Zumiez Inc
For the period ended Aug 1, 2026. Filed Sep 10, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 1, 2026 · Filed Sep 10, 2026
ZUMZ$14.04-3.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-05-02; filed 2026-06-04.
0001193125-26-257341
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-08-01; filed 2026-09-10.
0001193125-26-387835
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 132 previous paragraphs and 143 current paragraphs.
119 unchanged; 13 reworded; 8 added; 0 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
Gross profit was $73.9 million for the three months ended August 1, 2026 compared to $76.0 million for the three months ended August 2, 2025, a decrease of $2.2 million, or 2.9%. As a percent of net sales, gross profit decreased 20 basis points for the three months ended August 1, 2026 to 35.3%. The decrease was driven by 60 basis points of deleverage in store occupancy costs primarily related to lower sales, partially offset by 50 basis points of benefit from tariff refunds.
Current report
Six Months (26 weeks) Ended August 1, 2026 Compared With Six Months (26 weeks) Ended August 2, 2025
Current report
Net Sales
Current report
Gross Profit
Current report
Selling, General and Administrative Expenses
Current report
Selling, general and administrative expenses were $151.7 million for the six months ended August 1, 2026, compared to $151.1 million for the six months ended August 2, 2025, an increase of $0.6 million, or 0.4%. SG&A expenses as a percent of net sales decreased 20 basis points for the six months ended August 1, 2026, to 37.7%. The decrease was primarily driven by 90 basis points of benefit in the current year related to $3.6 million litigation settlements in the second quarter of last year, 30 basis points of decrease in annual incentive compensation, partially offset by a 20 basis point detriment related to one-time vendor credits benefiting the first quarter of last year, a 30 basis point increase in non-store wages and a 40 basis point increase in other corporate costs.
Current report
Net Loss
Current report
Net loss for the six months ended August 1, 2026, was $16.0 million, or $1.00 loss per diluted share, compared with net loss of $15.3 million, or $0.88 loss per diluted share, for the six months ended August 2, 2025. Our effective income tax rate for the six months ended August 1, 2026, was a 0.8% provision for income taxes compared to 3.2% provision for income taxes for the six months ended August 2, 2025. The decrease in effective income tax rate was primarily driven by losses in jurisdictions where we maintain a full valuation allowance against related deferred tax assets, as well as discrete tax items, resulting in income tax expense that is not directly correlated to consolidated loss before income taxes.
Reworded paragraphs (13)
Previous wording
Fiscal 2026 is the 52-week period ending January 30, 2027. Fiscal 2025 was the 52-week period ending January 31, 2026. The first three months of fiscal 2026 was the 13-week period ended May 2, 2026. The first three months of fiscal 2025 was the 13-week period ended May 3, 2025.
Current wording
Fiscal 2026 is the 52-week period ending January 30, 2027. Fiscal 2025 was the 52-week period ending January 31, 2026. The first six months of fiscal 2026 was the 26-week period ended August 1, 2026. The first six months of fiscal 2025 was the 26-week period ended August 2, 2025.
Previous wording
Net sales. Net sales constitute gross sales, net of sales returns and deductions for promotions, and shipping revenue. Net sales includes comparable sales and new store sales for all our store and ecommerce businesses. We consider net sales to be an important indicator of our current performance. Net sales results are important to achieve leveraging of our costs, including store payroll and store occupancy. Net sales also have a direct impact on our operating profit, cash and working capital.
Current wording
Net sales. Net sales constitute gross sales, net of sales returns and deductions for promotions, and shipping revenue. Net sales include comparable sales and new store sales for all our store and ecommerce businesses. We consider net sales to be an important indicator of our current performance. Net sales results are important to achieve leveraging of our costs, including store payroll and store occupancy. Net sales also have a direct impact on our operating profit, cash and working capital.
Previous wording
Selling, general and administrative expense was $76.5 million for the three months ended May 2, 2026 compared to $75.2 million for the three months ended May 3, 2025, an increase of $1.3 million, or 1.8%. SG&A expenses as a percent of net sales decreased 120 basis points for the three months ended May 2, 2026 to 39.6%. The decrease was driven by 150 basis points of benefit in the current year related to a $2.9 million litigation settlement in the first quarter of last year, 50 basis points of efficiencies in store wages due to higher sales, 40 basis points in non-wage store operating costs related to leverage in store depreciation due to higher sales, partially offset by 70 basis points of detriment related to one-time vendor credits benefiting the first quarter of last year, 20 basis points of increase in non-store wages and 20 basis points from other corporate cost.
Current wording
Selling, general and administrative expense was $75.2 million for the three months ended August 1, 2026 compared to $75.9 million for the three months ended August 2, 2025, a decrease of $0.7 million, or 1.0%. SG&A expenses as a percent of net sales increased 50 basis points for the three months ended August 1, 2026 to 35.9%. The increase was driven by 50 basis points in non-wage store operating costs, 40 basis points of detriment in store wages due to deleverage on lower sales, 40 basis points of deleverage in non-store wages, 20 basis points of deleverage in other corporate costs, partially offset by a 70 basis point decrease in annual incentive compensation and 30 basis points of benefit in the current year related to a litigation settlement expensed in the second quarter of last year.
Previous wording
Net loss for the three months ended May 2, 2026 was $13.3 million, or $0.82 loss per diluted share, compared with net loss of $14.3 million, or $0.79 loss per diluted share, for the three months ended May 3, 2025. Our effective income tax rate for the three months ended May 2, 2026 was a 8.2% benefit from income taxes compared to a 9.1% benefit from income taxes for the three months ended May 3, 2025. The decrease in effective income tax rate was primarily driven by improved U.S. operating results, losses in jurisdictions where we maintain valuation allowances, and one-time discrete tax items.
Current wording
Net loss for the three months ended August 1, 2026 was $2.7 million, or $0.17 loss per diluted share, compared with net loss of $1.0 million, or $0.06 loss per diluted share, for the three months ended August 2, 2025. Our effective income tax rate for the three months ended August 1, 2026 was a 91.5% provision for income taxes compared to a 210.0% provision for income taxes for the three months ended August 2, 2025. The decrease in effective income tax rate was primarily driven by losses in jurisdictions where we maintain a full valuation allowance against related deferred tax assets, as well as discrete tax items, resulting in income tax expense that is not directly correlated to consolidated loss before income taxes.
Previous wording
Net sales were $193.3 million for the three months ended May 2, 2026 compared to $184.3 million for the three months ended May 3, 2025, an increase of $9.0 million, or 4.9%. The increase in sales was primarily driven by a 4.0% increase in comparable sales and impact of foreign exchange rate, partially offset by the net closure of 16 stores subsequent to May 3, 2025. By region, North America sales increased $5.8 million or 3.9% and other international sales (which consists of Europe and Australia sales) increased $3.2 million or 9.1% for the three months ended May 2, 2026 compared to the three months ended May 3, 2025. Excluding the impact of changes in foreign exchange rates, North America sales increased $5.5 million or 3.7%, while other international sales were relatively flat for the three months ended May 2, 2026 compared to the three months ended May 3, 2025.
Current wording
Net sales were $402.3 million for the six months ended August 1, 2026, compared to $398.6 million for the six months ended August 2, 2025, an increase of $3.7 million, or 0.9%. The increase in sales was primarily driven by a 0.7% increase in comparable sales, partially offset by the net closure of 16 stores subsequent to August 2, 2025. By region, North America sales decreased $0.3 million or 0.1% and other international sales (which consists of Europe and Australia sales) increased $4.0 million or 5.9% for the six months ended August 1, 2026, compared to the six months ended August 2, 2025. Excluding the impact of changes in foreign exchange rates, North America sales decreased $0.5 million or 0.1% and other international sales increased $0.2 million or 0.3% for the six months ended August 1, 2026 compared to the six months ended August 2, 2025.
Previous wording
Comparable sales increased 4.0% (reflecting a 4.4% increase in North America and a 2.2% increase in other international) for the three months ended May 2, 2026, driven by an increase in dollars per transaction, partially offset by a decrease in transactions. Dollars per transaction increased due to an increase in both average unit retail and units per transaction. By category, comparable sales were primarily driven by increases in men's clothing, hardgoods, women's clothing, accessories, partially offset by a decrease in footwear.
Current wording
Comparable sales increased 0.7% (reflecting a 0.4% increase in North America and a 2.1% increase in other international) for the six months ended August 1, 2026, driven by an increase in dollars per transaction, partially offset by a decrease in transactions. Dollars per transaction increased due to an increase in average unit retail and an increase in units per transaction. By category, comparable sales were primarily driven by an increase in men's clothing, hardgoods, accessories and women's clothing, partially offset by a decrease in footwear.
Previous wording
Gross profit was $61.3 million for the three months ended May 2, 2026 compared to $55.3 million for the three months ended May 3, 2025, an increase of $6.0 million, or 10.9%. As a percent of net sales, gross profit increased 170 basis points for the three months ended May 2, 2026 to 31.7%. The increase was driven by 70 basis points of improvement in product margin (defined as net sales minus cost of goods sold excluding shrinkage, buying, occupancy, distribution and warehousing costs and freight costs for store merchandise transfers), 50 basis points of leverage in store occupancy costs related to both higher sales and closure of underperforming stores, 30 basis points of benefit in web shipping cost, and 20 basis points of benefit from decreased inventory shrinkage.
Current wording
Gross profit was $135.2 million for the six months ended August 1, 2026, compared to $131.3 million for the six months ended August 2, 2025, an increase of $3.9 million, or 2.9%. As a percent of net sales, gross profit increased 70 basis points for the six months ended August 1, 2026, to 33.6%. The increase was primarily driven by 40 basis points of improvement in product margin and 20 basis points of benefit from tariff refunds.
Previous wording
During fiscal 2026, we expect to spend approximately $14.0 million to $16.0 million on capital expenditures, a majority of which will relate to fixtures for the approximately 5 new stores we are planning to open in fiscal 2026 and remodels or relocations of existing stores. There can be no assurance that the number of stores that we actually open in fiscal 2026 will not be different from the number of stores we plan to open, or that actual fiscal 2026 capital expenditures will not differ from our expectations.
Current wording
During fiscal 2026, we expect to spend approximately $13.0 million to $15.0 million on capital expenditures, a majority of which will relate to fixtures for the approximately 5 new stores we are planning to open in fiscal 2026 and remodels or relocations of existing stores. There can be no assurance that the number of stores that we actually open in fiscal 2026 will not be different from the number of stores we plan to open, or that actual fiscal 2026 capital expenditures will not differ from our expectations.
Previous wording
Net cash used in operating activities increased by $6.0 million to $28.1 million used in operating activities for the three months ended May 2, 2026 from $22.1 million used in operating activities for the three months ended May 3, 2025. Net cash used in operating activities was $28.1 million for the three months ended May 2, 2026 related to $36.2 million in unfavorable changes in our operating assets and liabilities and a $13.3 million net loss, excluding $21.4 million of noncash charges included within net loss for the period. Net cash used in operating activities was $22.1 million for the three months ended May 3, 2025 related to $27.8 million in unfavorable changes in our operating assets and liabilities and a $14.3 million net loss, excluding $20.0 million of noncash charges included within net loss for the period. Our operating cash flows primarily result from cash received from our customers, offset by cash payments we make for inventory, employee compensation, store occupancy expenses and other operational expenditures. Cash received from our customers generally corresponds to our net sales. Because our customers primarily use credit cards or cash to buy from us, our receivables from customers settle quickly. Historically, changes to our operating cash flows have been driven primarily by changes in operating income, which is impacted by changes to non-cash items such as depreciation, amortization and accretion, deferred taxes, and changes to the components of working capital.
Current wording
Net cash used in operating activities increased by $17.8 million to $27.3 million used in operating activities for the six months ended August 1, 2026 from $9.5 million used in operating activities for the six months ended August 2, 2025. Net cash used in operating activities was $27.3 million for the six months ended August 1, 2026 related to $58.8 million in unfavorable changes in our operating assets and liabilities and a $16.0 million net loss, excluding $47.5 million of noncash charges included within net loss for the period. Net cash used in operating activities was $9.5 million for the six months ended August 2, 2025 related to $39.9 million in unfavorable changes in our operating assets and liabilities and a $15.3 million net loss, excluding $45.7 million of noncash charges included within net loss for the period. Our operating cash flows primarily result from cash received from our customers, offset by cash payments we make for inventory, employee compensation, store occupancy expenses and other operational expenditures. Cash received from our customers generally corresponds to our net sales. Because our customers primarily use credit cards or cash to buy from us, our receivables from customers settle quickly. Historically, changes to our operating cash flows have been driven primarily by changes in operating income, which is impacted by changes to non-cash items such as depreciation, amortization and accretion, deferred taxes, and changes to the components of working capital.
Previous wording
Net cash used in investing activities increased by $22.1 million to $26.3 million used in investing activities for the three months ended May 2, 2026 from $4.2 million used in investing activities for the three months ended May 3, 2025. Net cash used in investing activities was $26.3 million for the three months ended May 2, 2026 related to $24.5 million in purchases, net of sales, of marketable securities, and $1.7 million of capital expenditures primarily for existing store remodels or relocation. Net cash used in investing activities was $4.2 million for the three months ended May 3, 2025, related to $2.0 million in purchases, net of sales, of marketable securities, and $2.2 million of capital expenditures primarily for new store openings, existing store remodels or relocation.
Current wording
Net cash flows from investing activities decreased by $23.4 million to $19.9 million used in investing activities for the six months ended August 1, 2026 from $3.5 million provided by investing activities for the six months ended August 2, 2025. Net cash used in investing activities was $19.9 million for the six months ended August 1, 2026 related to $15.0 million in purchases, net of sales and maturities, of marketable securities, and $4.9 million of capital expenditures primarily for new store openings, remodels, and relocations. Net cash provided by investing activities was $3.5 million for the six months ended August 2, 2025, related to $8.8 million in sales, net of purchases, of marketable securities, partially offset by $5.3 million of capital expenditures primarily for new store openings, and relocations.
Previous wording
Net cash used in financing activities decreased by $19.0 million to $6.0 million used in financing activities for the three months ended May 2, 2026 from $25.0 million used in financing activities for the three months ended May 3, 2025. Net cash used in financing activities for the three months ended May 2, 2026 was $6.0 million, related to$6.0 million used in the repurchase of common stock. Net cash used in financing activities for the three months ended May 3, 2025 was $25.0 million, related to$25.2 million used in the repurchase of common stock and $0.2 million in net proceeds from the issuance and exercise of stock-based awards.
Current wording
Net cash used in financing activities decreased by $3.6 million to $28.9 million used in financing activities for the six months ended August 1, 2026 from $32.5 million used in financing activities for the six months ended August 2, 2025. Net cash used in financing activities for the six months ended August 1, 2026 was $28.9 million used in the repurchase of common stock. Net cash used in financing activities for the six months ended August 2, 2025 was $32.5 million, related to$32.7 million used in the repurchase of common stock and $0.2 million in net proceeds from the issuance and exercise of stock-based awards.
Previous wording
There were no borrowings or open commercial letters of credit outstanding under the secured credit facility at May 2, 2026 or January 31, 2026. We had $3.2 million in issued, but undrawn, standby letters of credit backed by restricted cash deposits and marketable securities at the bank as of May 2, 2026 and January 31, 2026.
Current wording
There were no borrowings or open commercial letters of credit outstanding under the secured credit facility at August 1, 2026 or January 31, 2026. We had $2.9 million and $3.2 million in issued, but undrawn, standby letters of credit backed by restricted cash deposits and marketable securities at the bank as of August 1, 2026 and January 31, 2026, respectively.
Previous wording
The teenage and young adult retail apparel, footwear, accessories and hardgoods industry is highly competitive. We compete with other retailers for vendors, teenage and young adult customers, suitable store locations, qualified store associates, management personnel, online marketing content, social media engagement and ecommerce traffic. Some of our competitors are larger than we are and have substantially greater financial and marketing resources, including advanced ecommerce market capabilities. Additionally, some of our competitors may offer more options for free and/or expedited shipping for ecommerce sales. Direct competition with these and other retailers may increase significantly in the future, which could require us, among other things, to lower our prices and could result in the loss of our customers. Furthermore, our competitors may incorporate artificial intelligence into their businesses more quickly or more successfully than us, which could impair our ability to compete effectively and adversely affect our results of operations. Current and increased competition could have a material adverse effect on our business, results of operations and financial condition.
Current wording
The teenage and young adult retail apparel, footwear, accessories and hardgoods industry is highly competitive. We compete with other retailers for vendors, teenage and young adult customers, suitable store locations, qualified store associates, management personnel, online marketing content, social media engagement and ecommerce traffic. Some of our competitors are larger than we are and have substantially greater financial and marketing resources, including advanced ecommerce market capabilities. Additionally, some of our competitors may offer more options for free and/or expedited shipping for ecommerce sales. Direct competition with these and other retailers may increase significantly in the future, which could require us, among other things, to lower our prices and could result in the loss of our customers. Furthermore, our competitors may incorporate artificial intelligence into their businesses
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Net sales were $209.0 million for the three months ended August 1, 2026 compared to $214.3 million for the three months ended August 2, 2025, a decrease of $5.3 million, or 2.5%. The decrease in sales was primarily driven by a 2.1% decrease in comparable sales, and the net closure of 16 stores subsequent to August 2, 2025. By region, North America sales decreased $6.2 million or 3.4% and other international sales (which consists of Europe and Australia sales) increased $0.9 million or 2.5% for the three months ended August 1, 2026 compared to the three months ended August 2, 2025. Excluding the impact of changes in foreign exchange rates, North America sales decreased $6.0 million or 3.3% and other international sales increased $0.3 million or 0.8% for the three months ended August 1, 2026 compared to the three months ended August 2, 2025.
Current report — wording carried from elsewhere
Comparable sales decreased 2.1% (reflecting a 2.9% decrease in North America and a 2.1% increase in other international) for the three months ended August 1, 2026, driven by a decrease in transactions, partially offset by an increase in dollars per transaction. Dollars per transaction increased due to an increase in units per transaction, partially offset by a decrease in average unit retail. By category, comparable sales were primarily driven by decreases in footwear, hardgoods and women's clothing, partially offset by increases in accessories and men's clothing.
Current report — wording carried from elsewhere
more quickly or more successfully than us, which could impair our ability to compete effectively and adversely affect our results of operations. Current and increased competition could have a material adverse effect on our business, results of operations and financial condition.