Zumiez Inc. Q4 FY2025 earnings call

First, fourth quarter robust full-price selling in North America fueled mid-single-digit comparable sales growth and margin expansion. Europe business drove product margin improvement and 380 basis points of operating margin growth despite sales decline. Second, fiscal 2025 took steps to return to historical sales and earnings levels. Merchandise assortments and customer experience initiatives generated positive comps. North America had eight consecutive quarters of comparable sales growth. Europe strategic shift gained momentum. Third, three strategic priorities: driving revenue growth via consumer-focused initiatives, sustaining profitability optimization across geographies, and building on financial foundation to manage volatility. Launched over 150 new and emerging brands in 2025, private-level penetration at approximately 30% of sales.

Fourth quarter 2025 net sales increased 4.4% to $291.3 million. Comparable sales up 2.2%. North America net sales $224.4 million, up 4.8% year-over-year. Other international net sales $66.9 million, up 3% year-over-year. Full-year 2025 net sales $929.1 million, up 4.5% year-over-year. Comparable sales up 4.3%. North America net sales $757 million, up 5.1% year-over-year. Other international net sales $172 million, up 1.7% year-over-year. Men's led positive comparable sales growth during the holiday period, followed by women's, accessories, and hard goods. Europe business drove 660 basis points of year-over-year product margin improvement.

First quarter 2026 total sales expected $189 - $193 million, growth 3% - 5%. Comparable sales 2% - 4%. Operating loss $15.6 - $17.8 million, improvement from prior year. Full-year 2026 expects low single-digit total sales growth, product margin growth, SG&A leverage, operating margin growth 50 - 100 basis points.

Regional headwinds in Europe and other international markets. Economic volatility and evolving global dynamics. Macro environment uncertainties impacting sales and margins.

Q: About Europe comp performance swing, A: Strategy change in late 2024 to focus on profitability, product margin growth, expense control.

Q: Private label vs branded performance, A: No major changes, both performing well.

Q: International stabilization, A: Focus on product, personnel changes, store environment and team investment.

Q: Store closures and new stores, A: Closing underperforming stores, new stores selective with good performance