0001193125-26-104063
SEC filingZumiez Inc. reported net sales of $929.1 million for fiscal year 2026, generating a net income of $13.4 million. The company achieved a gross profit of $332.5 million with a gross margin of 35.8%, while operating profit was $17.0 million. Operating cash flow was strong at $53.5 million, though free cash flow was impacted by capital expenditures and stock repurchases. The balance sheet shows total assets of $644.2 million with shareholders' equity of $324.3 million and cash equivalents of $127.9 million. The company operated 719 stores globally as of January 31, 2026, with plans to open approximately 5 new stores in North America during fiscal 2026. Private label merchandise represented 30.3% of net sales in fiscal 2025, and no single third-party brand accounted for more than 6.5% of net sales.
Zumiez Inc. reported net sales of $929.1 million for fiscal year 2026 ending January 31, 2026. The company generated gross profit of $332.5 million and operating profit of $17.0 million, resulting in net income of $13.4 million. Basic and diluted earnings per share were both $1.00. The company maintained a strong cash position with $127.9 million in cash and cash equivalents, supported by operating cash flow of $53.5 million. Total assets stood at $644.2 million with shareholders' equity of $324.3 million. The company operated 719 stores globally, including 561 in the United States, 45 in Canada, 85 in Europe, and 28 in Australia.
Net sales of $929.1 million were driven by the company's specialty retail operations across apparel, footwear, accessories, and hardgoods. The company's diversified brand strategy is evident with no single third-party brand accounting for more than 6.5% of net sales in fiscal 2025. Private label merchandise represented 30.3% of net sales in fiscal 2025, up from 27.8% in fiscal 2024 and 23.0% in fiscal 2023. The company operates under three main brand names: Zumiez, Blue Tomato, and Fast Times, with ecommerce websites supporting each brand. Operations show seasonality with approximately 57% of net sales occurring in the third and fourth fiscal quarters during fiscal 2025.
Gross profit margin was 35.8% based on net sales of $929.1 million and cost of goods sold of $596.5 million. Operating margin was 1.8% with operating profit of $17.0 million. Selling, general and administrative expenses totaled $315.5 million. The company reported interest income net of $4.7 million and other income net of $2.3 million, contributing to earnings before income taxes of $24.1 million. Provision for income taxes was $10.7 million, resulting in an effective tax rate of approximately 44.4%. Stock-based compensation expense was $7.3 million, and impairment of goodwill and long-lived assets was $1.9 million.
Operating activities generated $53.5 million in cash flow, primarily from net income of $13.4 million, adjusted for $21.1 million in depreciation, amortization and accretion, $63.8 million in noncash lease expense, and $7.3 million in stock-based compensation. Investing activities used $6.4 million primarily for $11.1 million in additions to fixed assets. Financing activities used $37.3 million mainly for $38.3 million in repurchase of common stock. Free cash flow, calculated as operating cash flow minus capital expenditures, was $42.4 million. The balance sheet shows total current assets of $336.0 million including $147.0 million in inventories, and total liabilities of $319.9 million including $167.5 million in current liabilities.
The company plans to open approximately 5 new stores in fiscal 2026, all in North America, though the number may change due to market conditions. Growth strategy focuses on generating sales growth through existing channels, enhancing brand awareness through continued marketing and promotion, and opening or acquiring new store locations. The company emphasizes its competitive strengths including attractive lifestyle retailing concept, differentiated merchandising strategy, deep-rooted culture, distinctive customer experience, disciplined operating philosophy, and high-impact integrated marketing approach. Risk factors include the highly competitive retail environment, seasonality of operations with 57% of sales in second half, and dependence on identifying and responding to fashion trends.