ZUMZ

Zumiez (ZUMZ) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended July 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on September 10, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This clothing retailer is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -133.3%. Revenues are expected to be $212.12 million, down 1% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Zumiez, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +14.29%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Zumiez will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Zumiez would post a loss of$0.81 per share when it actually produced a loss of -$0.82, delivering a surprise of -1.23%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Zumiez doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Retail - Apparel and Shoes industry, American Eagle Outfitters (AEO), is soon expected to post earnings of $0.21 per share for the quarter ended July 2026. This estimate indicates a year-over-year change of -53.3%. This quarter's revenue is expected to be $1.37 billion, up 6.5% from the year-ago quarter. The consensus EPS estimate for American Eagle has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -4.00%. This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that American Eagle will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zumiez Inc. (ZUMZ) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how apparel retailer stocks fared in Q1, starting with Zumiez (NASDAQ:ZUMZ). Apparel sales are not driven so much by personal needs but by seasons, trends, and innovation, and over the last few decades, the category has shifted meaningfully online. Retailers that once only had brick-and-mortar stores are responding with omnichannel presences. The online shopping experience continues to improve and retail foot traffic in places like shopping malls continues to stall, so the evolution of clothing sellers marches on. The 8 apparel retailer stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 5.7% on average since the latest earnings results. With store associates called “Zumiez Stash Members”, Zumiez (NASDAQ:ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories. Zumiez reported revenues of $193.3 million, up 4.9% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with EPS guidance for next quarter missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations. “We continue to make important progress towards sustained profitable growth,” said Rick Brooks, Chief Executive Officer of Zumiez Inc. The market seems disappointed with the results as the stock is down 16.8% since reporting and currently trades at $19.53. Read our full report on Zumiez here, it’s free. With an emphasis on skate and surf culture, Tilly’s (NYSE:TLYS) is a specialty retailer that sells clothing, footwear, and accessories geared towards fashion-forward teens and young adults. Tilly's reported revenues of $124.7 million, up 15.9% year on year, outperforming analysts’ expectations by 2.8%. The business had a stunning quarter with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ gross margin estimates. Tilly's scored the biggest analyst estimate beat, highest guidance raise, and fastest revenue growth of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 18.5% since reporting. It currently trades at $3.62. Is now the time to buy Tilly's? Access our full analysis of the earnings results here, it’s free. Originally serving yogis and hockey players, Lululemon (NASDAQ:LULU) is a designer, distributor, and retailer of athletic apparel for men and women. Lululemon reported revenues of $2.47 billion, up 4.3% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations significantly. Lululemon delivered the weakest guidance update and weakest full-year guidance update in the group. As expected, the stock is down 5.2% since the results and currently trades at $118.44. Read our full analysis of Lululemon’s results here. Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ:URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion. Urban Outfitters reported revenues of $1.48 billion, up 11.4% year on year. This print surpassed analysts’ expectations by 1.4%. It was a strong quarter as it also logged a beat of analysts’ EPS estimates and a narrow beat of analysts’ gross margin estimates. The stock is up 6% since reporting and currently trades at $76.00. Read our full, actionable report on Urban Outfitters here, it’s free. Spun off from L Brands in 2020, Victoria’s Secret (NYSE:VSXY) is an intimate clothing and beauty retailer that sells its own brands of lingerie, undergarments, and personal fragrances. Victoria's Secret reported revenues of $1.56 billion, up 15.3% year on year. This number topped analysts’ expectations by 2.6%. Overall, it was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ gross margin estimates. Victoria's Secret delivered the highest full-year guidance raise among its peers. The stock is up 64.9% since reporting and currently trades at $89.55. Read our full, actionable report on Victoria's Secret here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Zumiez (NASDAQ:ZUMZ). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Zumiez with the means to add long-term value to shareholders. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Strong earnings per share (EPS) results are an indicator of a company achieving solid profits, which investors look upon favourably and so the share price tends to reflect great EPS performance. So a growing EPS generally brings attention to a company in the eyes of prospective investors. Commendations have to be given in seeing that Zumiez grew its EPS from US$0.038 to US$0.86, in one short year. While it's difficult to sustain growth at that level, it bodes well for the company's outlook for the future. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. The music to the ears of Zumiez shareholders is that EBIT margins have grown from 0.4% to 2.9% in the last 12 months and revenues are on an upwards trend as well. That's great to see, on both counts. The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart. View our latest analysis for Zumiez In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Zumiez's forecast profits? It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. Shareholders will be pleased by the fact that insiders own Zumiez shares worth a considerable sum. With a whopping US$92m worth of shares as a group, insiders have plenty riding on the company's success. That holding amounts to 23% of the stock on issue, thus making insiders influential owners of the business and aligned with the interests of shareholders. It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Our quick analysis into CEO remuneration would seem to indicate they are. The median total compensation for CEOs of companies similar in size to Zumiez, with market caps between US$200m and US$800m, is around US$2.5m. The Zumiez CEO received US$1.7m in compensation for the year ending January 2026. That comes in below the average for similar sized companies and seems pretty reasonable. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally. Zumiez's earnings have taken off in quite an impressive fashion. The cherry on top is that insiders own a bucket-load of shares, and the CEO pay seems really quite reasonable. The sharp increase in earnings could signal good business momentum. Zumiez certainly ticks a few boxes, so we think it's probably well worth further consideration. Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Zumiez that you should be aware of. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in the US with promising growth potential and insider confidence. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

This article first appeared on GuruFocus. Release Date: June 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Zumiez Inc (NASDAQ:ZUMZ) reported an 8th consecutive quarter of positive comparable sales growth, with a 4% increase in Q1. The North American business showed strength with a 4.4% comparable sales gain, and Europe posted a 5.5% gain. Private label sales reached 34% of total sales, marking the highest penetration in company history. The company ended Q1 with a strong financial position, holding $124 million in cash and marketable securities, up from $101 million a year ago. Zumiez Inc (NASDAQ:ZUMZ) achieved a 170 basis point increase in gross margin, driven by product margin improvements and cost efficiencies. The company reported a net loss of $13.3 million for Q1, compared to a $14.3 million loss in the prior year. Footwear was the only category with negative comparable sales, indicating a potential area of concern. The company anticipates a challenging Q2 with projected sales growth ranging from negative 2% to positive 0.5%. Zumiez Inc (NASDAQ:ZUMZ) plans to close approximately 26 stores in fiscal 2026, including 20 in North America, which may impact sales. The company is cautious about the back half of the year due to increased consumer pressures and evolving macroeconomic conditions. Warning! GuruFocus has detected 4 Warning Sign with ZUMZ. Is ZUMZ fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more details on the expected same-store sales growth for North America and international regions in the second quarter? A: Chris Work, CFO: We expect North America to improve from May's performance and be roughly flat for the rest of the quarter. Europe, while decelerating slightly from May, is still expected to have positive comparable sales. Overall, we anticipate a total comp growth of 0.5%, with closed stores and foreign exchange contributing to this figure. Q: How significant is the back-to-school season for your quarterly sales, and what percentage does it represent? A: Chris Work, CFO: The back-to-school season is crucial, with 40% of the quarter's sales occurring in the last four weeks. This is significant, especially considering June is a five-week month, representing only 34% of the period. Q: You mentioned that the back half of the year might be worse than previously expected. Can you elaborate on this? A: Chris Work, CFO: Initially, we anticipated low single-digit sales growth for the year, including the impact of store closures. However, given the softness observed in Q1 and the start of Q2, we've adjusted our expectations slightly downward. Despite this, we still anticipate a sales gain for the year, albeit softer than initially projected. Q: Are you seeing a bigger impact from inflationary pressures on consumers in the U.S. or Europe? A: Chris Work, CFO: The European consumer appears more pressured based on macro data. However, our European results have been better due to strategic initiatives like full-price selling and new product introductions. In North America, our business slowed with the escalation of the Middle East conflict, indicating some correlation with consumer behavior. Q: How have you planned inventory for the back-to-school season given recent sales trends? A: Rick Brooks, CEO: We feel confident about our current inventory position, especially in the U.S. We have built-in flexibility in our inventory planning, allowing us to adjust based on business trends. Our partners are supportive, and we are prepared to manage inventory effectively through the back-to-school season and into the holiday peak. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, June 4, 2026 at 5 p.m. ET Chief Executive Officer — Richard Brooks Chief Financial Officer — Christopher Work Richard Brooks: Hello, and thank you, everyone, for joining us on today's call. With me today is Chris Work, our Chief Financial Officer. I'll begin with remarks about our first quarter performance and the operating environment we're navigating before discussing our strategic priorities for the remainder of fiscal 2026. Chris will then take you through the financials and our outlook for the second quarter. After that, we'll open the call to your questions. We continue to make important progress towards sustained profitable growth. First quarter comparable sales increased 4%, marking our eighth consecutive quarter of positive comparable sales growth. This performance was driven by ongoing strength in our North American business, which posted a 4.4% comparable sales gain, coupled with 5.5% comparable sales gains in Europe as the strategic work we began last year continues to gain traction. Our first quarter results were largely in line with our expectations even as the operating environment became more dynamic as the quarter progressed, and we observed increasing pressure on consumers during the latter part of the quarter. Despite these headwinds, our merchandise assortments and customer experience initiatives continue to resonate with our core customer base, demonstrating the resilience of our business model and the strength of our strategic positioning. What's particularly encouraging is the progress we're making in Europe. While still in the early innings, the work we're doing to replicate our full-price selling model in the region is gaining traction, contributing to year-over-year improvements in both sales and margins as well as meaningful bottom line improvements for the last 2 quarters. This validates our disciplined approach to new assortments, full-price selling and expense management that we implemented just over a year ago. From a category perspective, our first quarter performance was broad-based. Men's led our positive comparable sales growth, followed by hardgoods, women's and accessories. This diversified strength across multiple categories reinforces the effectiveness of our merchandising approach and the investments we've made in product newness and private label expansion. As we look ahead to the remainder of the year, we remain focused on the same 3 strategic priorities that have driven our success. First, driving revenue growth through consumer-focused strategic initiatives. Our commitment to refreshing our product mix with innovative, distinctive offerings continues to be a cornerstone of our success. The momentum from introducing over 150 new and emerging brands in fiscal 2025 has carried forward into 2026, and this newness continues to generate strong customer response and represents an increasingly important component of our sales mix. Private label performance remains a standout success story. At 34% of sales in the first quarter, we've maintained the highest penetration levels in company history. This sustained expansion demonstrates our organization's ability to identify emerging trends and create compelling products that resonate with our customers while simultaneously enhancing our margin profile. Our private label business provides us with important flexibility while delivering the distinctive products our customers expect. Our investment in delivering exceptional customer service experiences across both physical and digital touch points continues to yield results. The enhanced staff development programs and technological capabilities we've implemented allow us to engage with customers in increasingly personalized ways, strengthening our relationships that have long served as the foundation of our success. Second, sustaining our rigorous commitment to profitability optimization across our geographic footprint. Within North America, our premium pricing strategies continue to support both margin expansion and market share growth. The operational improvements we've executed are keeping sales growth ahead of expense growth, establishing a more efficient and profitable framework that positions the business for strong flow-through on incremental sales. In Europe, we're encouraged by continued progress. The significant product margin improvements we've achieved in the fourth quarter of fiscal 2025 have continued into 2026, and we're seeing positive comparable sales for the first time in several quarters. While market conditions remain challenging, our disciplined approach is demonstrating results. We remain committed to our long-term vision for the countries in which we operate and continue to see tremendous value in our ability to identify trends locally in each market before they expand internationally. Third, capitalize on our solid financial foundation to manage volatility while funding strategic expansion. Our financial position remains exceptionally strong. We ended the first quarter with cash and marketable securities of $124 million, up from $101 million a year ago. This financial flexibility enables us to continue investing in our strategic objectives while delivering value to shareholders through our share repurchase program. We're encouraged with our start to fiscal 2026 and look forward to further deploying our strong cash generation to drive growth and enhance shareholder value. Despite operating in an environment characterized by evolving economic pressures, I am confident in our ability to generate value for all our stakeholders. The fundamental strategies that have powered our performance through fiscal 2025 and into 2026 continue to demonstrate their relevance. Our team's proven adaptability and execution capabilities, combined with our strong financial foundation, fuel my optimism about weathering any near-term headwinds and capitalizing on our opportunities, especially during the key back-to-school and holiday season, when the consumer has a reason to come out and shop. Our direction remains clear: maintain our dedication to delivering distinctive, fashion-forward merchandise through the customer and connection strategies that have driven our growth while preserving the operational discipline that has strengthened our financial performance. We've demonstrated our resilience and ability to execute through various market cycles, and I'm confident we're strategically positioned to continue building on this track record. Before turning things over to Chris, I want to express my appreciation to our entire organization for their continued commitment and exceptional execution. Your dedication to our values and our customers remains the foundation for all our achievements and positions us well for continued success throughout fiscal 2026. With that, let me hand things over to Chris for our financial review. Christopher Work: Thanks, Rick, and good afternoon, everyone. I'm going to start with a review of our first quarter fiscal 2026 results. I'll then provide an update on our May sales trends before providing our outlook for the second quarter. Net sales for the first quarter of fiscal 2026 increased 4.9% to $193.3 million compared with $184.3 million in the first quarter of fiscal 2025. Comparable sales were up 4% for the third quarter with a solid mid-single-digit growth in both North America and Europe even as consumer pressure intensified during the quarter. For the first quarter, North America net sales were $155.6 million, an increase of 3.9% from fiscal 2025. Other international net sales, which consists of Europe and Australia, were $37.8 million, up 9.1% from last year. Excluding the impact of foreign currency translation, North America net sales increased 3.7%, and other international net sales were down 0.1% year-over-year. Comparable sales for North America were up 4.4%, marking the ninth consecutive quarter of comparable sales growth in this region. Other international comparable sales increased 2.2% in the first quarter, representing a significant improvement from recent quarters and reflecting the traction we're gaining with our strategic initiatives in Europe. From a category perspective, men's was our largest positive comping category, followed by hardgoods, women's and accessories. Footwear was our only negative comping category. The consolidated increase in comparable sales was driven by an increase in dollars per transaction, partially offset by a decrease in transactions. Dollars per transaction were up for the quarter, driven by an increase in average unit retail and an increase in units per transaction. First quarter gross profit increased to $61.3 million compared to $55.3 million in the first quarter of last year. Gross margin was 31.7% of sales for the quarter compared with 30% in the first quarter of fiscal 2025. The 170 basis point increase in gross margin was primarily driven by a 70 basis points increase in product margin, 50 basis points of leverage in store occupancy costs, 30 basis points of benefit in web shipping costs and 20 basis points of benefit from decreased inventory shrinkage. SG&A expense in the first quarter of fiscal 2026 was $76.5 million or 39.6% of net sales compared with $75.2 million or 40.8% of net sales in fiscal 2025. The 120 basis point improvement in SG&A as a percentage of net sales was driven by 150 basis points related to a onetime $2.9 million litigation settlement that occurred in the first quarter of fiscal 2025, 50 basis points of efficiency in store wages, 40 basis points in non-wage store operating cost leverage, partially offset by 70 basis points detriment from vendor credits received in the first quarter of 2025, 20 basis points increase in non-store wages and 20 basis points of increase in other corporate costs. Operating loss in the first quarter was $15.2 million or 7.9% of net sales compared to prior year operating loss of $19.9 million or 10.8% of net sales. This represents a 290 basis point improvement in operating margin. Net loss for the first quarter was $13.3 million or $0.82 per share. In the year-ago period, we reported a net loss of $14.3 million or $0.79 per share. As a reminder, the prior year first quarter included the $2.9 million legal settlement which negatively impacted earnings per share by approximately $0.13, as well as $3.4 million favorable charges to the foreign exchange valuation and interest income items that did not repeat in the first quarter of 2026. Our effective tax rate for the current quarter was 8.2% versus 9.1% a year ago. Lastly, due to our repurchase activity over the past 12 months, our share count is down approximately 11% since the first quarter last year, which will positively benefit full year EPS, but is a headwind in quarters where we record a loss. Turning to the balance sheet. The business ended the quarter in a strong financial position. We had cash and current marketable securities of $124.2 million as of May 2, 2026, up from $101 million as of May 3, 2025. The increase in cash and current marketable securities from the first quarter of last year was primarily driven by $47.5 million in cash flow from operations and the release of $3 million in restricted cash, partially offset by $19 million in share repurchases and $10.5 million of capital expenditures. As of May 2, 2026, we have no debt on the balance sheet, and we continue to maintain our full $25 million unused credit facility. During the first quarter, we repurchased 0.3 million shares at a total cost of $6.2 million under the authorization approved by the Board of Directors on March 11, 2026. We ended the quarter with $153.2 million in inventory, up 2.2% compared with $149.9 million last year. On a constant currency basis, our inventory levels were up 0.7% from last year. We feel good about our current inventory position and the quality of our inventory on hand. Now to our May sales results. Net sales for the 4-week period ended May 30, 2026, increased 0.1% compared to the 4-week period ended May 31, 2025. Comparable sales for the period decreased 0.1% for the comparable period in the prior year. From a regional perspective, North America net sales for the 4 weeks ended May 30, 2026, decreased 1.9% compared to the 4-week period ended May 31, 2025, while our other international business increased 10.7%. Excluding the impact of foreign currency translation, North America net sales for the period decreased 2% from the prior year, while other international net sales increased 5.3% compared to 2025. Comparable sales for North America decreased 1.5% during the period, while comparable sales for our other international business increased 7.2%. From a category perspective, quarter-to-date, men's was our largest positive comping category, followed by accessories, women's and hardgoods. Footwear was our only negative comping category. The consolidated increase in comparable sales was driven by an increase in dollars per transaction, partially offset by a decrease in transactions. Dollars per transaction were up for the period, driven by an increase in units per transaction, partially offset by a decrease in average unit retail. With respect to our outlook for the second quarter of fiscal 2026, I want to remind everyone that formulating our guidance involves some inherent uncertainty and complexity in estimated sales, product margin and earnings growth given the variety of internal and external factors that impact our performance. This is particularly true in the current environment, where we're seeing increased pressure on consumer discretionary spending. While our business continued to perform well in Q1, we are taking a measured approach to our outlook given the evolving macroeconomic pressures we observed building as the first quarter progressed and continuing into May. We believe it's prudent to look forward with an appropriate level of conservatism given these consumer headwinds. We are anticipating total sales to be between $210 million and $215 million for the 13 weeks ended August 1, 2026, representing growth of negative 2% to positive 0.5% compared to the prior year. Comparable sales for the same time period are expected to be consistent with the overall sales trend. For the second quarter, we are expecting product margin to be down slightly to up slightly from the second quarter of last year. Consolidated operating income for the second quarter is expected to be between negative 1.5% of sales and breakeven. We anticipate earnings per share will be between a loss of $0.23 and $0.08 compared to a loss of $0.06 in the prior year. Regarding our full year fiscal 2026 outlook, as we discussed in our fourth quarter fiscal 2025 earnings call, we remain confident in our strategy and execution. However, with the increased consumer pressures we're observing, we believe appropriate caution is warranted. We will refrain from providing specific full year earnings guidance at this time, but we'll provide some context around how we see the business trending throughout the year. With the momentum we built over 8 consecutive quarters of positive comparable sales, we believe we can grow total sales for the year, inclusive of the negative impact of closed stores worth approximately $12 million in sales. This directional guidance is inclusive of our softer start to the second quarter, the difficult macro environment and an assumption the back half of the year is down slightly from our original expectations. We believe we will continue to grow product margin year-over-year in fiscal 2026 through steady improvements in North America and continued pricing discipline and full-price selling in our international entities. Our private label business, now at over 30% of sales, will continue to be an important driver of margin expansion. In addition to product margin growth, we believe further leverage exists that will drive modest gross margin expansion for the year. With anticipated sales growth, we expect to generate some leverage of our SG&A costs, further contributing to operating margin expansion. Through this, we'll be dependent on the pace of sales growth throughout the year. With the previously mentioned assumptions and barring significant deterioration in the consumer environment, we continue to anticipate operating margin growth in the 50 to 100 basis point range in fiscal 2026, as we outlined on our fourth quarter call. While effective tax rates will fluctuate by quarter, we anticipate that our full year effective tax rate will be roughly 40% to 45% in fiscal 2026 compared to an effective tax rate of 44.4% in fiscal 2025. We are planning to open 5 new stores in fiscal 2026, all within the U.S. We plan to close approximately 26 stores during fiscal 2026, including 20 in North America and 6 internationally. We expect our capital expenditures for fiscal 2026 to be between $14 million and $16 million compared to $11 million in the prior year. We expect that depreciation and amortization, excluding noncash lease expense, will be approximately $19.1 million, down from $21.3 million in fiscal 2025. We are currently projecting our diluted share count for the full year to be approximately 16.9 million shares. The share count does not include the impact of any potential share repurchases after May 2, 2026, under the $40 million repurchase program approved by the Board on March 11, 2026. We will continue to monitor the consumer environment closely and provide updates as we progress through the year. Our strong financial position and proven ability to execute give us confidence in our ability to navigate the current environment while continuing to invest in our long-term strategic priorities. With that, operator, we would like to open the call for your questions. Operator: [Operator Instructions] Our first question comes from the line of Mitch Kummetz from Seaport. Mitchel Kummetz: I guess to start on the 2Q guide, Chris, I think you said that same-store sales is basically in line with your projected sales growth. Is there any way you can maybe kind of parse that out between North America and other international? What kind of underlying comps are you expecting for those regions in the quarter? Christopher Work: Sure. And I'll just kind of back up a little bit and talk about the overall guide and then make sure I cover that, Mitch. I mean, obviously, as we've laid out today, this is below, I think, what the expectations were out there and our own expectations. Obviously, as we look at Q2 for the last couple of years, I will tell you, it's been a really challenging quarter for us to guide. As we look back on 2024 and 2025, we have just seen the slow start to Q2 highlighted by pretty strong closes and then really phenomenal back-to-school. I mean if we look back to 2024, May was down 0.2%, June was up 2.4%, July was up 7.6%. We ended up right around 3.6% comp for the quarter, and then we were up 12.3% in August. If I look at last year, we started May at 1.4%, June was 1.5%, July was 4.3%. We had 2.5% for the quarter, and then we were up 11.4% in back-to-school. So as we approach this guide and our Q2, I mean, we took our normal approach of kind of looking at the trend lines of the business and trying to think about some forward-looking estimates, obviously, based on how the categories are performing, which we're pretty happy with. Really, all categories up, except for footwear. We thought through kind of the newness that we're bringing to the market, and then the comparable metrics from the prior year. So that kind of put us at the guide you laid out, which is sales growth of negative 2% to 0.5%. We believe the comp growth is going to play right around in that same spot. The reason that is, is because we are assuming a total comp growth of 0.5%. Our closed stores are worth about 0.5% in the quarter, and then FX is a positive 0.5%. So you end up in kind of this unique spot with the way that the foreign exchange rate is working that they're in very similar positions. Now what that means by entity, we do believe that the North America run rate will improve from what we disclosed in May and be roughly flat the rest of the way. And then Europe will -- while decelerating a little bit from May, would still be a positive comparable sale as we think about what June and July could be. Now obviously, our goal is to beat our guidance. We've run 8 positive quarters of comps now across our consolidated business. We've run 9 positive quarters of comp across our North America business. As Rick laid out in his commentary, we really believe in kind of the progress we're making in Europe. That said, we know our consumer is pushed right now in regards to discretionary income, and things are just tighter, right? And as a full-price retailer, this does put probably more pressure on our business. So again, to kind of your question, we are assuming that U.S. gets better than the May run rate. We think Europe will still be a positive comp, and that kind of gets us to that 0.5% we laid out in the guide. Mitchel Kummetz: That's very helpful. And just to be clear, the expected improvement in the U.S. really hinges on back-to-school, I assume? And can you say what percent of the quarter is back-to-school? I assume you're kind of thinking in the last 2 weeks of July, but what is that as a percentage of the quarter? Christopher Work: Yes. I mean, we have 75% of the way to go. And as we think about kind of the sales and the mix, those last couple of weeks, it's going to keep building all the way through. So as we think about the quarter itself for the U.S. business, 40% of the quarter is in the last 4 weeks of the period, which is pretty substantial when you think about the fact that June is a 5-week month and is only 34% of the period. So we've got a lot of volume there at the end. And like a lot of retailers, we won't really know how the quarter ends up until we get to the end of July. Mitchel Kummetz: Okay. And then I think in -- I can't remember if it was your prepared remarks or Rick's, but there was a comment that -- I think it was yours, Chris -- that you now are assuming that the back half is worse than your prior expectations. Can you just elaborate on that? And can you kind of say how much worse? Because I think previously on the year, you were saying that sales will be up low single digits and you're still expecting positive sales growth for the year. It seems like there's a pretty fine line between those two assumptions? Christopher Work: Yes. Yes, I think that your call out from the script is appropriate and kind of how we're thinking through things. When we put the full year thoughts, obviously, not total guidance here together in March, what we talked about was sales growth in the low single-digit range. And that was inclusive of the closures that had out there, which we've identified of about $12 million. And in all transparency, that would have put us right about at that 3% level. Obviously, this quarter guide is below where our expectations are. And in reformulating our thoughts and seeing some of the softness we saw in Q1 and to start this quarter, if we kind of keep that same trajectory, we took some dollars out of the back half as well, but still ended up with a sales gain. And I think that's the important piece we're driving to. I think what's unique about our business here, especially as we look at the last 2 years of our recovery, is kind of what I laid out in your previous question of we've done okay in these off cycles. We've done really well in back-to-school and done pretty well in holidays. So this business has really shown it's about the peak, the last couple of years. So we took a little bit of sales out to kind of give that kind of full year direction. We wanted to make sure we were generally clear that based on how we're thinking about things and the newness we're bringing to the business, we still believe in a sales gain for the year, but probably a little softer than what we had in March. Mitchel Kummetz: Actually, let me ask one last one. As far as the Middle East conflict is concerned and the related inflationary pressures, are you seeing a bigger impact on the consumer in the U.S. or in Europe? I mean, your -- just from a top line standpoint, your European numbers seem to be better, but it would seem like maybe that consumer was more pressured, but what are your thoughts there? Christopher Work: Yes. It's a really good call out, and it's one, obviously, we're spending a lot of thinking too, because if you look at the more macro data, the European customer definitely seems more challenged, right? And that would be our assumption as well, Mitch. I think what's hard with retail and obviously, this given point in time would add to this, is there's not always one variable that you're managing. And if you think about what we talked about in March and what we've been talking about for Europe, we've got a lot of different things going on in Europe in regards to how we're managing that business, how we're thinking about product, how we're moving to full-price selling, how we've really brought new product into that business, how we're managing inventory. The teams are just doing a much stronger job. And I think you've seen that result here now in Q4 of last year and into the first quarter of this year. So we would agree with your assessment. The consumer is looking from a macro data, more pressured in Europe than here in North America. And our European results are better. So I think that's how we're seeing it, too. I think it's probably a combination of some of the other things we're doing in Europe that are hopefully kind of bucking that trend. Even though the consumer might be more pressured there, we're performing better in Europe. I think on the North America side, our business really slowed when we started to see this conflict escalate. And so we definitely feel like there's some correlation there. We do know that we're higher priced and have some discretionary elements to what we're doing. So we'll see what that means as we get to the more peak season that people have more reason to go out and buy. And we think we've got a pretty good offering right now on what's been driving the business and the newness that we're bringing. Operator: And our next question comes from the line of Jeff Van Sinderen from B. Riley Securities. Jeff Van Sinderen: Let me ask you, just thinking about your inventory for a minute. How have you planned inventory for back-to-school given kind of the recent slowness or within the context of the recent slower sales trend? I mean, is it a situation where you can cancel some orders? Will you just discount more? Or did you plan with more open to buy or at once that's more flexible? Richard Brooks: I mean, first, let's start by saying I think we feel pretty good about our inventory position now. So that's the starting point is I think we're in a pretty strong position in -- and again, I think even more so in the U.S., right, is where I'm at because we've been chasing some of the growth in Europe and really investing in some of the areas that we've already built up in the U.S. So I think we're starting in a really good position. And we always plan some flexibility into our business relative to the inventory planning, Jeff. And that is clearly true as we head towards the back-to-school season and because we have a lot of categories that we can -- that are relatively quick turn categories. So we do have flexibility. We have great partners, too, that are willing to work with us as business trends shape up. So I think we always feel that however we come through back-to-school, we also have the ability to make adjustments looking forward relative to heading into the peak of holiday. So I don't anticipate any different or different feelings. We obviously, as Chris said, started pretty slowly in Q2 a year ago and built, and we're able to deliver on a really good back-to-school. So I feel comfortable. We're using the same basic principles of management of our inventory processes. And I think we'll be able to manage it on -- the upside as well as the downside pretty effectively. Jeff Van Sinderen: Okay. Good to hear. And then I think you said the private label was at 34% in Q1. Just wondering where do you go from here with private label penetration? Christopher Work: Yes. I think, Jeff, what we'd say with private label is we're going to go where the consumer wants us to go. Obviously, there are certain parts of our mix that private label just doesn't play as deeply in. So it's not something where we look at private label taking over the entire business by any means. But I think what you're seeing in the current private label trends and the growth we've seen there is really a testament to our teams in capturing trend, right, and really kind of having their pulse out there to where the customer wants to go and maybe taking private label to like even a different approach than where we've been in historical peaks where it was maybe just more off-brand cycles and people cared more about colors to the point of -- I think our private label has some brand appeal, and people are recognizing what we're doing. And now it still is about fitting really well with your branded partners, too. I mean, the brands that we operate really carry a lot of equity, so we can work together with them on how we manage our private label portfolio. But we're really happy with where it's at and how it's working. And I think our teams deserve a lot of credit to bring in a pretty compelling product into the market. Richard Brooks: I'd just add to Chris' comments, Jeff, that I think over the last 5 years, what we really saw was that we would need to own the cut and sew categories in a bigger way because of the speed of brand cycles. And a lot of the younger brands never -- cycles move so fast, their focus isn't really on the cut and sew categories. So it has really, I think, required that our teams have had to step in and own more of the trend product in the cut and sew categories. And as Chris said, that means some categories that are really brand-driven, we're not very active in. And I would expect that we're going to see footwear at some point here rebound. And when we do, we may see private label perhaps that's going to impact the penetration from a sales perspective on our business. But it doesn't mean that -- I'm not sure that means that private label sales are going to decline. It may just be a mix shift when footwear bounces back. Jeff Van Sinderen: Okay. And then if we could turn to real estate for a minute. Just wondering, do you think that the net closure trend will continue into 2027? I'm not asking you to give guidance for '27 specifically, but just wondering kind of where -- I guess, what your thought process is around what's the right number of stores? Are you still a net closer going forward? Christopher Work: Yes. And I think in any time we're talking through closures, we just have to separate from kind of the North America versus the international market. I think what you're going to see is 2 different cycles. On the North America side, I mean, this is really about just kind of refining the portfolio and looking at some of the lower-performing stores and moving past, how they're working. And so I think we've seen kind of -- we believe we've kind of gotten to the peak of closures, and we'll start to see -- we'll still have closures in '27 and beyond, but not at the levels that we've had more recently. And I think on the international side, this is really a function of trying to make these entities profitable. And as we've kind of laid out in our European remarks in the past, we are pushing really hard to get new product and drive through the existing units and comp and make all these markets we've moved into work. But to the extent they don't, we will have to retract some. And we have some markets that are definitely tougher than others. So our intention is to continue to grow there and maximize what we have. But if things are not able to turn in some markets, you'll see us close a few more internationally. Operator: Thank you. This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Rick Brooks for any further remarks. Richard Brooks: Thank you. And I just want to thank everyone for your continued interest in Zumiez and your questions today. And we are going to look forward to talking to you when we release the Q2 results later this year. So thank you, everybody. We really appreciate your interest, and we'll talk soon. Operator: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day. Before you buy stock in Zumiez, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Zumiez wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,632!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,316,532!* That performance is why people listen. 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Zumiez (ZUMZ) Q1 2026 Earnings Transcript was originally published by The Motley Fool

First Quarter Comparable Sales Increased 4.0%Operating Loss Improved to $15.2 million LYNNWOOD, Wash., June 04, 2026 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ: ZUMZ) a leading specialty retailer of apparel, footwear, equipment and accessories for young men and women, today reported results for the first quarter ended May 2, 2026. Net sales for the first quarter ended May 2, 2026 (13 weeks) increased 4.9% to $193.3 million from $184.3 million in the first quarter ended May 3, 2025 (13 weeks). Comparable sales for the thirteen weeks ended May 2, 2026, increased 4.0%. Net loss in the first quarter of fiscal 2026 was $13.3 million, or $0.82 per share, compared to a net loss of $14.3 million, or $0.79 per share, in the first quarter of the prior fiscal year. The first quarter of 2025 was negatively impacted by $2.9 million, or approximately $0.13 per share related to the settlement of a wage and hours lawsuit in California. Though operating income and net income improved year-over-year, EPS was down slightly given that the Company was in a loss position in the first quarter and reduced share counts through its share buyback programs. On May 2, 2026, the Company had cash and current marketable securities of $124.2 million compared to cash and current marketable securities of $101.0 million on May 3, 2025. The increase was primarily driven by $47.5 million of cash flow from operations and the release of $3.0 million in restricted cash, partially offset by $19.0 million related to share repurchases and $10.5 million of capital expenditures. The Company repurchased 0.3 million shares during the first quarter of 2026 at an average cost including commission of $23.56 per share and a total cost of $6.2 million. “We continue to make important progress towards sustained profitable growth,” said Rick Brooks, Chief Executive Officer of Zumiez Inc. “First quarter comparable sales increased mid-single digits for the second consecutive year driven by ongoing strength in our North American business and strong mid-single digit comps in Europe. Sales trends in the U.S. remained nicely positive during the quarter despite increasing pressure on consumers, underscoring the success of our recent merchandise assortments and customer experience initiatives. While still in the early innings, the work we are doing to replicate our full-price selling model in Europe is gaining traction, contributing to year-over-year improvements in sales and margin. Despite some softness in North America during the May period, we are encouraged that we have been able to grow sales and margin through the challenges in the macro environment and feel we are well positioned to capitalize during the key back-to-school and holiday seasons when the consumer has a reason to come out and shop.” May 2026 SalesNet sales for the four-week period ended May 30, 2026, increased 0.1% compared to the four-week period ended May 31, 2025. Comparable sales for the four-week period ending May 30, 2026, decreased 0.1% from the comparable period in the prior year. From a regional perspective, comparable sales for North America decreased 1.5% and other international comparable sales increased 7.2%. Fiscal 2026 Second Quarter OutlookThe Company is introducing guidance for the three months ending August 1, 2026. Net sales are projected to be in the range of $210 to $215 million. Earnings per share are expected to be between a loss of $0.23 and a loss of $0.08. In fiscal 2026 the Company currently intends to open approximately 5 new stores all located in North America and close roughly 26 stores, including 20 in North America and 6 internationally. Conference call Information To access the conference call, please pre-register using this link (Registration Link). Registrants will receive confirmation with dial-in details. The conference call will also be available to interested parties through a live webcast at https://ir.zumiez.com. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at https://ir.zumiez.com. About Zumiez Inc. Zumiez is a leading specialty retailer of apparel, footwear, accessories and hardgoods for young men and women who want to express their individuality through the fashion, music, art and culture of action sports, streetwear, and other unique lifestyles. As of May 30, 2026, we operated 715 stores, including 560 in the United States, 45 in Canada, 83 in Europe and 27 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at zumiez.com, zumiez.ca, blue-tomato.com and fasttimes.com.au. Safe Harbor Statement Certain statements in this press release and oral statements relating thereto made from time to time by representatives of the Company may constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, predictions and guidance relating to the Company's future financial performance, brand and product category diversity, ability to adjust product mix, integration of acquired businesses, growing customer demand for our products and new store openings. In some cases, you can identify forward-looking statements by terminology such as, "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based on management's current expectations, but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation, those described in the Company’s annual report on Form 10-K for the fiscal year ended February 1, 2025 as filed with the Securities and Exchange Commission and available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Company Contact:Darin WhiteDirector of Finance & Investor RelationsZumiez Inc.(425) 551-1500, ext. 1337 Investor Contact:ICRBrendon Frey (203) 682-8200

Interested in Zumiez Inc.? Here are five stocks we like better. Q1 results improved with net sales up 4.9% to $193.3 million and comparable sales rising 4% for the eighth straight quarter of gains. Gross margin also expanded to 31.7%, helped by better product margin, occupancy leverage, lower shipping costs, and less shrinkage. Consumer demand weakened late in the quarter and continued into May, especially in North America, leading Zumiez to take a cautious stance on Q2. Management expects second-quarter sales of $210 million to $215 million and EPS of a loss of $0.23 to $0.08. Private label and financial flexibility remain key positives, with private label reaching a record 34% of sales and the company ending the quarter with $124.2 million in cash and no debt. Zumiez said it still expects fiscal 2026 sales growth and 50 to 100 basis points of operating margin expansion, while planning store closures and selective new openings. Is Abercrombie & Fitch Stock's Next Stop $40 or $20? Zumiez (NASDAQ:ZUMZ) reported higher first-quarter sales and improved margins for fiscal 2026, but executives said consumer discretionary spending pressure intensified late in the quarter and continued into May, prompting a cautious outlook for the second quarter. Chief Executive Officer Rick Brooks said comparable sales increased 4% in the first quarter, marking the company’s eighth consecutive quarter of positive comparable sales growth. North America comparable sales rose 4.4%, while Brooks said Europe posted a 5.5% comparable sales gain as initiatives introduced last year continued to gain traction. → Palantir’s Drone Tailwind Puts Its Defense AI Story Back in Focus for Investors 3 Small-Cap Stocks With Big Catalysts “Our first quarter results were largely in line with our expectations, even as the operating environment became more dynamic as the quarter progressed,” Brooks said. He added that the company observed “increasing pressure on consumers during the latter part of the quarter.” Chief Financial Officer Chris Work said net sales for the first quarter increased 4.9% to $193.3 million, compared with $184.3 million in the first quarter of fiscal 2025. North America net sales were $155.6 million, up 3.9% from a year earlier. Other international net sales, consisting of Europe and Australia, rose 9.1% to $37.8 million, although Work said they were down 0.1% excluding foreign currency translation. → Will the SpaceX IPO Put These 5 Public Space Stocks Into a Higher Orbit? Is The Bottom In For Zumiez, Inc? By category, men’s was the largest positive comparable sales contributor, followed by hardgoods, women’s and accessories. Footwear was the only negative comparable category. Work said the consolidated comparable sales increase was driven by higher dollars per transaction, reflecting increases in average unit retail and units per transaction, partly offset by fewer transactions. Gross profit increased to $61.3 million from $55.3 million a year earlier. Gross margin expanded 170 basis points to 31.7% of sales, driven by higher product margin, leverage on store occupancy costs, benefits from web shipping costs and lower inventory shrinkage. → Alphabet's $80 Billion Offering: Worrisome Dilution or AI Confidence? Selling, general and administrative expenses were $76.5 million, or 39.6% of net sales, compared with $75.2 million, or 40.8% of net sales, in the prior-year period. Work said the improvement as a percentage of sales was helped by the absence of a one-time $2.9 million litigation settlement recorded in the first quarter of fiscal 2025, along with efficiencies in store wages and store operating costs. Zumiez reported an operating loss of $15.2 million, or 7.9% of sales, compared with an operating loss of $19.9 million, or 10.8% of sales, a year earlier. Net loss was $13.3 million, or $0.82 per share, compared with a net loss of $14.3 million, or $0.79 per share, in the prior-year quarter. Work noted that share repurchases reduced the company’s share count by about 11% over the past year, which benefits full-year earnings per share but is a headwind in quarters with a loss. Brooks said Zumiez continues to focus on three strategic priorities: revenue growth through consumer-focused initiatives, profitability optimization across its geographic footprint and using its balance sheet to manage volatility while funding expansion. Private label remained a standout area. Brooks said private label accounted for 34% of sales in the quarter, maintaining the highest penetration levels in company history. He said the business gives Zumiez flexibility while helping margins and allowing the retailer to offer distinctive products. During the question-and-answer session, Work said Zumiez will let consumer demand guide private label penetration and does not expect private label to take over the entire business. Brooks added that the company has needed to take a larger role in cut-and-sew categories because brand cycles have accelerated, while some categories remain heavily brand-driven. Work said net sales for the four-week period ended May 30 increased 0.1% from the comparable period a year earlier, while comparable sales decreased 0.1%. North America net sales fell 1.9%, or 2% excluding foreign currency translation, while other international net sales rose 10.7%, or 5.3% excluding currency effects. Comparable sales in North America decreased 1.5% during the May period, while other international comparable sales increased 7.2%. Men’s again led positive comparable category performance, followed by accessories, women’s and hardgoods. Footwear remained the only negative comparable category. Work said the company is taking a measured approach because of pressure on discretionary spending. For the second quarter, Zumiez expects total sales of $210 million to $215 million, representing growth of negative 2% to positive 0.5% from the prior year. Comparable sales are expected to be consistent with the overall sales trend. The company expects consolidated operating income to range from negative 1.5% of sales to breakeven, and earnings per share to range between a loss of $0.23 and $0.08, compared with a loss of $0.06 a year earlier. In response to a question from Seaport analyst Mitch Kummetz, Work said the company expects North America trends to improve from May and be roughly flat for the rest of the quarter, while Europe is expected to remain positive though decelerating from May. He noted that the final weeks of the quarter are significant, with 40% of U.S. quarterly sales occurring in the last four weeks of the period. Brooks said the company’s strong financial position gives it flexibility. Zumiez ended the quarter with cash and current marketable securities of $124.2 million, up from $101 million a year earlier, and no debt. The company also had its full $25 million credit facility unused. During the quarter, Zumiez repurchased 0.3 million shares for $6.2 million under a repurchase authorization approved in March. Zumiez ended the quarter with $153.2 million in inventory, up 2.2% from the prior year, or 0.7% on a constant-currency basis. In response to B. Riley Securities analyst Jeff Van Sinderen, Brooks said the company feels “pretty good” about its inventory position heading into back-to-school and has flexibility built into its planning. Zumiez did not provide specific full-year earnings guidance. Work said the company still believes it can grow total sales for fiscal 2026, including the negative impact of closed stores, which he said represent about $12 million in sales. He said the company continues to expect product margin growth, aided by North America improvements, pricing discipline, full-price selling internationally and the private label business. Zumiez continues to anticipate fiscal 2026 operating margin growth of 50 to 100 basis points, barring significant deterioration in the consumer environment. The company plans to open five new stores in the U.S. and close about 26 stores, including 20 in North America and six internationally. Capital expenditures are expected to be between $14 million and $16 million. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Zumiez Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.