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.
Zumiez (ZUMZ) Receives Strong Buy Upgrade: Implications for the Stock
Zumiez Upgrade: Zumiez (ZUMZ) has received a Zacks Rank #1 (Strong Buy) upgrade, indicating a positive outlook on its earnings estimates, which are crucial for stock price movements.
Earnings Estimate Revisions: The Zacks rating system highlights the correlation between earnings estimate revisions and stock performance, with Zumiez's estimates increasing by 52.4% over the past three months.
Zacks Rank System: The Zacks Rank system categorizes stocks based on earnings estimates, with only the top 5% receiving a "Strong Buy" rating, suggesting that Zumiez is well-positioned for potential market-beating returns.
Quantum Computing Insights: The article also discusses the rapid advancement of quantum computing, with major tech companies integrating it into their infrastructure, and highlights investment opportunities in this emerging field.
Reasons to Consider Zumiez (ZUMZ) as a Strong Momentum Stock: Is It Time to Buy?
Momentum Investing Overview: Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, leveraging established price movements for profitable trades.
Zumiez's Performance: Zumiez (ZUMZ) has a Momentum Style Score of A and a Zacks Rank of #1 (Strong Buy), with significant recent price increases, outperforming both its industry and the S&P 500 over various time frames.
Earnings Estimate Revisions: Recent upward revisions in earnings estimates for Zumiez indicate positive momentum, with the consensus estimate rising from $0.42 to $0.73 over the past 60 days, reflecting strong investor interest.
Quantum Computing Insights: Quantum computing is rapidly advancing, with major tech companies integrating it into their operations, and investment strategist Kevin Cook identifies key stocks that may lead in this emerging field.
Friday's Top Performers: Apparel Retailers and Oil & Gas Exploration & Production Companies
Oil & Gas Sector Performance: Oil and gas exploration and production shares increased by approximately 1% on Friday, with notable gains from Borr Drilling (up 9.7%) and Kosmos Energy (up 5.6%).
Market Highlights: The article mentions that apparel stores and oil & gas exploration and production stocks were among the sector leaders on that day.
Author's Perspective: The views expressed in the article are solely those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
Video Content: A video segment is referenced, highlighting the sector leaders for the day, specifically focusing on apparel stores and oil & gas stocks.
Zumiez Projects Q4 EPS Between $0.97 and $1.07 with 4%–6% Sales Growth Amid Ongoing North American Momentum
Management Insights: Zumiez reported a 7.6% growth in comparable sales for Q3 2025, driven primarily by North America, with a strong performance in private label products and a focus on customer-centric strategies.
Financial Performance: The company achieved net sales of $239.1 million, a 7.5% increase from the previous year, with earnings per share reaching $0.55, significantly above guidance.
Future Outlook: For Q4, Zumiez anticipates net sales between $291 million and $296 million, with a cautious approach to growth due to macroeconomic uncertainties and international challenges.
Analyst Sentiment: Analysts expressed a neutral to slightly positive tone regarding Zumiez's growth sustainability, while management remained optimistic about North American momentum and private label success despite external risks.
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.
Zumiez (ZUMZ) Receives Strong Buy Upgrade: Implications for the Stock
Zumiez Upgrade: Zumiez (ZUMZ) has received a Zacks Rank #1 (Strong Buy) upgrade, indicating a positive outlook on its earnings estimates, which are crucial for stock price movements.
Earnings Estimate Revisions: The Zacks rating system highlights the correlation between earnings estimate revisions and stock performance, with Zumiez's estimates increasing by 52.4% over the past three months.
Zacks Rank System: The Zacks Rank system categorizes stocks based on earnings estimates, with only the top 5% receiving a "Strong Buy" rating, suggesting that Zumiez is well-positioned for potential market-beating returns.
Quantum Computing Insights: The article also discusses the rapid advancement of quantum computing, with major tech companies integrating it into their infrastructure, and highlights investment opportunities in this emerging field.
Reasons to Consider Zumiez (ZUMZ) as a Strong Momentum Stock: Is It Time to Buy?
Momentum Investing Overview: Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, leveraging established price movements for profitable trades.
Zumiez's Performance: Zumiez (ZUMZ) has a Momentum Style Score of A and a Zacks Rank of #1 (Strong Buy), with significant recent price increases, outperforming both its industry and the S&P 500 over various time frames.
Earnings Estimate Revisions: Recent upward revisions in earnings estimates for Zumiez indicate positive momentum, with the consensus estimate rising from $0.42 to $0.73 over the past 60 days, reflecting strong investor interest.
Quantum Computing Insights: Quantum computing is rapidly advancing, with major tech companies integrating it into their operations, and investment strategist Kevin Cook identifies key stocks that may lead in this emerging field.
Friday's Top Performers: Apparel Retailers and Oil & Gas Exploration & Production Companies
Oil & Gas Sector Performance: Oil and gas exploration and production shares increased by approximately 1% on Friday, with notable gains from Borr Drilling (up 9.7%) and Kosmos Energy (up 5.6%).
Market Highlights: The article mentions that apparel stores and oil & gas exploration and production stocks were among the sector leaders on that day.
Author's Perspective: The views expressed in the article are solely those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
Video Content: A video segment is referenced, highlighting the sector leaders for the day, specifically focusing on apparel stores and oil & gas stocks.
Zumiez Projects Q4 EPS Between $0.97 and $1.07 with 4%–6% Sales Growth Amid Ongoing North American Momentum
Management Insights: Zumiez reported a 7.6% growth in comparable sales for Q3 2025, driven primarily by North America, with a strong performance in private label products and a focus on customer-centric strategies.
Financial Performance: The company achieved net sales of $239.1 million, a 7.5% increase from the previous year, with earnings per share reaching $0.55, significantly above guidance.
Future Outlook: For Q4, Zumiez anticipates net sales between $291 million and $296 million, with a cautious approach to growth due to macroeconomic uncertainties and international challenges.
Analyst Sentiment: Analysts expressed a neutral to slightly positive tone regarding Zumiez's growth sustainability, while management remained optimistic about North American momentum and private label success despite external risks.
