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what it is
Zumiez sells skate, surf, snow, and streetwear gear to teens and young adults through 730 stores and its websites.
how it gets paid
Last year Zumiez made $929M in revenue. United States stores was the main engine at $725.4M, or 78% of sales.
why it's growing
Revenue grew 4.5% last year. The 7.6% comparable-sales gain mattered most because it shows the existing store base is still productive even after a 3% reduction in store count.
what just happened
Zumiez posted $0.55 EPS versus a $0.35 estimate as comparable sales and store productivity both improved.
At a glance
B balance sheet — gets the job done, barely
15/100 earnings predictability — expect surprises
27.7x trailing p/e — priced about right
6.0% return on capital — nothing to write home about
$1.10 fy2026 eps est
xvary composite: 38/100 — weak
What they do
Zumiez sells skate, surf, snow, and streetwear gear to teens and young adults through 730 stores and its websites.
Zumiez still has a real lane with action-sports teens, and that lane is narrower than it used to be but still productive. Comparable sales rose 7.6% even as the store base fell 3%, which means existing stores sold more stuff with fewer boxes. You do not wander into Zumiez for generic basics. You go there for a specific culture, and that focus still pulls traffic.
How they make money
$929M
annual revenue · their business grew +4.5% last year
United States stores
$725.4M
Europe stores
$110.8M
Canada stores
$58.6M
Australia stores
$34.4M
The products that matter
core apparel retail
Men's Apparel
$464M · about 49% of revenue
This is the biggest piece of the business. At $464M, it tells you Zumiez wins or loses on everyday apparel demand, not just on skate culture credibility.
largest segment
second core apparel category
Women's Apparel
$325M · about 34% of revenue
This $325M segment means the business is broader than one category, but it still lives inside the same discretionary teen spending cycle.
34% of revenue
boards, shoes, and gear
Hardgoods & Footwear
$140M · about 15% of revenue
This is the piece that makes the brand feel differentiated, but at $140M it is still too small to carry a $945M retail model on its own.
brand halo
Key numbers
27.7x
trailing p/e
Jargon: P/E → stock price divided by earnings → so what: you are paying up for a retailer with projected sales declining 3.0%.
4.2%
operating margin
Jargon: operating margin → profit from the business before taxes and interest → so what: one bad season can wreck the math.
$945M
fy2026 sales est.
That estimate is only slightly above the latest $929M annual revenue, which tells you growth is expected to be scarce.
7.6%
comp sales
Jargon: comparable sales → sales growth from existing stores → so what: current customers are still spending more despite fewer stores.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 25 / 100
- net profit margin 2.1% — keeps 2 cents of every dollar in revenue
- return on equity 6% — $0.06 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ZUMZ 3 years ago → it's now worth $11,780.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Zumiez posted $0.55 EPS versus a $0.35 estimate as comparable sales and store productivity both improved.
Revenue for the period reached $239M, up more than 7%, even with 3% fewer stores. Gross margin was 34.7%, and EBITDA margin doubled from the prior-year period according to the company commentary.
$239M
revenue
$0.55
eps
34.7%
gross margin
the number that mattered
The 7.6% comparable-sales gain mattered most because it shows the existing store base is still productive even after a 3% reduction in store count.
-
comparable sales advanced 7.6% vs. prior year, after a similar (7.5%) increase in the prior-year period.
-
and, despite operating from 3% fewer stores than 12 months ago, the top line rose by more than 7%, to $239 million, versus our view of $226 million.
-
in addition to favorable operating leverage, a more efficient unit base contributed to a doubling in the ebitda margin, to just over 7%.
-
earnings per share of $0.55, which compared to last year's $0.05, easily exceeded our above-consensus $0.35 forecast, with the additional help from a lower income tax rate and a smaller share count.
-
we have raised our forecasts.for the current quarter, which is seasonally zumiez's busiest and by far its most profitable, we expect earnings per share of $1.25. that puts the figure firmly above the street's view of about $1.05 and compares to our october call of $1.20.
source: company earnings report, 2026
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What could go wrong
the #1 risk is thin-margin teen apparel retail colliding with a guided Q1 loss.
high
Q1 loss guidance
Management guided to a Q1 FY2026 loss of $0.77–$0.87 per share after posting $0.55 in the prior quarter. That is a fast reversal for a business already carrying weak earnings predictability.
When you only keep 0.94% of sales as profit, one bad quarter can erase a lot of annual earnings power.
med
No moat in the core model
There is no durable competitive advantage here. You own a mall-based specialty retailer selling discretionary goods to a price-sensitive customer, with a 6.0% return on capital and sub-1% net margin.
That makes markdowns, traffic slowdowns, and fashion misses more dangerous than they would be for a stronger brand or higher-margin model.
med
Buyback dependence
The $40M repurchase program is meaningful against a $450M market cap. It can help EPS. It cannot fix weak demand or thin merchandise margins.
If the business does not stabilize, the buyback becomes support tape, not a turnaround.
$945M in revenue sounds substantial. A 0.94% net margin says there is almost no buffer if sales, pricing, or traffic slip.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
Q1 loss versus the $0.77–$0.87 guide
This is the first credibility check. If actual results land materially worse than the guide, the recovery story gets a lot weaker.
trend
Comparable sales after the 7.6% jump
Positive comps with fewer stores are the best evidence that the concept still resonates. Flat or negative comps would expose how thin the margin for error is.
calendar
Next earnings report
The next print needs to reconcile two stories: a strong recent quarter and a guided near-term loss. You want less whiplash, not more.
risk
Whether the $40M buyback is masking weak operations
A smaller share count can lift EPS. It does not tell you whether merchandise margins, traffic, and full-price sell-through are actually improving.
Analyst rankings
earnings predictability
15 / 100
Low score. In human-speak, analysts do not trust this earnings stream to stay steady.
risk rank
4
This sits on the riskier side of the scale. You are not buying stability here.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 48 buyers vs. 56 sellers in 3q2025. total institutional holdings: 13.0M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$9
$34
$26
current price
$22
target midpoint · 17% from current · 3-5yr high: $35 (+35% · 8% ann'l return)
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