Financial Analysis

5. Commitments and Contingencies Purchase Commitments At August 1, 2026, we had outstanding purchase orders to acquire merchandise from vendors of $ 206.4 million. We have an option to cancel these commitments with no notice prior to shipment, except for certain private label, packaging supplies and international purchase orders in which we are obligated to repay contractual amounts upon cancellation. Litigation We are involved from time to time in claims, proceedings and litigation arising in the ordinary course of business. We have made accruals with respect to these matters, where appropriate, which are reflected in our condensed consolidated financial statements. For some matters, the amount of liability is not probable, or the amount cannot be reasonably estimated and therefore accruals have not been made. We may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if we believe settlement is in the best interest of our shareholders. On October 14, 2022, former employee Seana Neihart filed a representative action under Californias Private Attorneys General Act, California Labor Code section 2698 et seq (PAGA), against us. An answer to the complaint was filed on December 8, 2022. A first amended complaint was filed on February 8, 2023 adding Jessica King as a plaintiff. The lawsuit alleges a series of wage and hour violations under Californias Labor Code. After mediation on April 18, 2025, the parties have entered into a …

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6. Revolving Credit Facilities and Debt As of August 1, 2026 , we maintain a secured credit agreement with PNC Bank, National Association (the bank) which is scheduled to mature on December 23, 2027. The Credit Agreement provides for a revolving credit facility of up to $ 25 million (the credit facility) and is available for general corporate purpose. This credit facility also provides for the issuances of standby letters of credit in an amount not to exceed $ 17.5 million, commercial letters of credit in an amount not to exceed $ 10 million and borrowings in foreign currency with a borrowing sublimit not to exceed $ 15 million in equivalent U.S. dollars. The amount of borrowing available at any time under the credit facility is reduced by the amount of standby and commercial letters of credit outstanding at that time. The credit facility is secured by cash and marketable securities that are in an account held and monitored by the bank. The value of this collateral must always be greater than or equal to the new credit facility commitment amount of $ 25 million. Amounts borrowed under the credit facility bear interest at the rate of SOFR plus 1.00 % per annum. The Credit Agreement does not provide for any financial covenants but does include standard and customary covenants consistent with credit facilities of this nature. The credit facility does not carry any ongoing or unused balance fees. There were no borrowings or open commercial letters of credit outstanding under the …

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The following table disaggregates net sales by geographic region (in thousands): Three Months Ended Six Months Ended August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 United States $ 162,487 $ 169,079 $ 307,907 $ 309,120 Europe 29,327 28,923 62,079 58,215 Canada 11,423 11,011 21,574 20,703 Australia 5,727 5,262 10,753 10,580 Net sales $ 208,964 $ 214,275 $ 402,313 $ 398,618

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9. Equity Awards We maintain several equity incentive plans under which we may grant incentive stock options, non-qualified stock options, stock bonuses, restricted stock awards, restricted stock units and stock appreciation rights to employees (including officers), non-employee directors and consultants. We account for stock-based compensation by recording the estimated fair value of stock-based awards granted as compensation expense over the vesting period, net of estimated forfeitures. Stock-based compensation expense is attributed to earnings using a straight-line method. We estimate forfeitures of stock-based awards based on historical experience and expected future activity. The fair value of restricted stock awards and units is measured based on the closing price of our common stock on the date of grant. The fair value of stock option grants is estimated on the date of grant using the Black-Scholes option pricing model. Total stock-based compensation expense is recognized on our condensed consolidated statements of loss as follows (in thousands): Three Months Ended Six Months Ended August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 Selling, general and administrative expenses $ 1,502 $ 1,406 $ 3,064 $ 2,860 Cost of goods sold 418 387 880 761 Total stock-based compensation expense $ 1,920 $ 1,793 $ 3,944 $ 3,621 At August 1, 2026, there was $ 14.1 million of total unrecognized compensation cost related to unvested stock options, restricted stock awards and rest …

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7. Fair Value Measurements We apply the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 Quoted prices in active markets for identical assets or liabilities; Level 2 Quoted prices for similar assets or liabilities in active markets or inputs that are observable; and Level 3 Inputs that are unobservable. The following tables summarize assets measured at fair value on a recurring basis (in thousands): August 1, 2026 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 2,803 $ $ Marketable securities: U.S. treasury and government agency securities 18,433 Corporate debt securities 9,644 Certificates of deposit 18,900 Other long-term assets: Money market funds 6,124 Total $ 8,927 $ 46,977 $ January 31, 2026 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 7,803 $ $ U.S. treasury and government agency securities 8,867 Corporate debt securities 17,580 Marketable securities: U.S. treasury and government agency securities 10,551 Corporate debt securities 1,989 Certificates of deposit 20,224 Other long-term assets: Money market funds 6,253 Total $ 14,056 $ 59,211 $ The Level 2 marketable securities include U.S treasury and government agency securities, corporate debt securities, state and local municipal securities, variable-rate demand notes, and certifi …

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4. Leases At August 1, 2026, we had operating leases for our retail stores, certain distribution and fulfillment facilities, vehicles and equipment. Our remaining lease terms vary from under one month to eleven years , with varying renewal and termination options. The following table presents components of lease expense (in thousands): Three Months Ended Six Months Ended August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 Operating lease expense $ 20,446 $ 19,267 $ 37,592 $ 35,783 Variable lease expense 899 1,689 5,399 5,995 Total lease expense (1) $ 21,345 $ 20,956 $ 42,991 $ 41,778 (1) Total lease expense does not include right-of-use asset impairment charges, common area maintenance charges and other non-lease components. Supplemental cash flow information relate d to leases is as follows (in thousands): Six Months Ended August 1, 2026 August 2, 2025 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 39,875 $ 35,065 Right-of-use assets obtained in exchange for new operating lease liabilities 61,753 23,985 Weighted-average remaining lease term and discount rate were as follows: August 1, 2026 August 2, 2025 Weighted-average remaining lease term 4.7 4.7 Weighted-average discount rate 4.9 % 4.8 % At August 1, 2026, the maturities of our operating lease liabilities are as follows (in thousands): Fiscal 2026 $ 33,917 Fiscal 2027 68,486 Fiscal 2028 46,623 Fiscal 2029 34,941 Fiscal 2030 29,709 Fiscal 2031 1 …

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"Recent Accounting Standards We review recent accounting pronouncements on a quarterly basis and have excluded discussion of those that are not applicable and those that we determined did not have, or are not expected to have, a material impact on the condensed consolidated financial statements. In November 2024, the FASB issued Accounting Standards Update (""ASU"") 2024-03, Comprehensive Income (Topic 220): Disaggregation of Income Statement Expenses, which requires additional disclosure of the nature of expenses included in the income statement in response to longstanding requests from investors for more information about an entitys expenses. The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. In January 2025, FASB issued ASU 2025-01, which revises the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption of ASU 2024-03 is permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting …

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2. Revenue The following table disaggregates net sales by geographic region (in thousands): Three Months Ended Six Months Ended August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 United States $ 162,487 $ 169,079 $ 307,907 $ 309,120 Europe 29,327 28,923 62,079 58,215 Canada 11,423 11,011 21,574 20,703 Australia 5,727 5,262 10,753 10,580 Net sales $ 208,964 $ 214,275 $ 402,313 $ 398,618 Net sales for the three months ended August 1, 2026, included a $ 0.4 million increase due to the change in foreign exchange rates, which consisted of a $ 0.4 million increase in Australia and a $ 0.2 million increase in Europe, partially offset by a $ 0.2 million decrease in Canada. Net sales for the six months ended August 1, 2026, included a $ 4.0 million increase due to the change in foreign exchange rates, which consisted of a $ 2.8 million increase in Europe, a $ 1.0 million increase in Australia, and a $ 0.2 million increase in Canada. Our contract liabilities include deferred revenue related to our STASH customer loyalty program and gift cards. The current liability for gift cards was $ 2.8 million and $ 4.2 million at August 1, 2026 and January 31, 2026, respectively. The deferred revenue related to our customer loyalty program was $ 0.8 million and $ 1.0 million at August 1, 2026 and January 31, 2026 , respectively.

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"1 1. Segment Reporting We identify our operating segments according to how our business activities are managed and evaluated. As of August 1, 2026 , our operating segments included our United States operations, Canadian operations, European operations, and Australian operations. Our operating segments have been aggregated and are reported as one reportable segment based on the similar nature of products sold, production, merchandising and distribution processes involved, target customers and economic characteristics. We continually monitor and review our segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact our reportable segments. We identified our Chief Executive Officer (""CEO"") as our Chief Operating Decision Maker (""CODM"") as the CEO allocates resources and evaluates the performance of our operating segments based on our key performance indicators as outlined in Part I, Item 2 of this Form 10-Q. The CODM uses these measures to monitor trends in year over year performance comparisons, sequential quarter performance comparisons, compare actual results to forecasts and to make investment decisions. The following table is a summary of significant segment expenses and results of operations: Three Months Ended Six Months Ended August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 Net sales $ 208,964 $ 214,275 $ 402,313 $ 398,618 Product COGS (1) 86,976 90,219 170,215 170,895 Other COGS ( …

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"8. Shareholders Equity Share Repurchase On March 11, 2026, Zumiez Inc. approved the repurchase of up to an aggregate of $ 40 million of its Common Stock (the ""Repurchase Program""). The repurchases will be made from time to time on the open market at prevailing market prices. The Repurchase Program is expected to continue through January 29, 2028, unless the time period is extended or shortened by the Board of Directors. The Repurchase Program supersedes the prior authorization approved by the Board of Directors on June 4, 2025. As of August 1, 2026, there remains $ 10.5 million available to repurchase common stock under the Repurchase Program. The following table summarizes our common stock repurchase activity (in thousands, except per share amount): Three Months Ended Six Months Ended August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 Number of shares repurchased 1,203 597 1,468 2,405 Average price per share of repurchased shares (with commission) $ 19.30 $ 13.10 $ 20.07 $ 13.64 Total cost of shares repurchased $ 23,222 $ 7,816 $ 29,463 $ 32,816 Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss and the adjustments to other comprehensive (loss) income for amounts reclassified from accumulated other comprehensive loss into net loss are as follows (in thousands): Foreign currency translation adjustments (3) Net change in fair value of marketable securities Accumulated other comprehensive losses Three months ended August 1, 2 …

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