Zumiez Delivers 7.6% Comparable Sales Growth and Nearly Tenfold EPS Jump in Q3—Guidance Remains Optimistic for Q4

Q3 Results: Earnings Surge and North American Sales Lead

Zumiez (NASDAQ: ZUMZ) posted its best third quarter in years, with third quarter comparable sales increasing 7.6% and earnings per share surging from $0.06 last year to $0.55. North American comparable sales jumped 10.0%, underpinning the strong top-line momentum.

Gross profit margin expanded by 240 basis points to 37.6%, helped by a healthy balance of full-price selling and disciplined expense management. Operating profit as a percentage of sales rose from 1.1% to 4.9%, a material improvement over last year.

Fourth Quarter Guidance and Early Holiday Sales Strength

Looking ahead, Zumiez management guided for Q4 sales of $291–$296 million (4.0%–6.0% projected growth), with expected EPS between $0.97 and $1.07. Comparable sales for the fourth quarter-to-date are already up 6.6%, building on strong Black Friday to Cyber Monday momentum, which saw comps climb 8.7%.

CEO Rick Brooks described the quarter as “our best third quarter in several years,” pointing to effective merchandising, expense control, and a strong holiday start as key factors for optimism heading into the new year. While consumer conditions remain uncertain, Zumiez’s management feels increasingly confident in finishing fiscal 2025 on a solid note.

Margin Recovery and Capital Allocation Bolster Investor Confidence

The Q3 margin story stands out, with cost of goods sold improving to 62.4% of sales (vs. 64.8% a year ago) and selling, general, and administrative expenses holding steady as a percent of sales despite higher revenues. One-time discrete tax items contributed about $0.09 to Q3’s EPS. The company remains aggressive in capital returns, repurchasing 2.7 million shares year-to-date at an average price of $14.18 per share—roughly half of the current stock price of $30.41.

Balance Sheet Remains Healthy Despite Headwinds

Zumiez exited the quarter with $104.47 million in cash and current marketable securities. Net cash from operations in the nine months was $50.5 million, more than offsetting outflows from share repurchases ($38.3 million) and capital expenditures ($12.5 million).

Key Takeaway: Operational Gains Provide Strong Foundation for 2026

Zumiez’s sharply improved profitability and robust comparable sales momentum position the retailer for a solid Q4 and a strong entry into 2026. The company’s ongoing brand and merchandise improvements, alongside healthy capital allocation, provide a reassuring foundation despite the uncertain consumer environment.

For investors and observers, Zumiez’s performance offers an example of disciplined execution amid macro uncertainty. As holiday results unfold and management eyes double-digit North American growth, the next few quarters may reveal whether this momentum is sustainable—or merely a peak. Either way, Zumiez will be one to watch as the specialty retail sector heads into 2026.

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