Zumiez (NASDAQ:ZUMZ) Releases Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Zumiez (NASDAQ:ZUMZ) announced its quarterly earnings data on Thursday. The apparel and footwear maker reported ($0.82) EPS for the quarter, missing the consensus estimate of ($0.81) by ($0.01), Zacks reports. The firm had revenue of $193.35 million for the quarter, compared to the consensus estimate of $191.02 million. Zumiez had a net margin of 1.54% and a return on equity of 4.24%. The firm’s revenue for the quarter was up 4.9% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.66) earnings per share. Zumiez updated its Q2 2026 guidance to -0.230–0.080 EPS.

Here are the key takeaways from Zumiez’s conference call:

• Comparable sales rose 4% in Q1, marking Zumiez’s eighth straight quarter of positive comps, with gains in both North America and Europe.
• Gross margin improved to 31.7% from 30.0% a year ago, helped by better product margin, occupancy leverage, lower shipping costs, and reduced shrink.
• Europe showed meaningful progress, with positive comparable sales and better margins as the company’s full-price selling strategy and assortment changes continued to gain traction.
• The company ended the quarter with $124.2 million in cash and marketable securities, no debt, and an unused $25 million credit facility, while continuing share repurchases.
• Management struck a more cautious tone on the rest of fiscal 2026, guiding Q2 sales to down 2% to up 0.5% and withholding full-year earnings guidance due to increasing consumer pressure.

Zumiez Trading Down 25.9%

ZUMZ stock opened at $17.39 on Friday. Zumiez has a 12 month low of $11.41 and a 12 month high of $31.70. The company has a 50-day moving average price of $23.59 and a 200 day moving average price of $24.78. The stock has a market cap of $300.15 million, a PE ratio of 20.95 and a beta of 0.97.

Zumiez declared that its board has approved a share repurchase program on Wednesday, March 11th that permits the company to buyback $40.00 million in shares. This buyback authorization permits the apparel and footwear maker to purchase up to 10.2% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s management believes its shares are undervalued.

Insider Activity at Zumiez

In related news, insider Chris K. Visser sold 9,974 shares of Zumiez stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $22.21, for a total transaction of $221,522.54. Following the completion of the transaction, the insider directly owned 43,500 shares of the company’s stock, valued at approximately $966,135. The trade was a 18.65% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 24.30% of the company’s stock.

Hedge Funds Weigh In On Zumiez

A number of large investors have recently made changes to their positions in ZUMZ. Caxton Associates LLP purchased a new position in shares of Zumiez during the 1st quarter worth about $176,000. Geode Capital Management LLC boosted its stake in shares of Zumiez by 1.8% during the 2nd quarter. Geode Capital Management LLC now owns 382,561 shares of the apparel and footwear maker’s stock worth $5,074,000 after purchasing an additional 6,682 shares during the period. American Century Companies Inc. boosted its stake in shares of Zumiez by 2.0% during the 2nd quarter. American Century Companies Inc. now owns 40,044 shares of the apparel and footwear maker’s stock worth $531,000 after purchasing an additional 797 shares during the period. Hsbc Holdings PLC boosted its stake in shares of Zumiez by 123.4% during the 2nd quarter. Hsbc Holdings PLC now owns 42,418 shares of the apparel and footwear maker’s stock worth $547,000 after purchasing an additional 23,434 shares during the period. Finally, Quantbot Technologies LP purchased a new position in shares of Zumiez during the 2nd quarter worth about $71,000. 95.45% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of brokerages have issued reports on ZUMZ. Wall Street Zen downgraded shares of Zumiez from a “buy” rating to a “hold” rating in a report on Saturday, March 14th. Zacks Research downgraded Zumiez from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, March 11th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Zumiez in a research report on Friday, March 27th. Three equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $18.00.

Key Headlines Impacting Zumiez

Here are the key news stories impacting Zumiez this week:

• Positive Sentiment: Zumiez posted a 4.0% increase in comparable sales and said operating loss improved to $15.2 million, showing the business is still generating better sales momentum even in a tough retail environment.
• Positive Sentiment: Revenue came in at $193.35 million, above the consensus estimate, and the company cited another quarter of positive comps, which supports the case that core demand is stabilizing.
• Neutral Sentiment: Management and commentary focused on balance sheet strength, which could help the company navigate discretionary spending pressure and macro uncertainty. Article: Zumiez: Balance Sheet Strength Offsets Discretionary Spending Pressures
• Negative Sentiment: EPS missed expectations slightly, with Zumiez reporting a loss of $0.82 per share versus estimates for a $0.81 loss, reinforcing concerns that profitability remains weak.
• Negative Sentiment: The bigger drag on the stock was Q2 guidance: Zumiez forecast EPS of -$0.23 to -$0.08 and revenue of $210 million to $215 million, both below Wall Street expectations, signaling pressure may continue in the next quarter.

About Zumiez

Zumiez, Inc (NASDAQ: ZUMZ) is a specialty retailer offering apparel, footwear, accessories and hardgoods targeted at the action-sports lifestyle market. With a focus on skateboarding, snowboarding, BMX and streetwear, the company stocks a mix of leading third-party brands—such as Vans, Nike SB, DC Shoes and The North Face—alongside proprietary private-label merchandise. In addition to traditional fashion items, Zumiez stores carry hardware and equipment tailored to board sports, supporting both amateur and enthusiast consumers.

Originally founded in 1978 in Seattle, Washington, by Tom Campion, Gary Haakenson and Steve Brosvik, Zumiez opened its first branded retail location in 1988.