Zumiez reports a 2% increase in revenue in the second quarter

Key Points

• Revenues reached $214.3 million in the second quarter, a year-over-year increase of 1.9%.
• The gross margin improved to 35.5%, adding 1.3 percentage points year-on-year.
• The operating margin turned slightly positive at 0.1%.
• Net loss of $0.06 per share.

Zumiez (NASDAQ:ZUMZ), a retailer specialized in skate, snow, and youth lifestyle clothing and equipment, published its earnings report for the second quarter of fiscal year 2025 on September 4, 2025.

Quarterly Review

• Revenue: $214.3 million, a year-over-year increase of 1.9%
• Comparable sales: Increase of 2.5%
• Comparable sales in North America: Increase of 4.2%
• Gross margin (GAAP): Expanded to 35.5% from 34.2%
• Operating margin: 0.1%, compared to -0.2% from the previous year
• Net loss (GAAP): $1.0 million, up from $0.8 million
• BPA (GAAP): -$0.06

The company attributed the strong sales to marketing initiatives and customer experience. The initial figures for the third quarter show consistently strong demand, especially in North America.

Segment Details

• North America: Strong sales and sequential improvements
• International: Ongoing weakness, especially in Europe

Balance sheet

• Cash and negotiable securities: $106.7 million, down from $127.0 million
• Inventory: Stable at $157.7 million

Guide for the third quarter of fiscal year 2025

• Net sales: $232 million to $237 million
• Operating margin: 2.3% to 3.3%
• Diluted BPA: $0.19 to $0.29
• Comparable sales growth: 5.5% to 7.5%

The guidance does not provide a roadmap for the entire fiscal year 2025 due to uncertainties related to tariffs and consumer demand.

Investors should monitor gross margin, operating costs, and sales trends, particularly as international weakness and cost pressures continue to create risks.