Zumiez Inc. (ZUMZ) Q3 2025 Earnings Call Transcript
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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Zumiez (ZUMZ) Lowers Q4 Sales Outlook to $287M-$290M Amid Mixed Results
- Sales Outlook Cut: Zumiez has lowered its Q4 net sales forecast from $291M-$296M to $287M-$290M due to weak international sales, resulting in stock pressure and reaching a one-month low.
- Mixed Performance: For the nine-week period ending January 4, Zumiez reported a 2.9% increase in comparable sales, driven by a 6.5% rise in North America, while international markets saw an 8.9% decline, indicating uneven regional performance.
- Earnings Forecast Raised: Despite the sales outlook cut, Zumiez expects earnings per share to rise to $1.05-$1.10, up from the previous range of $0.97-$1.07, reflecting improved expense management and full-price selling in Europe.
- Margin Improvement: With a 600 basis point increase in product margin, Zumiez demonstrates stronger cost control amid sales challenges, which is expected to enhance future profitability and competitive positioning.
Zumiez Inc. (ZUMZ) Raises Q4 Guidance Amid 2.9% Sales Growth
- Sales Growth: Zumiez reported a comparable sales increase of 2.9% for the nine-week period ending January 3, indicating stable demand in the apparel and accessories market, which enhances its competitive position.
- Earnings Guidance Raised: The company has revised its fourth-quarter earnings per share guidance to $1.05 to $1.10, up from the previous range of $0.97 to $1.07, reflecting improved product margins in North America and Europe as well as effective expense management.
- Sales Forecast Adjustment: Despite the earnings guidance increase, Zumiez has lowered its fourth-quarter sales forecast to between $287 million and $290 million, down from $291 million to $296 million, primarily due to softer international sales.
- Positive Market Reaction: ZUMZ shares rose by 6.86% to $27.66 in pre-market trading on Nasdaq, reflecting investor optimism regarding the company's outlook.
