US' Zumiez sees 2.5% comparable sales growth in Q2 FY25

Selling, general and administrative (SG&A) expenses increased to $75.9 million, or 35.4 per cent of sales, compared with $72.2 million, or 34.4 per cent. The operating income reached $0.1 million, reversing an operating loss of $0.4 million in Q2 FY24.

Meanwhile, North American Q2 comparable sales Increased 4.2 per cent. The company reported a net loss of $1 million, or $0.06 per share, compared with a net loss of $0.8 million, or $0.04 per share, in the same quarter last fiscal. The profit before income taxes stood at $0.9 million, up from $0.6 million, supported by modest improvements in other income, Zumiez said in a press release.

Cash and marketable securities stood at $106.7 million at quarter-end, driven by $38.3 million in share repurchases and $14.1 million in capital expenditures, partly offset by $26.6 million operating cash flow. Zumiez repurchased 0.6 million shares during the quarter at an average cost of $13.1, totalling $7.8 million.

“We are encouraged with our second quarter results which exceeded expectations driven by outperformance in North America. Sales trends accelerated throughout the quarter even as we faced more difficult comparisons, underscoring the success of our recent merchandise and customer experience initiatives in what continues to be a challenging operating environment,” said Rick Brooks, chief executive officer (CEO) at Zumiez Inc.

For the first half (H1) of FY25, net sales increased 2.9 per cent to $398.6 million, while comparable sales rose 3.9 per cent. The net loss narrowed to $15.3 million, or $0.88 per share. The gross profit rose to $131.3 million, representing 32.9 per cent of sales versus 31.9 per cent last year.

SG&A expenses climbed to $151.1 million, or 37.9 per cent of sales, and operating loss narrowed slightly to $19.8 million from $20.5 million. Interest income increased to $3 million from $2.4 million, while other expenses totalled $1.9 million.

Third quarter-to-date net sales for the 30 days ending September 1, 2025, increased 10.6 per cent, compared with the 30-day period in the prior year ending September 2, 2024. The comparable sales over the same period are up 11.2 per cent led by strong comparable sales growth in North America of 13 per cent.

“We are seeing further acceleration third quarter-to-date led by an 11.2 per cent comparable sales gain during back-to-school on top of a double-digit increase in the year ago period. With back-to-school performing well, we are optimistic about our prospects for the holiday season. However, we think it is prudent to balance our current momentum with some near-term conservatism given the uncertainty around tariffs and overall consumer demand,” added Brooks.

For the third quarter (Q3) ending November 1, 2025, Zumiez expects net sales of $232–237 million, comparable sales growth of 5.5–7.5 per cent, operating margins of 2.3–3.3 per cent, and diluted EPS of $0.19–$0.29. The company also plans to open six new stores in FY2025, including up to five in North America and one in Australia.

As of August 30, 2025, Zumiez operated 730 stores worldwide, including 570 in the US, 46 in Canada, 86 in Europe and 28 in Australia, alongside its e-commerce platforms.

ALCHEMPro News Desk (SG)