Zumiez Q2 sales miss estimates driven by soft demand in US, lower traffic levels

• Zumiez projects Q3 net sales between $222 million and $226 million.
• Company expects Q3 EPS between $0.00 and $0.10.
• Zumiez plans to open 5 new stores and close 16 stores in fiscal 2026.

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell".
• The average consensus recommendation for the apparel & accessories retailers peer group is "buy."
• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 21 three months ago.

• U.S. specialty apparel retailer's Q2 net sales fell 2.5% year over year, comparable sales down 2.1%.
• Q2 net loss widened to $2.7 million from $1.0 million a year earlier.
• Company repurchased 1.2 million shares in Q2 at a total cost of $23.2 million.

The company said Q2 results were hurt by continued softness in U.S. footwear and lower traffic levels, while growth in international regions partially offset U.S. declines.