Q1 2024 Zumiez Inc Earnings Call Transcript
Key Points
- Zumiez Inc (ZUMZ) reported first-quarter sales and earnings per share above the high end of their guidance range.
- North America comparable sales turned positive, driven by strong performance in the men's and women's business segments.
- Merchandise margins improved year-over-year, supported by a focus on full-price selling in Europe.
- The company has successfully launched over 150 new brands in 2023, with plans to continue this trend in 2024.
- Zumiez Inc (ZUMZ) has a strong balance sheet with more than $145 million in cash and no debt.
- Total sales for the first quarter were down 3% year-over-year, and comparable sales were down 2.4%.
- International sales, particularly in Europe, declined due to a focus on full-price selling, which pressured top-line revenue.
- The company reported a net loss of $16.8 million or $0.86 per share for the first quarter.
- SG&A expenses increased as a percentage of net sales, driven by higher annual incentive compensation and wage rate increases.
- Zumiez Inc (ZUMZ) plans to close 20 to 25 underperforming North American stores in 2024, indicating ongoing challenges in certain markets.
Good afternoon, ladies and gentlemen, and welcome to the Zumiez, Inc. first-quarter fiscal 2024 earnings conference call. (Operator Instructions) Before we begin, I'd like to remind everyone of the company's safe harbor language. Today's conference call includes comments concerning Zumiez, Inc. business outlook and contains forward-looking statements, of 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 Zumiez filings with the SEC. At this time, I will turn the call over to Rick Brooks, Chief Executive Officer. Mr. Brooks?
Hello, 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
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