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Zumiez: Zumiez Delivers Strong Q3 Earnings, Exceeds Expectations

Zumiez, Inc.'s third-quarter fiscal 2025 earnings conference call highlighted the company's strong performance, with net sales reaching $239.1 million, up 7.5% from $222.5 million in the third quarter of 2024. Gross profit was $89.8 million, up 14.7% compared to $78.3 million in the third quarter of last year, driven by a 7.6% comparable sales growth, marking its sixth consecutive quarter of positive comparable sales growth. Earnings per share reached $0.55 in the quarter, well above the high end of guidance of $0.29 and analyst estimates of $0.27, with actual EPS coming in at $0.55 versus estimates, although some reports indicated $0.46. Operating income was $11.8 million or 4.9% of net sales, compared with operating income of $2.4 million or 1.1% of net sales last year.

ZUMZ

USD 30.62

12.33%

A-Score: 2.9/10

Publication date: December 4, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • Q3 FY2025 Earnings Outperformed Expectations Net sales rose 7.5% to $239.1M, gross profit surged 14.7% to $89.8M, and EPS hit $0.55, surpassing guidance of $0.29.
  • Strong Comparable Sales Growth 7.6% Q3 comp growth, with North America driving double-digit acceleration and six consecutive quarters of positive performance.
  • Full-Year 2025 Optimism Guidance for 4.5–5% sales growth and EPS of $0.57–$0.67, reversing a $0.09 loss in 2024, with $104.5M in cash and no debt.
  • Private Label Expansion Boosting Margins Penetration rose 200 bps to 31% of sales, enhancing product margins while maintaining branded product importance.

Business Segment Performance

North American business drove the performance, with comps accelerating to double digits. The company's skate hard goods business appears to have turned around, with cautious optimism about a potential multi-year recovery. The holiday season is a crucial period for skate hard goods, which tends to perform well as a gift-giving category. The company is optimistic about the holiday season, with comparable sales through the past Tuesday up 6.6%, including an 8.7% comp gain over the Black Friday, Cyber Monday period.

Outlook and Guidance

For the fourth quarter, the company expects total sales to be between $291 million and $296 million, representing sales growth of 4% to 6%. For the full year 2025, the company expects total sales growth between 4.5% and 5%, with year-over-year growth in product margin dollars. Analysts estimate next year's revenue growth at 4.6%. The company anticipates earnings per share between $0.57 and $0.67 compared to a loss of $0.09 in 2024.

Valuation and Financial Position

The company's strong financial position is reflected in its cash and current marketable securities of $104.5 million and no debt on the balance sheet. With a P/E Ratio of 57.82, P/S Ratio of 0.58, and ROE of 2.82%, the market appears to be pricing in significant growth expectations. The company's private label penetration has increased by 200 basis points year-over-year to around 31% of total sales, contributing to higher product margins.

Operational Highlights

In North America, the company appears to be gaining market share, primarily by executing well on trend and partnering with brand partners, which has driven AUR growth over the past two years. The company notes that its core customer is a young person looking to individuate and self-express their identity, and that it is focused on hyper-serving this customer. In the November period, transactions were down slightly, but store traffic was decent, with a strong pickup in week 4.

Zumiez's A-Score