Zumiez Inc

Previous wording

Fiscal 2025 is the 52-week period ending January 31, 2026. Fiscal 2024 was the 52-week period ending February 1, 2025. The first three months of fiscal 2025 was the 13-week period ended May 3, 2025. The first three months of fiscal 2024 was the 13-week period ended May 4, 2024.

Current wording

Fiscal 2025 is the 52-week period ending January 31, 2026. Fiscal 2024 was the 52-week period ending February 1, 2025. The first six months of fiscal 2025 was the 26-week period ended August 2, 2025. The first six months of fiscal 2024 was the 26-week period ended August 3, 2024.

Previous wording

We have been, and we expect to continue to be affected by a number of factors that may cause actual results to differ from our historical results or current expectations. These factors include the impact of foreign currency rates; changes in laws, including U.S. tax law changes; fluctuations in variable costs, and changes in general economic conditions in the markets in which we operate. Additionally, we have experienced increased costs during 2024 and 2025. Our ability to raise our selling prices depends on market conditions and there may be periods during which we are unable to fully recover increases in our costs or experience an adverse impact on demand due to pricing actions. We believe higher consumer price inflation has resulted in reduced consumer confidence and consumer spending which negatively impacted our sales during fiscal 2024 and the first three months of fiscal 2025.

Current wording

We have been, and we expect to continue to be affected by a number of factors that may cause actual results to differ from our historical results or current expectations. These factors include the impact of foreign currency rates; changes in laws, including U.S. tax law changes; fluctuations in variable costs, and changes in general economic conditions in the markets in which we operate. Additionally, we have experienced increased costs during 2024 and 2025. Our ability to raise our selling prices depends on market conditions and there may be periods during which we are unable to fully recover increases in our costs or experience an adverse impact on demand due to pricing actions. We believe higher consumer price inflation has resulted in reduced consumer confidence and consumer spending which negatively impacted our sales during fiscal 2024 and the first six months of fiscal 2025.

Previous wording

Net sales were $184.3 million for the three months ended May 3, 2025 compared to $177.4 million for the three months ended May 4, 2024, an increase of $6.9 million or 3.9%. The increase in sales was primarily driven by $10.2 million comparable sales increase in North America, partially offset by net closure of 21 stores subsequent to May 4, 2024. By region, North America sales increased $7.0 million or 4.9% and other international sales (which consists of Europe and Australia sales) decreased $0.1 million or 0.2% for the three months ended May 3, 2025 compared to the three months ended May 4, 2024. Excluding the impact of changes in foreign exchange rates, North America sales increased $7.5 million or 5.2% and other international sales were not significantly impacted by foreign exchange rates for the three months ended May 3, 2025 compared to the three months ended May 4, 2024. decreased $- million or 0.1%

Current wording

Net sales were $214.3 million for the three months ended August 2, 2025 compared to $210.2 million for the three months ended August 3, 2024, an increase of $4.1 million, or 1.9%. The increase in sales was primarily driven by a 2.5% increase in comparable sales, partially offset by the net closure of 19 stores subsequent to August 3, 2024. By region, North America sales increased $3.8 million or 2.1% and other international sales (which consists of Europe and Australia sales) increased $0.3 million or 1.0% for the three months ended August 2, 2025 compared to the three months ended August 3, 2024. Excluding the impact of changes in foreign exchange rates, North America sales increased $3.8 million or 2.1% and other international sales decreased $1.4 million or 4.2% for the three months ended August 2, 2025 compared to the three months ended August 3, 2024.

Previous wording

Comparable sales increased 5.5% for the three months ended May 3, 2025 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, net sales were primarily driven by increases in women's clothing, men's clothing, footwear and accessories, partially offset by decrease in hardgoods.

Current wording

Comparable sales increased 2.5% (reflecting a 4.2% increase in North America and a 5.5% decrease in other international) for the three months ended August 2, 2025, 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 partially offset by decrease in units per transaction. By category, comparable sales were primarily driven by increases in women's clothing, hardgoods, and accessories, partially offset by decrease in men's clothing and footwear .

Previous wording

Selling, general and administrative (“SG&A”) expense was $75.2 million for the three months ended May 3, 2025 compared to $72.1 million for the three months ended May 4, 2024, an increase of $3.1 million. SG&A expenses as a percent of net sales increased 20 basis points for the three months ended May 3, 2025 to 40.8%. The increase was primarily driven by a 160 basis point increase due to a $2.9 million litigation settlement, offset by a 70 basis point leverage in store costs not tied to wages, 30 basis point decrease in corporate costs, and 40 basis point leverage in various smaller benefits related to annual incentive compensation, wages and training.

Current wording

Selling, general and administrative (“SG&A”) expense was $75.9 million for the three months ended August 2, 2025 compared to $72.2 million for the three months ended August 3, 2024, an increase of $3.7 million, or 5.2%. SG&A expenses as a percent of net sales increased 100 basis points for the three months ended August 2, 2025 to 35.4%. The increase was driven by a 40 basis point increase in corporate costs, a 30 basis point increase due to a higher than anticipated litigation settlement, 20 basis point increase in annual incentive compensation, a 20 basis point increase in store wages, a 20 basis point increase in non-store wages, and a 30 basis point increase related to numerous smaller changes to impairment costs, training and other corporate costs partially offset by a 60 basis point decrease in store costs not tied to wages.

Previous wording

Net loss for the three months ended May 3, 2025 was $14.3 million, or $0.79 loss per diluted share, compared with net loss of $16.8 million, or $0.86 loss per diluted share, for the three months ended May 4, 2024. Our effective income tax rate for the three months ended May 3, 2025 was a 9.1% benefit from income taxes compared to a 14.4% benefit from income taxes for the three months ended May 4, 2024. The decrease in effective income tax rate was primarily due to the allocation of losses across the jurisdictions that we operate.

Current wording

Net loss for the three months ended August 2, 2025 was $1.0 million, or $0.06 loss per diluted share, compared with net loss of $0.8 million, or $0.04 loss per diluted share, for the three months ended August 3, 2024. Our effective income tax rate for the three months ended August 2, 2025 was a 210.0% provision for income taxes compared to a 252.5% provision for income taxes for the three months ended August 3, 2024. The decrease in effective income tax rate was primarily due to the allocation of losses across the jurisdictions that we operate.

Previous wording

During fiscal 2025, we expect to spend approximately $14.0 million to $16.0 million on capital expenditures, a majority of which will relate to leasehold improvements and fixtures for the approximately 9 new stores we that we are planning to open in fiscal 2025 and remodels or relocations of existing stores. There can be no assurance that the number of stores that we actually open in fiscal 2025 will not be different from the number of stores we plan to open, or that actual fiscal 2025 capital expenditures will not differ from our expectations.

Current wording

During fiscal 2025, we expect to spend approximately $11.0 million to $13.0 million on capital expenditures, a majority of which will relate to leasehold improvements and fixtures for the approximately 6 new stores we are planning to open in fiscal 2025 and remodels or relocations of existing stores. There can be no assurance that the number of stores that we actually open in fiscal 2025 will not be different from the number of stores we plan to open, or that actual fiscal 2025 capital expenditures will not differ from our expectations.

Previous wording

Net cash used in operating activities increased by $3.5 million to $22.1 million used in operating activities for the three months ended May 3, 2025 from $18.6 million used in operating activities for the three months ended May 4, 2024. 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. Net cash used in operating activities was $18.6 million for the three months ended May 4, 2024 related to $21.6 million in unfavorable changes in our operating assets and liabilities and a $16.8 million net loss, excluding $19.8 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 decreased by $5.9 million to $9.5 million used in operating activities for the six months ended August 2, 2025 from $15.4 million used in operating activities for the six months ended August 3, 2024. 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. Net cash used in operating activities was $15.4 million for the six months ended August 3, 2024 related to $44.0 million in unfavorable changes in our operating assets and liabilities and a $17.6 million net loss, excluding $46.2 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 was $4.2 million for the three months ended May 3, 2025 related to $2.0 million in net purchases of marketable securities, and $2.2 million of capital expenditures primarily for new store openings, and relocations. Net cash provided by investing activities was $8.0 million for the three months ended May 4, 2024, related to $10.5 million in net sales of marketable securities, partially offset by $2.5 million of capital expenditures primarily for new store openings, existing store remodels or relocation.

Current wording

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, and $5.3 million of capital expenditures primarily for new store openings, and relocations. Net cash provided by investing activities was $15.9 million for the six months ended August 3, 2024, related to $22.2 million in sales, net of purchases, of marketable securities, partially offset by $6.3 million of capital expenditures primarily for new store openings, existing store remodels or relocation.

Previous wording

Net cash used in financing activities for the three months ended May 3, 2025 was $25.0 million, related$25.2 million used in the repurchase of common stock and $0.2 million in payments for tax withholding obligations upon vesting of restricted stock partially offset by $0.4 million in proceeds from the issuance and exercise of stock-based awards. Net cash provided by financing activities for the three months ended May 4, 2024 was $0.2 million, related to $0.3 million in proceeds from the issuance and exercise of stock-based awards, partially offset by $0.1 million in payments for tax withholding obligations upon vesting of restricted stock.

Current wording

Net cash used in financing activities for the six months ended August 2, 2025 was $32.5 million, related$32.7 million used in the repurchase of common stock and $0.2 million in payments for tax withholding obligations upon vesting of restricted stock partially offset by $0.4 million in proceeds from the issuance and exercise of stock-based awards. Net cash used in financing activities for the six months ended August 3, 2024 was $19.4 million, related$19.6 million used in the repurchase of common stock and $0.2 million in payments for tax withholding obligations upon vesting of restricted stock partially offset by $0.4 million in proceeds from the issuance and exercise of stock-based awards.

Previous wording

The new Credit Facility is secured by cash and marketable securities that are in an account held and monitored by the Bank. The value of this collateral must always be greater than or equal to the new Credit Facility commitment amount of $25 million. Amounts borrowed under the new Credit Facility bear interest at the rate of SOFR plus 1.00% per annum. The Credit Agreement does not provide for any financial covenants but does include standard and customary covenants consistent with credit facilities of this nature.

Current wording

The new Credit Facility is secured by cash and marketable securities that are in an account held and monitored by the Bank. The value of this collateral must always be greater than or equal to the new Credit Facility commitment amount of $25 million. Amounts borrowed under the new Credit Facility bear interest at the rate of SOFR plus 1.00% per annum. The Credit Agreement does not provide for any financial covenants but does include standard and customary covenants consistent with credit facilities of this nature. The new Credit Facility does not carry any ongoing or unused balance fees. The Credit Facility will mature on December 20, 2025.

Previous wording

There were no borrowings or open commercial letters of credit outstanding under the secured credit facility at May 3, 2025 or February 1, 2025. We had $2.7 million in issued, but undrawn, standby letters of credit at February 1, 2025. As of May 3, 2025, we have $4.2 million in issued, but undrawn, standby letters of credit backed by restricted cash deposits and marketable securities at the bank.

Current wording

We had open commercial letters of credit outstanding of less than $0.2 million at August 2, 2025, and no open commercial letters of credit outstanding at February 1, 2025. We had $3.2 million, and $2.7 million in issued, but undrawn, standby letters of credit backed by restricted cash deposits and marketable securities at the bank as of August 2, 2025 and February 1, 2025 respectively.