NASDAQ:ZUMZ Zumiez Q1 2026 Earnings Report $12.54 +0.21 (+1.70%) Closing price 06/20/2025 04:00 PM EasternExtended Trading$12.54 +0.01 (+0.04%) As of 06/20/2025 04:11 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast Zumiez EPS ResultsActual EPS-$0.79Consensus EPS -$0.77Beat/MissMissed by -$0.02One Year Ago EPS-$0.86Zumiez Revenue ResultsActual Revenue$184.34 millionExpected Revenue$182.23 millionBeat/MissBeat by +$2.11 millionYoY Revenue Growth+3.90%Zumiez Announcement DetailsQuarterQ1 2026Date6/5/2025TimeBefore Market OpensConference Call DateThursday, June 5, 2025Conference Call Time5:00PM ETUpcoming EarningsZumiez's Q2 2026 earnings is scheduled for Thursday, September 4, 2025, with a conference call scheduled at 5:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Zumiez Q1 2026 Earnings Call TranscriptProvided by QuartrJune 5, 2025 ShareLink copied to clipboard.Key Takeaways Zumiez delivered 5.5% comparable sales growth in Q1, marking its fourth consecutive quarter of positive comps and exceeding the high end of guidance for sales and profitability. Management plans to reduce China sourcing exposure to around 30% by end of fiscal 2025 and diversify its vendor base to mitigate tariff impacts. Private label expansion continues, with the Prego brand representing 30% of total sales in Q1, up from 23% in 2023 and 11% five years ago. International operations, particularly Europe, remain under pressure with Q1 other international net sales down 0.2% and May comparable sales down 14.8%, prompting a focus on unique product selection and cost controls. Zumiez closed Q1 with $101 million in cash, no debt, and announced a new $15 million share repurchase plan after buying back 9.4% of shares year-to-date. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallZumiez Q1 202600:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipantsPresentationSkip to Participants Operator00:00:00Good afternoon, ladies and gentlemen, and welcome to Zumiez Inc. First Quarter Fiscal twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. We will conduct a question and answer session towards the end of this call. Before we begin, I'd like to remind everyone of the company's safe harbor language. Operator00:00:20Today's conference call includes comments concerning Zulmiz Inc. Business outlook and contains forward looking statements. These forward looking statements and all other statements that may be made on this call that are not based on historical facts are subject to risks and uncertainties. Actual results may differ materially. Additional information concerning a number of factors that could cause actual results to differ materially from the information that will be discussed is available in Zumie's filings with the SEC. Operator00:00:51At this time, I will turn the call over to Rick Brooks, Chief Executive Officer. Mr. Brooks? Richard BrooksCEO at Zumiez00:00:57Hello, and thank you everyone for joining us on today's call. With me today is Chris Work, our Chief Financial Officer. I'll begin with a few remarks about our first quarter performance and the evolving trade environment before touching on our strategic priorities for the remainder of 2025. Chris will then take you through the financials and our outlook for the balance of the year. After that, we'll open the call to your questions. Richard BrooksCEO at Zumiez00:01:22I'm pleased to report that our first quarter results demonstrate the continued momentum we built throughout 2024 with our North American business proving resilient despite an increasingly complex macroeconomic backdrop. Comparable sales for the company grew 5.5%, marking our fourth consecutive quarter of positive comparable sales growth. This performance reflects the successful execution of our strategic initiatives and our team's ability to adapt quickly to changing market conditions. What's particularly encouraging is that our results exceed the high end of our guidance ranges for both sales and profitability, excluding a onetime legal settlement that Chris will touch on later. Our strong full price selling performance demonstrates that consumers continue to respond positively to our merchandise assortments and shopping experience, validating the investments we've made in product newness, private label expansion and customer engagement. Richard BrooksCEO at Zumiez00:02:18The resilience of our North American business gives me confidence in our ability to manage through the global trade environment. In response to changes in the landscape, we've taken decisive action to further diversify our sourcing base and expect to have meaningfully reduced our exposure to China by the end of twenty twenty five. This diversification, coupled with continued partnership with our manufacturers and vendors as well as selective price adjustments, will help us offset the impact of tariffs on our business. While the ultimate impact on consumer sentiment from ongoing trade negotiations remains uncertain, our proactive approach positions us to outperform the market regardless of how these dynamics evolve. As we progress through 2025, we remain focused on three strategic priorities. Richard BrooksCEO at Zumiez00:03:06First, accelerating top line expansion through strategic investments and winning with consumers. Our approach to injecting assortments with newness continues to resonate strongly with our customers. Following our successful launch of over 120 new brands in 2024 and one hundred and fifty brands in 2023, we remain committed to bringing fresh, products to market that our customers can't find elsewhere. These newer brands now represent a meaningfully larger portion of our sales compared to historical levels, confirming that our curation strategy is working. Our Prego label expansion has also exceeded expectations, reaching nearly 28% of total sales in 2024 and increasing to 30% in the first quarter of twenty twenty five. Richard BrooksCEO at Zumiez00:03:52This is up from 23% in 2023 and just eleven percent five years ago. This growth demonstrates our team's ability to anticipate trends and deliver value conscious options that resonate with our customer base, providing us with another important avenue for profitable growth. We continue to invest in customer engagement through best in class service, both in stores and online. Our ongoing investments in training and technology are enabling us to connect with customers in increasingly personalized and relevant ways, strengthening our relationship that has been the foundation of our success for nearly five decades. Second, maintaining our disciplined focus on profitability across all markets. Richard BrooksCEO at Zumiez00:04:35In North America, our focus on full price selling has helped us maintain healthy margins by growing market share. Driving product margin, coupled with operational efficiencies we implemented throughout 2024, continue to drive meaningful results. The closure of 3,100 performing locations, combined with comprehensive staffing model optimizations and structural cost reductions in shipping and logistics has created a more streamlined and profitable operating model. In Europe, the market environment remains challenging. After making progress in 2024 in sales, product margin and operating results, 2025 is off to a tougher start. Richard BrooksCEO at Zumiez00:05:15With a slower start, we are actively working to drive the top line through new and unique product selection while also remaining focused on full price selling and controlling costs. Third, leveraging our strong financial position to navigate uncertainty while investing in growth. Our balance sheet remains robust with over $101,000,000 in cash and current marketable securities at the end of the quarter, providing us with the flexibility to respond to both challenges and opportunities as they arise. This financial strength has allowed us to continue investing in our strategic initiatives while also returning value to shareholders through our share repurchase program. The first quarter of this year, we bought back 1,800,000.0 shares or 9.4% of the company based on our year end 2024 outstanding shares. Richard BrooksCEO at Zumiez00:06:04In addition, today, we have announced a new buyback plan authorized by our Board for an additional $15,000,000 to continue driving long term value for our shareholders. While we're operating environment marked by macroeconomic uncertainty and evolving trade dynamics, I'm confident in our ability to continue delivering value for all of our stakeholders. The strategy that journey to our success throughout the company's history remain as relevant today as ever, And our team's proven ability to adapt and execute gives me optimism about our prospects for the remainder of 2025. Our path forward is clear. Stay focused on bringing unique, trend right product to our customers, suiting engagement initiatives that have fueled our success while maintaining the operational discipline that has enhanced our profitability. Richard BrooksCEO at Zumiez00:06:53We've demonstrated our ability to navigate challenging cycles before, and I'm confident we're well positioned to continue that tradition. Before I turn the call to Chris, I want to thank our entire team for their continued dedication and adaptability in an environment that continues to change rapidly. The commitment to our culture and our customers remains a cornerstone of everything we accomplish, and I'm grateful for your efforts as we navigate this dynamic environment together. With that, I'll turn the call to Chris to discuss the financials. Christopher WorkChief Financial Officer at Zumiez00:07:22Thanks, Rick, and good afternoon, everyone. I'm going to start with a review of our first quarter results. I'll then provide an update on our second quarter to date sales trends. First quarter net sales are $184,300,000 up 3.9% from $177,400,000 in the first quarter of twenty twenty four. Comparable sales were up 5.5 for the quarter. Christopher WorkChief Financial Officer at Zumiez00:07:42As Rick mentioned, the primary driver was our North America business, which showed outsized strength even as macroeconomic uncertainty spurred by global trade policy intensified during the period. For the first quarter, North America net sales were $149,700,000 an increase of 4.9% from 2024. Other international net sales, which consists of Europe and Australia, were $34,600,000 down 0.2% from last year. Excluding the impact of foreign currency translation, North America net sales increased 5.2 and other international net sales decreased 0.1% year over year. Comparable sales for North America were up 7.4%, marking the fifth consecutive quarter of comparable sales growth. Christopher WorkChief Financial Officer at Zumiez00:08:25After positive comparable sales in the important fourth quarter of twenty twenty four, our other international comparable sales turned negative in the first quarter and were down 2.3%. From a category perspective, women's was our largest positive comping category, followed by men's, footwear and then accessories. Hard goods was our only negative comping category. The consolidated increase in comparable sales was driven by an increase in dollars per transaction, partially offset by a decrease in transactions. Dollars per transaction were up for the quarter, driven by an increase in average unit retail and an increase in units per transaction. Christopher WorkChief Financial Officer at Zumiez00:09:01First quarter gross profit was $55,300,000 up 6.6% compared to $51,900,000 in the first quarter of last year. Gross profit as a percentage of sales was 30% for the quarter compared with 29.3% in the first quarter of twenty twenty four. The 70 basis point increase in gross margin was primarily driven by leverage of our store occupancy costs and higher sales. SG and A expense was $75,200,000 or 40.8% of net sales in the first quarter compared to $72,100,000 or 40.6% of net sales a year ago. The 20 basis point increase in SG and A expense was driven by 160 basis point increase from a onetime $2,900,000 legal cost associated with the settlement of a waging hour lawsuit in California. Christopher WorkChief Financial Officer at Zumiez00:09:47This increase was partially offset by 70 basis points of leverage in non wage store operating costs, 30 basis points of leverage in corporate costs and 40 basis points of leverage across several other items such as wages, training and annual incentive compensation. Operating loss in the first quarter of twenty twenty five was $19,900,000 or 10.8% of net sales compared with an operating loss of $20,200,000 or 11.3% of net sales last year. Net loss for the first quarter was $14,300,000 or $0.79 per share, inclusive of the previously mentioned onetime legal settlement worth $2,900,000 or $0.13 per share. This compares to a net loss of $16,800,000 or $0.86 per share for the first quarter of twenty twenty four. Our effective tax rate for the current quarter was 9.1%. Christopher WorkChief Financial Officer at Zumiez00:10:41Turning to the balance sheet. The business ended the quarter in a strong financial position. We had cash and current marketable securities of $101,000,000 as of 05/03/2025, compared to $146,600,000 as of 05/04/2024. The decrease in cash and current marketable securities over the trailing twelve months was driven primarily by share repurchases and capital expenditures of $50,400,000 and $14,700,000 respectively. This was partially offset by $17,200,000 in cash provided by operating activities. Christopher WorkChief Financial Officer at Zumiez00:11:14As of 05/03/2025, we have no debt on the balance sheet. During the first quarter, we repurchased 1,800,000.0 shares at an average cost, including commission of $13.82 per share for a total cost of $25,200,000 This fully exhausted the buyback authorization approved by the Board of Directors in March. On June 4, the Board of Directors approved a new repurchase authorization for up to $15,000,000 of common stock. This repurchase program is expected to continue through 06/30/2026, unless the time period is extended or shortened by our Board of Directors. We ended the quarter with $149,900,000 inventory, up 2.1% compared to $146,800,000 last year. Christopher WorkChief Financial Officer at Zumiez00:11:58On a constant currency basis, our inventory levels were up 1.1% from last year. As we discussed in our fourth quarter earnings call, we pulled inventory receipts forward in the fourth quarter of twenty twenty four in anticipation of potential tariffs. As of the end of the first quarter, inventory is now in line with the prior year, and we anticipate ending fiscal twenty twenty five down from the end of fiscal twenty twenty four when we pull forward the inventory. We feel good about the quality of our inventory on hand. Now to our May sales results. Christopher WorkChief Financial Officer at Zumiez00:12:27Net sales for the four week period ended 05/31/2025, increased 0.7% compared to the four week period ended 06/01/2024. Comparable sales for the period increased 1.4% from the comparable period in the prior year. From a regional perspective, net sales for our North America business for the four weeks ended 05/31/2025, increased 2.9% compared to the four week period ending 06/01/2024, while our other international business decreased 9.6%. Excluding the impact of foreign currency translation, North America net sales for the period increased 3% from the prior year, while other international net sales decreased 12.7% compared to 2024. Comparable sales for North America increased 5.1% during the period, while comparable sales for other international decreased 14.8%. Christopher WorkChief Financial Officer at Zumiez00:13:21From a category perspective, women's was our largest positive comping category followed by hard goods. Men's was largest negative comping category followed by footwear and accessories. The consolidated increase in comparable sales was driven by an increase in dollars per transaction, while comparable transactions were down during the period. Dollars per transaction were up for the period, driven by an increase in average unit retail, partially offset by a slight decrease in units per transaction. With respect to the outlook for the second quarter of fiscal twenty twenty five, want to remind everyone that formulating our guidance involves some inherent uncertainty and complexity in estimating sales, product margin and earnings growth given a variety of internal and external factors that impact our performance. Christopher WorkChief Financial Officer at Zumiez00:14:05This is even more pronounced in today's environment with the current tariff situation that adds additional uncertainty and complexity to pricing and the potential limit the ability of the consumer to continue to spend. That said, our recent trend line has been encouraging, and we feel that we have a good line of sight into the next couple of months, assuming no additional unexpected changes in the regulatory environment. Based on our quarter to date results, current tariff rates and actions taken thus far to mitigate the increased costs from higher tariffs, we are anticipating total sales to be between $2.00 $7,000,000 and $214,000,000 for the thirteen weeks ending 08/03/2025, representing a negative 2% to positive 2% sales change from the prior year. Comparable sales growth for the same time period is expected to be between negative 1% and positive 3%. For the second quarter, we are expecting product margin to increase from the second quarter of last year. Christopher WorkChief Financial Officer at Zumiez00:15:01Consolidated operating loss for the second quarter is expected to be between $700,000 and $4,000,000 compared to a loss of $400,000 in the prior year. We anticipate loss per share will be between $0.9 and $0.24 compared to a loss of $04 in the prior year. Overall, the high end of our guidance is showing a slightly lower operating profit from the core business on a low single digit top line growth. However, we are seeing pressure on total earnings due to a decline in interest income on lower cash levels and a slightly higher loss in Europe, which is further impacted by unfavorable foreign currency movements from the prior year. The mix of our loss shifting toward Europe creates an unfavorable effective tax rate, and our stock buyback has also added to the loss per share given we have reduced overall share count. Christopher WorkChief Financial Officer at Zumiez00:15:56While our share buyback will have a negative impact on earnings per share in the quarter, we expect it to have a positive impact on the full year and into the future as we generate earnings. Regarding the full year 2025 results, as we have discussed, there has been increased uncertainty and volatility since March when we provided our initial thoughts for the full year. The announcement of tariffs, subsequent temporary suspension of reciprocal tariffs and ongoing discussions on the topic have impacted supply chains and consumer confidence. If significant tariffs are reinstated, higher costs may lead to increased retail prices, potentially straining consumers' discretionary income and negatively affecting our results. While this all provides less visibility into the year than we had in March, we continue to trend on plan in North America through the May. Christopher WorkChief Financial Officer at Zumiez00:16:45And under the current circumstances and tariff levels, we believe that achieving our previously mentioned annual expectations for fiscal twenty twenty five remain feasible. To reiterate, we believe that we will see year over year sales growth in 2025 despite the closure of 33 stores in fiscal twenty twenty four and twenty store closures planned in 2025, which combined are estimated to have a negative impact on sales of $14,700,000 for the year. We anticipate modest year over year growth in product margin in 2025 on top of 70 basis points of improvement in fiscal twenty twenty four. We anticipate driving additional gross margin leverage through other expense, occupancy, distribution and logistics. And finally, we believe that we can hold our 2025 SG and A costs, excluding the onetime legal charges, relatively flat as a percentage of sales with our fiscal twenty twenty four results through continued focus on expense management while also investing in important long term strategic initiatives. Christopher WorkChief Financial Officer at Zumiez00:17:45Combined, these expectations will drive a year over year increase in operating margins and net profit for fiscal twenty twenty five, bringing the company back to profitability. Included in these fiscal twenty twenty five expectations are the following: nine new store openings during the year, including six in North America, 2 in Europe and one in Australia We also plan to close approximately 20 stores in fiscal twenty twenty five, including up to 17 in the two in Canada and one in Europe. We expect our capital expenditures for 2025 to be between $14,000,000 and $16,000,000 compared to $15,000,000 in fiscal twenty twenty four and $20,400,000 in 2023. We expect the depreciation and amortization, excluding noncash lease expense, will be approximately $22,000,000 in line with the prior year. While effective tax rates are likely to fluctuate significantly by quarter, we anticipate that our full effective tax rate will be roughly 50% to 60% in fiscal twenty twenty five. Christopher WorkChief Financial Officer at Zumiez00:18:48And we are currently projecting our diluted share count for the full year to be approximately 17,500,000.0 shares. This share count does not include the impact of any future share repurchases, including the repurchase approved on 06/04/2025, by the Board of Directors. And with that, operator, we would like to open the call for questions. Operator00:19:09Thank you. Our first question comes from the line of Mitch Kummetz with Seaport Research Partners. Mitch KummetzSenior Analyst at Seaport Research Partners00:19:35Let me begin on tariffs. I was hoping you could just walk us through that a little bit more. I think when we last met, China was at a 20% tariff. There was no universal tariff. And then obviously, we know where that's gone. Mitch KummetzSenior Analyst at Seaport Research Partners00:19:55So can you remind us what your China exposure is for the year? How are you seeing tariffs impact your COGS, both in terms of what you're doing with private label and what you're seeing in terms of pricing on the third party you use? What are you guys doing to mitigate the cost increases? Just any more color on tariffs, I think, would be helpful. Christopher WorkChief Financial Officer at Zumiez00:20:24Yes. Sure, Mitch. I'll take a crack at this here and let Rick chime in if I've missed anything. But as you would expect, I mean, we this is something we've spent a lot of time on. Our teams have been super diligent. Christopher WorkChief Financial Officer at Zumiez00:20:37I give them just a ton of credit with how hard they've worked to kind of navigate through this. I mean we started to work on this really last November. As landscape started to change, we got pretty proactive. As we talked about in our March call, we brought in $7,000,000 at cost from inventory that was coming from China to really try to get ahead of what might have been coming at us. This was really a benefit in the first quarter and probably will be throughout 2025. Christopher WorkChief Financial Officer at Zumiez00:21:09I think as we as you think about tariffs in our business, it's important to note that 30% of the product is our own private label. So we control the sourcing all the way through bringing it into the country. The other 70% is branded. So it requires us to work with our brands. So to kind of break down your question, let me kind of tackle this from a sourcing perspective and a cost perspective. Christopher WorkChief Financial Officer at Zumiez00:21:36I think from a sourcing perspective, we've made a lot of progress in 2025. When we ended 2024 and on our March call, we talked about having a fairly high concentration from China. We were roughly 50% of our product was coming out of China. That percentage has been pretty consistent in the first quarter. That said, we expect to see a meaningful decrease as we move through the year. Christopher WorkChief Financial Officer at Zumiez00:22:03In fact, our back to school, just kind of like for like time period, will be down about 50% year over year. And holiday, we expect the same. So at this point, as we get towards the end of the year, we think we'll probably be 30% or even potentially lower in product coming out of China. And long term, our goal in 2026 and beyond is to have no individual country represent more than 20% of our goods that we're sourcing. From a cost perspective, we've tried to be as proactive as possible. Christopher WorkChief Financial Officer at Zumiez00:22:43As we have experienced an uptick because of tariffs, we've worked with our brand partners and our manufacturers to really rethink the production process and obviously where things are coming from to keep costs as low as possible. Where needed, we have looked at prices while also kind of evaluating how we do bundling, markdowns, package deals to really try to adequately offset the costs that we are incurring for tariffs. So obviously, it's an evolving backdrop, but we're pretty encouraged by the work our teams have done to get us to this point, and we'll just keep monitoring where it goes from here. Mitch KummetzSenior Analyst at Seaport Research Partners00:23:30And just as a follow-up to that, you're still anticipating product margin to be up year over year, although I think you said modestly so. Again, how does the tariffs on private label factor into that, especially given that you do still have pretty material exposure to China, even though you've been able to reduce that? Christopher WorkChief Financial Officer at Zumiez00:23:53Yes. I mean, think it comes back to kind of the different strategies we're putting into play, right? It's working with our brands, working with our manufacturers, trying to manage, first of all, mitigate any inbound costs we can get, whether it's just that way we work together, where we're sourcing it from, things like that. Secondly, it comes to looking at how we move private label through our stores. And we have used it in a bundling and promotional aspect, and we've changed the way we thought through some of that. Christopher WorkChief Financial Officer at Zumiez00:24:29And then in certain circumstances, we have had to take some prices up. So it's a combination of all of the above. And I think, Jeff or Mitch, when we put all that together, we think we'll have the opportunity to still grow product margin is our strategy at this point. As you know, even pre tariffs, we felt like we had some opportunity ahead of that to grow product margin. So it is modestly. Christopher WorkChief Financial Officer at Zumiez00:24:55I appreciate you saying that. We probably would have had a little bit more in our thought process if it wasn't for this environment, but we continue to think we can still grow product margin. Mitch KummetzSenior Analyst at Seaport Research Partners00:25:05And then I guess my last question, just on other international. I know you've kind of slowed the unit growth in Europe to focus on profitability. And correct me if I'm wrong, but I would think that the profitability there really hinges on comp. And I thought I heard you say that May comp for other international was down like, I think you said 14.8%. Christopher WorkChief Financial Officer at Zumiez00:25:30That's correct. Mitch KummetzSenior Analyst at Seaport Research Partners00:25:30Can you help me help me understand what's going on in other international and and what can you guys do strategically to, you know, show better results there? Christopher WorkChief Financial Officer at Zumiez00:25:42Sure. I'll take another crack at it and let Rick chime in. I mean and let me just kind of back up a little bit to talk about the overall landscape. I mean we did talk in 2024 about changing our strategy with Europe. We're really slowing growth and focusing on the core business with a key thought process of driving profitability and cash flow. Christopher WorkChief Financial Officer at Zumiez00:26:06We ended 2024, the business was about EUR 135,000,000. We were losing money, but less than 2023. That being said, we didn't make the progress we were hoping to make in 2024, but we were seeing a little bit of improvement there. The best we've ever done is really right pre pandemic. In 2019, we got very close to breakeven, but it's been a tough place to operate over the last five years. Christopher WorkChief Financial Officer at Zumiez00:26:34And so with just under 90 stores now in nine countries, we definitely have a solid base. But we've got to we've really got to push to profitability. That's been our focus. The results of 2025 have started slow. And you're right about May, but Q1 was not where we wanted to be either. Christopher WorkChief Financial Officer at Zumiez00:26:56As I think as we look at May and we look at what we've got planned in the second quarter guidance, we are planning other international down at this point, not nearly at the significance of what May was. I think when it's all said and done, we're going to see that there was some holiday shifts and some plan some just timing changes that will moderate what May was. But to be clear, May was below our plan and where we thought we'd be. So we started a little bit of a hole here for the 2025. I think the good news for especially our Europe business is what really matters in Europe is the fourth quarter, kind of a little different than our North America business, over 40% of our sales are here in the fourth quarter. Christopher WorkChief Financial Officer at Zumiez00:27:43So we're very focused on transitioning to that. We've made some changes in how we're trying to do things. We're really focused on product and bringing newness into the business. The teams, I think, are totally aligned around that and how we drive the top line, how we comp in our existing units. But at the same point, really trying to rationalize the business around growing margin. Christopher WorkChief Financial Officer at Zumiez00:28:12Even last year, as we kind of saw sales tick back, we were able to get more profitable because we were able to expand margin. We have seen actually pretty favorable margin even in May when the results were tougher. And we're managing expenses and then also managing inventory levels, really all of the above. Inventory in Europe for the first quarter was down to where we were in the prior year. I think the teams continue to make some good strides there. Christopher WorkChief Financial Officer at Zumiez00:28:36So again, we're really trying to set ourselves up for the big volume in the back half of the year and specifically the fourth quarter. We continue to believe in the international theory of the trends are emerging globally or locally and moving globally, and that includes emerging here in North America as well as in Europe. I think it's the best way we can serve our customers long term. But all that said, we're very focused on turning out around what the business is today. Mitch KummetzSenior Analyst at Seaport Research Partners00:29:07Great. Thank you. Operator00:29:09Thank you. I am showing no further questions in the queue. I would now like to turn the call back over to Rick for closing remarks. Richard BrooksCEO at Zumiez00:29:30Alright. Thank you. And, again, I just wanna close-up with a big thank you everyone for your interest in Zoomies and your continued interest in Zoomies. And we're gonna look forward to talking with you next September when we get a chance to share q two and early back to school results. So thank you everyone. Much appreciated. Operator00:29:46Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.Read moreParticipantsExecutivesRichard BrooksCEOAnalystsChristopher WorkChief Financial Officer at ZumiezMitch KummetzSenior Analyst at Seaport Research PartnersPowered by Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Zumiez Earnings HeadlinesB. 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(NASDAQ:ZUMZ) Q1 2025 Earnings Call TranscriptJune 7, 2025 | insidermonkey.comSee More Zumiez Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Zumiez? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Zumiez and other key companies, straight to your email. Email Address About ZumiezZumiez (NASDAQ:ZUMZ) operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. The company provides hardgoods, including skateboards, snowboards, bindings, components, and other equipment. It operates stores in the United States, Canada, Europe, and Australia under the names of Zumiez, Blue Tomato, and Fast Times. It operates zumiez.com, zumiez.ca, blue-tomato.com, and fasttimes.com.au e-commerce websites. 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PresentationSkip to Participants Operator00:00:00Good afternoon, ladies and gentlemen, and welcome to Zumiez Inc. First Quarter Fiscal twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. We will conduct a question and answer session towards the end of this call. Before we begin, I'd like to remind everyone of the company's safe harbor language. Operator00:00:20Today's conference call includes comments concerning Zulmiz Inc. Business outlook and contains forward looking statements. These forward looking statements and all other statements that may be made on this call that are not based on historical facts are subject to risks and uncertainties. Actual results may differ materially. Additional information concerning a number of factors that could cause actual results to differ materially from the information that will be discussed is available in Zumie's filings with the SEC. Operator00:00:51At this time, I will turn the call over to Rick Brooks, Chief Executive Officer. Mr. Brooks? Richard BrooksCEO at Zumiez00:00:57Hello, and thank you everyone for joining us on today's call. With me today is Chris Work, our Chief Financial Officer. I'll begin with a few remarks about our first quarter performance and the evolving trade environment before touching on our strategic priorities for the remainder of 2025. Chris will then take you through the financials and our outlook for the balance of the year. After that, we'll open the call to your questions. Richard BrooksCEO at Zumiez00:01:22I'm pleased to report that our first quarter results demonstrate the continued momentum we built throughout 2024 with our North American business proving resilient despite an increasingly complex macroeconomic backdrop. Comparable sales for the company grew 5.5%, marking our fourth consecutive quarter of positive comparable sales growth. This performance reflects the successful execution of our strategic initiatives and our team's ability to adapt quickly to changing market conditions. What's particularly encouraging is that our results exceed the high end of our guidance ranges for both sales and profitability, excluding a onetime legal settlement that Chris will touch on later. Our strong full price selling performance demonstrates that consumers continue to respond positively to our merchandise assortments and shopping experience, validating the investments we've made in product newness, private label expansion and customer engagement. Richard BrooksCEO at Zumiez00:02:18The resilience of our North American business gives me confidence in our ability to manage through the global trade environment. In response to changes in the landscape, we've taken decisive action to further diversify our sourcing base and expect to have meaningfully reduced our exposure to China by the end of twenty twenty five. This diversification, coupled with continued partnership with our manufacturers and vendors as well as selective price adjustments, will help us offset the impact of tariffs on our business. While the ultimate impact on consumer sentiment from ongoing trade negotiations remains uncertain, our proactive approach positions us to outperform the market regardless of how these dynamics evolve. As we progress through 2025, we remain focused on three strategic priorities. Richard BrooksCEO at Zumiez00:03:06First, accelerating top line expansion through strategic investments and winning with consumers. Our approach to injecting assortments with newness continues to resonate strongly with our customers. Following our successful launch of over 120 new brands in 2024 and one hundred and fifty brands in 2023, we remain committed to bringing fresh, products to market that our customers can't find elsewhere. These newer brands now represent a meaningfully larger portion of our sales compared to historical levels, confirming that our curation strategy is working. Our Prego label expansion has also exceeded expectations, reaching nearly 28% of total sales in 2024 and increasing to 30% in the first quarter of twenty twenty five. Richard BrooksCEO at Zumiez00:03:52This is up from 23% in 2023 and just eleven percent five years ago. This growth demonstrates our team's ability to anticipate trends and deliver value conscious options that resonate with our customer base, providing us with another important avenue for profitable growth. We continue to invest in customer engagement through best in class service, both in stores and online. Our ongoing investments in training and technology are enabling us to connect with customers in increasingly personalized and relevant ways, strengthening our relationship that has been the foundation of our success for nearly five decades. Second, maintaining our disciplined focus on profitability across all markets. Richard BrooksCEO at Zumiez00:04:35In North America, our focus on full price selling has helped us maintain healthy margins by growing market share. Driving product margin, coupled with operational efficiencies we implemented throughout 2024, continue to drive meaningful results. The closure of 3,100 performing locations, combined with comprehensive staffing model optimizations and structural cost reductions in shipping and logistics has created a more streamlined and profitable operating model. In Europe, the market environment remains challenging. After making progress in 2024 in sales, product margin and operating results, 2025 is off to a tougher start. Richard BrooksCEO at Zumiez00:05:15With a slower start, we are actively working to drive the top line through new and unique product selection while also remaining focused on full price selling and controlling costs. Third, leveraging our strong financial position to navigate uncertainty while investing in growth. Our balance sheet remains robust with over $101,000,000 in cash and current marketable securities at the end of the quarter, providing us with the flexibility to respond to both challenges and opportunities as they arise. This financial strength has allowed us to continue investing in our strategic initiatives while also returning value to shareholders through our share repurchase program. The first quarter of this year, we bought back 1,800,000.0 shares or 9.4% of the company based on our year end 2024 outstanding shares. Richard BrooksCEO at Zumiez00:06:04In addition, today, we have announced a new buyback plan authorized by our Board for an additional $15,000,000 to continue driving long term value for our shareholders. While we're operating environment marked by macroeconomic uncertainty and evolving trade dynamics, I'm confident in our ability to continue delivering value for all of our stakeholders. The strategy that journey to our success throughout the company's history remain as relevant today as ever, And our team's proven ability to adapt and execute gives me optimism about our prospects for the remainder of 2025. Our path forward is clear. Stay focused on bringing unique, trend right product to our customers, suiting engagement initiatives that have fueled our success while maintaining the operational discipline that has enhanced our profitability. Richard BrooksCEO at Zumiez00:06:53We've demonstrated our ability to navigate challenging cycles before, and I'm confident we're well positioned to continue that tradition. Before I turn the call to Chris, I want to thank our entire team for their continued dedication and adaptability in an environment that continues to change rapidly. The commitment to our culture and our customers remains a cornerstone of everything we accomplish, and I'm grateful for your efforts as we navigate this dynamic environment together. With that, I'll turn the call to Chris to discuss the financials. Christopher WorkChief Financial Officer at Zumiez00:07:22Thanks, Rick, and good afternoon, everyone. I'm going to start with a review of our first quarter results. I'll then provide an update on our second quarter to date sales trends. First quarter net sales are $184,300,000 up 3.9% from $177,400,000 in the first quarter of twenty twenty four. Comparable sales were up 5.5 for the quarter. Christopher WorkChief Financial Officer at Zumiez00:07:42As Rick mentioned, the primary driver was our North America business, which showed outsized strength even as macroeconomic uncertainty spurred by global trade policy intensified during the period. For the first quarter, North America net sales were $149,700,000 an increase of 4.9% from 2024. Other international net sales, which consists of Europe and Australia, were $34,600,000 down 0.2% from last year. Excluding the impact of foreign currency translation, North America net sales increased 5.2 and other international net sales decreased 0.1% year over year. Comparable sales for North America were up 7.4%, marking the fifth consecutive quarter of comparable sales growth. Christopher WorkChief Financial Officer at Zumiez00:08:25After positive comparable sales in the important fourth quarter of twenty twenty four, our other international comparable sales turned negative in the first quarter and were down 2.3%. From a category perspective, women's was our largest positive comping category, followed by men's, footwear and then accessories. Hard goods was our only negative comping category. The consolidated increase in comparable sales was driven by an increase in dollars per transaction, partially offset by a decrease in transactions. Dollars per transaction were up for the quarter, driven by an increase in average unit retail and an increase in units per transaction. Christopher WorkChief Financial Officer at Zumiez00:09:01First quarter gross profit was $55,300,000 up 6.6% compared to $51,900,000 in the first quarter of last year. Gross profit as a percentage of sales was 30% for the quarter compared with 29.3% in the first quarter of twenty twenty four. The 70 basis point increase in gross margin was primarily driven by leverage of our store occupancy costs and higher sales. SG and A expense was $75,200,000 or 40.8% of net sales in the first quarter compared to $72,100,000 or 40.6% of net sales a year ago. The 20 basis point increase in SG and A expense was driven by 160 basis point increase from a onetime $2,900,000 legal cost associated with the settlement of a waging hour lawsuit in California. Christopher WorkChief Financial Officer at Zumiez00:09:47This increase was partially offset by 70 basis points of leverage in non wage store operating costs, 30 basis points of leverage in corporate costs and 40 basis points of leverage across several other items such as wages, training and annual incentive compensation. Operating loss in the first quarter of twenty twenty five was $19,900,000 or 10.8% of net sales compared with an operating loss of $20,200,000 or 11.3% of net sales last year. Net loss for the first quarter was $14,300,000 or $0.79 per share, inclusive of the previously mentioned onetime legal settlement worth $2,900,000 or $0.13 per share. This compares to a net loss of $16,800,000 or $0.86 per share for the first quarter of twenty twenty four. Our effective tax rate for the current quarter was 9.1%. Christopher WorkChief Financial Officer at Zumiez00:10:41Turning to the balance sheet. The business ended the quarter in a strong financial position. We had cash and current marketable securities of $101,000,000 as of 05/03/2025, compared to $146,600,000 as of 05/04/2024. The decrease in cash and current marketable securities over the trailing twelve months was driven primarily by share repurchases and capital expenditures of $50,400,000 and $14,700,000 respectively. This was partially offset by $17,200,000 in cash provided by operating activities. Christopher WorkChief Financial Officer at Zumiez00:11:14As of 05/03/2025, we have no debt on the balance sheet. During the first quarter, we repurchased 1,800,000.0 shares at an average cost, including commission of $13.82 per share for a total cost of $25,200,000 This fully exhausted the buyback authorization approved by the Board of Directors in March. On June 4, the Board of Directors approved a new repurchase authorization for up to $15,000,000 of common stock. This repurchase program is expected to continue through 06/30/2026, unless the time period is extended or shortened by our Board of Directors. We ended the quarter with $149,900,000 inventory, up 2.1% compared to $146,800,000 last year. Christopher WorkChief Financial Officer at Zumiez00:11:58On a constant currency basis, our inventory levels were up 1.1% from last year. As we discussed in our fourth quarter earnings call, we pulled inventory receipts forward in the fourth quarter of twenty twenty four in anticipation of potential tariffs. As of the end of the first quarter, inventory is now in line with the prior year, and we anticipate ending fiscal twenty twenty five down from the end of fiscal twenty twenty four when we pull forward the inventory. We feel good about the quality of our inventory on hand. Now to our May sales results. Christopher WorkChief Financial Officer at Zumiez00:12:27Net sales for the four week period ended 05/31/2025, increased 0.7% compared to the four week period ended 06/01/2024. Comparable sales for the period increased 1.4% from the comparable period in the prior year. From a regional perspective, net sales for our North America business for the four weeks ended 05/31/2025, increased 2.9% compared to the four week period ending 06/01/2024, while our other international business decreased 9.6%. Excluding the impact of foreign currency translation, North America net sales for the period increased 3% from the prior year, while other international net sales decreased 12.7% compared to 2024. Comparable sales for North America increased 5.1% during the period, while comparable sales for other international decreased 14.8%. Christopher WorkChief Financial Officer at Zumiez00:13:21From a category perspective, women's was our largest positive comping category followed by hard goods. Men's was largest negative comping category followed by footwear and accessories. The consolidated increase in comparable sales was driven by an increase in dollars per transaction, while comparable transactions were down during the period. Dollars per transaction were up for the period, driven by an increase in average unit retail, partially offset by a slight decrease in units per transaction. With respect to the outlook for the second quarter of fiscal twenty twenty five, want to remind everyone that formulating our guidance involves some inherent uncertainty and complexity in estimating sales, product margin and earnings growth given a variety of internal and external factors that impact our performance. Christopher WorkChief Financial Officer at Zumiez00:14:05This is even more pronounced in today's environment with the current tariff situation that adds additional uncertainty and complexity to pricing and the potential limit the ability of the consumer to continue to spend. That said, our recent trend line has been encouraging, and we feel that we have a good line of sight into the next couple of months, assuming no additional unexpected changes in the regulatory environment. Based on our quarter to date results, current tariff rates and actions taken thus far to mitigate the increased costs from higher tariffs, we are anticipating total sales to be between $2.00 $7,000,000 and $214,000,000 for the thirteen weeks ending 08/03/2025, representing a negative 2% to positive 2% sales change from the prior year. Comparable sales growth for the same time period is expected to be between negative 1% and positive 3%. For the second quarter, we are expecting product margin to increase from the second quarter of last year. Christopher WorkChief Financial Officer at Zumiez00:15:01Consolidated operating loss for the second quarter is expected to be between $700,000 and $4,000,000 compared to a loss of $400,000 in the prior year. We anticipate loss per share will be between $0.9 and $0.24 compared to a loss of $04 in the prior year. Overall, the high end of our guidance is showing a slightly lower operating profit from the core business on a low single digit top line growth. However, we are seeing pressure on total earnings due to a decline in interest income on lower cash levels and a slightly higher loss in Europe, which is further impacted by unfavorable foreign currency movements from the prior year. The mix of our loss shifting toward Europe creates an unfavorable effective tax rate, and our stock buyback has also added to the loss per share given we have reduced overall share count. Christopher WorkChief Financial Officer at Zumiez00:15:56While our share buyback will have a negative impact on earnings per share in the quarter, we expect it to have a positive impact on the full year and into the future as we generate earnings. Regarding the full year 2025 results, as we have discussed, there has been increased uncertainty and volatility since March when we provided our initial thoughts for the full year. The announcement of tariffs, subsequent temporary suspension of reciprocal tariffs and ongoing discussions on the topic have impacted supply chains and consumer confidence. If significant tariffs are reinstated, higher costs may lead to increased retail prices, potentially straining consumers' discretionary income and negatively affecting our results. While this all provides less visibility into the year than we had in March, we continue to trend on plan in North America through the May. Christopher WorkChief Financial Officer at Zumiez00:16:45And under the current circumstances and tariff levels, we believe that achieving our previously mentioned annual expectations for fiscal twenty twenty five remain feasible. To reiterate, we believe that we will see year over year sales growth in 2025 despite the closure of 33 stores in fiscal twenty twenty four and twenty store closures planned in 2025, which combined are estimated to have a negative impact on sales of $14,700,000 for the year. We anticipate modest year over year growth in product margin in 2025 on top of 70 basis points of improvement in fiscal twenty twenty four. We anticipate driving additional gross margin leverage through other expense, occupancy, distribution and logistics. And finally, we believe that we can hold our 2025 SG and A costs, excluding the onetime legal charges, relatively flat as a percentage of sales with our fiscal twenty twenty four results through continued focus on expense management while also investing in important long term strategic initiatives. Christopher WorkChief Financial Officer at Zumiez00:17:45Combined, these expectations will drive a year over year increase in operating margins and net profit for fiscal twenty twenty five, bringing the company back to profitability. Included in these fiscal twenty twenty five expectations are the following: nine new store openings during the year, including six in North America, 2 in Europe and one in Australia We also plan to close approximately 20 stores in fiscal twenty twenty five, including up to 17 in the two in Canada and one in Europe. We expect our capital expenditures for 2025 to be between $14,000,000 and $16,000,000 compared to $15,000,000 in fiscal twenty twenty four and $20,400,000 in 2023. We expect the depreciation and amortization, excluding noncash lease expense, will be approximately $22,000,000 in line with the prior year. While effective tax rates are likely to fluctuate significantly by quarter, we anticipate that our full effective tax rate will be roughly 50% to 60% in fiscal twenty twenty five. Christopher WorkChief Financial Officer at Zumiez00:18:48And we are currently projecting our diluted share count for the full year to be approximately 17,500,000.0 shares. This share count does not include the impact of any future share repurchases, including the repurchase approved on 06/04/2025, by the Board of Directors. And with that, operator, we would like to open the call for questions. Operator00:19:09Thank you. Our first question comes from the line of Mitch Kummetz with Seaport Research Partners. Mitch KummetzSenior Analyst at Seaport Research Partners00:19:35Let me begin on tariffs. I was hoping you could just walk us through that a little bit more. I think when we last met, China was at a 20% tariff. There was no universal tariff. And then obviously, we know where that's gone. Mitch KummetzSenior Analyst at Seaport Research Partners00:19:55So can you remind us what your China exposure is for the year? How are you seeing tariffs impact your COGS, both in terms of what you're doing with private label and what you're seeing in terms of pricing on the third party you use? What are you guys doing to mitigate the cost increases? Just any more color on tariffs, I think, would be helpful. Christopher WorkChief Financial Officer at Zumiez00:20:24Yes. Sure, Mitch. I'll take a crack at this here and let Rick chime in if I've missed anything. But as you would expect, I mean, we this is something we've spent a lot of time on. Our teams have been super diligent. Christopher WorkChief Financial Officer at Zumiez00:20:37I give them just a ton of credit with how hard they've worked to kind of navigate through this. I mean we started to work on this really last November. As landscape started to change, we got pretty proactive. As we talked about in our March call, we brought in $7,000,000 at cost from inventory that was coming from China to really try to get ahead of what might have been coming at us. This was really a benefit in the first quarter and probably will be throughout 2025. Christopher WorkChief Financial Officer at Zumiez00:21:09I think as we as you think about tariffs in our business, it's important to note that 30% of the product is our own private label. So we control the sourcing all the way through bringing it into the country. The other 70% is branded. So it requires us to work with our brands. So to kind of break down your question, let me kind of tackle this from a sourcing perspective and a cost perspective. Christopher WorkChief Financial Officer at Zumiez00:21:36I think from a sourcing perspective, we've made a lot of progress in 2025. When we ended 2024 and on our March call, we talked about having a fairly high concentration from China. We were roughly 50% of our product was coming out of China. That percentage has been pretty consistent in the first quarter. That said, we expect to see a meaningful decrease as we move through the year. Christopher WorkChief Financial Officer at Zumiez00:22:03In fact, our back to school, just kind of like for like time period, will be down about 50% year over year. And holiday, we expect the same. So at this point, as we get towards the end of the year, we think we'll probably be 30% or even potentially lower in product coming out of China. And long term, our goal in 2026 and beyond is to have no individual country represent more than 20% of our goods that we're sourcing. From a cost perspective, we've tried to be as proactive as possible. Christopher WorkChief Financial Officer at Zumiez00:22:43As we have experienced an uptick because of tariffs, we've worked with our brand partners and our manufacturers to really rethink the production process and obviously where things are coming from to keep costs as low as possible. Where needed, we have looked at prices while also kind of evaluating how we do bundling, markdowns, package deals to really try to adequately offset the costs that we are incurring for tariffs. So obviously, it's an evolving backdrop, but we're pretty encouraged by the work our teams have done to get us to this point, and we'll just keep monitoring where it goes from here. Mitch KummetzSenior Analyst at Seaport Research Partners00:23:30And just as a follow-up to that, you're still anticipating product margin to be up year over year, although I think you said modestly so. Again, how does the tariffs on private label factor into that, especially given that you do still have pretty material exposure to China, even though you've been able to reduce that? Christopher WorkChief Financial Officer at Zumiez00:23:53Yes. I mean, think it comes back to kind of the different strategies we're putting into play, right? It's working with our brands, working with our manufacturers, trying to manage, first of all, mitigate any inbound costs we can get, whether it's just that way we work together, where we're sourcing it from, things like that. Secondly, it comes to looking at how we move private label through our stores. And we have used it in a bundling and promotional aspect, and we've changed the way we thought through some of that. Christopher WorkChief Financial Officer at Zumiez00:24:29And then in certain circumstances, we have had to take some prices up. So it's a combination of all of the above. And I think, Jeff or Mitch, when we put all that together, we think we'll have the opportunity to still grow product margin is our strategy at this point. As you know, even pre tariffs, we felt like we had some opportunity ahead of that to grow product margin. So it is modestly. Christopher WorkChief Financial Officer at Zumiez00:24:55I appreciate you saying that. We probably would have had a little bit more in our thought process if it wasn't for this environment, but we continue to think we can still grow product margin. Mitch KummetzSenior Analyst at Seaport Research Partners00:25:05And then I guess my last question, just on other international. I know you've kind of slowed the unit growth in Europe to focus on profitability. And correct me if I'm wrong, but I would think that the profitability there really hinges on comp. And I thought I heard you say that May comp for other international was down like, I think you said 14.8%. Christopher WorkChief Financial Officer at Zumiez00:25:30That's correct. Mitch KummetzSenior Analyst at Seaport Research Partners00:25:30Can you help me help me understand what's going on in other international and and what can you guys do strategically to, you know, show better results there? Christopher WorkChief Financial Officer at Zumiez00:25:42Sure. I'll take another crack at it and let Rick chime in. I mean and let me just kind of back up a little bit to talk about the overall landscape. I mean we did talk in 2024 about changing our strategy with Europe. We're really slowing growth and focusing on the core business with a key thought process of driving profitability and cash flow. Christopher WorkChief Financial Officer at Zumiez00:26:06We ended 2024, the business was about EUR 135,000,000. We were losing money, but less than 2023. That being said, we didn't make the progress we were hoping to make in 2024, but we were seeing a little bit of improvement there. The best we've ever done is really right pre pandemic. In 2019, we got very close to breakeven, but it's been a tough place to operate over the last five years. Christopher WorkChief Financial Officer at Zumiez00:26:34And so with just under 90 stores now in nine countries, we definitely have a solid base. But we've got to we've really got to push to profitability. That's been our focus. The results of 2025 have started slow. And you're right about May, but Q1 was not where we wanted to be either. Christopher WorkChief Financial Officer at Zumiez00:26:56As I think as we look at May and we look at what we've got planned in the second quarter guidance, we are planning other international down at this point, not nearly at the significance of what May was. I think when it's all said and done, we're going to see that there was some holiday shifts and some plan some just timing changes that will moderate what May was. But to be clear, May was below our plan and where we thought we'd be. So we started a little bit of a hole here for the 2025. I think the good news for especially our Europe business is what really matters in Europe is the fourth quarter, kind of a little different than our North America business, over 40% of our sales are here in the fourth quarter. Christopher WorkChief Financial Officer at Zumiez00:27:43So we're very focused on transitioning to that. We've made some changes in how we're trying to do things. We're really focused on product and bringing newness into the business. The teams, I think, are totally aligned around that and how we drive the top line, how we comp in our existing units. But at the same point, really trying to rationalize the business around growing margin. Christopher WorkChief Financial Officer at Zumiez00:28:12Even last year, as we kind of saw sales tick back, we were able to get more profitable because we were able to expand margin. We have seen actually pretty favorable margin even in May when the results were tougher. And we're managing expenses and then also managing inventory levels, really all of the above. Inventory in Europe for the first quarter was down to where we were in the prior year. I think the teams continue to make some good strides there. Christopher WorkChief Financial Officer at Zumiez00:28:36So again, we're really trying to set ourselves up for the big volume in the back half of the year and specifically the fourth quarter. We continue to believe in the international theory of the trends are emerging globally or locally and moving globally, and that includes emerging here in North America as well as in Europe. I think it's the best way we can serve our customers long term. But all that said, we're very focused on turning out around what the business is today. Mitch KummetzSenior Analyst at Seaport Research Partners00:29:07Great. Thank you. Operator00:29:09Thank you. I am showing no further questions in the queue. I would now like to turn the call back over to Rick for closing remarks. Richard BrooksCEO at Zumiez00:29:30Alright. Thank you. And, again, I just wanna close-up with a big thank you everyone for your interest in Zoomies and your continued interest in Zoomies. And we're gonna look forward to talking with you next September when we get a chance to share q two and early back to school results. So thank you everyone. Much appreciated. Operator00:29:46Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.Read moreParticipantsExecutivesRichard BrooksCEOAnalystsChristopher WorkChief Financial Officer at ZumiezMitch KummetzSenior Analyst at Seaport Research PartnersPowered by