-ago second quarter to an operating loss of $1.3 million. Gross profit fell to $73.9 million, or 35.3% of sales, from $76.0 million, or 35.5% of sales, a year earlier. Selling, general and administrative expenses rose to 35.9% of sales from 35.4%. Net loss widened to $2.7 million, or $0.17 a share, from $1.0 million, or $0.06 a share, a year earlier.
For the six months ended August 1, 2026, net sales increased 0.9% to $402.3 million from $398.6 million a year earlier, and comparable sales rose 0.7%. Net loss for the first six months was $16.0 million, or $1.00 a share, compared with $15.3 million, or $0.88 a share, in the year-ago six months.
Third-quarter-to-date net sales for the 37 days ending September 7, 2026, decreased 4.3%, with comparable sales down 3.5%. Brooks said the back-to-school trend was similar to second-quarter results, with the United States the toughest market after two years of low-double-digit comparable-sales growth in those periods, partially offset by comparable-sales gains internationally.
The company is introducing guidance for the three months ending October 31, 2026. Net sales are projected at $222 million to $226 million. Earnings per share are expected to be between $0.00 and $0.10. That outlook follows second-quarter guidance of $210 million to $215 million in sales and a loss of $0.23 to $0.08 a share. Brooks said the company remains focused on refining merchandise assortments and deepening customer-experience initiatives to improve the trajectory into the holiday season.
Zumiez repurchased 1.2 million shares in the second quarter at an average cost including commission of $19.30 a share, for a total of $23.2 million, after buying 0.3 million shares in the first quarter at $23.56 a share, or $6.2 million. Cash and current marketable securities were $97.3 million on August 1, 2026, compared with $106.7 million a year earlier and $124.2 million on May 2, 2026. The company said the year-over-year cash decline was driven primarily by $34.5 million of share repurchases and $10.6 million of capital expenditures, partially offset by $35.7 million of cash flow from operations.
In fiscal 2026, the company now intends to open approximately 5 new stores, all in North America, and close roughly 16 stores, including 10 in North America and 6 internationally. That is a lighter closing plan than the roughly 26 closures, including 20 in North America, it had outlined in June. As of August 29, 2026, Zumiez operated 714 stores, including 561 in the United States, 45 in Canada, 81 in Europe and 27 in Australia, under the Zumiez, Blue Tomato and Fast Times banners.
The company said it will continue to refine assortments and customer-experience work as it moves into the holiday period.