Zumiez Reports Strong North America Holiday Sales, Raises Q4 EPS Guidance Despite Lowered Revenue Outlook

summarizeSummary

Zumiez Inc. reported a 2.9% increase in holiday comparable sales, driven by strong North American performance, and raised its fourth-quarter EPS guidance due to improved margins and expense control, despite a slight reduction in net sales guidance.

check_boxKey Events

• Holiday Sales Performance

  Comparable sales for the nine-week holiday period ended January 3, 2026, increased by 2.9% year-over-year. North America comparable sales rose by 6.5%, while other international comparable sales (Europe and Australia) decreased by 8.9%.

• Revised Q4 Sales Guidance

  The company now anticipates fiscal 2025 fourth-quarter net sales to be between $287 million and $290 million, a decrease from the previous guidance range of $291 million to $296 million, primarily due to softer international sales.

• Raised Q4 EPS Guidance

  Earnings per share for the fourth quarter are now expected to be between $1.05 and $1.10, an increase from the prior guidance range of $0.97 to $1.07.

• Profitability Drivers

  The increase in EPS guidance is attributed to stronger product margins in Europe and North America, along with effective expense management, offsetting the impact of lower international sales.

auto_awesomeAnalysis

Zumiez Inc. reported mixed holiday sales results but provided an updated fourth-quarter outlook that includes a significant increase in earnings per share guidance. While overall comparable sales were up modestly, the North American segment showed robust growth. The company's ability to raise EPS guidance despite a slight reduction in revenue expectations highlights effective expense management and improved product margins, particularly in Europe. This indicates a focus on profitability that could be viewed favorably by investors, even as international sales remain a challenge.