ZUMZ - Earnings call 3 2024

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Operator

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

Third Quarter Fiscal 2023 Earnings Conference Call. [Operator Instructions] Before we begin, I'd like to remind everyone in the company's safe harbor language. Today's conference call includes comments concerning Zumiez Inc. forward-looking contains and outlook statements. business risks and These be historical statements to may other on forward-looking facts this subject on statements made based call that not all that uncertainties. and are are

differ materially. Actual results may

actual Additional information of is will differ number concerning available that in from information discussed in results the could the SEC. factors materially be to that a cause today Zumiez filing

Officer. call At over turn to Mr. I'd Brooks? Chief Brooks, time, this the Executive like Rick to

Richard Brooks

for you today and and thank remarks Hello, us our on Financial year. me and everyone, your third begin questions. to the open handing Chris, few call With call. joining with the is to will Chief quarter the about to After the the a Work, season Chris start the call today's over Officer. the before I'll call rest of thoughts that, some on the we'll the take holiday financials who you through

Our the slightly performance with and in the our second improve quarters. sales the continued year-over-year expectations compared first in to of ahead trends third quarter came as

remained by operating the weeks U.S., they Given when of their back-to-school where causing are more selective challenging, to during environment particularly about and in that spend we selling season. money, our our the results customers encouraged the be the key

during same time, half second the of somewhat sales our QX. back the At pulled we were that not trends surprised

our headwinds has valleys year, our with model. been clear combined weigh activity and services added full As price we as experiences. discretionary to all to industry elevated continued the and spending peak promotional move impacts pressuring for on volatile competition The from increased has the wallet inventory by across levels sector share to selling season. inflationary retail muted on Higher beyond marked back-to-school peaks deeper spending

our demand, expect to this shopping all Zumiez. our through to world-class our across QX, visiting recovery were to well providing label are our ability the to To a to from label newness of to and sales and brands more down both differentiated mix response experience adjustments QX, service QX, up thus trend private These pace in recap to assortments customer while value as in In XX% customer ensuring meet our when X% backdrop, and private customer down brand base. QX. adjust XX% offering diverse line, down to bring adjust products speak we branded our we've support in has picked and continued strength merchandise and model our to as departments our in far with improving to

past Tuesday, this Black the the same fourth prior continue sequential in we X.X% Through period the Friday, period We're down are Monday of encouraged year. down the X.X% Cyber quarter-to-date see improvement the The to year. sales business. by against to last sales

we are and continued XXXX. momentum where current want gives be quarter us ourselves in not fourth delivering results to our in in While the we perspective, growth improvement from confidence for positioning a

of while margin operating emerge lean speed, investment as benefit better and the margins; and brands well our generate flexibility these shareholders. by and priorities training through calls, globally. performance our our in earnings and us meaningful line strategic key our our that discussed This our believe locally and allow With continuing modest sales our with mentoring; serving our brands best-in-class grow on to growth. people our integrated consistent including: enhanced will international increase as business strategic operating trends drive customers the leverage even area; we and optimize working expansion discipline create continued can and as business our priorities customers, We've expansion structure, trade and significant in investing previous profitability and on long-term driving growth, will continue expense top to for some

with to tactical to and live part lean every work difficult heavily and that beginning. organization Zumiez's investments to into We to of important in dedication, in identifying for build company. necessary; through from culture day balance It been it inventory busy also continued thank promotions times during necessary people season. our in that our and emerging where strong these, and sheet success the that sales; have the I'd drive adjustments our like are times holiday driving strong maintaining outstanding and brand strong critical And our that to we're We management; trends these amplifying is balance culture the the like especially brands the hard is everyone understand that recovery, including position.

and efforts your what competition The customers foundation Zumiez the apart commitment XX culture years. our over set to is for our and unique of from

I'll that, discuss Chris call With financials. turn over to the to the

Christopher Work

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

from quarter X.X% third The in sales the sales favorable Third for were XXXX. down quarter million quarter. million, offset business, by more decrease results sales America in in of Australia by $XXX.X primarily Comparable $XXX.X net driven and X.X% was the Europe. North down were

pressures America net of From a net international $XXX.X last XX.X% a primarily and to demand were on $XX.X for of softer in Other XX% and softer decrease continued million, we by key from sales, in which consumer, consist travel Europe ongoing spending trends to North the and experiences year. sales a North and shift Australia, were quarter, million, sales, perspective, the regional XXXX. inflationary full-price During driven see styles up from America.

increased were decreased compared translation, for international of impact for down the X.X% for other America the international foreign North quarter. XX.X% net and Excluding sales net other sales North down sales sales XXXX. Comparable to Comparable currency XX.X%. X.X% were America

being down our category, with most The followed perspective, about in call men's QX accessories, and sales category quarter, season. sales From in digits comparable by comparable category were as negative, brand during footwear a heading trends our categories reflecting we quarter, single year were the our men's. prior back-to-school best-performing only positive women's, was continued the the all on down during the from into hardgoods we the and fashion low talked

We with look units Net brands a an transaction. included retail the dollars transaction. an customers, and driven are to average per these newer increase of sales season. in increase Dollars for and quarter, excited the build in in resonating and in transactions we'll per were holiday an by per see unit on up to increase in some trends the transaction decrease

quarter The basis decrease were occupancy group. XX decreased costs; on points product basis million fixed XX to as a change related profit profit of year. the deleverage XX causing was third in points; lower gross decrease the the was Gross quarter million follows: sales gross key of our decrease $XX.X quarter deleverage driving sales deleveraged last the with costs. related costs to by volumes; XXX by Third areas a compared buying point quarter, XX.X% in primarily of compared for basis as The in by basis point in and percentage our to fulfillment margin in margins was basis driven XX lower third store XXXX. XX.X% $XX the sales quarter points on web

by points to in basis and basis increase as shipping in distribution operating SG&A of percent shrinkage. net by in inventory not rates a points The well These hours partially deleverage corporate non-wage $XX.X the as gross points increases in on in in deleverage basis following: wage reductions; XX.X% basis million XX that costs; of sales costs; of web were XXX due could XX year point a improvement a sales XX in offset the negative SG&A both impacts net XX.X% costs; center basis point in of other $XX.X net point offset points margin to expense points was compared basis basis expenses in to or or XX basis XXX of of wages by lower and third was our store wages; XX reduction ago. benefit of XXX be costs. of sales million a deleverage quarter non-store store driven as increase sales deleverage

X.X% XXXX diluted This share. compares last operating Net or million $X.X third with sales third year. quarter the Operating income diluted or compared sales loss net net quarter was of to quarter of the X.X% in XXXX. million in of per of loss the $XX.X third of per profit $X.XX of was $X.XX $X.X net $X.X or share or million for million

loss the in despite tax last quarter will modest operating pretax pretax of the to compares our our normalized tax year. of effective quarter different income We tax the more due to rate a across jurisdictions. distribution expense This a XX.X% third in have

a as strong October in ended to XXXX, of $XXX.X current cash October balance sheet. business position. the as The of securities XXXX. the marketable had quarter to of compared Turning We $XXX.X million million financial XX, XX, and

The decrease capital cash $X.X months the by primarily securities partially in current and over by operations. trailing expenditures, marketable driven flow was cash XX from million offset

constant we XX, year. On quarter our inventory, levels $XXX.X from the have We on down basis, debt million X.X% no a were XXXX, with million As sheet. year. of $XXX.X currency compared inventory last the down last October balance in ended with X.X%

the high in includes business, North our declines market. This challenged single-digit America most inventory

a other year the perspective, the sales X.X% X.X% same comparable XX, net the over last November business with last our XX, fourth period same for November comparable year, November ended for to period year. business down from XX, Total same sales the Meanwhile, period XXXX the results. period X% ended international down XXXX. over North our increased the period prior period prior X.X%. ended to comparable XX-day our decreased the with for year, prior From the sales -- decreasing November were period X.X%. ended in sales Comparable versus the XX-day period over for America X.X% XX, sales XXXX, over Now in quarter-to-date XX-day decreased the XXXX, compared XX-day regional the

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

was footwear excited the positive footwear quarter-to-date quarter. most about single Men's and both low negative down digits our are the digits after third while being We men's in low category was categories. that single emerging are the during trends

in sales increase was quarter-to-date decrease a partially decline driven an by The per transaction. offset comparable dollars by transactions, in

in Dollars per external per and our some driven partially performance. factors in transaction that by an guidance margin complexity outlook, growth a estimating respect uncertainty by With to inherent average unit our the modest transaction, remind up, involves of formulating decrease to units retail. increase want were earnings offset and in product and that internal our given impact everyone variety sales, I

are Our X show in demand results the experienced first have the remains progress trending as below But to continued prior of quarters incremental year consumer pressure year. fourth still levels under quarter-to-date through trends the we on mind, continued the sales impact $XXX discretionary the With be are of week. and from quarter in including planning that to XXrd between total spending. the million $XXX high inflation fourth million, for

quarter product our points down inventory. as fourth the to businesses to both mix roughly XXXX. will our through expect XXXX move from We fiscal cadence as XXX promotional of basis geographic well fourth be sales Due margins across quarter that

share resulted profit in quarter is be for to to of $X.XX roughly the fourth the diluted operating of percent as quarter. X.X%, per X.X% sales between a expected earnings for and Consolidated $X.XX

our of XXXX fiscal XXXX. growth of and a XXrd sales the earnings quarter a and benefit in and week, which detriment rates As to is guidance to a fourth the in inclusive fiscal is reminder, earnings sales

we want our of I few fourth quarter thoughts rolls to you sales in Now fourth full give in anticipate X.X% XXXX. the year total XXXX to XXXX to be guidance our results. down will X.X% range guidance, on that into fiscal how fiscal compared updated a quarter Inclusive

the portion X growth. years by the guidance, lower sales be inventory. as we margins Product XXXX, of prior international XX has margins from year. the were decrease businesses, basis down year-to-date months first product driven down of XX been X consecutive after fiscal A Through basis were of which XXXX margins quarter have as well points due our in to annual this fourth both percentage expect of as across to increasing a total promotional basis businesses product cadence margins points to Inclusive our product sales. approximately move now XX down geographic mix through points of our

Our fluctuations. model is sensitive to sales

seen deleverage in XXXX. We XXXX across sales and declines have fiscal into

driven was leverage. and While true we the in opposite record when XXXX experienced operating sales by meaningful margin

positioned are expenses take improve. to we manage environment, current diligently the to continue We navigate as advantage and when conditions

anticipate be negative fiscal we negative X.X%. operating and will X.X% For that XXXX, currently margin between

pretax will expect to be tax the jurisdictions. loss It note have our across at that income that in will per down effective fluctuate earnings tax cause to be levels different mix currently year expense that levels is $X.XX. negative, We modest our for distribution to to changes our income significantly. our will we roughly the $X.XX and share And the due jurisdictional of levels the income important current with -- rate can tax guidance earnings our

Europe We are new Australia. stores X North America, stores X planning the stores including open in and to during in stores XX year, in XX

We million to million XXXX and $XX $XX full million be expenditures expect between capital fiscal the for XXXX. to in year compared $XX

excluding lease and depreciation be amortization, that noncash $XX expense, will expect approximately We million.

shares. full million for count share are year XX.X to projecting We be approximately our currently the

to for that, questions. operator, like call your the with we'd And open

Operator

Our Seaport. Instructions] of comes first from Kummetz question the line [Operator of Mitch

Mitchel Kummetz

footwear, positive pretty there it's some of a XQ. some and in Chris, trend, you markdowns. inflection noticed Footwear you online going And promos big in Frenzy category with terms worse Can on in some got mentioned that? I lot called you early XQ, better gotten the elaborate

in improvement, the curious footwear? So like it positive and can kind is is driven? trend markdown there? say the availability you is kind inflection sequential Or about of that better comp What inventory I'm better of footwear,

Christopher Work

we've like about add are Yes, in We lot footwear the talked a line the as I'll Mitch. a footwear through quarter. year. and Sure, add. anything take fourth with the we let From move the question trend Rick that he'd happy perspective, we to seen

and was one areas second challenged fact, calls, even first the of an inventory in that quarter our In highlighting it more from perspective.

that future areas the our inventory sales We manage in pretty have have Footwear one we've management trends, inventory markdowns. we downturn that taken don't the so -- with and especially has been the carefully, seriously to more really one of the of challenging try been of than report throughout inventory a large most like that happy that's I'm improvement We've and part little receipts. footwear, product areas about, pretty we'd product we're in quarter fourth we've a transitioned line that the with is the the things by of downturn full move to some testing the probably XXXX. What with carried a driven sales of a is that trend and we've excited and work is old into too, That November we're said, and there our to trend is try able of price been that being of actually right? new lot to age. to that some new movement as line in portion, to we've continued receive seen things tied

push. we Full trying And so selling, driven price to we're again in look at through all margin, be the we that's really fair and departments. we're by is both, is not and it's a full a strategy combination navigate really across cycle to when amount but in, but to of what price, our that want full which footwear, categories our how just

Richard Brooks

comments trend just And of that our I brands. exciting. also next finding a over are hope And bottom negative of few I we're the being it the too. then on weeks, we on bottom think brands what as our Chris we in on add, that can that multiyear really markdown is our too, And cycle, find said, hoping been cases have and would Mitch, that some to footwear we some Chris'

say . And cycles thing think to kind I would trends business. in that experiences last than and think about that footwear are get and Chris tend some. last they're brand is that I general I -- I'd margin footwear both full said, that be we And longer of the driving some cycles up. are a the new as encouraged thing

cycle brands of us we direction, the the that if good have the moving longer going with run get have have been with trends find footwear may some to the have a right the bottom can that we So other good holding back -- think front we I bit, direction a a brands us. in and

Mitchel Kummetz

I right. remind bit And Blue your seeing there? I you All you're a guess snow On speak then what from Europe, standpoint us to Tomato how you little seasons sort question. difficult couple of too my is that easy to in was shaping it up And or can I and so And what the last early exposure means know of an color. that what in bad macro too follow-up comparison see the a don't pretty season. years, for business. that know Appreciate

Richard Brooks

think Mitch. challenged than this although some U.S. macro address In question, in from start they little then I'll But and progress today, kind just here, more inflation with bit inflation just there the some I Europe, we're declining an undoubtedly. Europe. deceleration We've snow been challenges rates still -- the seen still Chris of more with perspective, Yes. has are announced seeing it a there let

lagging rates Europe. know the in also that We way there's pay statutory some take place

So we have to work our way through that.

at statutory more kind that the than hoping opposite consumers' We're that pockets we're declining see this with disposable we'll in of mostly But last get the the income of the with rates rates, year in beginning updated direction. working year.

but in market. a I promotion just there as -- as do U.S. very the is we're we over seeing that's the competitive say other guess thing much it is So here I'd price-driven

very in is we're then relative the tell faded than a share our of basis performance people's parts you, in I'll the at may probably war definitely thinking the background. it's some world it have this more other of the to in Europeans that Ukraine, which I But So on still marketplace. so. And is point. front -- actually of And there's course, from uncertainty we shows in it's macro lastly, a think a the gaining the perspective, still competitive market, of

on are So find we'll hopeful some I the we perspective. benefit that macro think

that unique Europe. are lot be players may There's of in the running it losses us. struggling, to think bigger a I

move as hopeful next year, we the be into positive may combination us. net we that -- in statutory rates of a and decline So I'm inflation for

Christopher Work

perspective more snow business X year. maybe the first of with across moving important They on been the business mid-single-digit the here XX%. parts the stronger comp strong within Europe's from just Yes. up of that one And our and of here months a on numbers XX% a overall, were

just So seeing new units, comp. it's strong it's not

transitioned, quarter in fourth the date. results and have to We obviously, November our into

question. Europe about X-month it line talk trend a what that much to did softer We of than And is. lot your being comes

seen not strong snow. have to We start a

I'm this at a we whole the us have December of weeks not of that ahead more about the going is also of so And to what certainly season of And buying across lot probably doing. snow the key we're business peak point or to I that This excited date, March. doesn't mention, our year, mean release shot, that that we're January. to in recap and plan we're and core of would here numbers we'll area an it's while in snow into the because still

The Europe. it is a other diversified across piece much of diversified how we've

we So a on as moved other less dependency areas and Germany into have snow. of markets, like we Northern have

a push through. we So something ours big of and work that's

far we over-indexes it mix, generally in of January sort here in October. because line The the dependency months have rest snow in around is over-indexes It holidays. peaks As on the of Europe, our of as with because snow. that of

hopeful obviously cold we're So for weather.

of to we're November. slower But in it if comes. it here that has been take results part advantage of think I our well-positioned

Operator

B. Sinderen the from Riley. comes Van question of next of Jeff Our line

Richard Magnusen

are for you since versus inventory what Van on in more This business is year promotional year, digital versus holiday Richard trends and you Jeff cadence and positioned the are you last Black weekend? year Can last about also seeing Sinderen. how touch with in maybe planned then this Magnusen Friday speak

Christopher Work

Sure.

Okay.

call, overall a here. at basis. down down said an we perspective, X.X%, on take currency X.X% constant were Let I the inventories mean me as a inventory on it crack from

if has I area. down overall America are. find So toughest that, you where been just that our market pretty in we little is North inventory, really think further, into single-digit bit feel the we down Breaking about step the good which high inventories a like would

feel we are. about relation lining good So sales up in that's really where how to

And is of landing international lot of the more to inventory based, is our growth again, some a tied a extent, to which, lesser products. of units. So

from things. the on than are think an guidance promotional is about a obviously, good that market of is perspective, that incredibly couple foreshadow we I promotional the squeezed, year macro to to perspective, consumer inventory promotional, things So did, think and we know things more and ago, overall that that, them. environmental we consumer, a were One, feel the our factor be we more of From expecting which we're some is of a happening inflation right, a we our where were with I the at.

And customer. and be so we work are spot to trying that to with a move in

push brands store, does brands mean XX% to what areas this a margin. the us That our passionate definitely and and work ways with how price, off how What full not means us to entire full really we value mean of to with we about consumer type where very that of find have we're our it value market. -- is through to work we in that

So that do as a into is quarters planned a look and in areas we would it is factor pretty goal, how reach we which holiday in age good promotional particularly, customer do inventory the of is our the the a expect, our all because seasons, you year of of we like and coming how position. both have for do holiday, we've at old cadence,

we're a cadence. focused from on So promotional that

stores. we've earlier, then see got a digital you through. we're out some think continuing some perspective, Mitch that that And in, lastly, to our we of different what I customer would is but are to be strong Footwear there I the Frenzy, demand mentioned see I a of in promotions say think working from

mix The we our see business a overall strong stores. just was quarter but third of coming for result, bit results. better overall store to our basically customer continue digital seeing little really than the to good We're a

physical softer trend stores. been in Black web customer experience. Our bit a the a great Friday And little was than that has It's line. really We our us. that our know wants for positive day

it all on roll talk we'll up think quarter. and about more that the I So

that's other customer trying the is our think I believe, website, to the to store. on us you're when this, and piece you unique to see drive I we're really

So store. it long come the to that Driving to showing store. what's that over because available digital encouraging them we customer, pick believe term, great see up it's our it them you'll We're them to get even of we're in in front seeing they them on and our in get teams. to great we have what have everything sales just our to where experience -- can they're environment, store It's we not have everything in them the pages. availability

Richard Magnusen

update right. And store what for Can speak plans All extent you're any you lease 'XX? you new store us, on in in to count sort can, renewals FY seeing to terms locations? maybe what of on

Christopher Work

numbers over not store is you I'm to be our give we think tell sales year, of to time call. our been deal. growth. and which Last locations have Obviously, are XX frame. the part feel we're down normally stores, XXXX. What of I opened smart really trying exact economics -- really I Sure. going March our for about with That's the the we that would good

locations we that's a to macro long more will these hoped. for probably But not us. strong opened as good have term, would continue I think thing. So They be believe of we have as

stores, feel reduced from year, we think very XX to similar. I This that XX we

a perspective, more to be are top from a expense. able have just lease we seeing line. lease rate We I optimal drive to think that

into them factor I think learnings XXXX. and take those we'll

this this store retailers looking of closures. population market, overall lot environment, of type at like we're a for other of the piece of some The type potential

there malls locations know, As the we challenged more that country are and all across others. than certain are

what going have something work that's to we've to that at so the looking through. can to I'm detailed closures. exact spending a you tell is look we we're because got process time And some speak some But not do. numbers Again, store I

transitioning, within environment. its X-wall for this really temporary current and location focus right we're on its permanent trade a our then see happening too? a volume So other questions impact We digital the area, -- malls of Is those the is trade decline what's there the impact might we a long plan. the lot in Are on that on or area? mall Or of asking economics might now the decline? ourselves that

We closures have XX store about modeling. our within current

I tell to number with our that through the that's year we our you how or increase how work could teams depending decrease landlord through partners. will on and we're move a able and

bring trying focused the Zumiez best right some factor And into we XXXX we're we'll so and the think in locations. in think openings about And I closures, being forward on and to factors. as really that potentially our those store

Operator

question [Operator Moreno-Cheek comes the from of line Instructions] Mantero Our next Jefferies. from

Mantero Moreno-Cheek

wanted that about color looking during any men's U.S. just how provide more they reads trends what if you're could know to internationally for you versus on I they then holiday differing trends the were and very are how early are Black -- And strong the Friday season?

Richard Brooks

All right.

trends going brands reasons, competitive in of lot about to particular for a Let And things. specifically specific or not we're again, me talk start.

things -- But question to I the is so why clearly think and what just comment much some I'd and I better. your a are advantage. we -- have on bit think to is our particularly like why men's that

the of are strength a disproportionately our we really it reflects retailer. I seeing men's And core consumer. think what is you're

of is challenging inflation, to through and have high that consumer trend one are discretionary -- I over consumers less And wallet intact. brands -- outside think a our market. years I lot X really loss sales experiences, you, broadly that we core and tied our is things and about these a core makes stressed tough. think business have reach think last trend people with And to times share of we of our income the lot think declining when our I market to it tell I services into the shifting the or And towards

ways see a strength So we which men's and business. is business brands in business this launched our emerging core the why 'XX. number is the in And the better. the different we is in this is at can 'XX of our when male, consumer, One predominantly look of in

And that, side. we resonate be -- encouraging brands these emerging of they I We're think, good classes of would see work a it's consumers maturation to seeing these for ahead brands. brand those we're normal well, really running they're men's think the for pace with where cycle and seeing for us, on in

So that that wants, also only in reflects what you core at can our marketplace newness that customer the Zumiez. get uniqueness,

thing a too. shows business AUR dollars it, are intact consumer are consumer again, it's because predominantly that our why again And is better other tell that core The because driving is, and you at UPTs men's not doing being all-time our I'd per just is our it's trans highs. is male higher,

So for that for they're this looking looking brands. is business. for that in unique engaged on me, male us -- again, And core sign with They're us for leading also those the the consumer, is looking trends. our another young really

on And label this to in men's priced we we're we of both and outperforming is definitely -- area, categories. comment to the ask these doing lot where -- I'm categories on in lot massively that men's, much well. are are well, in our again, going competitors this not brands And really these think private in a I higher trend-driven Chris a moment. trend a discounting, are doing than we of

these we're the core to our to be value that for do value these So pay spin it willing consumer strength bring trends of in valuing and and the we the what reflects areas. offering we

really majority for doing these we're all better, men's are. to things them. So why core it's our starting And because that's is of our is resonate where me consumers with what the drive

little want label? talk about private bit you a do Chris, to

Christopher Work

holiday perspective, and about talk part extremely little that just I'll from positive. I on label the as private mentioned, bit of an value a label then message question. has overall private mean Rick your trends Yes. been catch

points about increase private to through have months this sales, a as label compared X year. months basis looking percent X at as We XXX year, of year-to-date seen last

So and in really I back seeing And of low Rick resonate it's mentioned, in how mean the well. middle and range. that as business with what decade, seen have We private last wants. of about think XX% reach label the interesting at pieces, we've across part one XX% here. as private before do that between XX% into a decade. saw the moved just drop label the end years the as I the consumer And XX% we're the or the of brands

see to consumer, popular with far. thus but interesting pretty it's moved, really it's been So how our

saw November the From is we very an similar continue we in real the what to we business interesting were perspective, not peaks, we and trends to back-to-school, holiday on the what alone. about it's and saw strength overall around of where the what's see business

other about talking how were a back-to-school. after retailers little I slower it got think

and saw softer sales. bit our season. week. saw that week moving out We we We then quarter, past then total into we So a And there, and of week. were roughly flat this Thanksgiving getting were better the X definitely that volumes of was into week moved the as and in little X strongest we weeks November our November X tougher back-to-school as move

in by the that's imagine, I regards day. So Those this Christmas should to very will think in lay and days ahead on Christmas by would you strong we maybe next good a the sign as what week hitting be expect importantly, with as a few more Monday. over we of weeks week out

what week trend line expect our before forecast, guidance remaining after left our we exclude strongest you and is Christmas to the a is if for of in even pretty the XXrd rate And Christmas our would week be us. the weeks with So week. that weeks obviously

Operator

We Kummetz. Mitch have a from follow-up question

Mitchel Kummetz

that the about wanted recently, we on don't drove hardgoods, a kind kind of maybe philosophical But know. just most question, ask you COVID to XX-plus I skate lot I last reflect that business I when demand. years, of had Rick, of over

that, maybe was penny board. Before it

this Before lowest to not years. the if be last level like going time, of that, a at it was business looks in its penetration is probably XX it that point, longboards. long At

down does kids are gotten we there? right and consistent pretty that skate close is Like that's the just that skate we mean like if components, think kind of And is to the core that bottom like buying you be is now? Have that where that a a getting to could business? case,

Richard Brooks

kind young continues question. That good our male -- And who of of what like not we're person, lead. anywhere I on Skate skate it's department, it's the think, the lead also, the a for I essence appreciate to while trend. the And of both Mitch. department is and closest kind biggest to young kid female, an important question, about. it's it's

think I particularly so why customer to that's And that important so is us.

to said And little of huge you the state so you more part all a as up -- bit we first well, add what in a because the I color had know I'll right, running get XXXX run the up way there.

years. big war it And some cycle 'XX. got collapsed skate all and there, us took We February then literally 'XX, up off 'XX And in that the had we then for globe. and had fallow around trend then longboard the in every the boomed

for pin a had we forward. much with XXXX. XXXX. skate I then up got close with another in accelerate And a forward, it move in bikes, to this huge lot we XXXX. actually even down what think skate couldn't close ran of And year up in did hardgoods XXXX demand pandemic, skateboarding. like I to women's moved demand XX% the and in think and was. think I hardgoods over We We about participation the XX% But gain We're

talking with gigantic even as And which, all what of, you're and was in of on nature about, declined. over skate skate up world we impact in Mitch, Then that in stimulus share XXXX, XX-plus our world, of think, the hardgoods you the that all ran business retail know, the specialty the hardgoods. that I for I hardgoods XXXX, we ever the the of percent skate the own hardgoods. we skate reflects pandemic fact think more And layer in than spending

the our was think ? highest think it own peaked And we we that XXXX, biggest in I I share, there Chris at there share out is today.

Christopher Work

XX%. At Yes.

Richard Brooks

pull That during but we demand XX% the got that forward to speaks of never again that, that pandemic. close the sales. happened to

think you're our to as think I 'XX, close think exact to percentage, all-time -- decline today, which we decline I we're the our 'XX, stimulus very and give Now despite I this for in you going low penetration as an with of have won't as be penetration do hardgoods 'XX in decline -- skate in sales may forecast year, we're mix. been that think and declines, in a outsized forecast even the significant I suggesting, I but Mitch, lowest the

because last Now have declines finding X that to good said, years. be big we've we don't the really drag, taken right, will the here bottom of over the

skate a just be next benefit next what XX, in finally experience -- us. it would we'll But bounce the before that. we of that a see XX they're our XX, years So probably experience the couple upside we bottom, tell for our is would flat, months before for along hardgoods in the bottom see

Operator

no this like Brooks over back showing questions further to at remarks. I'm the closing Rick time. I'd for call any turn to

Richard Brooks

All right.

here what's As interest always, our in we always business. happening appreciate your in

all, in you and We'll the season. thank for you we wish great a you talk best So March. holiday to we

everybody. you, Thank

Operator

and gentlemen, conclude today's have participating, all Thank you you. for Ladies conference. Thank this day. and a does great

may now disconnect. You

Zumiez (ZUMZ) 30 Nov 232024 Q3 Earnings call transcript