Zumiez, Inc. (NASDAQ:ZUMZ) Q1 2019 Earnings Conference Call Transcript

Jun 06, 2019 • 05:00 pm ET


Zumiez, Inc. (NASDAQ:ZUMZ) Q1 2019 Earnings Conference Call Transcript


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Good afternoon, ladies and gentlemen, and welcome to the Zumiez Inc. First Quarter Fiscal 2019 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 conference.

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. 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. Additionally, 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 filing with the SEC.

At this time, I'd like to turn the call over to Rick Brooks, Chief Executive Officer. Please go ahead, sir.

Richard M. Brooks

Thank you. Hello, everyone, and thanks for joining us on the call today.

With me today is Chris Work, our Chief Financial Officer. I'll begin today's call with a few brief remarks regarding our first quarter performance then I'll share some thoughts about the future before handing the call over to Chris, who will take you through the numbers. After that, we'll open up the call to your questions.

Fiscal 2019 is off to a good start. Following a challenging February, our business improved in March and accelerated further in April driven in part by a later Easter. For the first quarter, comparable sales increased 3.3% on top of an 8.3% gain a year ago. This was well above our guidance range of down 2% to flat, a sales trends were much stronger than we anticipated over the last two months of the quarter.

Our recent performance reflects continued outstanding merchandise and customer focused execution as well as the strength of our financial model that is built to scale through the challenging preference with today's empowered consumer, and it is now delivered positive comparable sales for 11 consecutive quarters.

Before I hand the call over to Chris, let me reiterate the key elements of our strategy that we believe separate us from the competition. As well as expand upon the primary factors contributing the strength of our financial model. We have a relentless focus on our customer, which drives all that we do. It starts with having the right product and brands that our customers are looking for made up of a distinct mix of leading and emerging brands that are not broadly distributed.

We have been able to consistently achieve this balance through the strong relationships we forge with our brand partners. This includes clearly articulating Zumiez's culture-driven lifestyle brand position and showcasing our ability to connect with the target audience in authentic, engaging environment that is uniquely curated by our people all the way down to the local level.

There are many brands important to our selection and customers that may serve only a handful of stores. Our customers