Zumiez Inc. (ZUMZ) Q4 2022 Earnings Conference Call March 9, 2023 5:00 PM ET
Corporate Participants
Rich Brooks - Chief Executive Officer
Chris Work - Chief Financial Officer
Conference Call Participants
Mitch Kummetz - Seaport
Bill Dezellem - Tieton Capital
Operator
Good afternoon, ladies and gentlemen, and welcome to the Zumiez Inc., Fourth Quarter Fiscal 2022 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. 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?
Rick Brooks
Hello, everyone, and thank you for joining us on the call.
With me today is Chris Work, our Chief Financial Officer. I'll begin today's call with a few remarks about the fourth quarter, then I'll share some thoughts on the past year and what it means for Zumiez going forward before handing the call over to Chris, who will take you through the financials and some thoughts on the coming year. After that, we'll open the call to your questions.
We finished a challenging year with fourth quarter results that were ahead of our guidance but well below last year's record results. We knew 2022 would be difficult given the tough comparison to 2021, a year in which we grew revenue 20% and diluted earnings per share of 62% as we successfully capitalized on a strong consumer that was flush with record levels of savings due to U.S. stimulus and child tax credit measures.
As 2022 unfolded, on top of the tough compares, other headwinds emerged and intensified, including higher operating costs, a continued tight labor market, unfavorable changes in foreign currency exchange rates and most acutely, high level of inflation leading to intense competition for declining discretionary dollars. Beyond the macroeconomic factors, we also experienced the pressure of skate hardgoods declines on the business as well as a push to more value-oriented offerings away from our higher price point branded product.