Zumiez’s (NASDAQ:ZUMZ) better-than-expected Q2 results launched the stock as much as 22% higher to a 2-year high and snapped an eight-day losing streak as the company reported a narrower than expected loss on an 8% increase in revenue.

“We experienced a noticeable acceleration in our sales trend as the second quarter unfolded,” said CEO Rick Brooks, adding that as back-to-school sales are a good indicator for holiday demand in the past, “we are encouraged about our prospects for growth over the remainder of 2024.”

For the quarter ended August 3, Zumiez (ZUMZ) reported a loss of $0.04 per share, narrowing from a loss of $0.44 per share a year ago and beating Wall Street’s expectations by $0.29. Sales increased 8.1% to $210.2M while the company’s gross profit margin expanded 250 basis points to 34.2%. Comparable sales increased 12.1%.

At the end of the fiscal quarter, the company had cash and current marketable securities of $127M compared to $140M a year ago. The decrease was primarily driven by share repurchases and capital expenditures partially offset by cash flow from operations.

For the current quarter, Zumiez (ZUMZ) expects net sales to be between $221M and $225M, up 2% to 4% from Q3 2023, with earnings projected to be between a loss of $0.04 per share to a profit of $0.06. This is in-line with consensus estimates of $222.5M in sales with a $0.04 per share profit.

Operationally, the company expects to open ~9 new stores in FY24, which includes 3 in North America, 3 in Europe, and 3 in Australia, and close 25 stores by the end of the year.