fiscal 2026 second quarter
Filed Sep 10, 2026Second-quarter net sales decreased 2.5% to $209.0 million, comparable sales decreased 2.1%, and net loss widened to $2.7 million, or $0.17 per share.
Second-quarter sales and comparable sales declined, the net loss widened from the prior year, and third-quarter-to-date sales and comparable sales were also down. International growth partially offset weaker U.S. footwear demand and lower traffic.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended August 1, 2026GAAP | $209.0M | – | decreased 2.5% |
| Comparable sales, thirteen weeks ended August 1, 2026other | decreased 2.1% | – | decreased 2.1% |
| Cost of goods sold, three months ended August 1, 2026GAAP | $135.1M | – | – |
| Gross profit, three months ended August 1, 2026GAAP | $73.85M | – | – |
| Gross margin, three months ended August 1, 2026GAAP | 35.3 % | – | – |
| Selling, general and administrative expenses, three months ended August 1, 2026GAAP | $75.17M | – | – |
| Operating loss, three months ended August 1, 2026GAAP | −$1.32M | – | – |
| Operating margin, three months ended August 1, 2026GAAP | -0.6 % | – | – |
| Interest income, net, three months ended August 1, 2026GAAP | $645K | – | – |
| Other expense (income), net, three months ended August 1, 2026GAAP | −$753K | – | – |
| Loss before income taxes, three months ended August 1, 2026GAAP | −$1.43M | – | – |
| Provision for income taxes, three months ended August 1, 2026GAAP | $1.31M | – | – |
| Net loss, three months ended August 1, 2026GAAP | −$2.74M | – | – |
| Basic loss per share, three months ended August 1, 2026GAAP | $ (0.17 ) | – | – |
| Diluted loss per share, three months ended August 1, 2026GAAP | $ (0.17 ) | – | – |
| Weighted average shares used in computation of earnings per share, basic, three months ended August 1, 2026GAAP | 15.71M | – | – |
| Weighted average shares used in computation of earnings per share, diluted, three months ended August 1, 2026GAAP | 15.71M | – | – |
| Net sales, six months ended August 1, 2026GAAP | $402.3M | – | increased 0.9% |
| Comparable sales, twenty-six weeks ended August 1, 2026other | increased 0.7% | – | increased 0.7% |
| Gross profit, six months ended August 1, 2026GAAP | $135.2M | – | – |
| Gross margin, six months ended August 1, 2026GAAP | 33.6 % | – | – |
| Selling, general and administrative expenses, six months ended August 1, 2026GAAP | $151.7M | – | – |
| Operating loss, six months ended August 1, 2026GAAP | −$16.52M | – | – |
| Operating margin, six months ended August 1, 2026GAAP | -4.1 % | – | – |
| Net loss, six months ended August 1, 2026GAAP | −$16.01M | – | – |
| Basic loss per share, six months ended August 1, 2026GAAP | $ (1.00 ) | – | – |
| Diluted loss per share, six months ended August 1, 2026GAAP | $ (1.00 ) | – | – |
| Net cash used in operating activities, six months ended August 1, 2026GAAP | −$27.28M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
three months ending October 31, 2026 outlook
- Revenue$222 to $226 million
- NoteEarnings per share are expected to be between $0.00 and $0.10.
- NoteIn fiscal 2026 the Company currently intends to open approximately 5 new stores all located in North America and close roughly 16 stores, including 10 in North America and 6 internationally.
Capital returns
- The Company repurchased 1.2 million shares during the second quarter of 2026 at an average cost including commission of $19.30 per share and a total cost of $23.2 million.
- Fiscal year-to-date through August 1, 2026, the Company has repurchased 1.5 million shares at an average cost including commission of $20.07 per share and a total cost of $29.5 million.
- Repurchase of common stock was $ (28,972 ) (In thousands) for the six months ended August 1, 2026, compared with $ (32,682 ) (In thousands) for the six months ended August 2, 2025.
What drove it
- Second-quarter results came in below last year driven by weaker performance in the U.S.
- The U.S. weakness was primarily driven by continued softness in footwear and lower traffic levels.
- The decline in the U.S. business was partially offset by continued growth across other regions.
- Third quarter-to-date net sales for the 37 days ending September 7, 2026, decreased 4.3%, and comparable sales decreased 3.5%.
- As of August 29, 2026, the Company operated 714 stores, including 561 in the United States, 45 in Canada, 81 in Europe and 27 in Australia.
Concerns
- Second-quarter net sales decreased 2.5% and comparable sales decreased 2.1%.
- The second-quarter net loss was $2.7 million, compared to a net loss of $1.0 million in the second quarter of the prior fiscal year.
- Third-quarter-to-date net sales and comparable sales were down 4.3% and 3.5%, respectively.
- The filing identifies continued softness in footwear and lower U.S. traffic levels.
- Net cash used in operating activities was $ (27,276 ) (In thousands) for the six months ended August 1, 2026, compared with $ (9,501 ) (In thousands) in the prior-year period.
What to watch
- Third-quarter net sales guidance of $222 to $226 million and earnings per share guidance of $0.00 to $0.10.
- Whether the 4.3% third-quarter-to-date net sales decrease and 3.5% comparable-sales decrease persist through the three months ending October 31, 2026.
- U.S. footwear demand, traffic levels, merchandise assortment refinements and customer experience initiatives.
- Execution of plans to open approximately 5 new North American stores and close roughly 16 stores, including 10 in North America and 6 internationally.
Balance sheet and cash flow
- Cash and cash equivalents were $ 50,288 (In thousands) at August 1, 2026, compared with $ 127,860 (In thousands) at January 31, 2026 and $ 78,804 (In thousands) at August 2, 2025.
- Marketable securities were $ 46,977 (In thousands) at August 1, 2026, compared with $ 32,764 (In thousands) at January 31, 2026 and $ 27,936 (In thousands) at August 2, 2025.
- Cash and current marketable securities were $97.3 million on August 1, 2026, compared to $106.7 million on August 2, 2025.
- Inventories were $ 157,282 (In thousands) at August 1, 2026, compared with $ 146,995 (In thousands) at January 31, 2026 and $ 157,722 (In thousands) at August 2, 2025.
- Total liabilities were $ 348,377 (In thousands) at August 1, 2026, compared with $ 319,886 (In thousands) at January 31, 2026 and $ 330,951 (In thousands) at August 2, 2025.
- Total shareholders’ equity was $ 279,013 (In thousands) at August 1, 2026, compared with $ 324,285 (In thousands) at January 31, 2026 and $ 292,437 (In thousands) at August 2, 2025.
- Additions to fixed assets were $ (4,880 ) (In thousands) for the six months ended August 1, 2026, compared with $ (5,317 ) (In thousands) for the six months ended August 2, 2025.
- Net decrease in cash, cash equivalents, and restricted cash was $ (77,701 ) (In thousands) for the six months ended August 1, 2026, compared with $ (36,864 ) (In thousands) for the six months ended August 2, 2025.
- The release stated that the decrease in cash and current marketable securities was primarily driven by $34.5 million related to share repurchases and $10.6 million of capital expenditures partially offset by $35.7 million of cash flow from operations.
Analysis
Zumiez reported a weaker second quarter, with net sales decreasing 2.5% to $209.0 million and comparable sales decreasing 2.1%. The company attributed the decline to weaker U.S. performance, specifically continued softness in footwear and lower traffic levels. Growth in other regions only partially offset the U.S. decline. The 37-day third-quarter-to-date update showed a further 4.3% net sales decrease and a 3.5% comparable-sales decline.
Profitability weakened in the quarter. Gross margin was 35.3 %, compared with 35.5 % in the prior-year quarter, while selling, general and administrative expenses were 35.9 % of sales versus 35.4 %. The company recorded an operating loss of $ (1,324 ) (In thousands), compared with operating profit of $ 107 (In thousands), and net loss widened to $ (2,743 ) (In thousands) from $ (1,002 ) (In thousands). Diluted loss per share was $ (0.17 ), compared with $ (0.06 ).
The six-month results present a different sales and margin pattern. Net sales increased 0.9% to $402.3 million and comparable sales increased 0.7%, while gross margin improved to 33.6 % from 32.9 %. The operating loss narrowed to $ (16,516 ) (In thousands) from $ (19,765 ) (In thousands), but net loss increased to $ (16,009 ) (In thousands) from $ (15,333 ) (In thousands). Net cash used in operating activities increased to $ (27,276 ) (In thousands) from $ (9,501 ) (In thousands).
Capital allocation remained focused on repurchases. The company repurchased 1.2 million shares for $23.2 million during the second quarter and 1.5 million shares for $29.5 million year-to-date through August 1, 2026. Cash and current marketable securities were $97.3 million on August 1, 2026, versus $106.7 million a year earlier. The cash flow statement reports additions to fixed assets of $ (4,880 ) (In thousands) for the six-month period.
For the third quarter, Zumiez introduced net sales guidance of $222 to $226 million and earnings per share guidance of $0.00 to $0.10. Management also expects approximately 5 new North American store openings and roughly 16 closures, including 10 in North America and 6 internationally, during fiscal 2026. The key reported issue entering the holiday season is whether merchandise assortment and customer experience actions can improve the U.S. trajectory amid footwear softness and lower traffic.
Management, verbatim
Second quarter results came in below last year driven by weaker performance in the U.S., which was primarily driven by continued softness in footwear as well as lower traffic levels.
Rick Brooks, Chief Executive Officer of Zumiez Inc.
The decline in the U.S. business was partially offset by continued growth across our other regions, underscoring the strength and diversification of our global business.
Rick Brooks, Chief Executive Officer of Zumiez Inc.
As we look forward to the holiday season, we remain focused on refining our merchandise assortments and deepening our customer experience initiatives to improve the trajectory.
Rick Brooks, Chief Executive Officer of Zumiez Inc.
Not in the filing
stated, not guessed- Prior-quarter comparisons for income statement metrics were not reported.
- Revenue and comparable-sales figures by reportable segment or geographic region were not reported.
- Non-GAAP financial measures were not reported.
- Free cash flow was not reported.
- A debt balance was not reported.
- Gross margin, operating expenses and tax-rate guidance were not reported.
- Prior-period outlook was not provided, so no comparison of actual results against prior guidance is available.
- The press release states that cash and current marketable securities were partially offset by $35.7 million of cash flow from operations, while the condensed consolidated statements of cash flows report net cash used in operating activities of $ (27,276 ) (In thousands) for the six months ended August 1, 2026. The filing does not reconcile these statements.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.