ZUMZ - Earnings call transcript Q2 2025

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Operator

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

Second Quarter Fiscal 2024 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

outlook today's few thank call. Work, and after questions. for the before and Hello, our Chris back-to-school you the take the your will for is on Officer. us on second that, of call of me for Chris With to then everyone, our our I'll through joining today the year. begin the remarks we'll strategic quarter season balance touching Financial open And priorities XXXX. Chief start with you and our the financials a about

and that a customer comparable base. demonstrating positive a our our increasing inflected to season our the and above We're our and June, happy high American region, guidance brand North business low resilience digits expectations strengthened in the in Total million. to to million, well stronger-than-anticipated underway the Led quarter, second our year-over-year delivered sales report of $XXX $XXX million as single exceeding digits second quarter in for July, total performance the and between by up for for got back single sales month. the increased $XXX X% sales

they of areas reflect the results we contributions of We in multiple achieved quarter, with are as the pleased our business. the

year-over-year an pace. continued accelerating quarter third category consecutive the its for Our positive momentum growing men's with

accelerated while positive also quarter, saw positive. turn category, in the ago, growth double-digit footwear meaningfully women's second Our we versus a year turned in which strong posting QX,

full price heightened the leverage all in driving higher improving selling to $X.XX fueled across a margins This which line At structure. guidance helped last increase push line time, our Our meaningfully same our noticeable solid in Europe per $X.XX resulted focus second significant loss per merchandising the top in loss quarter of than performance ago. on share cost our our year to with year a $X.XX a for bottom our than loss compared better a $X.XX of is share. to per also share in

quarter, As X. we've September sales in to seen business step-up third our we the with up another transition XX.X% quarter-to-date results, comparable through

more. to sales capable our and While is teams returning made the improving business progress of significant much growth positive comparable we believe have profitability,

stay the beyond. and its retail to As a challenging back that grow sales focused to we continue we business items and environment, are historical operating navigate towards drive our will on within the control performance

shared following be on our call in continued to strategies. As March, the focus fourth our quarter

to reinvigorating on that to our concentrating we through sales we're First, continue with win investments ensure line top customers.

Some our offerings. similar to of brands than brands these We in XXX and track product assortments with fresh level in launch XXXX, initiatives XXXX. include: than infusing more on in a XXXX, more remain XXX launched

of years, and our share. couple for seen label We're of private with seeing continuing to we've sales launched current accounting portfolio are customers. than well expand this they past label to private brands indicating from larger already newly brand a We're resonating the grow year continue to our portion historically, expect

in to relationships and XXXX. with and stores allow engage in with service continued our them best-in-class more technology. and training up growth. label and XX% another value-conscious We're showcases investment from both our aim XX% and to of XXXX enhance growth capitalize online on represented in our for team's Combining XX% relevant efforts Private XXXX, us consumers, This avenue personalized ability in maintaining in approximately and these trend providing to ways. sales in customer

enhancing are our focus we and Along our strategy. involves growth with pivot North plan profitability, In line both on a our in from Europe, Europe in top America. initiatives, these

this year serves and European to productivity business slowed focus pan-European nearly store that We and enhancing our have shifted the XX expansion web market. across stores currently the of X countries our

focus footprint, emerge long is doubt price Europe. full difficult cycle selling globally a With There's as Zumiez for relevant markets and in on what significant business for the we in a the our and potential unlock grow advantage we no the a term. create trends that locally believe existing our value penetration work current through we the been can to and has over

done like Overall, with we've this focus and we markets in achieve new as we Australia. international in Canada Europe believe other profitability can

in Europe, Beyond we underperforming XXXX, profitability close and to locations we North remain in additional track American on well. In as markets XX XX stores, we other XXXX. are focused approximately underperforming on closed

decreased corporate a As and result, with we levels count. to align store the field staffing reduced

optimizing structural cost-saving changes also store volume company-wide, in models logistics and other costs areas throughout shipping further through levels adjustments opportunities We selling implement to with labor stores. made compared are organization. reduced reduce to the last We including elevated at many lower discount to continue several year's and initiatives, staffing

Overall, unfolded stronger feel with these Longer well shareholders. I on brand navigate company. our our We're focus million capitalize season. strategies, the with and current market emerge and thus an well more that adjustments upcoming continue XXXX more term, we culture $XXX holiday true positioned in us are to we that and our far long-term increased for environment capturing with customer, generating cash, in our intense our to sheet share and by while to can our the our believe staying value with than has to encouraged a how strong operating balance position strategy, combined profitable

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

Christopher Work

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

negative in have had Comparable are a for and a quarter second on shift sales calendar sales for XXXX. the million approximately X.X% second net calendar the Second quarter on a up X.X% our Comparable shift quarter calendar sales operating impact during sales growth net of in increased points $XXX.X million, adjusted retail The positive the reported, will results, quarter. growth. increasing were $XXX.X third impact by XXX from more The basis as results, represent sales of accurate results. shift the the net measure quarter. the

quarter performance but benefited was pressured sales greater in second price we America Our which emphasis decline positive our North business, strength as quarter. a The top line. full the by second offset international put margins, Europe, was driven consecutive by a which on for partially in selling was

were of consists increase from international Australia, Other From net from million, XX.X% a X.X% an down regional which $XXX.X perspective, sales, North America XXXX. year. Europe sales and of million, $XX.X last net were

America comparable increased other X.X% the were decreased XX.X%, net impact and sales X.X% quarter. X.X% net Comparable International for sales up sales currency of international down North for other for Excluding were foreign and North year-over-year. sales translation, the America

and an for transaction an From transactions. comping men's by in decrease unit positive consolidated by transaction. an in increase sales footwear. retail in followed increase in quarter, a then up the per a comping category, largest transaction, by was dollars Hardgoods in women's increase units our largest accessories. partially category was perspective, The by negative by driven were Dollars our with average category, per offset per followed and increase driven comparable

as second basis store leverage the increase of quarter by primarily gross while million for percentage margin basis margin was million in in in the was of was points distribution leverage of last product points profit of and in The to XXX XXXX. profit driven of XX center gross occupancy the was to XX.X% quarter to XXX costs points compared flat leverage year. the XX basis quarter $XX.X compared in costs, a prior basis Gross costs, XX.X% $XX.X second shipping quarter year. Second sales for of point

timing a XX.X% due ago. SG&A or a was sales net compared non-wage $XX.X leverage, employee XX.X% points leverage corporate net in quarter XX in basis point incentive and to cost resulted following: XX offset million increase expense The basis store second points sales SG&A costs. of million from net wages of operating the of of XXX XX higher leverage the of leverage expenses points XX sales costs, basis basis by on non-wage in of to decrease basis of sales, wages, or basis in the corporate basis store XXX benefit as of XX points to year percent point training $XX.X of

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

due period. the tax X.X% of for in compared the benefit our increase The rate the effective losses in which in second year the tax Our effective of was we XXX.X% allocation to was ago operate. XXXX primarily jurisdictions with quarter across rate

driven XXXX, ended of of The securities as in Turning $XXX We August sheet. million over balance to The marketable $XXX quarter a to cash strong as current financial XXXX. had the million million in XX provided $XX.X $XX months operating million, expenditures and million million current share the repurchases marketable cash offset trailing primarily cash securities capital and $XX.X by was of by $XX.X in activities. compared and the position. of July business decrease X, of XX, by

XXXX, have on debt we X, As of no sheet. the balance August

we quarter, $XX.X XXX,XXX repurchase approximately of XXXX. our the purchased share for million on June million $XX shares second of X, under $XX.XX stock an During at approved per the price average common authorization

XXX,XXX our million Third open X.X an of the the million inventory, $XXX.X quarter authorization. Cumulatively, with year. the $XX.XX shares this per approximately up for price resulted quarter of million with last authorization. at to outstanding represented purchased additional June in have average have $X.X of common date, time, an this we repurchase the purchased This $XXX.X under authorization at our the authorization. X shares we in share At compared or million no X.X% $XX.XX. of stock stock We X.X% time ended completing

basis, were our year. from On up levels X% inventory last a constant currency

quarter newness for to are important expect we as sales selling backdrop, move holiday bring the inventory the our ending into season. and to Given continue in we happy the with balance second

to XXXX, prior to the our Now XX-day compared sales X, increased ended third XXXX. XX-day XX, Net in for X.X% results. August September period the year ended period quarter-to-date the

impact year. shift adjusted negative third shift the of As XX.X% the impact on from a to Comparable period XX-day period have net previously XXXX, which will calendar remove the comparable for prior the calendar September X, quarter. in up the growth sales ended were sales for the stated, are the

perspective, compared while XXXX, XX, to our business for ended September a for sales decreased increased period regional XXXX, international ended the other net X, North X.X%. August XX-day period the From our X.X% America XX-day business

XXXX, period XX-day other the impact Comparable international for the foreign North increased sales ended for X, same prior America September of prior ended the sales our period North in America the net for for decreased year, Excluding increased XXXX. translation, international compared the with weeks the compared to year XX-day while other from while X, XX.X% currency net XXXX, sales X.X%. comparable sales declined X% business September X.X%

category increase largest followed decline for in largest sales transaction. an then category, perspective, by units comparable unit driven to comparable an an and transaction in and per retail and transactions. a positive increased The category footwear. an our The due average comparable per by XX-day increase transaction period women's sales, growth the hardgoods. Dollars men's increase our From our by in was accessories sales was dollars increase increase followed per in in was

I our complexity to in the estimated everyone our our to given for respect in that growth inherent factors involves million performance. fiscal sales, variety earnings that XXXX, some of third want the product With quarter uncertainty of internal external $X and remind outlook and and margin guidance impact

from anticipating total to be $XXX $XXX X% sales year. third million and third We quarter increase quarter or the last the between are million a to for X%

between this a As the back-to-school from of Adjusting benefited third second shift, and are week and of the X% pulled third the which for quarter we shift, sales volume be quarter reminder, heavier to X%. quarter. out quarter growth estimating into X calendar second the

and that and expect a slightly loss the X.X% margins operating will Consolidated loss positive. of $X.XX income we in be a of earnings third prior We a year. X.X%, be XXXX share will of sales quarter between as anticipate to $X.XX $X.XX our and of expected third is income between compared the percent to quarter per for product be

believe still the the volatility consider uncertainty outlook, we be macro As full we environment. and year there to in

do this, will from the specific Given annual refrain our guidance, share expectations we giving full financial year. want but for to

we close, and merchandise customers. quarter nearing the second the brands strong a With turning back-to-school our resonating season seeing new in within are business and the positive assortment with trends

will fiscal and beyond moving the the single-digit we in we year-to-date range could product now product goodwill sales grow we'll $XX.X of for XXXX. our year-over-year we third and of performance we anniversary difficult past XXXX, closures growth the believe the in in fourth a With week that despite growth full of margin sales for we'll receive previously guidance, environment, quarter be year the believe years million the sales quarter in we X After stable more in costs of year SG&A the recorded benefit store our the results impairment charge leverage XXXX. anticipate With low XXrd reported. margin, with

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

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

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

We closures closures our our to or number go operating North of down close ability in The on 'XX could each in approximately landlord and XX as our stores partners. up depending location to are results as in with most work planning well our fiscal of America.

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

quarter, are in the lease are million share repurchase the for open be approximately completed third by $XX will full approximately in Board the shares. noncash excluding X, we authorizations year be count projecting prior with further currently consistent amortization, expense, and depreciation the XX.X and And June share the No This XXXX. million repurchased that includes currently expect our year. shares on to We diluted place. which the authorized

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

Operator

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

Mitchel Kummetz

Rick, really like business it the well sounds back-to-school. for inflected

was the Obviously, through in events I digits. that? of consumer up of comp high How that? August said you just think your walk of that you kind July for taking Can you showing us and double advantage why was much remarks, prepared is was guys up just singles. up

Richard Brooks

in just would mean me, that's been business. quarter-over-quarter I while think Mitch. think now. And I first, I we've think -- is always it's about questions, momentum seeing question I appreciate the this for our improvement I steady I business start our a where in for quite

point is so an some And part inflection us. driven year same And throughout being too. is I the think about we've talked it the really of important things first this by the for of

without their the to value without cut going prices -- bottoms being do of -- and the way the tops both to teams strength our the it's first, offer back our Mitch. bottoms, to So and stores in label in really key both particularly that comments, on the business private of it, in trends the sense sales and it's having

concepts think customers. and have us for our the been incredibly important bundling So delivering for I value

the how And customers. are script, new also was all And translating. in we the really -- is resonating the at second, with brands really launching are as looking that's

it. We're or I think a seeing it our tops really driving a the switch 'XXs the lot and over seeing reflect And that teams whole of the and running back today late reflect all think really anticipated footwear it. bottoms and we're this the look. people the it. there's then to seeing and We're just in it I reflect it's XXXXs, and young look are

job sales of just really our executing. then great people a are doing And

talking new business. is the things think in this a quarters right, help about of me, going as for holiday. to optimistic to really are for the trend improvement means I'm next this sequential Mitch, those again, drive of we we've about our number Finding now a about And forward. been continuation, So that us brands, what

of replenishment capturing a we're for good new look of whole again, a job that. And So I think customers, really wardrobes. doing

Mitchel Kummetz

Do you embedded in kind Is can quarter? the gap And that this you small of think particularly business. back-to-school kind what's through these you September, month. between of now third the the guide in momentum momentum kind in of are a and holiday? referenced for so Rick, We're hold the October that

do that momentum calendar there did And comp missed quarter? embedded sort third But Chris, guys of kind comp of And and is that? the underlying there you in then know Rick, I an a for and range for unless provided back-to-school period the again, shift. guide assumption holding this it, How you kind -- holiday. spoke adjusting you is provide of kind just of terms between I you the through nonevent a growth to in range? of see sales

Richard Brooks

start see -- already And me on momentum, QX we're let quarter-to-date going first. to quarter-to-quarter again, see over holding in Mitch, we're obviously, I what's is think, embedded again. QX Well, to going improvement

going I in Chris bit And what to So drive think then guidance. I'm to going is embedded a about the that talk we're more momentum. let

Christopher Work

to we into $XXX works from we guide, And QX. as million said, QX quarter growth. which be about But of million Sure. that's shifting by an reiterate, to $XXX million sales, out impacted a about X% overall the $XX just to is to in out said third X%

was QX benefit a was detriment. and So a QX

up mean the higher August guiding better has which Day we're what the been you're is remove rate if slightly a So about us. is Labor you to we that just for below kind dates, believe line that at the X% I reported business, which at we total amount. through try look we X% to and in run sales, of comp-to-comp to probably just

the for stronger. here this a have seen we've think I years said, number that gotten being just that peaks But of

remainder positive quarter, business but still levels busy still the at good, is a elevated we of saw the not here the season. for expectations the our quite during here that comp So back-to-school the is

Mitchel Kummetz

you're strategy? And is the much? and overseas shift in just Rick, there performance that? right you're that mean, maybe seeing quite resonating trends -- macro? U.S. business, you I of is last a that the seeing that Or Is shifting for your in me. not European that you are know maybe that in America strategy not on a North as address mainly question the now. comp are I same the translating function it you tougher Can Are the

Richard Brooks

definitely has it's marketplace. American a by and few relative start years I'll last the Mitch. saying tougher for North to environment macro the Sure, been

following if the important European and challenges about -- definitely you're like the mean, all is -- the So important I in in in which European marketplace. there's regions terms countries business of Germany, economy, some biggest an market our also --

So environment no macro the tougher. doubt there's is

Now relative global. talked some business, our trends that -- of about, to seeing locally we are as we've might start become -- the are

we're So of right, and some those European trends seeing business the out, play in work.

private our is in position in performing well label our label, of So private Europe.

be fact about, there, more global what less we're as would one I to We of local margin a in as said Chris and And sales really of his curated basically that how result was we're but getting think that marketplace. in see QX, that's the some that's in lose the assortment profitable to in that. out a the the trend differentiated we're improvement going Europe, comments might interim. that So of simply we're buying play nature overshadowed some product been focused by aspect changing seeing on but much

our have business I shifting those work trade-offs, in our to through top we of macro and how a also going want way kind the operate we're couple up to Europe. So to are we're environment while think of

Mitch. I what in really, Europe, right that's think, we're experiencing now So

Operator

Jefferies. line from come Our next question is the Corey Tarlowe from of

Corey Tarlowe

a within inflecting if that category business? just you bit. the business ask Rick, us to for the maybe context about overall you halo about rest the the Great. And I little think also category, how as the the for driving of for hardgoods wanted effect unpack of could a hardgoods

Richard Brooks

Thank Okay. Great. Corey. you,

a and that a off, XXXX. segments, remind us hardgoods know lot and moved skate we all was of It's hardgoods. hardgoods uptick in little backup, bit uptick globally at is more with color of started pandemic, like just kind on We a February an in started a of being volume business me lot we what the XXXX. during our example, let moved actually where So you XXXX. that, And start of this again, XXXX bikes in we're the an that cycle give big into really that skate

But XXXX, the even course, -- tougher 'XX, bit spending and relative was that we XXXX from all benefited made, that lot XXXX, XXXX. tougher of a a to it with in even stimulus

So believe, ourselves skate Chris go I low all-time near to, an of from XXXX terms we've in currently. penetration in terms hardgoods an in all-time peak penetration of seen

volume played couple really think cycle and normally And so has lot a it's challenging, over of basically have because walked been I the of of this been out acceleration years. that really, of would a

true tougher months for still X would Europe positive results. seeing we think X by on U.S. we're where some the our of or That department. we're positive seeing the characterize been business this Europe But Australia, and think, now, improving. very U.S. cautious are and skate and positive sales. over be we're Canada what that are looking we're So hardgoods as would But at month last from I or -- I we're I forward, about parts hardgoods said, starting today tougher. to so. think that has generate of where But

that hopefully the we're be a again, see, months remaining sales think skate low hopeful, Corey, but that of bottom to and out it the in hardgoods will this to find if trends relative mix. going year, probably the I play penetration, we're we'll -- business So over sales new globally

a it see question years. in for the do do do we -- a we And dramatic business? will be, we few see a level the Or uptick see then

are have how we'll see out. play going that think it's to things I to just to the those going

the really a partners hardgoods obviously the do really that positively The it been a managing well of done throughout and great halo so the from cycle, out positioned. which skate cycle. teams we Now has inventory with once of the is, effect other And job position a inflects our over advantage working taking helping bit X I get our have through business, think last we're each detriment our experience years. is that of

going So for hopeful the in But uptick. we'll a or worse, bounce [ sure bottom find view when an we're I probably we And bit not uptick, can't we a significant there's around it to news as all-time do bottom, and us of a halo the see the a most consumer -- effect good to is such be retailer it low. skateboard they I'm significant the point be that significant, can't I'm I again, does from believe benefit obviously, whether ] of us being just a get guess, world. the

not going it's I'm to play hoping timing out sure the but a of how going I'm to be Corey. exactly it's yet, So benefit,

Corey Tarlowe

as any you're the promotionality there's in X thinking Christmas? back And less color about follow-up, specifically a Very and half, how days helpful. given between just about selling Thanksgiving

Richard Brooks

-- about it. it's glad we pretty think Yes, how back-to-school is you that clear address think a promotional, was would a say It's for I that on promotional -- always be and I'd on basis. particularly I season relative but it to this

particularly but world. only people in more the say think promotional not have I store, online I'd promotional been even

price where stores. think see relative different the differently I across markets you to retailers So their

a approach. different We have

process always you for reward is how that think I salespeople about do a And despite in trying cutting than I So and think going the the would promotional. our we're deliver of consumers value doing that to environment price. very that to tell we're different to that. the we fact way

back-to-school to But very you our one the have but bottoms had I results you think price I the business, think and consists our pricing lot at compare our market, still bundle if is of strong probably that on highest results. to we're look and sales speaks in product private of a great again of which label it team's And margins. packages, to ability ability accretive

of we margin we in margin support our business value the the us value product and and the the shareholders helping our that our point through for for consumer the that wins get and structure. sense, everyone So where in -- bundling, get

on So are new on course, that, again focused are why business we're new trend do that we're we full-margin leading a brands. launches always going be important. of retailer. leading being full-price, freshness that's in the and of to in that on And requires, And the to and that why so brand newness terms

season to is do the environment profitable be expect So customers. and promotional. better in relative -- be that positioning distinguish we more And how really expect the ourselves drive And we but to holiday to promotional. brand a I business always with question our

Operator

next line of comes Richard from question B. Our Riley. from the Magnusen

Richard Magnusen

the see costs, what My operating regarding feel in higher -- labor pressure do including retailers continue the to question is costs, from business? core there you the as competitors exiting your space

Richard Brooks

So again, that's It's Richard. the and pressure relative labor question, costs for operating understand I make around sure competitive ourselves putting retailers? on higher the to and other

Richard Magnusen

anytime all soon, Correct. that be don't you Costs business? to space core your exiting have down what the the could mid gone these leaving but see regarding up in business general, think or and in on expect it I labors level, go and established competitors a do new pressures, the higher

Richard Brooks

Well, first, you're absolutely right.

no much it's strategies it's and earlier is. doubt worked in we're our reasons hard a call And or Australia, the other is the doing challenge. business, in I'm in of as one big really there's higher We are wrestling during costs with just And here retailer the our like proud a America, -- terms the every of Europe just in implement what U.S. new of we labor And labor, how on around a too. across at global focus do North we really here not effort that's is be really, we it's clear, of in productivity. commented part to really

about that and if the we in invest return been management, aggressive get of about transactions, mix to really do have really AUR do of sales. we why the plays volume definitely labor going on to we're stores, where labor business, out -- labor, managing and So we with invest where thinking how our

So doubt, still and struggle, not ]. of in we're going been it's early it's this -- a there's the us And be stages definitely no to [ Richard, we're -- else. for for everyone one

new how find going at. ways the margin business think and to can do out drive back results. be that. can drive We want figure it to business. yet the levels really in where to we to this deliver have And believe it we We do to our really operating to we to -- we think we starts have We're there forward to recover

of a is Everyone different. From in size raises I footprints has everyone challenges for which different perspective, competitive mean, them. different their store,

in no even, that retailer based on to for I more as on on reduction is the think, pressures you opportunity them. that being a unique I overall relative the in each to just only doubt unique the felt there's were tell environment earlier. Europe So there commented Europe, feel would not macro it's in Europe of but labor, definitely I challenges that's that we competition

seeing a of including there, a market few we is how Europe store So reflective difficult are is from base closures much that in I up. labor competitor have costs think quite gone that the

Operator

from comes line William question Dylan the of next Our from Carden Blair.

Dylan Carden

and on Yes. underlying flow comp, of an we I'm a further a you be standpoint operating flow quarter. in nice of the expect a wouldn't quarter, of to balance And seems of through have to positive comp from nice quarter really saw the the kind margin year? similar in even why through still a third just the curious the kind improving third level in comp guide, through positive the thinking

Christopher Work

Yes.

a going is think, this. play obviously, the I to on calendar part shift

into QX estimate some that meaningful know, out line this of or We QX you $X.XX probably impact of portion has million $X.XX. a bottom too. As came $XX

the we second that was know So benefit quarter. to a

we a excluding second in see question. flow-through, even a going Now nice $X.XX from loss to your you indicated quarter $X.XX, loss a of in as from that did of the

happy that are piece of with So we it.

think places continue really are see gross we there down the third we'll flow even as occupancy good flow to product the some grow through, We're what standpoint able margin to from And like see through. get quarter a to trying sales. shipping in we're in I and is margin. building to model getting seeing to of accelerate

having much really incentive couple side, leverage down which are of corporate all. years incentives, of with the after exception the last and we on P&L, And at not the to of seeing working the we're refund up

results factored and level So indicating our into the of that current incentive that's pay are guidance. we'll some

at what nice quarter and you you're flow a think just the there through, a there's kind I and nice seeing, year-to-date, little of third of between quarter. really see you'll bit the -- as second So look noise

Dylan Carden

store on as of last sounds It is positive. One, kind the are the do think a years, of I might [indiscernible]. margin of where -- reassess can there and number go you like X any about comps Understood. closed And X-parter. expect level? this more then about forward a that stores closing the quantifiable kind maintain the turn fleet, you impact kind XX. under think spread And in and there as year U.S. over closures, you from this then kind kind just of outperformers, how you you it's But underperformers be to of between guess of the

Christopher Work

we acceleration Obviously, little for a XXXX, thanks has Sure, year XXXX bit then from a us question. into of been are closure yes. for where now there the And historically, needed in a this center in and the just to up point, times, say A elect reposition or a of that we've either low-volume wasn't market. locations. I'd lot to perspective. it's this close

first perspective. of couple last to acceleration of an from seen the of bit a that part little kind of of what an means overall So your the question years, we've margin

$XX sales. We quantified in stores XX year's million last being about

to should you return that line. X of little what impact good annual for on that an that very get that are feeling marginal mostly a and the to to stores don't support be making the amounts really are load them. allocated of means basis bottom These just kind corporate So

fleet trying think that to meeting. the are similar we we in guided this the I to of out XXXX So closures But the something possible. you'd best see manage

as don't at looking I of sales I on the of We're its think the So look as web to and how each I important location. levels, customer we factors talk area, we the profitability the define overall at the that make stores consider, kind levels and variety to right? marketplace. that at we work it's stores, -- which looking in store's do serve we in about want really We're sure any that trade impact

And where performance. do competition these things stores can get back then store we surrounding mean of are we landlords manage operating. just aware, as centers world obviously, their maybe look there occupancy about of the operate are I like for the long economics. we that some probably at can centers this to we're that they based peak is and working then there we're some areas. condition We else the with. in And And at look something are all we we the on were not the and anything

sales have could way that stores we've items. like that would really around continue year, work I about down each that's on open. we manage how to XX So guess we those we number If up. can potentially grow to go continuing the we or location probably to, that focused talked come this

Operator

with And Rick turn like the concludes question-and-answer back I session. it for closing over this to remarks. would that, to now any

Richard Brooks

want December in thanks we as in getting Zumiez, with you my for just always, to, interest I to and forward right. offer everyone back early look All your results. to QX

you, appreciate So much thank it. everybody,

Operator

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

Everyone, great may You now disconnect. have a day.

Zumiez (ZUMZ) 5 Sep 242025 Q2 Earnings call transcript