Zumiez Inc. (NASDAQ: ZUMZ) posted fiscal 2025 third‑quarter results that surpassed analyst expectations, reporting net sales of $239.1 million—up 7.5% year‑over‑year—and a net income of $9.2 million, or $0.55 per share, a dramatic turnaround from the $1.2 million net income reported in the same quarter a year earlier.
Gross margin expanded to 37.6% from 35.2% in the prior year, the largest quarterly lift in the company’s history. The increase was driven by higher product margins, a growing share of private‑label merchandise, stronger store‑occupancy leverage, and a reduction in inventory shrinkage, all of which allowed Zumiez to capture more value from each dollar of sales.
Selling, general and administrative expenses rose to $78 million, or 32.7% of net sales, a decline from 34.1% a year earlier. The change reflects disciplined cost management and the impact of a one‑time $3.6 million wage‑lawsuit settlement that was spread over the first nine months of fiscal 2025. Operating income reached $11.8 million, or 4.9% of net sales, a turnaround from the 1.1% operating loss recorded in Q3 2024.
Management guided for net sales of $291 million to $296 million for the three months ending January 31, 2026, representing 4.0%–6.0% year‑over‑year growth. Consolidated operating margins are expected to be 8.0%–8.5%, translating to earnings per diluted share of $0.97 to $1.07. The guidance signals confidence in the holiday season and the effectiveness of the company’s cost‑control initiatives.
Zumiez opened six new stores in fiscal 2025—five in North America and one in Australia—while planning to close approximately 21 stores to optimize its footprint. CEO Richard Brooks said the quarter “represents our best third quarter in several years” and highlighted that premium pricing strategies continue to support margin expansion and market‑share gains.
Analysts welcomed the results, noting the EPS beat of $0.27 per share—an increase of 96% over the consensus estimate of $0.28—and a revenue beat of $4.44 million, or 1.9% above the $234.66 million estimate. The strong performance was attributed to robust demand in core segments, effective pricing power, and disciplined expense management.
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