- Earnings call transcript Q3 2022

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Operator

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

Third Quarter Fiscal 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode.

We will conduct a question-and-answer session towards the end of this conference.

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

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

Richard Brooks

Hello, economic quarter call detail. with to the shift remarks the begin few stimulus seen The and period Work, tax questions. Chris, of After call you take to more today's today financial thank our you With Chris the the a with about Compared everyone child headwinds who and that, to for consumers will the end joining year at impact the us the to dramatic savings we've the levels is quarter. credit and in outlook in flushed our were retail I'll to a open your in call through call. third on consumer Chief business across quarter we'll results Officer. when Financial sediment handing me the continue measures, the third discussed second record ago we US landscape. of our before

trade to see increasingly down to elevated, options. to industry consumers we a remain with softness spending. levels continue environment expensive less consumers promotional wide an in inflation led pullback This As to discretionary domestic has appearing our

impacting currency we headwind second inflation a the by to to their environment into that remain difficult they of currency of focusing cost and quarter retail can areas saw broader business growth the the period. would a control sector outlook Where quarter, a agile were our very quarter currency along difficult third results progressed, September. demanded deliver year provided some concepts In offset sales to made early are to as dynamics that intensify for these addition international as challenges, to of also ongoing this flexible we the foreign we significantly These end completely EPS than faced spoke neutral you assume pressures that and trends the compared able at offset on in quarter, year-over-year, help our the down continue movement. solid very pressure. and recent expense with the unfavorable the most driven ago with operating were results these better to major We our

XX.X% bright are European of expectations basis. this we And this while the in mass the period, ago basis growth loss share. slightly period teams US. driven we year better the reported line our pressure back-to-school the Product than decreased We was strong top prior increased decline. basis, expense mixed included, an on the continue our despite currency majority currency and to margins our Overall played concepts. of management of saw with negative see sales on our efforts promotional in sales during compared continued grow exceeded markets by and only sales Australian season out spots year, in to operating entities XX as fluctuations points environment quarter to expected our increasingly pleased our a Some year-over-year retail international international the as to neutral

managed exchange sales with driven only downturn. sales our overall Inventory increases growth. to during with fluctuation by X.X%, chooses of with be sales adjusted to impact entities a a an reverse flow highly sensitive large well international showing bottom foreign line, to through primarily was the Our model larger and increase store a

$X.XX on third our on of long-term share with was stores per flow completed quarter our Earnings work sales. time driven higher of incremental X.X%. than was through international further this since same new those substantial half only up year, in nearly our last guidance by expansion. of And was including the initiatives, inventory US stores primarily XX opening While the in

Looking ahead, continued shortly. a expect Chris because and and bottom environment line we pressure our that will remain near-term share current cautious in top economic outlook

is confident very While we outlook softened Zumiez. our remain business short-term, for the long-term trajectory in in the

growth. remain on we building focused for team, positioning sustainable manager business and the As long-term

multiple over emerging fashion profitable a and endured cycles stronger business years, For and more XX Zumiez each company. has time

only periods economic challenging well our in and inspire economic value the flexible culture comparable the sales respectively X% strong example, For and down and increases comparable XXXX, of Zumiez should to outcome by once in in over XX.X%, strategy saw annual customer-centric and resiliency more followed This run favorable. of XXXX, and we XXXX, X.X% sales XXXX confidence XX%, position recent to for becomes shorter be respectively. the XXXX, and X.X%, most a brand memory driving environment that'll

As significant we who'll they strategies original we today remain the say one to serve the create last can us people, the major and to as the difficult Chris? economic advantage environment in during to operating times call turn With their resources business goals, place same have of did our has philosophies, discuss right this like ideals their will companies of Chris Obviously, business. like this proven advance financials. the the XXXX which to of opportunities more and take change be downturn. and that, the in periods and periods built in industry, and I'll well as but on brand

Christopher Work

trends how year. our to going of to good I'll review sales date we're some providing third provide perspective results. on afternoon and of before fourth Thanks a Rick, on an the about then I'm quarter our remainder quarter update start thinking with everyone. the

from was decrease during as the increased consumer sales year well the of quarter year-over-year primarily sales stimulus million Third down The discretionary macroeconomic domestic quarter in headwinds the year, weighted net spending million, prior America of net last from XX.X% $XXX.X inflation regional Europe sales quarter. unfavorable points benefits international current was currency. the by $XXX.X driven decrease Other to as $XXX.X in on in were Growth X.X% were XX.X% negatively also XXXX. foreign From sales, Australia, and consists million XXX in perspective, from down million net year. $XX.X impacted third which by were in from North as related basis changes XXXX. a a

negative, with year the foreign international quarter, perspective, footwear. a of impact other in in sales and the all From with XX.X% net accessories prior from category most by categories men's women's hardgoods, being XXXX. decreased comparable and were Excluding during currency sales North America translation net compared the increased down XX.X% followed sales our

XX.X% ago. by with net shrink net XX.X of in to both year Third the occupancy XX to per The sales was following: deleverage wage $XXX.X in sales in of costs, of last and primarily and million impacted basis the point increases profit with XX.X% other increases; tied points points costs increase million in last points XXX deleverage million XXXX. point to points The Gross sales related on percent quarter sales by points. volumes. compared expenses annual sales a XXX rate XX of of or XX quarter, the year. basis $XX.X wages compensation. or private sales offset the $XX.X non-store the of XX as as basis margin share our partially store in costs on basis gross points. $XX basis XXX the margin driving points SG&A increases in by basis XX.X% by expense from XXXX. center XX points net basis of X.X% deleveraged lower quarter income SG&A label million $XX.X sales Distribution the Buying store to compares Web or a due lower to basis compared fixed as in XX points XX.X% a basis $XX.X million million a to third in basis in by sales were shipping Operating third sales compared sales the net gross levels; corporate point was This costs net third percentage or year. quarter quarter areas. quarter. well costs of and These rate basis quarter the well in was XXX wages decrease of for quarter Net quarter decrease in deleveraged third $X.X as share. the cost, lower the Product was basis income XX.X% resulted was our in deleveraged as Store or in XXX points. lower margins by $X.XX XX diluted increased XXX for by several by for in of costs. third decreased net of or third income as increased primarily XXXX operating million per $X.XX to incentive quarter million compared diluted basis

the for entities across XXXX rate year certain of and in jurisdictions. exclusion of tax allocation to effective a third quarter with due the compared The the is net the rate ago income tax Our inflated in of period. XX.X% losses is quarter primarily XX.X%

Turning outstanding million, ended million primarily current of million had strong cash million of $XXX to compared resulting We over was securities XXth, October of reduction financial The remarkable the repurchases trailing current sheet. our quarter and remarkable by year position. shares to XX cash securities XX.X%. business $XXX.X over as the $XXX.X the The of last driven balance and decrease of as the XXXX XXth, a XXXX. $XXX.X months of October in in share in

million, operations cash We $XX.X capital also expenditures through had generated partially by of of million. $XX.X offset

is XX.X% the X.X% the down North XXth, XX-day last more to with aged last were inventory Internationally, the a slightly sales in our -- the X.X% into XX-day prior Total sales decreased and America currency had period our to up no quarter the basis, inventory Meanwhile, year. of margin. Overall, up our the America with XX.X% sorry period the November to in our net period X% regional Total sales XXXX for same November XXth, international period for -- the the decreased XXXX the ended period margins XX-day for credit As over On levels for is From XXth, quarter. November date business during continues inventory, $XXX.X million November debt were inventory last last business than perspective, the fourth full sell prior year. the unused period year. year, last XXXX XX.X% balance comparable time year. seen versus favorable and we for on sales from decreased ended continue We same in XX-day to improved facilities. our XXth, healthy the million comparable XXXX, from ended $XXX.X compared sheet results. current while no, Comparable XXth, North have XXXX. ended year. more year we XX-day October compared to and constant now quarter the our a our maintain

foreign our net quarter fiscal with category sales $XXX the $XXX perspective, earnings Excluding sales and men's is expected be the formulating From and between our compared sales the to down international million. women roughly be our America sales and variety we as to to of of and hardgoods, the fourth footwear. million a want fourth quarter that XX.X% our the were for everyone between earnings of share X.X%, factors categories other currency and fourth sales, external With total decreased of a XXXX mind, internal date, operating inherent that negative we uncertainty and sales outlook, that $X.XX estimating diluted under margin, with X.X% remind for North be quarter impact expecting for comparable to in per category guidance largest will increased and $X.XX. respect impact With the in XXXX. translation, X.X% growth, by complexity followed currently in to given will Consolidate accessories, I profit some and all are product performance. anticipate involves percent

into you fiscal a want Now fourth thoughts XXXX results. updated I few quarter to our rolls give on guidance how

the Inclusive given anticipate the fourth quarters In in product facing. we're a XXXX the margins of XX% expansion. in at total XX% we the our three environment the peak we us, headwinds sales and row XXXX, full product range the six-year of down XXXX. With guidance, in are we again current we to operating achieve representing first year looking will cautious compared once to remain quarter behind the margin fiscal fiscal in be XXXX how

first and margin between three the categories mixed and have a As moved we we managed through year, environment have decline of only modest countries. across inventory despite pressures, the seen pressures a in quarters inflationary promotional closely and product

product some XX the down see the to approximately to basis erosion current guidance. and we believe quarter from at points continue We planning our quarter margin are in will prior year the be fourth fourth

across costs manage to continue We business. the

mall the current across to pressures currently anticipate our the and between and We projections, be margin inflationary upon normal be less operating XXXX with full and However, between to fixed we is training per per are based cost decrease We year. the anticipate X.X% deleverage anticipating items like than of hours, earnings sales the in fiscal business. cost for year will drop share earnings sales, and we travel, operating the and $X. share Diluted to earlier the $X.XX profit return in purchased X% to share planned the XXXX for the events. currently related diluted currently

business currently planning annual an our XX%. are effective We rate approximately tax assuming of

XXXX America, year, approximately stores during in And Australia. stores new to million North XXXX XX and XX Europe, most to in stores year increased in approximately million between be capital additional four to and open the expenditures $XX in the compared to planning in we XX are $XX for the XXXX. fiscal stores of We full tied the including million expect with $XX stores

share lease call for excluding shares. approximately approximately like depreciation amortization, XX.X be prior our the Session that down be $XX.X we year that Question-and-Answer full to up count million, We are currently non-cash year. And expense, from we'd With the X% questions. the diluted million and for operator, to open expect would projecting

Operator

Blair. Zackfia first Thank Please come you. today's with will [Operator And from Instructions] ahead. go question William Sharon

Sharon Zackfia

guess two afternoon. questions. I good Hey,

about pedals for seeing, here are But wonder on definitely the of the metal historically of weaken the outlook more have of to it's December XX% to potential off I comparisons times quarter rethinking think you of with even shaky. it environment and if I during because kind maybe than kind the kind November. retail then kind grow favorable but the get do in had if decline, the to continues given in of the we're might development to of XXXX stays know XX% easier do And January ask year-over-year to secondarily, kept and wanted and just obviously I consumer the like You've you what you paid now. slowdown I imply in rents severity you does that fourth a just

sales that weaker you on, comparisons November as Are we go I well just like early nervous into December and in January last lot was and and question October, think something as then makes like did went a I the with kind as seeing holiday part of I your XXX a double-digits quarter year. even year were November Omicron. and you got those sales saw even that like more up easier in as with that apologize. counterbalancing we last the know against

Richard Brooks

second take you Sharon let Thank those the questions. right. and first I'll take All Chris the for one one.

we initiatives So, for where our your are. Well, growth course, rethinking at? of are first around XXXX is business the to question, we relative

natural going a today, of I end what would expectation these don't conversations where prepared we are. to to about do. plan know have is the Board a XXXX, is, course, We're where opportunities with aspect our that's yes, that are, but and talk And the of not what to XXXX I about that think where think be natural most we'll up. investments we're crucial our going

perspective, through through how my is know cycles Sharon, news times these and them. many we from Now, think the manage good I here we've been to

There's particularly we're to severe they -- I through appear relative for at pretty talk be so think to managing think could about we I us good them. sales. a why

our the nature pretty business, just on to much line, our to differently getting as bottom line relationship don't brand nature going the we line discount to all our of have because We're with the On bottom because be comparable. the top of we're business of partners.

about we where things perspective to But strategies to how in think, to rethink sure We'll tell critical So are are as to that from when that we able are. our our lot from significantly. forward a aren't our emerge And to resources There from that and to a there have yes, intensive over -- relative technology. we we initiatives, our there be to emerge I areas this market to gain make we some and that capital But tougher the believe we've will are them going always allocate long-term emerge number we from more do, you respect long-term this, are to that. of things. adapt expectations I we're We're capital some which long-term better, and we going committed those consumer cycle deploy got very and share. will cycles. pushing as of really meeting actually have these that, evolve business do we critical are stronger,

So, of, some I believe to to we in but as we're and long-term discussion prudent have we're is not to think growth. talk meet to and about strategies and as about them again, what ready we're going relative expectations. Again, things defining that Board, do expectations going disciplined ongoing That business investing moderate are drive terms consumer potentially you'll see the our the prudently today. address us we main initiatives our an really to forward with those future

Christopher Work

to that about and in saw outlook QX what how thinking last up and comparisons just And to then the the your second we're Sure. matching around against sales decline year. we question, the and

as generally how we've And full a stand would believe, are optimistic price. retailer, we more others, margin we were come little to seeing especially we I a than and we after think about reported been is, where as hold where you to full trends. the out clearly, more pressure price, QX when here back-to-school, able we sales

as credit to move real of and at when look our in spending for about the year be just increasing we their and restaurants, pressure that as consumer well kind of living. of talked other discretionary inflation that rates retail. declining our value, we throughout look of travel savings I to and then just think other impact of, we've areas on areas whether cost it not mention the card or life So, them And at dollar,

think we all really let's coming million, So, thought million run together this to we this say, sales November. it in true up little of for would below plan a Sharon, the that where process, $XXX was stay I to with $XXX was thought our put because rate and be

of much our entities. -- rate Europe. run a assumed in of So, We pretty bit across we took forward, kind all especially this little better

As recall, of you the one year, markets into in Europe Christmas, last October, in were much. closures our in that may end and of important there happened right to some right up Austria, November pretty towards

assumed of might our just and feeling think what we really the of as that be So, that's move there then, quarter. right run a kind bit consumer little tried to we through

side. sales So, how the that's the quarter plan we on

Sharon Zackfia

Okay. Thank you.

Richard Brooks

Sharon. Thanks

Operator

you. ahead. our Mitch And of One that moment Seaport. line Please Thank Kummetz for question. the from will with next come go

Mitch Kummetz

can Yes, any questions. date was taking comp, on curious comp, way ask is on a at line? thanks if for there one time. if pretty kind to quarter the much what you of talk Black I I'll my them the the was so just is, better in about it's or Monday, the date period to than Cyber through any Friday of that quarter

Christopher Work

take question it's that Sure. in answer and pretty much the I'll is line.

through obviously, is few a you coming trying kind looked how and as together. of this and this the when quarter, diced sliced think we've expect, ways, I would quite at think we to

did were weekend just is product impact Last a I bigger gains different of Black this run quarter to weekend meaningfully. Friday margin, and inventory to some had it the promotion the margin year, year some pretty on we move year. same trying had Friday is last Black in time think we we compared at went we the this what's last through through

quarter, So week. holiday performed -- the product but maybe pretty trendline difference the weekend. was how week being over overall, the And across consistent to main margin

Mitch Kummetz

comp you a three-year? is that period. Do on Okay. us guys for sales gave and the to-date, what you And then know on quarter that

Christopher Work

I it three-year top don't off have head. of a the on my

Mitch Kummetz

three-year the full off You No. for the Okay. date? year of of assumes the quarter Do That quarter if quarter you kind top full full versus or guide a the don't. probably know your similar too.

Okay. the mix there's Rick, of that just particularly experiencing. product you're of how trying maybe you couple Can bit down exclusive when you're brand Maybe, if elaborate on talked about addressing last and maybe trading sort little to and you things. side any more that, brands, think a your business? of elevate A you the about your

Richard Brooks

to. glad be I'd Mitch, Sure.

-- And saw much consumer, We what over our but that in doing about the are and pretty larger with basket weekend, -- this sizes. penetration Black the situation, in Even growing. core feel our much is in of we higher We are -- signs seeing to the reflective significantly whole what Friday about private label be core we rates consider significantly good to core on I saw staying is, to conversion -- we consumer. saw consumers we're seeing mix I is our our our what true us. private business label good

we that throughout for again, working been of way the it's reflects and it's higher clearly in resonating, fourth year-to-date up significantly this the year. core is private here the that And quarter It's consumer. penetration label can gaining convey period. because to-date even So, the value

price and things what doing how Mitch, it we're all way and So through and use is private we points label, the to two two things. in bundling that we're the does me, doing, deals for

because for higher liberals side First, Again, And it private delivers the our than customer. the our it branded of second, partners. margin business. on value margins helps us

Now, on we are reluctant. side, the branded

partners. I Mitch, full same you the brand And feel partners have you, that way. when have we're equity our price, our because to a know, tell disservice markdowns it's do a reluctant to we brands and that As think sell we can brand real value have

and them. how product, getting much we make brand too with aggressive flowing own that partners, wrong, be we'll how we be And work the our how to not with of there, trying don't to get move we we for we're in So, take if liquidate, our kind where for me we'll equity drive product overstock through to in destroy brand and we're much we -- to basically partners disciplined our sure we partners we worked this, brand things to don't situation through brand of it out about buy, or product and terms the it be manage to goal we're product. again markdowns either. that But but move whether haven't how the need is approaching is seasonal markdowns want to

Mitch Kummetz

is and That's more know up where kind to question helpful, the still was And period? I XXXX And acceleration? I it and business. then on difficult XXXX. the been if, probably last is at with this basis, Rick. was levels it kind was COVID. curious think of then backed one that's maybe down the where just saw at COVID go and last I'm of over a that skate so. it on above of Or rebounded mean I in was to you before penetration it six rebound kind it the of like trailing penetration point, XX% like before quarters from accelerated kind maybe levels it the hardgoods to of for XX% maybe it or

Richard Brooks

question, Yeah. It's a good Mitch.

As And remember that sales. Chris's largest he that declining hardgoods of skate commented our second relatively in were you saw small department. percent it's comments,

that about department diminishing in declining So sales second as that the of a still sales the department. small our mix scale tells largest something of in on its relatively you about position

message doubt, significantly time XXXX, point, down the We're my this hardgoods penetration the department. said that all what this is we're saying above of penetration of skate you you as yet, at lows our is to bottom getting Mitch. hit time haven't But for at for all highs was we there's point. no So,

said, in that to back pandemic the hardgoods in as I XXXX So, of forward what we're up skate pull relative and significantly, the demand. start definitely you did giving recovery to, how, accelerate think

just our trend that now cycle particularly skate. that's it back right? and many way seen We've giving works, down, trend up, skate So, we're business Things the times. and things

we're cycle. and time taking back then -- accelerated stay we And bottom cycle think diminish is period back bit pain of seeing going a we're time, a I a will bottom a fall what some as the losses may where now up and to of massively at though out we're the point. for at to start we'll this we what

Mitch Kummetz

that for update. ahead. Thanks Go Okay. Yeah.

Christopher Work

the clarify XXXX We all XXXX just Mitch, way was to curve, was on was And peak. XX%, XX%. XXXX then was growth the it our XX%. -- And got

outsize that's And think skate during then the XX%. year. closure in when XXXX really year we I sales saw last the was

So, still very, very And would rate we've at time. healthy current we've to trending run some be that been. quite lowest the for our had where

So, we Rick said. to are as continue to decline that expecting

Mitch Kummetz

holiday. that for good and Thanks Okay. luck for

Richard Brooks

you, Thank Mitch.

Operator

Instructions] Thank will Tarlowe next One you. Please [Operator our Jefferies. go Corey moment the line with for of question. That come from ahead.

Corey Tarlowe

the and thanks good Hi, afternoon question. for taking

away of year? you've then throughout from versus of the third you this maybe as there's if you might and might into start, what the to you the and those could takes year, So, the talk go next maybe margin, some So, about headwinds could of and see you sticking perhaps into talk faced quarter could about stick you within those some just but what then obviously margin fourth going a right? bunch that puts relates away, it quarter puts see takes, and

Richard Brooks

just -- Corey, product here? I'm about product That about talking so that gross are where talking clear, is we margins you're margins or or

Corey Tarlowe

with I margin be perspective probably most commodity things cetera. on et helpful gross pressures, to like think it freight, be get would cost

Christopher Work

me want and Rick add in might he let let that take Well, I'll a crack anything to. it then Sure. in

years at. gains thing margin, run we the that we where of talking I with about six important gross I about just think XXXX. remarks, as most said And to through you're if in think is start product our obviously think margin we're just product prepared margin and

all for us highs we entities. of time at So, all our across were

into what to to with now branded up. what's of push would the which the interesting that we declining. a it's for We last you actually six over of years, into XXXX, is, have six looking private last kind And how able actually of So was the did seen label but as to see buyers cycle label least years at this margin were really our drove right? to and saw sort private apparel, product really is we work transition product brands what coming we just our build counterintuitive margin, of really kind customer expect, XXXX, the

-- think see what here, product when we in to moves that where from So, I some we push, forward I continue stickiness private of -- have about we kind if margin will label goes. think

all US this important they below the our I with business piece second note in of And all that areas point. international product really margin. of to product The the are is margin growth entities, perform and our is Australia, Europe, also at think bigger Canada,

we're margin across concepts. expansion So, seeing those

I job each really higher percent also working to their in private seeing levels like they're label of of brands a able being they push a as and increase gain things doing think with businesses. good scale, as margin region

So, drive as and drive grow our hope time it that will and over entities margin scale, also margin we see levels. the we to product drive international closer US

the over in overall a a a sales as there grow see think that percent benefit the long-term. but some mixed Now, be slightly shifts lower we international the be as midterm at will we margin, can

of is of start kind the biggest through components This down deleverage. gross story occupancy. So, item there. the next as of think we a think kind margin, you other is And I of really then

sales levels. our know, only meaningfully but XXXX, and down to not even you XXXX As are down,

deleverage. bigger of think we of this our one areas so that, is as And about the

this sales have done trying and think teams partners hard But job. still really a extremely and a item. our worked becomes expense, declines I our good the with manage to landlord it deleverage had, we've with So,

is being occupancy. think the to associated with about sales longer leverage term therefore cost we as So, growing and fixed this margin, able gross

other been. and as is pointed big shipping's where The in out question, just cost, your you shipping

We shipping. of increased have seen cost

on leverage hard more minimize very probably working item and more are to to move is we of across hopefully continue to I the falls work line carriers, gross margin. we our get manage We both forward. And think different can this something that inbound, strategies as into out BXC on that we but the well as importantly with can drive sales that as

Corey Tarlowe

it as just inventory, for that's kind about how like are a expected. key most of of seems just feel where retail holiday And spot a to helpful. that's period here? -- you initially double very Great. maybe you maybe bit positioned in through those That's on versus Could head we you little talk relatively that, good click the then

Christopher Work

Sure. Yeah.

think, down We've I teams we side, in the at with ended our pretty in up well. $XXX XXXX feel X.X% in in our we're benefit X.X% were in Obviously, actually where remarks but inventory. good we're It's inventory line we're we inventory. are about where about on It's as bit as million QX. a about We talked getting well. little QX QX. there, of X.X% FX with up prepare

So, I happening well managed that are put regards think what's landscape. you in pretty the to levels all in kind The perspective. of across retail

be more is but healthy entity, entity by aged, margin. America North think at slightly continues I very to a

seeing in international in margin we year is a much were as we spot than gains -- year. our we're Our ago, current more remarks, inventory a I mentioned where there. last And better than

thinking with as here managing you line inventory we're retail I business a lot focused in as our important thing you you to really see we're buys strategy's and is that how full we're of market. this that the kind a be work different. what's expect the a in little up nimble your about inventory, and overall margin we're think have your how that like cycle of customer. can with business I about just we ourselves the And with of strategy really so because manage think it requires be doing kind really in the you our how to the price, mean, really on opportunistic working full would

our product of this pushing end not holding of of bottom margin just probably little as think, part then, than reading seen different day, I is across may And the we've others, than are that you the are market. that. really a we we're whole a teams people, the sure think at And why really our sales up, but been we I So, have because line softer price. that look about lot declines kind the on line not the I'm other

screenable So, can that The probably in on on how to us the of our business. just and I business. big doing. a managing important Obviously, it's as move to particular, being, what really remembering in the businesses we see that's something last we're things piece term -- think, way strategy as focused work for It's we quicker we're a well. we piece got

I So, think going feel we on we're the into QX, inventory side, good about at. where

over sort the you in definitely multi-year a I across done a feel we're a do look to at our margin in we're I world standing. would relation but overall, commend that's product think difficult inventory five-year all kind our seeing think margin to job be guidance implies. a look, our in very where in say companies to of pretty what relation buyers strong managing just that And a points, really I of of did of they've market, XX the strong four, if across I and time, good kind cycle. were three, our with down just -- great We think you'd basis about

Richard Brooks

again, want to Corey, that add that, about just long-term. I we're Yeah. thinking this

We have And consumers. strategy, as part brand our in for the that, integrity for through have with our that that how our I price that's doing equity when brands in about short effective, strategy, brand is say term and brand, which to multi-branded Zumiez a manage ties merging real effectively challenges. branding is of managing

both discipline better of is brand and I product about our as mean equity. get get way and us So, doing but It not as little doing it is for differently. we this like a the the margins pricing but the the we're it line else. might is because this might our too, discipline place for sometimes, where on same have think And long-term the for we a -- around are we said, just -- Chris that pricing sales their environment. around eroding to We're business, again, the approach tougher strategy benefit -- to better we might everyone partners better brand

Corey Tarlowe

for the color you all great. of best and much very Thank That's luck.

Richard Brooks

Thank you.

Operator

Thank you. now Mr. I'm turn End showing call no further of questions Brooks back Rick closing over at this for will remarks. time. Q&A any to I the

Richard Brooks

All right. Thank much. very you

just to As confident what want we're I how solve marketplace, the understanding interest. I positioned of am to appreciate said always, behaviors our I commentary, reiterate as your the for their how our in we consumer, that trying in we're here. And

and next place, look common initiatives few insurance into as five want years, tell we're we I than and the stronger to next to move in cycle, to been gain come out through have right we ever As the going the forward those we're years, share. that this we've three you question to strategies, that going so market when get initiatives to we investments strategies

and bigger. doing So, before, confident like about this this I other remain we're come out managed to really we're and our where stronger going it, recycles experienced and we've better positioning side

So, thank in you March. talking to look everyone. you forward to We

Operator

Thank This you conference for participating. concludes today's call.

now disconnect. You may

Zumiez (ZUMZ) 2 Dec 222022 Q3 Earnings call transcript