Zumiez Reports Q2 Earnings with Sales Decline and Widened Net Loss
Zumiez Inc. reported weaker second-quarter performance in fiscal 2026, marked by a sales decline of 2.5% to $209 million compared to the prior year period. The company experienced a net loss of $2.7 million as U.S. weakness—particularly in footwear—outweighed growth from international markets like Europe and Australia. CEO Rick Brooks noted that footwear accounted for 70% of Zumiez's U.S. sales decline through Labor Day, with the category continuing to face challenges since Q2 fiscal 2025. Zumiez revised its outlook more cautiously, projecting third-quarter sales declines between 5.5% and 7%, along with an EPS range from breakeven to $0.10. The company also announced plans to close approximately 16 stores in fiscal 2026 as part of ongoing restructuring efforts. Despite the U.S. struggles, international operations showed positive comparable sales growth during the quarter. The firm is working with brand partners to introduce more distinctive products and manage inventory effectively while clearing some merchandise at a cost to margins.
Topics: buybacks net loss retail sales decline store closures