ZUMZ - Earnings call transcript Q1 2021

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Zumiez, Inc.

First Quarter Fiscal 2021 Earnings Conference Call [Operator Instructions].

Before we begin, I'd like to remind everyone of the company's safe harbor language. Today's conference call includes comments concerning Zumiez, Inc. business outlook and contains forward-looking statements. uncertainties. all that that historical are subject risks and on be facts statements to call this not and forward-looking other may statements made are These based on Actual results materially. may differ

Mr. number of materially over I available will this differ information Brooks. in Additional information filings the Executive Rick concerning factors could Brooks, the results from discussed cause be will call time, with turn to that Chief that Zumiez's the to actual is Officer. At a SEC.

Rick Brooks

thank Financial and us to with the begin everyone, the joining Hello, you Chris After on about the questions. call through on some call for for is first me Chris, Work, quarter that, today's I'll quarter, a sales will remarks over today. Officer. share With few second the our up then take your Chief I'll we'll you to date, the call before open numbers. to thoughts who handing call the

XXXX earlier from saw of and you As both start EPS with far our of historically of $XXX expectations. fiscal our off sales million exceeded $X.XX, release issued to a by strong which today, has earnings gotten

impact that store increase ago, a faced than that benefited February closed. ago government our XX% on start that said, same this up be expected sales of were from particularly XXXX. a our the we not COVID business exceed with being Despite remains QX when quarter, some years approximately available, headwinds year's sales our a more slower portion still of two and to that closed abated year for stimulus. XXXX during would days we will results had as stores the would first economy the global the the because anticipate Given over the we anticipating meaningfully fleet quarter, in compared XX% period of That we were

market underscores doing has environment the strategy leading model. the work long Our organization very the and, more as our and execute in its inception recently, growth centric business pandemic, an on a improved, year evolving Zumiez put the amidst now consumer has the been strength position performance and boosted of to the we in successfully last our capitalize operating The position this economic term challenging building to conditions are that navigate seeing and by uptick been that stimulus. company being demand recovery record from since has

as historical becoming increase record addition person In reflects returning the a in a and quarter between channels shopping. differentiated as digital mix that built This customers our can more the store of a we importance human one first of share to to capturing our spending, shift given channel to profitability and meaningful of the our a approach cost in to consumer experience positive brand structure very to retail. enriched human, comfortable the back achieved increasingly to development be stores our is part

to over Looking we and year. feel to ability levels XXXX our of XXXX sales good the exceed continue the ahead, both course about

face we magnitude the However, fade. in is to comparisons tougher the benefit likely as by first the same stimulus did quarter from not we and

The XX% with compared second with may quarter has total XXXX. XX% sales started year-over-year and May increasing strongly up

of for Zumiez near as outlook to recovering term to paces, is markets from at impact term While difficult the different long predict the pandemic the continues the brighten.

the our in and has on losers years over happen to within industry terms what of said accelerated. last retail As we significantly in of winners consolidation the several I retail expected call,

continue with channel to in will that the foundation, and Thanks do serve demonstrates cornerstones advantages and dynamic directly success we forward continue XX months last ability our each drive brand, these business. the are to results. and our be markets the and our best-in-class to of our culture of Zumiez's our our clearly has one over be customer will performance our our of the to the strength Our teams to or teams, door. to underscore model competitive of we our teams best-in-class working mentality move in to capabilities, sales Key customers' been gain takes which share advanced and our confidence fulfillment delivery, including in-store which

which of has path customer. originate. channel to together which in to the work continuing end While focus remain can with elements overarching sales the are with strategy We faster the culture into significant our we the an even with have will to and a in from want brands constant. to bring effectively they further touch serve great and this capabilities business evolve stronger and regardless allows ahead, diversity expenses as a over what Chris infrastructure we model with as morphed strategies We channel want, to well get visibility to and a brand uniqueness positioned invest in to before. With and of want, them in in to remain and in discuss steadfast our built our brand which customers when and will know to the been years rooted centric We've business continue strong create as to in a they commitment they ever resources future. right turn The place, will consumer require in I'll organization times to our us move allow that financials. Therefore, fast the all our ahead opportunities, less shop leverage points from call such they crisis to built to that, inventory us our the these people, back than we our We've want. customer individuate. partner emerge how

Chris Work

of start quarter With fiscal first approximately last to both and to year I'll It's fiscal the exceeded due half a XXXX afternoon, for our record been to XXXX everyone. pandemic, quarter results good year well prior Rick, of our that with provide closed the Thanks, appropriate. where stores the expectations. and comparisons

on our before trends quarter-to-date sales an updated review year. providing I'll first second perspective full our my thinking about an are how of we Following quarter on update provide results, the

in $XXX.X Compared first was the XXXX the million, store sales quarter million First up quarter sales the the XX.X%. increase sales XXX.X% the first stores of XXXX, in up of with from XXXX. the quarter net first net by driven million comparable $XXX.X and XX.X% in of were quarter from of $XXX.X and of growth addition XX

from of were stores and quarter net of XX% approximately first quarter of Our XXX% compared and open sales a potential the XXXX. XXXX consists with perspective, to America from were Other Australia XXXX. in an international the period million, years same and $XXX.X during XX.X% up compared up million, the which up over first sales, increase of of in regional year Europe quarter ago. XXXX From for and days operating of XX.X% $XX.X North XX% two XX.X% the last in XXXX XXX.X% first were

days our and goods, the From hard they impact XXX.X% related North category accessories, had XX% and sales were Canadian the increased open increased net prior in categories translation, approximately store most closures with first footwear. our sales other compared European a XX.X% the foreign currency quarter net up impactful all and America international Excluding for men's year, perspective, from of respectively. and being the women's of sales and year available COVID with followed during total were positive, operations of XXXX. Both XX% by this operating

the in first first in and quarter quarter was of XXXX. charges XX.X% last margin of $XX.X of and first costs, of The profit $XX.X the XXXX gross due quarter quarter the $XXX.X a the million in closed. compared first X,XXX rent to XXXX to the XXXX. quarter from Gross year in was stores to XX% million XX.X% as largely in in were X,XXX while points of quarter sales compared leverage the basis quarter First our was million point of occupancy XXXX percentage the first improvement of the impact continuation of including for basis

XXX increased of improved as improvements level distribution were a compared store leverage in basis to in SG&A sales costs. we in gained expenses costs significantly year improvement, years points leverage net of these sales. improvements from basis resulted occupancy $XX.X by net in XXX costs percent the fulfillment our of point net to on -- product points in due of XXX base prior our fixed revenue the quarter that leverage a and year XX.X% meaningful related margin basis when quarter store of in sales product to sales. XXX XXX of to our addition, basis of compensation. compared point most repeat to decrease we as as or XXXX, points related to was store gained in points points the points from XXX of million not higher sales partially COVID-XX. The XXXX incentive the XX.X% other the and $XX.X largely significant of year basis prior corporate margin million shrink in two with closures $XX.X Gross of related XX.X% costs, And basis basis offset XXX significant subsidies net ago. first to higher basis In fixed ago XXXX XXX first leverage reduction in percentage experienced and a XXXX, sales points did the XXX of leverage a by we governmental or were leverage basis and margin increase of driven expense points of in million Compared and SG&A or basis X,XXX wages,

million Our In of operating we million of the of of $XX.X compared first operating income $X X.X% million was of of in the net operating or or prior quarter sales. with profit or sales. $XX.X net net XX.X% loss of an first XX.X% XXXX, in sales quarter had XXXX an year the

the Net of or for the quarter sales loss compares million or XX% and to from per of income $X.X was XXXX the $XX.X XXXX share for for the quarter, quarter This first through $X.XX on of income of first of recognized share. first per per million of first quarter quarter incremental $X.XX or XXXX. net a XXXX. flow from XX% and the share of $X.XX the net quarter we million $XX.X During first

tax rate of in XX.X% Our for ago first XX.X% was period. quarter year XXXX compared effective the to the

compared May in sheet. quarter increased XX.X% and partially to operations, by by to expenditures. very million of securities capital of marketable XXXX X, cash securities $XXX.X financial Cash current offset X, current May million balance The the the as The Turning cash marketable driven business generated position. in was increase strong XXXX. and ended as to through $XXX.X a

XXXX, sheet selling a X.X% to credit essentially of million. the million $XXX.X May at unused favorable $XX QX balance levels we inventory, year. inventory no flat our We in and both basis, with currency of down the inventory full X, debt of quarter maintain end and As ended the our the Overall, is line on had and with on were hand XXXX last constant XXXX. margins. QX healthy On continue from

category, last Men's From Now period last compared XX.X% was and for XX.X% to all sales ended hardgoods. June sales increased total business regional America XX, XXXX, week exception in four from North by over week to categories ended our results. XX.X% year with X, our the the ended up period May same XXXX. period for increased XX.X%. and sales four to positive the four period prior of our for to Meanwhile, sales the compared fiscal XX.X% May weeks From category the June with XX.X% a four year, were our year increased perspective, accessories, week XXXX. footwear increased ended perspective, most other XX, women's. Net the XX, net of a May May versus Compared the XXXX. up sales X, was compared week XXXX, net international period comparable ended followed four business increased the XXXX period and

to of the of results. in comparable a XXXX spending the a our May accelerated only combined shift base comparing to comp terms enough May with result XXXX opened be long last May, because results year, as are online for In had of we COVID-XX, to stores sales included portion we

in performance you quarter do first revenue, to ended June second For May expectations XX, the the compared XXXX, to not year. the specific that projected XXXX. XX.X% Due four quarter with the want our for year. directional for exceed Concerning limited we we be on sales business, update X, will XXXX give ended of visibility for weeks comparable or full our the in the XXXX on we four guidance XXXX increased based levels. we year providing weeks fiscal fiscal said, would previously results, May have a revenue That the

XXXX second XXXX On May begin Given pandemic. to sales quarterly quarter, net challenged will fiscal caused and basis, fiscal we the that XXXX the the the by and comparisons XXXX low mid-teens year-over-year in the first a to now significant believe between seasonality XXXX. to growth fiscal be from the fiscal quarter the shift in will from due strong results grow

we'll the Examining the begin by the of As the XXXX, quarter we to previously slow impacts our second that but as only first for anticipating discussed and remainder throughout in stimulus to of anticipate return to from be in results a normalized the year XXXX. seasonality. note of that year, XXXX will the also the we rates wane. not a result, high XXXX growth comparing will XXXX, the quarter of from more level XXXX impact And quarter to XXXX

year, fiscal this quarter XXXX the which that XXXX. with to business, from the we fiscal will low trends high double-digit double-digit anticipate quarter growth from sales single-digit translates second see record-setting However, growth our in current of our second growth in to results we May in and

look employing season, growth currently grew the back-to-school the We season potential to remote restrictions to the we the of fourth and learning of XXXX. year, of fiscal sales year-over-year still the compared place are our and the to the to mid low back XXXX fiscal about challenges third holiday during encouraged XXXX for in digits Considering quarters. fiscal in country be the the fourth the XXXX sales the single year quarter in in much anticipate quarter we of in pandemic. to third As half and to XXXX prior XXXX despite due muted we compared both

in levels Moving the on on sales. XXXX for currently costs margin costs by web Product XXXX year-over-year, points a occupancy to versus grew reduction by planned grow improved driven in being open with normalizes as gross gross record is row. leverage margin fifth in to a XXXX of increased XX shipping to margin. year revenue stores basis and and

received expected much not will margin benefit ahead repeat of XXXX's reasons as summary, in expenses XXXX, In to anticipating growth On were and expect sales. events closer SG&A reductions and in increase governmental foregone to the little several Fiscal in in slightly wages XXXX SG&A included are in sales. marketing our in and costs a that costs an closures increase to XXXX to we possible store in to related with mall net year-over-year for in with We over store and of increase margin, due spending up that expansion not to events however, XXXX drivers pandemic. fiscal improve in planning margins hours back an percent not basis, subsidies operating in to The in gross fiscal XXXX, other of results. in see pandemic, to sales very of to our grow be product XXXX while include XXXX are digits double in reduced we anticipated repeat due XXXX that were XXXX, the overall reaching fiscal training XXXX restrictions year. in half with costs are the for travel XXXX travel a related XXXX, recognition increase anticipated related and from this

We tax are planning XX% assuming of effective annual currently in XXXX. rate XXXX business fiscal compared an with our XX.X% fiscal in approximately

growth be other anticipate just fiscal With of will remainder expected quarter disclosed. We our to we share in as currently increases we year strong earnings COVID start are travel, future planning Throughout the fiscal come as more such to we increase store moderate the back XXXX XXXX with to to in more the EPS that costs year, per are the a of with restrictions into compared XXXX training expenses payroll model hours, above. quarters, first attributed majority the are meaningfully in the capacity discussed of planning year. related and reduced, to sales the

cash As surge expect today, experienced and initial outlined shutdowns those the saw the to minimized second second the expenses we our down quarter flow we had place our from on will a estimates as anticipating an reopened would put the exceed incremental we in event while year through quarter be example, sales setting stores we resources. to are prior sales sales. controls after EPS strong due record a a in when In conserve

stores and approximately We XXXX, North new fiscal to Europe XX stores stores five are stores America, including open in Australia. in planning in five XX in

We in remodels. planned with compared in are fiscal planning the between $XX and to approximately spending stores close million The majority expenditures million to $X.X new be five are XXXX. fiscal year. planned be during store million to openings six $XX will and our dedicated Capital capital XXXX of to

approximately excluding share in our our repurchases approximately compared reduce We year expect from to the lease $XX.X And XXXX. Any fiscal noncash the million depreciation share XX.X for this projecting amortization, be be and estimate. currently XXXX that full to million year million are fiscal in share will shares. expense, $XX count count we during will

are We results our of teams of XXXX. financial to our the start proud very effort and

outperform strategies the by future. that continue and of time to the period have marketplace events enhanced stimulus. Our opportunities us top model that long-term allowed continue for to in in believe and a to growth economic and We strong have pandemic heavily impacted we bottom unusual line our the is operating good be of

the to it we XXXX, quarter look be to will the experienced of of we XXXX. the results in As replicate first first anticipate we challenging quarter

in drive open we questions. our the we continue up to future. long to to with for like However, into would And for that, shareholders value operator, term confident ability remain our call the

Operator

Sinderen question B. Jeff from Van comes first Our Riley. Instructions] [Operator from

Jeff Van Sinderen

how perhaps you in there, or out some what what's would QX you maybe that your the give terms back-to-school but you managing be reopening so forward are in not chain? improving period? saw are traditional just might be supply and school, And QX, thoughts you normally of Can on Just as about pull schools latest guess, I inventory QX for shaking challenges you're a wondering in QX. us think how wondering seeing much

Just maybe you can us. frame help for that

Chris Work

a was lot related more seeing through footwear little the and categories That within although, take we still job challenges the we we and of strong the of than product wanted, getting our moved teams pretty goods feel some we're to the a longer delays catch as It done learning especially challenges to assortment, in the business. getting printables think and bit kind things QX level. work our in minimized supply are first at and our some planning QX of a a at trying I talked chain through. and challenge say, is to But just chain really like other vendors we quarter, the there some perspective, think ecosystem. around buying that up. I longer-term XXXX are even We port like across a beginning still today, I within much and from and do of would there the supply hard product and have great

good where an I supply chain perspective. overall think we pretty So feel from are we about

you all side, our are really entities. our and strong On the they we as inventory of across saw, how inventory feel current levels stand were they and about where good pretty

this. in challenges back-to-school, QX, of of we exceptionally we this is our beyond As lot. expectations. about the performed chase We think a Obviously year had to a one like

things where teams and pretty a And move brands orders work little we're our that's to and chasing within with out. selling, are ecosystem. the think continue are around the standard so I maybe slower, where we're pushing things And to

a -- And plan have at this, pretty back-to-school doing back-to-school. a got kind period relates in are they put these bet. out. go we they're it of if to to to we've teams to regionally push holistically good like the both and And what together As need for be push they we can chase. We've if make able through thought we of a out, we'll chase, to kind back-to-school. communities as serve And have and we

Jeff Van Sinderen

for metric you could then outlook thinking you remainder the then, I and if for mind, don't lately maybe the business, you're progression if your the the of about about that? year. How international seen speak And more there guess, you've international

Chris Work

shot like closures he shutdown European with as Yes, lot in let quick and I'll and our business, take add that season travel. resorts as talked specifically, holiday saw anything then we restrict of challenges the a across of saw just Rick to. QX a and the We the about our important important, maybe winter would we March

So We're in it end of possible days Those them quarter what to did of good by to a existed much We geographies majority, about and QX. the for just geographies QX. with done in challenges pretty some really closed have QX was in, really very quite XXXX encouraged of all rolling closures months the were teams in nine year. challenging closed after XX% the across actually not the of subside. the QX we're all start

in really, higher a challenging XXXX, put to than in all it higher QX closure was what it of in environment. The and in than rate So was QX was just was perspective. really it it what

pandemic, So we to it's with. to I good online the European think going about XX% our of the begin sales business, about our had news and

off. would So to ramped think of an we've in European closures and up teams This proud was QX. the that And some we for means. any no different how while as not operating expect you the that in through they'd not that quarter. We're I QX, by they're have is quite in fight But up environment of kind not online and picked hoping far they've our this. are they're volumes where had first easy be really of it had really channel the

I so unexpected a with credit closures. lot give the had And we've challenges given really of them

our Europe. I bullish think longer around we're still term, very on beliefs

our forward. competitors, operating of a of on with what have we communicated scales investment have say, taken has can I think scale. smaller it think we're back we there us. some we some to stores, capitalize investment, pretty moved they've really see meaningful over we environment difficult and today, should starting to based that on a payoff and And as and customers move have more been really peers opportunity the online I when I how this the we've our And on and to grow difficult on think We is before stores. able open good in talked to probably we've been it's Europe been our as really has know smaller mean I here. us as

think I opportunity environment really to we a have good get normalized there. more a as we

put of And Australia opportunities out that and just Australia, still global kind growing of and business. XXXX part XXXX. there. for pretty there the coming across in business lastly, we We're to also it them, in the well. the It's working I a Despite business, to done great are think we've QX operations about in teams optimistic the a so a the job what that And we remain Europe has about we And start fact other, of think are closures means just I'll very the definitely And of done But as fast synergies our acquired each teams times done from it phenomenal extremely they're There's platform globalize to off navigating they've was our the what business of as of international proud have through. really together. geographies. and great even year then trying units. the mention to time the since building time. they're them. best

performing. is business with we're happy how So that

Rick Brooks

have on strategy, integrated do did execute add our our add scale To to Jeff. again. just job, model, our that I'd build great I'd channelist that, omni that. just to markets Chris a model, And to you

as have have You the presence. presence well a as to physical digital

our tools. But able and country-by-country doing skills, the in a our So Ad where on of side is last that's year. exactly business stores that of a has holiday, Chris the really course, important roll said, then being then, is profitability really all of been and so effectively basis European the building we investment we that during execute physical to our business. can closed were as the focus drive

worse be was holiday I'm that ago. hard it So can't worse. it's to hard a could be, going to not it year to possibly but it imagine magic say it's than

work a there So our to much, I much effort of holiday appreciative think, I'm and stronger looking team's over again, season year. forward this hard and

Operator

Our from with question Stitcher Jefferies. come next will Janine

Janine Stitcher

like much first A you maybe much some how of wallet. XQ. think questions. the about And versus Want of ask just sense if especially benefit, it at you a couple of hard has still stimulus wanted you Curious there the spent still then to sounds stimulus, consumer is think to start is in how left us about give their also goods. ask could

I versus year, from anything to with the Wondering last suggest just in that if May. was down there's think slowing? you comparison hardgoods said year business last the you're if anything seeing in

Chris Work

these a had wish go answer perspective, ahead stimulus I'll I here. tackle and I ball the try to crystal to From your question.

years been run went of results stimulus our It's happy much we've on comparable and business the environment. a pretty actually, we've in think good looked said the at we over come comping and had well. our have as really years positive five as at As it QX. that sales May of our We prepared business. five into last remarks, think all store that definitely periods economic there's we looked the impact when the performance with and we've of are last Pretty very highest our in the interesting,

of So and now of June into March as May and XXXX April XXXX, well. January of May and and XXXX

a So there's correlation definitely on business. the

you the for they to ability said the to that working that is channels think so shop in customer, those want in to I a have have mobile my get have I results. there business model important and is and customer when part remarks, inventory to the all is As the allow

it's of really on much how So comment I able won't be to left.

and really model the good our seen consumers we we've Although, in I'm sure We where we're savings put with feel can sales on a best-in-class are. capitalize teams like that spot you've we've in where seen together. and are around rates what

and all the piece that. see our not goods, around focus quarter to in And really on of was it's driving on run. so but around was incredible would I what's And up say you ever hard We just goods, although slightly. in model. are that's second departments that it sort we with move customers Starting know, We On hot. would up, XXXX, really hard love the our an XXXX just whole and gains. sales trending tell as May, in our And QX. what's our is it it down is you say was down business here been every did

the is we in the fact, In felt closures. impact markets where really had

closures and just or in Europe, meaningful probably took down we had where slightly. Canada So both what it

about hard you worried are still if category. goods sales, goods about the of increase has XXXX for it these think had a percent phenomenal results not and as throughout because hard overall we're the XXXX we're I So a very kids closure home were that for sheltering last period a here And became think year popular to and their anniversarying looking buy a for people things time for this where during do. that of

skateboards lot optimistic the will a closure saw we that how we're year. the And of So about the remainder during the We're period. still of now. anniversarying out category for play

Operator

question Komp Baird. next with from Our Jonathan come will

Jonathan Komp

between result do temporary competitors? reinvesting but question the permanent lasting I or a a upside your fewer decision what's more flow for ask like the into quarter. that of does coming and off what And of want such broader strong outlook? a to more other to view strategic execution through little as the broader as a allow of bit tailwinds result how maybe you environment, to of versus play of the split bit A sort How follow-up, a a

Chris Work

be to and time, question. crack, this one anniversary too. going just it's I'll I remarks about in I our XXXX. perspective prepared I a spent that of to is, Obviously, we great It is take think think overall mean QX I hard of and will. my a -- talked lot

in the like the market We consolidated That and I and think with seeing we're we're I for history offering we it have being every that are sales in said, we first believe model And it product we're that quarter a had our not our our market. believe operating teams that share. we're of believe winning in. quarter seeing year. and I our a operating taking in

retailer every experienced here, analysis. there's try is for think this have than going different to to And piece be And some, but a at QX think permanent and to will so I look I what in do it do others. they

is model it not these what and you've seen comment some to like We good last and into tell how we've we really XXXX right this it be going QX years flowed through. the feel I'm you, to as us than And the about got I about year to relates from to few future. strong really economics of the good would I results see the think earnings opportunity now. feel going of on Other results. So

of I expect that. think one. advantage take our results question investors we part these to cycle. the trying would hope do is and in I us around your second business reinvestment a I to all of type this the opportunities of taking are in think And really good And of

seen count You've historical Opening from store We're seeing bit the great in and market. our levels. actually really seeing little count. opportunities has deals we're a increased

capitalize market 'XX over opened a stores were to on had lot the and we're estate expect, which and very going you'd times in decade. real stores. from economic 'XX, were perspective as try those. the those we we And to real last of to think stores of great back challenging an so a We some obviously And

we're kind that will at we to XXXX opportunity looking or in for sense that top makes value think drive well. we're as to of this long-term invest expenses. look that And line reduce going So as opportunities

Rick Brooks

team. add, part our John, that of our in continued is I would just that investment again, investment

to not events. for in able or person safety back person in being still, we've marketing get So events reasons, to

why going are believe model, commitment of course, And to their our about people into our it's so in invest our come those to stay professionals commitment shareholders. in years partly And as creation because value what business. so it's we development drives helping in for here So future. too because of long the it's our all many their Zumiez is at our people term many costs to back

perspective the relative back come too to us to virus So allow a safety in those in. conditions costs are back going bring those as from to

Jonathan Komp

over balance a uses And now cash your your we think plans and just cap given the there? your third market I rising basis. then cash for that at think about potential What on balance, looking that, just it of it's should on

Chris Work

pay helped of have if But into we the the I think huge maybe that as way. important And continue our results. balance ago, XXXX open last the cap it trying pay for it market And continuation seeing And I year think these meant it can be I Obviously, that to very and pandemic. of forward over together. a the our pandemic coming of was of closure and my figure weather storm on us start. got quick XXXX. that Well, teams to we like throughout us roll we business proud our do healthy that hit were that ground big was going about a that as decisions. how super should also people And very our we're sheet. go out our we're just first paid be a and up, it into It's make and seems we're a great think benefit off would to really think pays running, period people. But some the not big see we in us we here obviously, in would year lost to a what investment results teams we us to cash, just the

strong of a having obviously, So is big sheet a focus balance ours.

spot cash the for Board in drive to that long cash with ways the potential shareholders. for And over retail it. in our expenses, both first that And and we Board we that spot by you in how value the to if how that been pretty winners reducing that's invest down a see as sales to hierarchy this work have long and Our will would can our to thoughts outside be $XXX find belief And from funds. can building and going within through work term. then I And use know, culture our kind and going in we And that. feel generates good quarter which segment return would at at cash, can the buyback value return authorized in balance where and the opportunities or smart how smart We and we do like as we the is we business, what things. for the to look to we're for we unique lastly, very defined doing. to economics it opportunities we point. those be shareholders. a the sits to business or term try we're on that our and sit secondly, million long out we'll We're have of the programs business, term, about we're today we invest we're to think either those look through are believe it then business to have, simply cash ways utilize the growth invest and all to a each outside of be able a can do to try really in perspective we is look we're business where are opportunity for cash and model And really our pretty shareholders to the us, a accretive to that there's every

Operator

Mitch Research. from Our with Pivotal next question comes Kummetz

Mitchel Kummetz

trying trying people hard really your me during that hot I was I a comping buying. best to Let you I'm on I last Chris, item guess lockdown that And goods. what guess that mentioned was were to I And understand, I'm Was the to category guess what strongest? year, when as in the it May know I'm difficult understand, year? the strongest about start just on how wondering goods in it hard was because trying year or of last comparisons was lockdown year? the last just year it think understand throughout stronger year. we it I'm are later that

Chris Work

goods is, into Just would comp answer was the largest been have our hard year had the PX that and PX. It simply, last PX, very even yes.

X, of to periods, periods, our May and correlate April, X the year So strongest comping would X and were which June.

And super strong was a so year ago. it

is impactful points as what's I it our throughout as business sales. strong at XXXX XXX look This probably was total think of the a more than well. that increased even of percent part two is year when a basis comps, you

phenomenal just results we've I So think here. seen yes,

been I the not think, but skate one largest, are has there. the distributor popular out obviously, largest, if everywhere skateboards we of of

So product get have to shown we're results think our that. a that and I destination come

this that's when us at and year So what regardless. stack, and are gives again, I for me confidence there's a I those I but metrics look that look XXXX, I look still in these on it at phenomenal at think runway two levels the

Rick Brooks

XX just these are would I XXXX. up comps, still but toughest add Mitch, to we our ran that over

in the we're just we've matter to about going shows that other of to strength of so a tells sales. what, And it's wallet run for about dollars always how -- it and the wallet lot we're things games it's where you continuing owning departments share. you got share, working departments other me, It drive

Mitchel Kummetz

gave at by over really two know how what But model almost like the I appreciate don't your over look million, increases was On lot color little me only is stores. compare closed they're on now. my that heard I even up year surprised that year-over-year. I to struck think SG&A I've consistent I that be dollars not Rick. about XX SG&A, when the you $X I'm sales for SG&A you $XX two that. the with on years years I QX Chris, of what comment, when Very should how really a given kind of million. is thinking ago, like instructive a But a had basis? we that though

Chris Work

Yes.

expenses to that's SG&A pandemic. this aligned with our have I what teams to is which year the see two sales think of managing below we're have over growth. job going SG&A phenomenal think, you're in time, there, I something is see on think more done we going throughout growth plan I tried But And how a a to basis.

I and XXXX training because normalized. so like of and closures marketing recognition that's And events do I you're things. at feel store appreciate the stimulus looking more do governmental impact and hours reduction operating that reduced those in and and all excludes It

sales our So what be. if have from -- so that looking a growth XXXX would multiyear over albeit at I than growing expect less it you think leverage you're XXXX, to period, we would should

Mitchel Kummetz

just that helpful, kind provide don't if you of what you last a But ball crystal I I be and just don't know the know can curious. I'm And question. on then stimulus. it. might have

a more benefit conclusion? year obviously, April for quarter and was a on give the on the us as Is year that comp May March, two there that from a you guessing was February there great. that basis and Is two like was May? whole was fair mentioned You I'm any than because way April April. stimulus stronger difficult could

Chris Work

you're -- looking at… you're do to talking about hard to It's 'XX, comp what just the is

Mitchel Kummetz

You're I than that probably stronger there because normalizes normalizes more mean, everything think in was that and stimulus else. well, right, May -- than was maybe month just April April May. would most I which that's…

Chris Work

And I store and an March when have the I not as we some is stimulus growth that tax we delayed my March. XXXX we total is idea call, reported was you'd we now, was out for were tell comp, in refunds the XXXX It been down, reported that expected what QX that what of right at X% Obviously, at. of the We we I mean, has gave gave where I had you quarter I is the And were increase we sales just because there. very actually you think, actually when our down. to then I'd just in was fingertips and expect, which Mitch. given cycle. did knew February you within close the February when mean to we March. approved. comp in we was think

to right of March end on stimulus So hit, really that the started it reported. we And we that April. was at something after once and into come came that see

impact moved through stimulus, us what low was the at refunds but positive was business tax to on separate the was both think as for versus I what first we a had hard quarter.

Operator

would the to over back call speakers, And to at like the further for no time. now I in closing turn Rick any showing Brooks I'm Mr. questions remarks. this queue

Rick Brooks

everyone. All you, right. Thank

always, As greatly world. things your of the appreciate we challenges Zumiez, the and we're the tackling all and consumer that interest modern in

you, our everybody. appreciate really in to all look to Thank on we we So September. talking you it QX forward and call

Operator

this your participation. concludes Ladies and for you today's gentlemen, conference call. Thank

You may disconnect. now

Zumiez (ZUMZ) 4 Jun 212021 Q1 Earnings call transcript