Zumiez (ZUMZ) AI Stock Analysis

Company Guidance

For the third quarter of fiscal 26, Zumiez is anticipating total sales between $222 million and $226 million for the 13 weeks ended October 31, 2026, representing a decline in sales of 5.5% to 7% compared to the prior year, with comparable sales expected to be between -5% and -6.5%; product margin is expected to be down 20- to 40-basis-points, consolidated operating income is expected to be between 1% and 1.7% of sales, and earnings per share is expected to be between $0.00 and $0.10, compared to $0.55 in the prior year. For full fiscal 26, the company will refrain from providing specific full year earnings guidance, but believes sales will be down low single digits to the prior year, including the $12 million of negative impact of closed stores; consolidated product margin will be roughly flat to the prior year, gross margin will be roughly flat to the prior year as a percent of sales, SG&A is expected to be down slightly in total dollars, operating margin is now expected to be down slightly in fiscal 26, barring significant deterioration in the consumer environment, compared to previously communicated levels of 50 to 100 basis points of growth, and the full year effective tax rate is anticipated to be roughly 55% compared to 44% in fiscal 25; the company plans to open 5 new stores, close approximately 16 stores, spend between $13 million and $15 million on capital expenditures, record approximately $19.2 million of depreciation and amortization, excluding noncash lease expense, and have a diluted share count of approximately 15.8 million shares.