Group 1 - The company reported a 5.5% growth in comparable sales for the first quarter, marking the fourth consecutive quarter of positive growth [4] - The North American business demonstrated resilience despite a complex macroeconomic environment [4] - The CEO highlighted the successful execution of strategic initiatives contributing to the positive performance [4] Group 2 - The conference call included forward-looking statements regarding the company's business outlook [2] - The CFO will provide detailed financials and outlook for the remainder of the year [3]

Financial Performance - Zumiez reported a quarterly loss of $0.79 per share, slightly worse than the Zacks Consensus Estimate of a loss of $0.77, but an improvement from a loss of $0.86 per share a year ago [1] - The company posted revenues of $184.34 million for the quarter ended April 2025, exceeding the Zacks Consensus Estimate by 0.99% and up from $177.39 million year-over-year [2] - Over the last four quarters, Zumiez has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Zumiez shares have declined approximately 34.4% since the beginning of the year, contrasting with the S&P 500's gain of 1.5% [3] - The current Zacks Rank for Zumiez is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $211.02 million, and for the current fiscal year, it is $0.24 on revenues of $900.58 million [7] - The estimate revisions trend for Zumiez is mixed, and changes in earnings expectations may occur following the recent earnings report [6] Industry Context - The Retail - Apparel and Shoes industry, to which Zumiez belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Zumiez's stock performance [5]

Financial Data and Key Metrics Changes - First quarter net sales reached $184.3 million, a 3.9% increase from $177.4 million in the same period last year [12] - Comparable sales grew by 5.5%, marking the fourth consecutive quarter of positive growth [4][12] - Gross profit for the first quarter was $55.3 million, up 6.6% compared to $51.9 million last year, with a gross margin increase to 30% from 29.3% [15] - Net loss for the first quarter was $14.3 million, or $0.79 per share, compared to a net loss of $16.8 million, or $0.86 per share, in the prior year [16] Business Line Data and Key Metrics Changes - North America net sales were $149.7 million, a 4.9% increase from the previous year, with comparable sales up 7.4% [13] - Other international net sales, which include Europe and Australia, were $34.6 million, down 0.2% year-over-year, with comparable sales down 2.3% [13][14] - The women's category was the largest positive contributor to comparable sales, while hard goods was the only negative category [14] Market Data and Key Metrics Changes - North America showed strong performance despite macroeconomic uncertainties, while Europe faced challenges with a slower start in 2025 [8][13] - Comparable sales for North America increased by 5.1% in May, while other international sales decreased by 14.8% [20][21] Company Strategy and Development Direction - The company is focused on three strategic priorities: accelerating top-line expansion, maintaining profitability, and leveraging financial strength for growth [5][6] - Plans to diversify sourcing to reduce exposure to China, aiming for a decrease from 50% to potentially 30% by the end of 2025 [5][36] - Continued investment in customer engagement and product newness, with a commitment to expanding private label offerings [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the global trade environment and maintaining profitability despite uncertainties [5][10] - The company anticipates total sales for the second quarter to be between $207 million and $214 million, representing a slight change from the prior year [23] - There is an expectation of modest year-over-year growth in product margin, despite challenges from tariffs and market conditions [26] Other Important Information - The company repurchased 1.8 million shares in the first quarter, representing 9.4% of outstanding shares, and announced a new buyback plan for an additional $15 million [9][18] - Inventory levels increased by 2.1% year-over-year, with expectations to end fiscal 2025 with lower inventory than the previous year [18][19] Q&A Session Summary Question: Can you walk us through the impact of tariffs? - Management highlighted proactive measures taken to mitigate tariff impacts, including sourcing adjustments and cost management strategies [31][34][36] Question: What is the outlook for product margins given tariff exposure? - Management remains optimistic about achieving year-over-year product margin growth despite tariff challenges, focusing on strategic pricing and bundling [38][39] Question: What is the strategy for improving performance in other international markets? - The company is focusing on profitability and cash flow in Europe, with plans to drive top-line growth through product innovation and margin expansion [41][44][46]

Financial Data and Key Metrics Changes - First quarter net sales reached $184.3 million, up 3.9% from $177.4 million in the first quarter of 2024 [12] - Comparable sales grew 5.5%, marking the fourth consecutive quarter of positive growth [4] - Gross profit for the first quarter was $55.3 million, a 6.6% increase compared to $51.9 million in the same quarter last year [15] - Net loss for the first quarter was $14.3 million, or $0.79 per share, compared to a net loss of $16.8 million, or $0.86 per share, in the first quarter of 2024 [16] Business Line Data and Key Metrics Changes - North America net sales were $149.7 million, an increase of 4.9% from 2024, with comparable sales up 7.4% [13] - Other international net sales, which include Europe and Australia, were $34.6 million, down 0.2% from last year, with comparable sales down 2.3% [13][14] - The women's category was the largest positive comping category, while hard goods was the only negative comping category [14] Market Data and Key Metrics Changes - North America comparable sales increased 5.1% during the four-week period ended May 31, 2025, while other international comparable sales decreased 14.8% [20] - The company anticipates total sales for the second quarter to be between $207 million and $214 million, representing a negative 2% to positive 2% change from the prior year [22] Company Strategy and Development Direction - The company is focused on three strategic priorities: accelerating top-line expansion, maintaining profitability, and leveraging financial strength to navigate uncertainty [5][6] - Plans to reduce exposure to China by diversifying the sourcing base, aiming for no individual country to represent more than 20% of goods sourced by 2026 [5][36] - The company expects to open nine new stores in 2025 while closing approximately 20 stores [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the global trade environment and adapting to changing market conditions [4][5] - The company anticipates modest year-over-year growth in product margin in 2025, despite challenges from tariffs and store closures [26] - Management noted that achieving previously mentioned annual expectations for fiscal 2025 remains feasible [26] Other Important Information - The company ended the quarter with $101 million in cash and current marketable securities, with no debt on the balance sheet [9][17] - A new share repurchase plan for up to $15 million was authorized by the Board of Directors [18] Q&A Session Summary Question: Can you walk us through the tariff situation and its impact on COGS? - Management highlighted proactive measures taken to mitigate tariff impacts, including sourcing adjustments and cost management strategies [30][32][36] Question: What is the anticipated product margin growth despite tariff exposure? - Management indicated that they expect to grow product margin modestly through various strategies, including working with brand partners and adjusting pricing [37][39] Question: What is the strategy for improving results in the other international markets? - Management acknowledged the challenges in Europe and emphasized a focus on profitability and cash flow, with plans to drive top-line growth through new product offerings [40][44][46]

EXHIBIT 99.1 Zumiez Inc. Announces Fiscal 2025 First Quarter Results LYNNWOOD, Wash., June 05, 2025 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ: ZUMZ) a leading specialty retailer of apparel, footwear, equipment and accessories for young men and women, today reported results for the first quarter ended May 3, 2025. Net sales for the first quarter ended May 3, 2025 (13 weeks) increased 3.9% to $184.3 million from $177.4 million in the first quarter ended May 4, 2024 (13 weeks). Comparable sales for the thirteen ...

Core Insights - Zumiez Inc. reported a net sales increase of 3.9% to $184.3 million for the first quarter ended May 3, 2025, compared to $177.4 million in the same period last year [3] - Comparable sales for the same period increased by 5.5%, with North America showing a stronger performance at 7.4% [1][3] - The company experienced a net loss of $14.3 million, or $0.79 per diluted share, an improvement from a net loss of $16.8 million, or $0.86 per diluted share, in the prior year [3][5] Financial Performance - The first quarter's gross profit margin improved to 30.0% from 29.3% year-over-year, while selling, general and administrative expenses increased to 40.8% of sales [15] - The company had cash and current marketable securities of $101.0 million as of May 3, 2025, down from $146.6 million a year earlier, primarily due to share repurchases and capital expenditures [4] - Zumiez repurchased 1.8 million shares at an average cost of $13.82 per share, totaling $25.2 million during the first quarter [4][9] Market Outlook - The company anticipates net sales for the second quarter of fiscal 2025 to be between $207 million and $214 million, with a projected loss per share ranging from $0.09 to $0.24 [7] - Zumiez plans to open approximately 9 new stores in fiscal 2025, including 6 in North America, 2 in Europe, and 1 in Australia [8] Strategic Initiatives - The CEO highlighted the company's efforts to diversify its North American supply chain to reduce exposure to China amid ongoing trade negotiations [5] - The company aims to introduce new and unique products to drive demand while controlling costs to improve margins, especially in international markets where sales have been challenging [5]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The company's unaudited interim statements show a reduced net loss of $14.3 million and a decrease in total assets to $599.1 million [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $599.1 million, primarily due to a reduction in cash and shareholders' equity from share repurchases Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | May 3, 2025 (Unaudited) | February 1, 2025 | | :--- | :--- | :--- | | **Total current assets** | $281,190 | $322,385 | | Cash and cash equivalents | $62,519 | $112,668 | | Inventories | $149,864 | $146,648 | | **Total assets** | **$599,100** | **$634,881** | | **Total current liabilities** | $146,875 | $155,514 | | **Total liabilities** | **$300,622** | **$305,904** | | **Total shareholders' equity** | **$298,478** | **$328,977** | [Condensed Consolidated Statements of Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Loss) Net sales grew 3.9% to $184.3 million, leading to a reduced quarterly net loss of $14.3 million Consolidated Statements of Loss (in thousands, except per share amounts) | Metric | Three Months Ended May 3, 2025 | Three Months Ended May 4, 2024 | | :--- | :--- | :--- | | Net sales | $184,343 | $177,388 | | Gross profit | $55,315 | $51,899 | | Operating loss | $(19,872) | $(20,155) | | Net loss | $(14,330) | $(16,780) | | Diluted loss per share | $(0.79) | $(0.86) | [Condensed Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Comprehensive loss improved significantly to $7.3 million, driven by positive foreign currency translation adjustments Consolidated Statements of Comprehensive Loss (in thousands) | Metric | Three Months Ended May 3, 2025 | Three Months Ended May 4, 2024 | | :--- | :--- | :--- | | Net loss | $(14,330) | $(16,780) | | Foreign currency translation | $6,614 | $(895) | | **Comprehensive loss** | **$(7,298)** | **$(17,778)** | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) Shareholders' equity declined by $30.5 million, mainly due to a $25.2 million share repurchase and the quarterly net loss - The company repurchased 1,808 thousand shares of its common stock for a total of **$25.2 million** during the quarter[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash decreased by $49.7 million, driven by cash used in operating, investing, and financing activities Summary of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended May 3, 2025 | Three Months Ended May 4, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(22,084) | $(18,577) | | Net cash (used in) provided by investing activities | $(4,188) | $7,997 | | Net cash (used in) provided by financing activities | $(25,029) | $228 | | **Net decrease in cash** | **$(49,693)** | **$(10,597)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key disclosures include store footprint, regional sales, a $2.9 million lawsuit settlement, and share repurchase activities - The company operates **730 stores** under the names Zumiez, Blue Tomato, and Fast Times across the U.S. (569), Europe (87), Canada (46), and Australia (28)[20](index=20&type=chunk) Net Sales by Geographic Region (in thousands) | Region | Three Months Ended May 3, 2025 | Three Months Ended May 4, 2024 | | :--- | :--- | :--- | | United States | $140,040 | $133,873 | | Europe | $29,292 | $29,569 | | Canada | $9,693 | $8,826 | | Australia | $5,318 | $5,120 | | **Total Net Sales** | **$184,343** | **$177,388** | - The company reached a settlement in principle for **$2,890,000** in the Seana Neihart PAGA lawsuit, subject to court approval[41](index=41&type=chunk) - On June 4, 2025, the company approved a new share repurchase program for up to **$15 million** of its common stock, expected to continue through June 30, 2026[63](index=63&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 3.9% sales increase, improved gross margin, higher SG&A, and future capital expenditure plans - Net sales increased **3.9% to $184.3 million**, driven by a **5.5% increase in comparable sales** attributed to higher dollars per transaction[79](index=79&type=chunk) - Gross profit as a percentage of net sales **increased by 70 basis points to 30.0%**, primarily due to leverage in store occupancy costs[80](index=80&type=chunk) - SG&A expenses increased by $3.1 million, and as a percentage of sales rose by 20 basis points, largely due to a **160 basis point impact from a $2.9 million litigation settlement**[81](index=81&type=chunk) - The company expects to spend approximately **$14.0 million to $16.0 million** on capital expenditures in fiscal 2025, mainly for opening about 9 new stores and for remodels/relocations[87](index=87&type=chunk) - On December 20, 2024, the company entered into a new **$25 million revolving credit facility** with PNC Bank, replacing its previous agreement with Wells Fargo[92](index=92&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk profile remains materially unchanged from the previous fiscal year-end - The company's market risk profile has **not significantly changed** since February 1, 2025[148](index=148&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - Management, including the CEO and CFO, concluded that **disclosure controls and procedures were effective** as of May 3, 2025[149](index=149&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[150](index=150&type=chunk) [Part II. Other Information](index=32&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company notes routine litigation and refers to a $2.9 million settlement detailed in the financial statement notes - The company refers to Note 5 of the financial statements for details on litigation, which discloses a settlement in principle of **$2,890,000** for a PAGA lawsuit[152](index=152&type=chunk)[41](index=41&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the last Annual Report on Form 10-K - There have been **no material changes** in the risk factors from those disclosed in the Annual Report on Form 10-K for the year ended February 1, 2025[153](index=153&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details the completion of its $25 million share repurchase program during the quarter Issuer Purchases of Common Stock (in thousands, except price per share) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Dollar Value of Shares that May Yet Be Repurchased Under the Plans | | :--- | :--- | :--- | :--- | | Feb 2 - Mar 1, 2025 | — | $— | $— | | Mar 2 - Apr 5, 2025 | 832 | $14.59 | $13,054 | | Apr 5 - May 3, 2025 | 990 | $13.19 | $— | | **Total** | **1,822** | | | [Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities during the period - None[156](index=156&type=chunk) [Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's business operations - Not applicable[156](index=156&type=chunk) [Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No directors or officers engaged in the adoption or termination of Rule 10b5-1 trading arrangements - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended May 3, 2025[156](index=156&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including officer certifications and XBRL data - The filing includes CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, as well as financial data in **Inline XBRL format**[160](index=160&type=chunk)

Core Viewpoint - Zumiez Inc. is facing significant challenges in the market, with its stock price nearing a 52-week low and a notable decline of 15.4% over the past three months, prompting a reassessment by investors [1][2]. Group 1: Performance and Market Position - Zumiez has underperformed compared to the Retail - Apparel and Shoes industry, which saw a growth of 1.9%, and the S&P 500 Index, which declined by 1.2% during the same period [2]. - The company experienced a setback during the holiday season due to an unexpected drop in demand, failing to meet internal sales expectations, which raises concerns about its adaptability to market changes [5]. - Challenges in international markets, particularly in Europe, have hindered consistent profitability, indicating deeper structural issues in Zumiez's global strategy [6]. Group 2: Supply Chain and Operational Challenges - Zumiez is vulnerable to supply-chain risks, especially related to tariffs, as approximately 50% of its North American inventory is sourced from China, exposing it to tariff-related uncertainties [7]. - The company is working on diversifying its sourcing, but this may lead to higher costs or supply disruptions, which could negatively impact profitability [7]. Group 3: Strategic Focus and Future Outlook - Despite challenges, Zumiez has shown resilience through strong comparable sales growth and improved profitability in the fourth quarter of fiscal 2024, with a focus on expanding its private label business [8][9]. - The company is optimizing operations by closing underperforming stores and refining logistics, which has led to meaningful reductions in operating costs relative to sales [10]. - For fiscal 2025, Zumiez projects total sales to increase by 1-3% and comparable sales growth of 3-5%, with a focus on enhancing product margins through private-label offerings [11]. Group 4: Valuation and Investment Appeal - Zumiez is currently trading at a forward 12-month price-to-sales (P/S) multiple of 0.26X, significantly lower than the industry average of 1.75X, suggesting it is attractively priced relative to peers [12]. - The company's Value Score of A indicates its potential appeal as an investment opportunity [12]. Group 5: Summary of Strengths and Weaknesses - Zumiez is executing well on margin expansion, cost control, and private label growth, while trading at an attractive valuation [14]. - However, struggles during the holiday season, ongoing international weaknesses, and exposure to supply-chain risks raise concerns about its near-term stability [15].

Company Overview - Zumiez Inc. is a leading specialty retailer focused on apparel, footwear, accessories, and hardgoods for young men and women interested in action sports, streetwear, and unique lifestyles [3] - As of May 3, 2025, Zumiez operates 730 stores globally, with 569 in the United States, 46 in Canada, 87 in Europe, and 28 in Australia [3] - The company operates under the names Zumiez, Blue Tomato, and Fast Times, and has ecommerce platforms at zumiez.com, blue-tomato.com, and fasttimes.com.au [3] Upcoming Financial Results - Zumiez will report its fiscal 2025 first quarter results on June 5, 2025, after the stock market closes [1] - A conference call to discuss the results will take place on the same day at 5:00 p.m. ET [1] - Participants are encouraged to pre-register for the conference call and to join 15 minutes early to avoid delays [2]

Group 1 - The article emphasizes a long-only investment strategy that evaluates companies from an operational and buy-and-hold perspective, focusing on long-term earnings power and competitive dynamics rather than market-driven price actions [1] - Quipus Capital's approach suggests that most recommendations will be holds, indicating a selective buying strategy where only a small fraction of companies are deemed worthy of purchase at any given time [1] - The hold articles are intended to provide valuable information for future investors and introduce a healthy skepticism in a generally bullish market environment [1] Group 2 - The author discloses having no stock or derivative positions in the companies mentioned and has no plans to initiate any such positions in the near future [2] - The article reflects the author's personal opinions and is not influenced by any compensation from companies mentioned, aside from Seeking Alpha [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not represent the platform as a whole [3]