Zumiez, Inc. (NASDAQ:ZUMZ) Q1 2020 Earnings Conference Call - Final Transcript

Jun 04, 2020 • 05:00 pm ET


Zumiez, Inc. (NASDAQ:ZUMZ) Q1 2020 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen, and welcome to the Zumiez, Inc. First Quarter Fiscal 2020 Earnings Conference Call. At this time, all participants are in 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 about 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. Additional information concerning a number -- or risk factors that could cause actual results to differ materially from the information that will be discussed is available in Zumiez's filings with the SEC.

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

Richard M. Brooks

Hello, and thank you everyone for joining us on the call. With me today is Chris Work, our Chief Financial Officer. I'd like to start by sharing my immense gratitude to our employees and partners for their continued dedication during these unprecedented times. These last several months have made many of us feel anxious, scared and uncertain of what lies ahead. The pandemic has clearly had a major impact on our business. Additionally, in the last week, we once again witnessed the impact of injustices in our communities. At Zumiez, we strive to hire and support the people that reflect our communities and that live our values. We invest in our employees, try to promote from within and support them as a platform to serve their communities, share their opinions, challenge assumptions and put their energy towards the causes they believe in. I'm proud to serve as part of the Zumiez team and I'm confident that by living some of our core values of equity and inclusion and driving people to action, we can make a difference if we all work together.

Now, I'd like to make a few remarks on the current status of the business, then I'll share some thoughts on our first quarter performance and the rest of the year before handing the call to Chris who will take you through the numbers. After that, we'll open the call to your questions. Fiscal 2020 got off to a strong start with first quarter sales and EPS tracking ahead of expectations through early March. However, our performance soon fell off as many of our markets enacted measures to help slow the spread of COVID-19, including requiring all non-essential businesses to close and people to shelter at home. Following the guidance from health officials and local governments, we made a decision to close virtually all of our stores as of March 19 in order to protect the health and safety of our customers, employees and the communities we operate in. With our brick-and-mortar locations temporarily closed to the public, we immediately shifted our focus to increasing financial flexibility and directing