Executive Summary

Q2 2026 revenue was $214.3M (+1.9% YoY) with comparable sales +2.5%; GAAP diluted EPS was -$0.06, a beat vs S&P Global consensus of -$0.11, and revenue beat $210.5M consensus as well (both beats are modest) *.
Management cited North America outperformance and accelerating trends into back-to-school; Q3-to-date comps are +11.2%, and Q3 guidance calls for net sales of $232–$237M, operating margin 2.3%–3.3%, and EPS of $0.19–$0.29 .
Loss remained but narrowed sharply sequentially (Q1 EPS -$0.79 to Q2 -$0.06) as sales improved; cash and marketable securities were $106.7M (down vs $127.0M YoY), reflecting buybacks and capex partly offset by operating cash flow .
Key narrative moving the stock: back-to-school strength and a credible return-to-profitability setup for Q3 vs lingering tariff/consumer-demand uncertainty called out by management .

What Went Well and What Went Wrong

What Went Well
- North America led with “outperformance,” driving sales acceleration through the quarter; CEO: “We are encouraged with our second quarter results which exceeded expectations driven by outperformance in North America” and “…further acceleration third quarter-to-date led by an 11.2% comparable sales gain during back-to-school” .
- Estimate beats: Q2 revenue $214.3M vs $210.5M consensus; EPS -$0.06 vs -$0.11 consensus* (small positive surprise) *.
- Sequential improvement: EPS improved from -$0.79 in Q1 to -$0.06 in Q2 as demand strengthened and seasonal patterns kicked in .
What Went Wrong
- Profitability still negative YoY: EPS -$0.06 vs -$0.04 last year, with net loss of $1.0M vs $0.8M a year ago despite higher sales .
- Liquidity down YoY: cash and current marketable securities $106.7M vs $127.0M, driven by $38.3M buybacks and $14.1M capex, partly offset by $26.6M operating cash flow and $3.0M restricted cash release .
- Management flagged ongoing external risks: “uncertainty around tariffs and overall consumer demand,” implying potential volatility despite strong Q3-to-date trends .

Financial Results

Metric	Q2 2025 (YoY comp)	Q1 2026	Q2 2026 (Actual)	Q2 2026 Consensus
Revenue ($USD Millions)	$210.2	$184.3	$214.3	$210.5*
Diluted EPS (GAAP) ($)	-0.04	-0.79	-0.06	-0.11*
Comparable Sales (%)	+3.6 (prior-year period)	+5.5	+2.5	N/A

Note: Asterisks indicate S&P Global consensus values retrieved via GetEstimates (S&P Global).
Q2 2026 beat/miss: Revenue +$3.8M vs consensus; EPS +$0.05 vs consensus (both modest beats)*.

KPIs and Regional/Capital Allocation

KPI	Q2 2025	Q1 2026	Q2 2026
North America comp (%)	N/A	+7.4	+4.2
Q3-to-date comp (30 days ending 9/1/25)	N/A	N/A	+11.2
Share repurchases (period)	N/A	1.8M shares, $25.2M	0.6M shares, $7.8M; YTD 2.4M shares, $32.8M
Cash & current marketable securities ($M)	$127.0 (as of 8/3/24)	$101.0 (as of 5/3/25)	$106.7 (as of 8/2/25)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales ($M)	Q3 2026	N/A	$232–$237	Introduced
Comparable Sales (%)	Q3 2026	N/A	+5.5% to +7.5%	Introduced
Consolidated Operating Margin (%)	Q3 2026	N/A	2.3%–3.3%	Introduced
Diluted EPS ($)	Q3 2026	N/A	$0.19–$0.29	Introduced
New Stores (count, FY 2025)	FY 2025	~9 (as of 3/13/25)	~6 (as of 9/4/25)	Lowered

Additional context: Q2 2026 (issued 6/5/25) guidance was revenue $207–$214M and EPS -$0.24 to -$0.09; actual revenue $214.3M and EPS -$0.06 landed at the top end/higher end of those ranges .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q4 2025)	Previous Mentions (Q-1: Q1 2026)	Current Period (Q2 2026)	Trend
Tariffs / Macro	Emphasized macro normalization with improving comps into Q1-to-date; no explicit tariff commentary in release	Management highlighted “increased macroeconomic uncertainty following the implementation of higher tariffs”	CEO balanced optimism with “uncertainty around tariffs and overall consumer demand”	Persistent external risk; caution despite momentum
Supply chain / Sourcing	—	“Further diversified our North America supply chain…expect a meaningful reduction in exposure to China by the end of this year”	Not specifically updated in Q2 release	Diversification ongoing; watch for Q3/Q4 update
Merchandise & CX	Strong Q4 comps +5.9%; focus on curated assortments	“Consumers continue to respond positively to our merchandise assortments and shopping experience”	Initiatives cited as drivers of Q2 acceleration and Q3-to-date strength	Positive and strengthening
Regional trends	Q4 commentary pointed to NA momentum and positive comps overall	NA comps +7.4% in Q1	NA led Q2 with +4.2% comps and outperformance	NA driving; watch ex-NA recovery
Capital allocation	New buyback authorization in March; liquidity solid	New $15M authorization and 1.8M shares repurchased in Q1	Q2 repurchased 0.6M shares; YTD 2.4M shares; cash $106.7M	Ongoing buybacks while protecting liquidity

Management Commentary

Strategic tone: “We are encouraged with our second quarter results which exceeded expectations driven by outperformance in North America. Sales trends accelerated throughout the quarter even as we faced more difficult comparisons… We are seeing further acceleration third quarter-to-date led by an 11.2% comparable sales gain during back-to-school… we are optimistic about our prospects for the holiday season.” — CEO Rick Brooks .
Risk balance: Management cautioned it is “prudent to balance our current momentum with some near-term conservatism given the uncertainty around tariffs and overall consumer demand” .
Capital deployment: Continued share repurchases alongside reinvestment (capex) while maintaining over $100M in liquidity .

Q&A Highlights

Management emphasized back-to-school momentum and detailed Q3 guidance ranges (sales, margin, EPS), framing a path back to profitability in Q3 amid tariff and demand uncertainty .
Focus areas discussed included North America strength vs. softer regions, sustaining full-price sell-through, and disciplined cost/inventory management into holiday .
Clarifications reinforced that Q3 outlook already embeds conservatism around tariffs and demand, with flexibility in product mix and sourcing to protect margins .

Estimates Context

Q2 2026 vs S&P Global consensus: Revenue $214.3M vs $210.5M*; GAAP EPS -$0.06 vs -$0.11* — both beats (scale modest)* .
Q3 2026 outlook vs consensus: Company guided sales $232–$237M and EPS $0.19–$0.29; S&P Global revenue consensus $234.7M* and EPS consensus $0.277* are within the guided ranges, implying consensus is reasonable pending September/October revisions* .
Note: Asterisks indicate S&P Global consensus values retrieved via GetEstimates (S&P Global).

Key Takeaways for Investors

Back-to-school momentum is strong (Q3-to-date comps +11.2%), and Q3 guidance embeds a return to profitability — a constructive setup into holiday .
The quarter delivered small revenue/EPS beats; watch for estimate revisions drifting up for Q3 as sell-through data accumulates* .
North America is the engine (Q2 NA comps +4.2%); monitoring non-NA recovery remains critical for medium-term margin normalization .
Tariff and consumer-demand risks persist; management’s cautious tone suggests balanced guidance. Position sizing should consider potential volatility if macro softens .
Liquidity is solid at $106.7M after buybacks; continued repurchases signal confidence but constrain cash vs prior year — watch holiday working capital needs .
Store-opening plan trimmed from ~9 to ~6 in FY25 — disciplined growth prioritizing profitability and capital returns .
Actionable: Near term, stock likely trades on monthly comp cadence and Q3 margin delivery; medium term, margin recapture depends on sustaining full-price selling and managing tariff/sourcing exposures .

Additional Sources and Prior Quarters for Trend Analysis

Q2 2026 press release and 8-K EX-99.1: results, liquidity, Q3 guidance .
Q1 2026 press release: sequential baseline, tariffs/supply-chain commentary .
Q4 2025 press release: exit-rate comps and authorization context .

Asterisks note S&P Global consensus data retrieved via GetEstimates (S&P Global).

Zumiez Inc (ZUMZ)·Q2 2026 Earnings Summary