Why Zumiez Stock Fell 17% on Friday Morning
Key Points
Zumiez missed Wall Street's Q2 estimates on both revenue and earnings per share.
International sales grew, but domestic foot traffic remained soft.
And Zumiez really wants more feet in its stores; weak footwear sales drove 70% of the domestic sales decline.
Shares of apparel and action sports retailer Zumiez (NASDAQ: ZUMZ) are taking a tumble today. The company reported Q2 2026 results last night, falling short of Wall Street's estimates. Zumiez opened Friday's trading 16.8% lower, setting a new 52-week low.
Wall Street wanted more from Zumiez
Net sales fell 2.5% year over year to $209.0 million. On the bottom line, the net losses per share increased from $0.06 to $0.17. The analyst consensus had pointed to a net loss near $0.11 per share on sales in the neighborhood of $213 million.
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And that's not all. Looking ahead, management issued Q3 guidance that was consistently below current Street projections.
Image source: Getty Images.
Blame it on the shoes (and the consumer)
Zumiez saw robust sales growth in international locations, but domestic sales and foot traffic were soft. CEO Rick Brooks wants to tailor the product assortment and marketing message for a holiday rebound. That task may be easier than it sounds, because the slowdown in key product categories is dragging on. In particular, weak footwear sales accounted for 70% of this quarter's domestic sales decline, and the downturn in this segment began in Q2 2025.
So the company's year-over-year comparisons will get easier over the next couple of quarters, and management is taking concrete action to overcome sluggish consumer spending. But it's still not easy. Comparable sales are trending down at the start of Q3 as well, and that's against the beginning footwear-slump figures of Q3 2025.
I'm watching a turnaround effort in motion here. But Zumiez is unprofitable at this point, and its cash reserves are running low. I prefer to watch this struggle from the sidelines.
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.