Zumiez guided third-quarter net sales to between $222 million and $226 million, a decline of 5.5% to 7%, and said it would refrain from providing specific full-year earnings guidance. The retailer reported second-quarter net sales fell 2.5% to $209 million, with comparable sales down 2.1%, a net loss of $2.7 million, or 17 cents per share, and an operating loss of $1.3 million. Chief Financial Officer Christopher Work said third-quarter comparable sales are expected between negative 5% and negative 6.5%, product margin down 20 to 40 basis points, consolidated operating income between 1% and 1.7% of sales, and earnings per share between $0 and $0.10, compared with $0.55 a year ago. For the full year, Zumiez now expects sales down low single digits, including a $12 million negative impact from closed stores, and operating margin down slightly versus previously communicated growth of 50 to 100 basis points, with the tax rate rising to roughly 55% from 44% in fiscal 2025. Chief Executive Officer Richard Brooks said footwear was the most significant headwind, accounting for 70% of the total U.S. sales decline from the prior year through Labor Day, while international markets posted low single-digit positive comparable sales. Zumiez ended the quarter with cash and current marketable securities of $97.3 million, no debt, and inventory of $157.3 million, and completed its $40 million share repurchase program in early September.
Zumiez IncZumiez guided Q3 sales down 5.5-7%, pulled full-year EPS guidance, and reported a Q2 net loss with comps down 2.1%.
