Zumiez Reports Modest Sales Increase and Reduced Net Loss in Q2 Fiscal 2025

Zumiez Inc. reported its financial results for the second quarter of fiscal 2025, revealing a modest increase in net sales and a reduction in net loss compared to the same period last year. For the three months ended August 2, 2025, net sales reached $214.3 million, up 1.9% from $210.2 million in the prior year. The increase was primarily driven by a 2.5% rise in comparable sales, despite the closure of 19 stores since August 2024. Gross profit for the quarter was $76.0 million, reflecting a 5.9% increase from $71.8 million, with gross profit margin improving to 35.5% from 34.2%.

In terms of profitability, Zumiez reported a net loss of $1.0 million, or $0.06 per diluted share, compared to a loss of $0.8 million, or $0.04 per diluted share, in the same quarter last year. The company attributed the increase in net loss to higher selling, general, and administrative (SG&A) expenses, which rose to $75.9 million from $72.2 million. The SG&A expenses as a percentage of net sales increased to 35.4%, driven by higher corporate costs and litigation settlements.

For the first half of fiscal 2025, Zumiez's net sales totaled $398.6 million, a 2.9% increase from $387.6 million in the same period of fiscal 2024. The company reported a net loss of $15.3 million, or $0.88 per diluted share, an improvement from a loss of $17.6 million, or $0.91 per diluted share, in the prior year. The company noted that the effective income tax rate for the first half was 3.2%, compared to a benefit of 7.4% in the previous year, reflecting changes in the allocation of losses across jurisdictions.

Operationally, Zumiez continues to focus on enhancing customer engagement and expanding its geographic footprint. As of August 2, 2025, the company operated 731 stores across various regions, including 571 in the U.S., 86 in Europe, 46 in Canada, and 28 in Australia. The company plans to open approximately six new stores in fiscal 2025, with capital expenditures expected to range from $11 million to $13 million, primarily for leasehold improvements and fixtures.

Looking ahead, Zumiez remains cautious about the economic environment, which could impact consumer spending and overall sales. The company is focused on leveraging its ecommerce platform alongside its physical stores to drive sales growth. However, it acknowledges the challenges posed by fluctuating market conditions, including inflation and changing consumer preferences, which may affect its financial performance in the coming quarters.