Zumiez delivered a third quarter that surpassed Wall Street expectations, with management attributing the results to strong comparable sales growth and improved profitability in North America. CEO Richard Brooks highlighted that multiple product categories contributed to the performance, especially women’s and hard goods, with back-to-school and holiday momentum cited as key demand drivers. Management specifically credited the effectiveness of refreshed merchandise assortments and the company’s ability to attract full-price customers, noting, “Comparable sales grew 7.6% on top of a 7.5% increase in the year-ago quarter, representing our sixth consecutive quarter of positive comparable sales growth.”
Is now the time to buy ZUMZ? Find out in our full research report (it’s free for active Edge members).
Zumiez (ZUMZ) Q3 CY2025 Highlights:
- Revenue: $239.1 million vs analyst estimates of $234.4 million (7.5% year-on-year growth, 2% beat)
- EPS (GAAP): $0.55 vs analyst estimates of $0.27 (significant beat)
- Adjusted EBITDA: $18.89 million vs analyst estimates of $11.45 million (7.9% margin, 65% beat)
- Revenue Guidance for Q4 CY2025 is $293.5 million at the midpoint, above analyst estimates of $285.9 million
- EPS (GAAP) guidance for Q4 CY2025 is $1.02 at the midpoint, beating analyst estimates by 4.8%
- Operating Margin: 4.9%, up from 1.1% in the same quarter last year
- Locations: 728 at quarter end, down from 752 in the same quarter last year
- Same-Store Sales rose 7.6% year on year, in line with the same quarter last year
- Market Capitalization: $496.8 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Zumiez’s Q3 Earnings Call
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Mitchel Kummetz (Seaport Research Partners) asked about the drivers behind the strong hard goods performance, especially in skate, to which CEO Richard Brooks responded that renewed consumer interest in skate is reversing years of negative trends.
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Kummetz inquired about the company’s comp assumptions for the remainder of the quarter, with CFO Chris Work explaining that North America is expected to soften slightly after Black Friday, while Europe may see negative comps due to tougher comparisons.
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Kummetz requested details on private label penetration and its contribution to margin, with Work clarifying that private label now represents just under 31% of sales and runs at a higher product margin.
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Jeff Van Sinderen (B. Riley Securities) followed up on private label, asking about its potential peak penetration. Work noted it will depend on customer demand and could fluctuate with brand cycles, but expects dollar growth to remain strong.
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Van Sinderen asked about market share gains in North America; Brooks said the company’s focus is on its core customer, with gains coming mainly from higher average unit retail and, more recently, some increase in transactions.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will be watching (1) the sustainability of private label and hard goods momentum, especially during the holiday season; (2) expense control and the impact of ongoing store optimization on margins; and (3) signs of stabilization or improvement in international markets, where product mix and pricing discipline will play a crucial role. Management’s ability to respond to evolving consumer trends and maintain premium pricing will also be important markers of future performance.
Zumiez currently trades at $29.36, up from $27.26 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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