Zumiez Inc. (ZUMZ) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
0mins
Should l Buy ZUMZ?
Source: SeekingAlpha
Net Sales $239.1 million, up 7.5% from $222.5 million in the third quarter of 2024. The increase was driven by strong performance in North America and a slight increase in international sales.
Comparable Sales Up 7.6% for the quarter, driven by North America with a 10% increase, marking the seventh consecutive quarter of growth in the region. International comparable sales declined 3.9%, but showed improvement from the second quarter.
Gross Profit $89.8 million, up 14.7% compared to $78.3 million in the third quarter of last year. Gross profit as a percentage of sales increased to 37.6% from 35.2%, driven by leverage in store occupancy costs, improved product margins, and lower inventory shrinkage.
SG&A Expense $78 million or 32.7% of net sales, compared to $75.9 million or 34.1% of net sales a year ago. The decrease was due to lower non-wage store operating costs and leverage of store wages tied to higher sales.
Operating Income $11.8 million or 4.9% of net sales, compared to $2.4 million or 1.1% of net sales last year. The increase was due to higher sales and improved expense efficiency.
Net Income $9.2 million or $0.55 per share, compared to $1.2 million or $0.06 per share in the third quarter of 2024. The increase was supported by improved operating results and a one-time tax item.
Cash and Marketable Securities $104.5 million as of November 1, 2025, up from $99.3 million as of November 2, 2024. The increase was driven by cash from operating activities and the release of restricted cash, partially offset by share repurchases and capital expenditures.
Inventory $180.7 million, down 3.5% compared to $187.2 million last year. On a constant currency basis, inventory levels were down 5.1%, reflecting better inventory management.
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Analyst Views on ZUMZ
Wall Street analysts forecast ZUMZ stock price to rise
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 21.370
Low
24.00
Averages
24.00
High
24.00
Current: 21.370
Low
24.00
Averages
24.00
High
24.00
About ZUMZ
Zumiez Inc., including its wholly owned subsidiaries, is a specialty retailer of apparel, footwear, accessories and hardgoods for young men and women through the fashion, music, art and culture of action sports, streetwear and other lifestyles. It operates under the names Zumiez, Blue Tomato and Fast Times. It operates ecommerce websites at zumiez.com, zumiez.ca, blue-tomato.com and fasttimes.com.au. It operates approximately 729 stores, including 569 in the United States, 46 in Canada, 87 in Europe and 27 in Australia. Its women's clothing includes t-shirts, jeans, pants, sweatshirts, shorts, and swimmers. Its accessories include backpacks, hats, bags, watches and jewelry, socks, underwear, beanies, and belts. It also offers skateboards and skate parts, including decks, completes, longboards, cruisers, trucks, wheels, and helmets and pads. It provides snowboarding gear and snowboard equipment, such as bindings, snowboards, boots, jackets, pants, goggles, and gloves and mittens.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Zumiez (ZUMZ) Q4 2025 Earnings Call Transcript
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U.S. Stock Futures Decline as Investors Await Key Economic Data
- Market Sentiment Declines: U.S. stock futures fell following Thursday's close, with major benchmark indices down, reflecting investor caution ahead of the upcoming personal consumption expenditure data, which is the Federal Reserve's preferred inflation gauge.
- Bond Yield Fluctuations: The 10-year Treasury bond yield stood at 4.28%, while the two-year yield was at 3.76%, indicating heightened market focus on interest rate policies, with CME Group's FedWatch tool showing a 99.1% likelihood of the Fed keeping rates unchanged in March.
- Weak Individual Stock Performance: PAR Technology Corp. plunged 22.08% after announcing a $250 million private offering of 4.00% Convertible Senior Notes, reflecting negative market sentiment towards its financing strategy, while other companies like Adobe and Ulta Beauty also face challenges with weak price trends.
- Economic Data Expectations: Investors are set to monitor the release of the fourth quarter GDP revision, January's personal income and spending data, and the delayed PCE reports on Friday, which will provide crucial insights into economic health and potentially influence future investment decisions.
See More
U.S. Stock Futures Mixed, Investors Eye Specific Stocks
- Market Dynamics: U.S. stock futures are mixed in early trading on Friday, indicating a complex market sentiment, prompting investors to focus on individual stock performances to seize investment opportunities.
- Investor Focus: While the overall market shows varied performance, certain specific stocks may attract investor attention, reflecting a keen interest in the fundamentals of individual companies.
- Expected Volatility: The mixed market trend could lead to significant volatility in individual stocks, necessitating investors to carefully assess risks and rewards to formulate appropriate investment strategies.
- Data Source: This market analysis is provided by Benzinga, emphasizing the importance of in-depth research on individual stocks and real-time tracking of market dynamics to assist investors in making more informed decisions.
See More
Zumiez Q4 2025 Earnings Call Highlights
- Significant Sales Growth: Zumiez reported net sales of $291.3 million for Q4, a 4.4% increase year-over-year, with North America leading at 5.5% comparable sales growth, showcasing strong holiday season performance despite overall sales declines in local currency.
- Margin Improvement: The company achieved a gross profit of $111.4 million with a gross margin of 38.2%, reflecting effective strategies in cost control and product optimization, thereby enhancing profitability.
- Private Label Expansion: Private label sales penetration increased from 12% five years ago to approximately 30%, which not only drove sales growth but also strengthened brand competitiveness, demonstrating success in product innovation and market positioning.
- Cautious Future Outlook: Management anticipates total sales between $189 million and $193 million for Q1 2026, and despite macroeconomic uncertainties, plans to open five new stores in the U.S. while closing about 25 globally to optimize business structure.
See More
Zumiez Reports Strong Q4 Earnings Surpassing Expectations
- Earnings Highlight: Zumiez reported fiscal Q4 earnings of $1.16 per diluted share, a significant increase from $0.78 in the same period last year, indicating strong performance in the retail market.
- Sales Growth: This earnings growth suggests that Zumiez successfully attracted more consumers amidst a competitive market environment, thereby enhancing its sales and market share.
- Investor Confidence: The positive earnings report is likely to bolster investor confidence in Zumiez, which may have a favorable impact on its stock price and further drive the company's future investment and expansion plans.
- Future Outlook: As consumer spending gradually recovers, Zumiez is expected to maintain its growth momentum in the upcoming quarters, particularly among younger consumer demographics, further solidifying its market position.
See More
ZUMIEZ INC PROJECTS Q1 FY2026 EPS LOSS BETWEEN $0.77 AND $0.87
- Earnings Report: ZUMIEZ reported a loss per share of between $0.77 and $0.87 for the first quarter of fiscal year 2026.
- Financial Performance: The reported loss indicates a challenging financial period for the company, reflecting potential issues in sales or operational efficiency.
See More
Zumiez (ZUMZ) Q4 2025 Earnings Call Transcript
See More
U.S. Stock Futures Decline as Investors Await Key Economic Data
- Market Sentiment Declines: U.S. stock futures fell following Thursday's close, with major benchmark indices down, reflecting investor caution ahead of the upcoming personal consumption expenditure data, which is the Federal Reserve's preferred inflation gauge.
- Bond Yield Fluctuations: The 10-year Treasury bond yield stood at 4.28%, while the two-year yield was at 3.76%, indicating heightened market focus on interest rate policies, with CME Group's FedWatch tool showing a 99.1% likelihood of the Fed keeping rates unchanged in March.
- Weak Individual Stock Performance: PAR Technology Corp. plunged 22.08% after announcing a $250 million private offering of 4.00% Convertible Senior Notes, reflecting negative market sentiment towards its financing strategy, while other companies like Adobe and Ulta Beauty also face challenges with weak price trends.
- Economic Data Expectations: Investors are set to monitor the release of the fourth quarter GDP revision, January's personal income and spending data, and the delayed PCE reports on Friday, which will provide crucial insights into economic health and potentially influence future investment decisions.
See More
U.S. Stock Futures Mixed, Investors Eye Specific Stocks
- Market Dynamics: U.S. stock futures are mixed in early trading on Friday, indicating a complex market sentiment, prompting investors to focus on individual stock performances to seize investment opportunities.
- Investor Focus: While the overall market shows varied performance, certain specific stocks may attract investor attention, reflecting a keen interest in the fundamentals of individual companies.
- Expected Volatility: The mixed market trend could lead to significant volatility in individual stocks, necessitating investors to carefully assess risks and rewards to formulate appropriate investment strategies.
- Data Source: This market analysis is provided by Benzinga, emphasizing the importance of in-depth research on individual stocks and real-time tracking of market dynamics to assist investors in making more informed decisions.
See More
Zumiez Q4 2025 Earnings Call Highlights
- Significant Sales Growth: Zumiez reported net sales of $291.3 million for Q4, a 4.4% increase year-over-year, with North America leading at 5.5% comparable sales growth, showcasing strong holiday season performance despite overall sales declines in local currency.
- Margin Improvement: The company achieved a gross profit of $111.4 million with a gross margin of 38.2%, reflecting effective strategies in cost control and product optimization, thereby enhancing profitability.
- Private Label Expansion: Private label sales penetration increased from 12% five years ago to approximately 30%, which not only drove sales growth but also strengthened brand competitiveness, demonstrating success in product innovation and market positioning.
- Cautious Future Outlook: Management anticipates total sales between $189 million and $193 million for Q1 2026, and despite macroeconomic uncertainties, plans to open five new stores in the U.S. while closing about 25 globally to optimize business structure.
See More
Zumiez Reports Strong Q4 Earnings Surpassing Expectations
- Earnings Highlight: Zumiez reported fiscal Q4 earnings of $1.16 per diluted share, a significant increase from $0.78 in the same period last year, indicating strong performance in the retail market.
- Sales Growth: This earnings growth suggests that Zumiez successfully attracted more consumers amidst a competitive market environment, thereby enhancing its sales and market share.
- Investor Confidence: The positive earnings report is likely to bolster investor confidence in Zumiez, which may have a favorable impact on its stock price and further drive the company's future investment and expansion plans.
- Future Outlook: As consumer spending gradually recovers, Zumiez is expected to maintain its growth momentum in the upcoming quarters, particularly among younger consumer demographics, further solidifying its market position.
See More
ZUMIEZ INC PROJECTS Q1 FY2026 EPS LOSS BETWEEN $0.77 AND $0.87
- Earnings Report: ZUMIEZ reported a loss per share of between $0.77 and $0.87 for the first quarter of fiscal year 2026.
- Financial Performance: The reported loss indicates a challenging financial period for the company, reflecting potential issues in sales or operational efficiency.
See More
