Zumiez Reports Q2 Earnings with Declining Sales and Operating Loss
Zumiez (NASDAQ: ZUMZ) reported second-quarter results for fiscal year 2026, showing a decline in net sales to $209.0 million, down 2.5% year over year due primarily to softness in the U.S. market and lower transaction counts. Comparable store sales also fell by 2.1%, with North America experiencing a 3.4% drop while international regions saw modest growth of 2.5%. Footwear was identified as the largest contributor to declining sales, accounting for 70% of the decrease in U.S. revenue through Labor Day. The company reported an operating loss of $1.3 million compared to a small profit in the prior year and a net loss per share of $0.17 versus $0.06 last year. Gross margin dipped slightly due to higher store occupancy costs, while SG&A expenses remained relatively flat as a percentage of sales despite lower revenue. Zumiez also repurchased 1.2 million shares during Q2 for $23.2 million and plans further closures and openings in its global footprint. Looking ahead, the company expects third-quarter sales to decline between 5.5% and 7%, with full-year sales projected down low single digits due to store closures and international mix shifts.
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