The positive Q1 beat on revenue and margin improvement is outweighed by a weak Q2 outlook (revenue and EPS both below consensus) and deteriorating May trends in North America. Traders should watch for potential downward revenue revisions if comparable sales continue to decelerate; the guidance is likely the dominant driver for near-term price action.
Price Chart
Executive Summary
Zumiez reported Q1 fiscal 2026 net sales of $193.3M (+4.9% YoY), exceeding $191.0M consensus, with a net loss of $0.82 per share, slightly worse than the -$0.81 consensus estimate. Comparable sales rose 4.0%, and gross margin improved 170 bps, but the company guided Q2 revenue below consensus and EPS losses wider than expected, with notable sales softness in North America during May.
Key Financial Metrics
Key Facts
- Q1 net sales $193.3M vs $184.3M YoY (+4.9%), above $191.0M consensus
- GAAP EPS -$0.82 vs -$0.79 YoY, slightly below -$0.81 consensus estimate (miss of 1.2%)
- Comparable sales +4.0% for the quarter, but May comparable sales declined 0.1%
- North America comps in May declined 1.5% (management cited 'softness')
- Q2 guidance: revenue $210-215M (below ~$214M consensus at midpoint), EPS loss of -$0.23 to -$0.08 (wider than -$0.10 consensus midpoint)
- Gross margin improved to 31.7% from 30.0% YoI; operating loss narrowed to -$15.2M from -$19.9M
- Company repurchased 0.3M shares for $6.2M during the quarter
- Cash + marketable securities $124.2M vs $101.0M YoY
- Plan to close ~26 stores (20 in North America) and open only 5 in fiscal 2026
Financial Impact
Beat on revenue but missed on EPS by ~1.2% vs consensus; Q2 guidance for both revenue and EPS below consensus expectations, with May sales already showing deceleration. Net effect is negative — forward guidance overshadows the in-line quarter.
Risk Factors
- May comparable sales turned negative in North America (-1.5%), signaling softening demand
- Q2 guidance midpoint implies revenue growth deceleration vs Q1 actual; wide store closures indicate ongoing restructuring risk
- EPS in loss position makes earnings sensitive to small revenue changes; guidance suggests no near-term profitability inflection
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3307091 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 22d ago | Press Release | $14.55 $13.20 | ▲ +9.28% | ▲ +9.06% | $13.29 (+8.66%) |
Jun 11, 2026 16w ago | Institutional Cluster | $18.51 $17.46 | ▼ −5.67% | ▼ −6.11% | $13.29 (−28.20%) |
Jun 4, 2026 17w ago | 8-K | $17.39 $18.39 | ▲ +5.75% | ▲ +5.18% | $13.29 (−23.58%) |
Jun 4, 2026 17w ago | Press Release | $17.39 $18.39 | ▼ −5.75% | ▼ −5.18% | $13.29 (+23.58%) |
Apr 24, 2026 23w ago | DEFA14A | $24.58 $22.87 | ▼ −6.96% | ▼ −7.36% | $13.29 (−45.93%) |
Mar 12, 2026 29w ago | Press Release | $21.43 $20.86 | ▼ −2.66% | ▼ −0.54% | $13.29 (−37.98%) |
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