Zumiez Inc. (NASDAQ:ZUMZ) Q3 2024 Earnings Conference Call December 5, 2024 5:00 PM ET Company Participants Rick Brooks - Chief Executive Officer Chris Work - Chief Financial Officer Conference Call Participants Mitch Kummetz - Seaport Richard Magnusen - B. Riley Corey Tarlowe - Jefferies Operator Good afternoon, ladies and gentlemen. And welcome to the Zumiez Inc. Third Quarter Fiscal 2024 Earnings Conference Call. At this time, all participants are in listen only mode. We will conduct a question-and-answe ...

Group 1: Earnings Performance - Zumiez reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, compared to a loss of $0.12 per share a year ago, representing an earnings surprise of 100% [1] - The company has surpassed consensus EPS estimates for four consecutive quarters [2] - Zumiez posted revenues of $222.48 million for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 0.19%, and up from $216.34 million year-over-year [2] Group 2: Stock Performance and Outlook - Zumiez shares have increased approximately 11.4% since the beginning of the year, while the S&P 500 has gained 27.6% [4] - The current consensus EPS estimate for the upcoming quarter is $0.96 on revenues of $283.48 million, and $0.07 on revenues of $893.2 million for the current fiscal year [8] - The Zacks Rank for Zumiez is currently 3 (Hold), indicating expected performance in line with the market in the near future [7] Group 3: Industry Context - The Retail - Apparel and Shoes industry, to which Zumiez belongs, is currently in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]

Financial Performance - Third quarter comparable sales increased by 7.5%, while net sales rose by 2.9% to $222.5 million compared to $216.3 million in the same quarter last year[2][3] - Gross margin improved by 140 basis points to 35.2% in the third quarter, up from 33.8% in the prior year[2][3] - Net income for the third quarter was $1.2 million, or $0.06 per share, compared to a net loss of $2.2 million, or $0.12 per share, in the same quarter last year[3][4] - For the first nine months of fiscal 2024, net sales increased by 2.8% to $610.0 million, with a comparable sales growth of 3.2%[4][15] - The company reported an operating loss of $18.2 million for the first nine months of fiscal 2024, an improvement from a loss of $32.0 million in the same period last year[15] - Net loss for the nine months ended November 2, 2024, was $16,467 thousand, an improvement from a loss of $29,122 thousand in the same period last year[19] Sales Expectations - The company expects fourth quarter net sales to be in the range of $284 to $288 million, with projected earnings per diluted share of approximately $0.83 to $0.93[8] - Total fourth quarter-to-date sales increased by 10.0% compared to the same period last year, with comparable sales up by 2.9%[7] - The strategic initiatives have led to a noticeable increase in sales trends, particularly in the North American market, with strong gains in apparel and footwear categories[6] Store Operations - Zumiez opened 6 new stores in fiscal 2024, with one additional store planned for the fourth quarter, while expecting to close approximately 33 stores by the end of the year[9] Cash Flow and Liquidity - Cash and current marketable securities decreased to $99.3 million as of November 2, 2024, down from $135.8 million a year earlier, primarily due to share repurchases and capital expenditures[5] - Net cash used in operating activities was $33,990 thousand, compared to $22,922 thousand in the previous year, indicating a decline in cash flow[19] - Cash, cash equivalents, and restricted cash at the end of the period totaled $57,550 thousand, down from $94,284 thousand at the beginning of the period[19] Balance Sheet - Total liabilities increased to $328,886 thousand from $311,016 thousand, representing a 5.7% increase year-over-year[18] - Total shareholders' equity decreased to $317,088 thousand from $353,210 thousand, reflecting a decline of approximately 10.2%[18] Capital Expenditures - Additions to fixed assets were $10,012 thousand, down from $16,210 thousand, indicating reduced capital expenditure[19] - The company repurchased common stock amounting to $25,206 thousand during the period, reflecting a strategic move to return value to shareholders[19] Other Expenses - Noncash lease expense was $48,424 thousand, slightly down from $51,607 thousand, showing a reduction in lease-related costs[19] - The company experienced a decrease in inventories, with a cash outflow of $59,401 thousand compared to $43,186 thousand in the previous year[19] - Proceeds from the issuance and exercise of stock-based awards amounted to $736 thousand, down from $890 thousand, indicating a decline in stock-based compensation activity[19]

Third Quarter Comparable Sales Increased 7.5%Third Quarter Gross Margin increased 140 basis points to 35.2%Third Quarter Earnings Per share improved to $0.06 from ($0.12) Fourth Quarter Comparable Sales Guidance up 6.0% - 7.5% LYNNWOOD, Wash., Dec. 05, 2024 (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 third quarter ended November 2, 2024. Net sales for the third quarter ende ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED NOVEMBER 2, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 000-51300 ZUMIEZ INC. (Exact name of registrant as specified in its charter) Washington 91-1040022 (State or other jurisdiction of (I.R.S. Employer incorporation or organizati ...

Zumiez Inc. (ZUMZ) is likely to register an increase in the top line when it reports third-quarter fiscal 2024 results on Dec. 5, after the closing bell. The Zacks Consensus Estimate for quarterly sales is pegged at $222.9 million, indicating an increase of 3% from last year’s actual.The bottom line is also expected to have improved year over year. In the past 30 days, the Zacks Consensus Estimate for third-quarter earnings per share has been stable at 3 cents. The consensus figure implies an improvement fr ...

LYNNWOOD, Wash., Nov. 21, 2024 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ: ZUMZ) today announced it will report fiscal 2024 third quarter results on Thursday, December 5, 2024, following the closing of regular stock market trading hours. The Company will hold a conference call that day at 5:00 p.m. ET to review the results. To access the conference call, please pre-register using this link (Registration Link). Registrants will receive confirmation with dial-in details. The conference call will also be availabl ...

Zumiez Inc. (ZUMZ) is currently trading at a low price-to-sales (P/S) multiple, which is below the averages of both the Zacks Retail-Apparel and Shoes industry and the broader Retail-Wholesale sector. With a forward 12-month P/S of 0.44, ZUMZ is priced lower than the industry's average of 1.08 and the sector's average of 1.46.This makes ZUMZ stock undervalued relative to its industry peers, presenting an attractive opportunity for investors seeking exposure to the retail apparel sector. Furthermore, Zumiez’ ...

Company Overview - Zumiez Inc. is a leading global lifestyle retailer specializing in apparel, footwear, and accessories, with a focus on the rapidly changing apparel industry [10] - The company is making significant investments to integrate digital and physical channels to enhance the shopping experience for consumers [10] Investment Insights - Zumiez has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [11] - The Momentum Style Score for Zumiez is B, with shares having increased by 2.3% over the past four weeks [11] - Two analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.12 to $0.08 per share [11] - Zumiez has an average earnings surprise of 48.9%, suggesting strong performance relative to expectations [11] Conclusion - With a solid Zacks Rank and strong Momentum and VGM Style Scores, Zumiez is recommended for investors' consideration [12]

Core Viewpoint - Zumiez Inc. (ZUMZ) is experiencing strong upward momentum in its stock performance, trading above key moving averages, indicating positive market sentiment and investor confidence in its financial health and growth prospects [1][2]. Financial Performance - ZUMZ's stock price has increased by 36.2% over the past year, outperforming the Zacks Retail-Apparel and Shoes industry's growth of 27.2%, the broader Retail-Wholesale sector's 24.2%, and the S&P 500 index's 25.7% [3]. - In the second quarter, total sales grew by 8.1% year over year to $210.2 million, driven by a 10.4% increase in the North American market [6]. - Comparable sales rose by 3.6%, supported by higher average unit retail prices and an increase in units sold per transaction [6]. - Gross profit improved to $71.8 million in the second quarter, with a gross margin of 34.2%, up 250 basis points from the previous year [7]. Strategic Initiatives - The company is focusing on a customer-centric business model, strong brand partnerships, and cost management, which have contributed to positive results [5]. - Zumiez is expanding its private label offerings, which accounted for 23% of sales in fiscal 2023, appealing to value-conscious consumers [7]. - In Europe, the company is optimizing existing store productivity and shifting towards full-price selling, which has improved merchandising margins [8]. Challenges - International sales, particularly in Europe, declined by 2.6% year over year to $33.9 million in the second quarter, with a 7.6% drop in international comparable sales [10]. - The shift to full-price selling in a challenging retail environment has raised concerns about growth in key international markets [10]. Future Outlook - Zumiez forecasts third-quarter sales between $221 million and $225 million, reflecting a 2-4% year-over-year increase, with comparable sales up 12.1% through early September [11]. - The company anticipates low single-digit sales growth for fiscal 2024, supported by stable revenue and ongoing cost efficiencies [11]. - Despite challenges in international markets, Zumiez's strategic focus on cost management and efficiency improvements positions it for sustained profitability [13].