ZUMZ - Earnings call transcript Q4 2024

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Zumiez Inc. Fourth Quarter Fiscal 2023 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. 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 available will differ number concerning in that Zumiez from information discussed the results SEC. could the factors materially be to that a cause is filings with

Brooks, turn Chief I At will the call to this Officer. Executive Rick Mr. Brooks. time, over

Richard Brooks

coming today's few thank call. Work, and and Hello, our you our is Officer. to then us before on through our fourth the questions. some me of XXXX. the we'll for Chris With for and take everyone, After our I'll joining the today begin remarks quarter open strategic year. Financial Chief performance year your that, with call you full will a Chris financials about discussing for priorities outlook

encouraging year. what quarter to was represented fourth challenging an a The finish

the As highly great headwinds a and selective quarter case throughout the the a fourth December sales Overall, fourth consumer said, both retail comparable on January income. growth our pressured turned and activity multiyear end in and month-to-month, an That the EPS promotional our quarter, business men's accelerated sector increasingly high discretionary by and faced softlines in the [ in ] impact of Fueling total across momentum adjusted inflationary quarter number fiscal XXXX, were we including built January. sales throughout with commending improving guidance positive above both trends turning sales. ranges. that to

which in quarter, second the the sales quarter than down the quarter. excluding year. positive less benefit of down year-over-year X% fourth in the quarter, sales trend sales of monthly were down improving trend quarter the XX% trends line, microcosm quarter X% XXrd drove total the third Many the our we've down the seen throughout slightly week, recap a To XX% in first and fourth for were in

enter in we continued have some of XXXX, see areas strength to we As business. our

were February noted yet after move see the significantly that through the timing strength While snow sequential as and of see primary February month not positive headwind to in negative did turned we positive, Europe in in that sales total in being due January sales we was tied those transfer promotions. the to

significant For was in Europe satisfied not pushes results. negative with October snow were to positive February, periods sales sales low variability year clear, be that despite digits a down our we're To and single comparable across January snow XXXX in overall, disappointing seasonal and February.

business this comparable years X of year. we has meaningful With annual trends, sales and experienced last our loss net in history negative the first deleveraged the significantly

we and adjust To strategy year. Overall, As focus our grow we specific on work we headwind expect our end, the business items line we a However, Chris that within look doing will the portions we're we will to to actions positive. XXXX, as outlook in remain the profitability. to drive take macro plan term, that climate near detail in to our the the of in reflect optimistic back are will control to to trend new sales our

to years take market. The with the focus the XXXX European business. is before the starting achieving pandemic. particularly changes onset in for quickly in in the have I'll profitability the last shift most of breakeven for through a The you European challenging few business significant close been

region 'XX. instability in closures However, the the consumer with stricter in the impact in in inflationary since business area pandemic the have longer resulted European year the for since and Europe, our earnings combined to declines and

business, X expansion our to solid pivoting across work we European European pan-European countries productivity foundation of XX have negative relevant business. focus this in penetration the to web markets away our the store nearly today correct been flow. our as profitability The existing stores potential Europe, adequate to believe from value enhancing future. create business of what unlock we and We're through we'll growth the and a To has we're in a of platform trend, current productivity cash the concept a near-term for in focusing the also and difficult the profitable improve for the we creating on cycle. increasing long-term By

[ we double-digit We during have and seen the positive markets the Netherlands, to [ year, Zumiez a serving globally. When sales international and in confidence long America Germany, profitability Norway over we ] no which in Europe growth Australia. and and in trends markets us our other as both in relevant like term customers brand the Sweden our doubt we've signs ] grow that these comparable such is partners. There's can as achieve that gives advantage done in significant Canada in

to XX heightened closed we profitability an This XX on beyond American challenged. emphasis underpin In XX stores be continue results XXXX in extends close locations [ XXXX, should additional and to North expect to Europe. ]

initiatives, stores. As have to corporate labor store to reduced optimizing align count, a through we result, adjustments store staffing reduced including several further at models staffing also the levels lower volume

structural have and continue company-wide logistic to made to costs and in savings areas the cost implement shipping throughout We organization. many opportunities their changes

portion we with ] we represent XXXX and to profitability In our sales they we customers. indication almost to with our customer resonating double newness brands, nearly are on [ a with and XXXX, making last While [ seen, win typical into including attract brands that the expect we launched also with heightened we historically of than beyond. new assortments We're broader continue to relevant new is XXX we're customers, brands center our desired this an believe of which launched our in seeing continue set already company-wide, injecting we've a ]. larger a Zumiez focus investments and couple years year

runway a both technology aimed another are and significant maintaining we're XXXX connecting customer best-in-class to our private a label And in trend XX% brands. at is testament with in and them XX% We're relationship and relevant teams approximately enhance and stores personalized our represented the of on and combined provides service which sales and web, in the way. to that XXXX growing Private with XXXX for value training XX% also with label in compared our in in more customers continued investment growth. and and the

After X challenging years, strong $XXX a balance ending we're will in over XXXX current weather that and the us sheet cash with to environment. million allow

like and the to efforts close I over and Chris, our call our partnerships Before partners thank to for I'd brand XXXX. call and teams in the turn their

behind the spot, confident quarters been growth talented dedicated company's Our have have and driving recent to navigated the sustainable the years return people force bright a and challenges in we will look and back ahead. be I on our in to positive remain and flow in serve and customers our progress our and the profitability you ahead. updating cash forward quarters ability drive to to

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

Christopher Work

I'm our going and on into an Rick, day everyone. review I'll then quarter's first ] the afternoon, good a start to of and year. sales XXXX update quarter provide Thanks, perspective the a fourth trends with looking [ full on year full results. before

the compared increased XX-week was quarter categories of $XXX.X X.X%. business. for million a X.X% was fourth continued and the Comparable challenges the in tougher quarter sales [ our certain $XXX.X XX-week period, discretionary down a to XXXX, which continued and of in consumer fourth decrease period. sales were dollar to million, ] which The XXXX, the comparable by competition in trends of inflationary was on for driven sales pressure Net

Australia, X.X% perspective, to prior American year, XXXX. year. from regional has increased net which $XX.X period were a XX.X% XX-week international North From period comparing up the $XXX.X the consist sales, from million, Europe in million, current and XX-week in of the last Other

XX the XXXX. net Comparable were grew foreign decreased X.X% down XXXX. sales sales compared and sales weeks ended X, up for February with X.X% Other currency Excluding net impact America International for translation, North of other X.X% X.X% comparable and international were for sales North America the

in category was an by in our in increase in per dollars perspective, for traction followed offset a the only unit year. up was average negative the was from increase category by an are and the men's comparable sales with transaction. sales per quarter, transactions increase a transaction hardgoods prior other were driven Women's for accessories, and most positive all decrease footwear. by were The retail. comparable down categories units while category, the by decrease driven Dollars per in an quarter, From

The related year prior compared costs sales during $XX.X to reduction year service gross to of expense XX XX combined related $XX.X XX a with related negative to XX basis modest of fourth in increase the with shipping related in basis in primarily fourth of shipping million a points in mix XXrd quarter profit and related which quarter in positive by shipping the last the costs for year. to total and revenue basis the occupancy XXXX. of away year-over-year to in was benefit driven point store rates. quarter margin in in of outbound shift was week. sales basis the leverage margin million points carried compared XX.X% Fourth increase prior the profit quarter the points was a impact XX% better quarter gross Gross results,

a XX margin margin. ] other deleverage age in freight by line gross included and which in basis These discounted inventory, our of in expectations due benefits selling basis points product point reduction and [ were to with XXX manage offset was in to costs

focus our or on store million with of improved have a to the SG&A a sales quarter on sales XXXX. tied fourth direct business. impairment slow compared XX.X% includes XXXX This Tomato million for in profitability. XXXX decision as million been business that a from flow our $XXX.X in net modeling growth change cash XX.X% that of This projections noncash was goodwill and $XX.X Europe and the charge growth expense for resulted or in performance to impact increased fiscal future of net grow the Blue of we had $XX.X

basis basis XX XXX Europe. rate related in in corporate increase point of basis sales the The expenses and the on basis increase in impairment costs operating deleveraging SG&A as increases, as as well in to XX nonstore point X,XXX of basis store store wages point nonwage costs, increase driven by increase increase decrease wages. was comparable point X,XXX other in increase driven in basis goodwill following: sales a wage the The point XX percent net by point

impairment of period, after-tax quarter of last the charge the per sales for [ million of diluted in operating or $XX.X or $XX.X share. an million goodwill net year. or $XX.X sales share. the In quarter inclusive a goodwill million XX.X% charge, million fourth loss net Net Operating impairment $X.XX was on $XX.X the reported $X.XX was per ago year or which basis or share. $X.XX income per we ] million $XX.X includes This profit of $XX.X loss of compared was million net with fourth X.X%

had last expense across the We due the quarter operating tax to our rate This jurisdictions. loss to effective the XX.X% distribution current year. tax in pretax fourth tax pretax quarter in of despite of an compares different income our

down Looking net decrease XX Comparable XXXX. and at our full categories tougher trends related were year of $XXX.X sales consumer, from continued XX.X%. in challenges sales comparable on XXXX the the year weeks of were business. in The the was competition in fiscal to of pressures $XXX.X for certain full our X.X% the million, dollar continued sales million a for of decrease results, inflationary for discretionary

North decrease $XXX.X from international million, net ] a million, Other America [ sales up From perspective, were last a XXXX. $XXX.X were XX% sales XX.X% year. from net of regional

decreased per currency foreign of XX.X% X, up sales XXXX. February men's. in sales driven average category in sales offset per America were in net retail, From a and per The ended compared most units down Comparable by other from prior partially followed in in decrease the dollars and partially for women's, increase sales transaction in transactions, impact XX.X% was categories year by sales. accessories, offset Footwear other XX-week increased a year XXXX. X.X% by and for all sales for increase the international North translation, our were an with international was included a America transaction. by transaction. net were comparable decrease hardgoods decrease perspective, increase negative the net unit down category North Excluding XX.X% an dollars The comparable in

events. increases $XXX.X sales million the efficiencies costs, XX the or payment. for XXXX. mentioned in points by XX XXXX. product margin. basis million XXXX XXXX a point XXX XX basis with basis impairment. prior costs. million fiscal government XX.X% of European costs XXX goodwill well The in as increases wage increase expense to several nonstore as of comparable was a points basis decrease The decrease delaying sales rate decline as corporate impairment percentage related were wage costs of basis to our point offset in XXX XXX includes a by goodwill on decrease basis of in net basis basis the in in increase fixed which and These occupancy as well XXX XX include nonwage-related driving in wages our driven operating costs, XX by basis net partially as XX in and compared or $XX.X sales, and store XXX areas were in on point update. key related decreases offset increases. in gross margin basis the noncash points sales costs, was $X.X areas. in quarterly store of by with year in basis stimulus was the due partially deleverage store basis points increase decline XX.X% rate of addition points net benefit XX.X% points point $XX.X driven XX.X% SG&A nonwage-related compared deleverage point in The million to These of the and This training a points

operating Operating X.X% $X.XX compared net X.X% in million or the million diluted of impairment million was with net in loss $XX Full inclusive XXXX of charge This sales, of per of the $X.XX year income fourth $XX.X XXXX. loss to last $XX.X million sales including noncash charge impairment or XXXX $X.XX million net net share $XX.X year. or was goodwill per quarter per million goodwill of of or $XX.X $XX.X share. share, in income booked is or were compared the

position. X, of from to and year the current as by and business offset cash million securities had Turning financial January the balance compared last We $XX.X the to XX, by February XXXX. sheet. cash marketable of XXXX, ended The of in year slight marketable in $XXX.X driven was cash over current expenditures flow decrease million The partially of strong primarily of a $XXX.X million. million, capital securities $XX.X operations as

February As unused our to the maintain X, sheet credit facility. on no of XXXX, debt and full we balance continue have

the year million last million European X.X% inventory North our currency in inventory, compared our America last down $XXX.X constant with year. both down $XXX.X from We year, the basis, with and levels businesses. in ended decreases X.X% a were On with

as and inventory are expect ending sales the bring to Given XXXX. move through we our backdrop, we happy with to continue balance for in newness 'XX

Looking while forward XXXX is it everyone to remind a XXXX, important that year. is XXXX to was a year, XX-week XX-week

we across expect With and profit shift, in between comparability the movement our commentary. calendar creating sales XXXX, quarters year-over-year challenges

will through we As represent such, a current performance. will year, like actual sales comparable provide as of move which measure to the we periods better

closures. having which expect Additionally, count with while more muted be closures we those due on XXXX to growth in on store will of the the anticipated closures down in and impact XXXX, year-over-year quarter-to-quarter a performance basis, negatively our earnings impacts will

first period X.X% the the fiscal for decreased compared results. XX, to ended our Total to XXXX. X-week X-week March ended X, period quarter-to-date fiscal ended Now sales February net

comparable in international Our net February From XXXX prior the X-week the XXXX, sales ended other X-week X-week X% period business XX.X%. the X.X% while in perspective, during from North the weeks period decreased sales America ended year. period our March the a XX, over increased XXXX, regional decreased comparable for

sales other net increased XXXX. sales America North XX.X% international compared decreased with translation, currency foreign of impact the Excluding X.X% and

decline our was North category ended sales business for declined our XXXX, the men's other same to XX.X%. largest per sales decrease was comparable women's. comparable the our offset by partially the largest in From and X-week year, by comparable followed dollars sales Comparable a The for by followed a footwear. while weeks perspective, growth category comparable America in driven the prior increase international by sales, period an X, accessories sales The was compared hardgoods positive March X.X% in decreased for category category decrease transaction. transactions, in

our an first remind increase retail. growth impact internal average X-week the a performance. inherent the our due external and variety guidance want period unit XXXX, everyone offset our product fiscal unit transaction and quarter to the in partially increased of involves outlook With complexity in respect estimating and transaction some decrease of uncertainty that sales, for per earnings to given to Dollars formulating margin that by in I factors for

fiscal small With our caution. a sales step QX results entered in showing back we trends, some with XXXX early from our XXXX

spring date, While we could March fiscal trended in are new to the better optimistic sales see with that we as continued business improvement receipts. have

more net and planning anticipating between are We conservatively ] quarter the million million. for [ sales $XXX $XXX first

but QX year-over-year a results. to first shipping shift the year the XXXX our will product in quarter that continued backdrop will an We first away that on expect against product mix impact our believe rate. XXXX of margin and a improvement down the service margins negative current be related from related from quarter run We see revenue prior

the is While this mix margin profit product negative, the impact overall gross impact negligible. is shift to of

this beyond share between loss have first of not quarter of negative $X.XX $X.XX we anticipate is impact the our operating $X.XX and to compared the anticipate a per and be do loss between loss material mix a XXXX. in our will first expected shift year. Consolidated be quarter to a XX% percentage XX%, will negative prior and sales for We of as

year environment. As we XXXX, the consider the full in outlook there and remains volatility for the uncertainty macro

business around will I financial trend currently we the context will year. add how from we the to refrain but do this, throughout annual giving want specific guidance, Given believe some

pandemic, years, discretionary brand over by the global competition and We negative dollar, have for the experienced inflation, the trends X past driven several negative trends instability. sales general

into the believe hold. are our to current the showing across and At negative believe trends and we being decline, our of that magnitude this are XXXX we those see business year. QX men's see new we build can includes upon these sales are results for category trends This the total and taking the time, that February. trends we multiyear full Given impact throughout moderate, of growth positive beginning

After a XXXX, grow past SG&A product margin receive the X performance we $XX.X we sales more believe years fourth in leverage quarter benefit of With will we with anticipate the margin, year-over-year the impairment product beyond costs we'll charge sales of stable that environment, of we will that we XXXX. moving in goodwill in in million XXXX. difficult recorded growth

positive believe we to assumptions, mentioned operating for previously the the year. it will return With full margins

rates our full quarter, significantly XX% effective tax effective roughly likely that year by will XXXX. we While fiscal are to anticipate in fluctuate tax rate be

We are on including planning in the America, down North optimizing X X Australia. and footprint. This current from as X we to in year, XXXX during and focus open XX is new XX stores in stores stores XXXX stores XX our in in Europe

in We $XX fiscal reopenings store planned million XXXX. fiscal reduction to $XX.X and XXXX expenditures expect million be to our between and million store capital fewer The or primarily to due million is $XX for in compared $XX.X XXXX openings.

and depreciation the with $XX that excluding and consistent approximately noncash be expect prior amortization, million lease will We expense, year.

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

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

Operator

Instructions]. [Operator

comes Jefferies. Our first with Tarlowe question from Corey

Corey Tarlowe

good Great. Thanks, afternoon. and

as go-forward to the relates the head you Europe, viability regions outlay for certain green a [ you're about to areas currently where or assess you that seeing opportunities you And it then seeing improve region business? As shoots? for are you your which present think in and ] in where as are

Richard Brooks

add Chris add and Corey, then right. -- on All on to comments, start, too. his can I'll

we have this because the years, expect that growing we I expectations Europe in can are our sales challenged an the really see over or in expensive Europe important to helping sales last sales in Europe relative to there been is proposition. markets for the growth is what's in pivot we obviously, store think new but and growth few -- conversation

say So Corey. go to time in particularly I on markets. giving terms unit focus what in is back as gain in good of existing building focus. to We you're in and some think, refocus to really year, And script, our significant efforts seeing results, the last market bandwidth relative back and And the had going us progress we them our on our that's our more Europe. -- we've made really we seen We biggest which to really commented that progress Germany our do here in out profitability need double-digit market, the year. in team's profitability make, have and count the a is in

base from seeing I go us where growth, guess here to and reconsider a And profitable what you're is going put say that's positive we're build there. then a we

this by about the again, Europe, better our we to basis. about what this teams every managing profitable be as the is that in And product right are tactics. It's arcade in not ] an business, driving entering new I So the cost about and back look in clear. more markets [ is location, controlling but direction, fundamentals all, mean, getting across like of getting example. reducing and margins expenses more effectively

And same so we're thing basics. much would And too. in back here about American tell I you the our to business, North

have So we the it X-wall markets we opportunity have on grow about web across a in and business to -- of ] Europe. there, and I we [ those more think know perspective profitability was our basis opportunity

our base about really on the profitable a base, executing the it's that. and pivot, efforts putting all of growth into slowing and building doing focusing So

Corey Tarlowe

momentum X made turn. to America, that How do be men's anticipating, the for the I then the store of that you're full turn categories what just believe -- year? across on seen the other you the about if have I would then maybe on potentially the more, number XX -- there. it's business perhaps And briefly for a now net on you've the the And count have openings Great. business more I North to widespread that think can, prospects drive a seems

Richard Brooks

Great. let like. take part. honestly first I'll the And right. I'll again, add All Chris

is I directly -- in the good the we to North news earlier. is America comments American the North American business good you for So in the this news related made script have -- is improvement North in business, our

trends relative I Despite really label we're on, doing there. think, gain and private private in relative the absolute share in private us on dollars. overall for label. basis, Multiple decline, sales dead a label. And trends fun, is working basis dollars absolute business are not declining is creative in in business we're our the in growing things in label not private a private Our

And edge, the So we've think on I trend been been early we're there. market. but we have seeing think not a in on I lot out the of those just that trends, leading cycles we're the momentum we've

building That's for has, positive play do private move our So doing to those label freshness that driver on prices. with and is huge over and being we of well the as beyond that ability again, a side trends, bundling have things the out a and provide benefit for label. those the -- our brands. I think, It we're consumer value for time strategy. also of the cheap women's for with the see like offer what the that value about never we'll have terms private it's by women's on in both as proposition more our just them probably we -- customer trends customers And

doing month than so better, our cases, in we're are penetration gaining think, second month 'XX. share the and and that half over in you, of QX have correlated And I the again, on in men's brands been brands QX. and we in XXXX back the too, this significant in some we really, in is our 'XX tell will business merging launched to and The the on thing in directly results 'XX, script, in deeper I commented seeing, 'XX, that particularly launched brands

are this that are trends about. men's things is seeing newness business, it newness we in our driving about is the into seeing talk that And injecting that we're the resonate so And we're and this the exact talking these trend when we're the positive what business.

and do So terms what accessories how to brands, for the we drive think be and again, do partner as got look with How brand we to more into is to Corey, different with we'll partners can brand to ] business. broadening with in of of we'll them we accessories to that, oil ] brands with, things exactly there categories [ can [ are working is about These them? these them, sales can we'll but help a try screen to of a that, take categories which we them expand categories. get of new even How sales select drive new all not the results. more look

these always lot throughout going XXXX. these. we're are are launch more brands just to just new are, share. just again, intend a I goal to And again, We're these brands lot in to think new a -- continue of that to every And we our these are -- gain That's year.

into So want in I seeing put label. and just the there's brands we're private between results correlation new to what be we direct a trend clear, improving and

we were some able expand other categories, absolutely, they're they're potentially within it be some directly So we can to lever benefit the business, other correlated too. and driving the [ and for of better ]. departments And that think I to

Christopher Work

couple think Yes. is some percentage XX% in XX%, positive metric I the into it as store is belief good strong to men's And from thoughts count a question think which around sales I ties we that. a it answer to quantification I'd that of our a can and for annually as the our total business, just the really grew far is of the your to gave back men's turned school. grow business add about think we year. sales we is points before a as for I Men's of What

has period. positive it all in and wasn't of in it during QX, positive peak again, the positive for January remained turned X-week that and While And positive November February. then was and now in December

we was really was and us look the really on one challenging T-shirts, business the last I bring XX, have XX. a for and a that back the us, specifically, little and periods out being was of more men's as driver XX, that up for perspective men's because financial we XX, at look XX other from growth been coming in

really give teams about So the is that here. credit a and and This will men's is newness buying lot of again, brands our category. finding stick driving I

I you a out good it's So think ask. from to call

do guess, closed what a count stores. the now, that perspective, that we also what we that back I script we to From probably noted do said to question, answering I want and stores in XX we to close XXXX. we plan XX XX But step stores in because open XX store would right is in

on significant about As combined X-year a for in think pretty before. you cycle and territory really a a that us we've not been closure, closure

to giving work through could mean year numbers as partners on want ability So or how and XX depending our control. XX results as things both with decrease the we increase closure in we that of I of well as the because internally this the I careful landlord to be our go on in closures to some our XXXX. move

when location detailed have And how not about temporary it we vacancies have see either. we to to newness permanent customer. it's of mean other right We specific question. are that opportunities a mean the serving we that around playing decline at and the the of on customer, think what its in performance in state a we through for to some of thing, lightly center But bring the that at trade based to levels business look do the center location ability area. store we profitability look regards our we that location also look a landlords peak sales into comes pretty condition the and to market. or the then in current try as the take of now the working we to closures, and are what impact I factor we plans in look process process at And store really to closures, and obviously, the to at does and the

I about the a think else important we what thing do economics. really do then that can and that's we store

So that we I that go will process, store after if our we to the probably one all diligent through of a factoring in something in a and that have close. those make centers think, determination country at or we that a it's pretty it location close, in the mall is a of declining things, means

although, although which an anticipate and to do XXrd it we have we think XXXX, week, In closures about of as still our mean, be be again, will expect we for majority despite I were the those will So can XXXX, excess $XX sales in on This true, some that does sales, the amounts. this, Europe grow well. estimate of North -- overall in we impact in closures hold America. we million

Operator

from comes Seaport. question next Our Mitch Kummetz with

Mitchel Kummetz

a Because got I strategic. think maybe question. I've few of more and then partly a you my first little couple answer maybe housekeeping maybe

hear that 'XX? week, $XX that on I just impact earnings the in sales Was referenced? Just sales XXrd that was correctly. and didn't million in what the you Maybe

Christopher Work

million million. about closed is worth $XX in about earnings? The The XX $XX that what going are stores to SPXXXXXXXX is the sales closures. we referencing XXrd And amount worth the The No. be sales. in week the

Mitchel Kummetz

What about the earnings?

Christopher Work

profit. $X.X operating about million of It's

Mitchel Kummetz

a range? XQ on And in comp Okay. you That's that sort helpful. gave sales there guide, then us range. a of assumption embedded Is that's

Christopher Work

it. how spread, Yes. assumption year in the will closures impact because a bit negative The have this little comp of obviously, a of

be we won't gave. it range but -- that significantly the different So than

Mitchel Kummetz

week And again, growth Okay. expect I full that's XXrd say 'XX. and on year, inclusive to in the want of the that you then sales

the confirm just Can growth you're that. anticipating, to that closures But you're for then store also maybe that? you comp year. just confirm given So net the expecting I assume that

Christopher Work

well Correct. million -- as ahead. are Yes. But year the didn't that as we'll give growth closures. of obviously, what's the $XX business and sales we planning uncertainty specific for XXrd we given we kind the in number, in both about guidance with challenge factoring have store the week the When talked just

Mitchel Kummetz

-- anticipate for is Or an see just there's just coming that that like growth the Europe, comp there of as growth if you now from of 'XX the you stores in growth in do the Is kind down slowed the an in some mature growth from Europe, or shut that you opportunity so a ramp? do comp like of standpoint of opportunity?

Christopher Work

Yes.

at take look I'll -- into then would bit I think little come this a going I'm question to I level, Europe. your and higher

business, we this business. have for across at when think the really we we're opportunity looking comp think I growth

and where Specifically last frank. landed to be couple these has we we here able disappointing because know pretty years, to quite to what this of been business which have do us, is

what's the there We've got got in next. customers. locations. sales serve are teams of are for looking locations, we're to homed good knowing product the really got buyers we've -- But right out finding We've that many on good these at that

this opportunity. tie we we as a think so we think have good and together XXXX, about And we

And Now an as about earlier opportunity. good start. place men's in this call, being we talked I business that's really a think for our to

our some each as challenges ] charities of have think I had other well. [

that those bring the we have to Rick as newness that business. lot and at look the think these opportunity fact new brands as So our other We well. we've some of a we and spoke continued to look categories in of into at we

more, America North that challenged. not know we than Europe. as just has Geographically, been has much, if been It

opportunity. to it right. in need in have know with profitable that And not been a U.S., we as to pausing impression And of very new and to markets the once need the we to rethink on of got have growth. the flow, we flow. think that the then back it absolutely growth cash to that way able lot region. a opportunity want and that to Canada. we I is a We've I in drive because said, We've basics I that profitability idea is Europe, on And there we've don't of growth level, to and just about get give to as think We comes right, lot new units. in the cash to believe we're have you're to growth still customer opportunity the be do that with We sort we focused within So Rick we Europe. the there. get and focus grow comp got

saw Europe wage the have it seen Europe. I just gone of that costs Europe light about think It individually, in in we overall especially and mean [ did the as that XXXX. in I level needed other to, pullback of we ] in comp some despite inflation And mean, comp with you've what a sales, we did to not

got So I hearing believe confident grow fact XXrd week about there's us comp to opportunity across the closures business, despite in and the to ability the I we've think the you're that we've overcome. got that that's pretty be sales why

Mitchel Kummetz

with that to you add I the So do the think, then but women's the One it Rick, X strategic. more be seeing sounds to on you're ones side. label, men's new private mentioned first is brands And would an also, on there brands, women's that bit opportunity like the my question. the last are maybe Okay. opportunity more mostly Is there benefit to a is there also business?

a to have it make lap positive was -- to results is funding easier wondering sort the in but kind a also that starting worked footwear there? on Or compares? you like just footwear, looks X assortment secondly, better doesn't of And really month of you're trend, it to what drive I'm February. that to pivoting try just

Richard Brooks

right. All Thanks the for question, Mitch.

just First, clarity for purposes new brands. I around guess

brands some are launched brands that working are have We that new in Women's. well we've

of So made private lot we And I'll just a this business, the the of stage that. at positive the in have enough to be label, it where good about there, And a the it's clear to really difference too. not game. stuff tip

unisex buys are and our other also -- benefited to then how customer predominantly we're that the men's. we're that We products. So there's know have aspect brands launching

[ it upon another as me the business playing We or a men's ] buying shoes of it see selling example, small you example acting to we out we an T-shirts, where our with how there, harder we know little to So in that women see typical be our where becomes disproportionately quantify boy women. business. we're would to for it's that throughout for happening size the seismic based see

brands we and new are business, to So there's seeing that our at bit women's business yes, do success specifically just with positive answer hard beginning that Mitch, it in some to not we in the we're to the business. tip But a point. to little unisex just it's because a aspect question, know this women enough the some have

So think have ranges our relevant we're would for will really of brand be always message across the be for for would wide guess there. I looking customers. you that we you all

in positive. but On -- was positive yes, was it promote it a And number. footwear, driven February,

We've just of a lot doing tell footwear as good footwear. now. will footwear, But help a is, this. issue I you in about been what Mitch recently So -- have some brand department been and challenged had from a in for had we've it's know, here while partners an we it's you our clearing

newness is And inventory get position seeing in in after us really go so footwear. so you're what do they can

So was I footwear Chris, think, inventory in down.

Christopher Work

XX%.

Richard Brooks

support we give also us where you helping of inventory clearing at partners the end we've our XX% sense the brand again, through out. have from been And Mitch, liquidation. a at it should in we're aggressive it aggressively on great that. about of footwear And the do year, done

really you're is month last seeing the what footwear aggressive liquidation So in over the market.

I'm forward, definitely you're as working, Now trends look have we identifying on are them we and some that our wall. sure footwear

to actually drive together footwear. we're improved to we in drive, they're right ride the that of about label trends that that it's know in now the so are And will business, our bottoms, private that long with business going it. really going it's levels particularly trends are go working I about some the -- think,

-- we to -- a as regular throughout can. see for build newness back-to-school us the we plan to try injecting a peak periods a we XXXX, and adjust wall we're and we move assortment for have how And year best reposition holiday really is hit launch works you newness have our move done period, the the solid on I to what we basis, plan if period those then and as footwear and our in with see really -- have build towards really throughout what going footwear were regular for basically pretty our -- to by teams pretty think

was, off you takeway investments to sizing but go I would But I we it in really [ larger of it make think each forward now it have liquidation as inventory realtors investments be is you as try. you mode, key footwear a were the can we look do and have promotionally-driven was the style So yes, out where to say. position ] in

newness lot again, and here, going we what we're We're brand supportive go every now have going fun. being footwear. and of play there some out a So coming to is our do period partners, pass in are incredibly just to

Mitchel Kummetz

being in stores. your for appreciate taking you size XX my look so all I questions. I

Richard Brooks

much not that Well, new, Mitch.

Operator

the the for Brooks Rick question-and-answer back At would concludes [Operator session. to like time, Instructions]. turn I That this call remarks. closing to

Richard Brooks

always to, hopefully, We again. we again, brand everyone, our and and partners. area We support through XXXX. greatly earlier, challenging really, we worked looking a as commentary Thank really of to your right. and said our and forward in of all appreciate Zumiez the All you, we're the I improve better appreciate again employees

to talking you thank everyone, look first we to after So and forward you, results. quarter

Operator

Thank your you conclude participation for does This program. the conference. in today's

You disconnect. now may

Zumiez (ZUMZ) 14 Mar 242024 Q4 Earnings call transcript