Zumiez Inc. (NASDAQ:ZUMZ) Q1 2022 Earnings Conference Call June 2, 2022 5:00 PM ET
Company Participants
Rick Brooks – Chief Executive Officer
Chris Work – Chief Financial Officer
Conference Call Participants
Richard Magnuson – B. Riley
Corey Tarlowe – Jefferies
Mitch Kummetz – Seaport Research
Operator
Good afternoon, ladies and gentlemen, and welcome to the Zumiez Incorporated First 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, Incorporated business outlook and contains forward-looking statements. These forward-looking statements and all other statements that may be made on this call are not based on historical facts that 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’s filings with the SEC.
At this time, I will turn the call over to Rick Brooks, Chief Executive Officer. Mr. Brooks, you may begin.
Rick Brooks
Hello, everyone. And thanks for joining us on the call today. With me is Chris Work, our Chief Financial Officer. I’ll begin today’s call with a few remarks about the first quarter, before handing the call over to Chris, who will take you through the numbers and our outlook. After that, we’ll open up the call to your questions.
When we reported record Q1 results a year ago, and more recently, when we discussed our outlook for 2022 during our fourth quarter call in March, we outlined several reasons why the first quarter of 2022 would be down on a year-over-year basis. To reiterate, a year ago, we achieved over 100% revenue growth compared with Q1 of 2020, another 30% compared with pre-pandemic levels in Q1 of 2019. As our teams did an amazing job capturing a large share of the outsized consumer demand that was fueled by record domestic stimulus in early 2021.
This was all contemplated when we provide guidance for Q1 sales to be between $215 million and $221 million. As you saw from our release, sales came at the high end of our range at $220.7 million, which represents a 21% decrease compared with Q1 last year and increases of 60% and 4% over Q1 2020 and 2019 respectively. On top of the difficult sales comparison, the operating environment has become increasingly more challenging due to supply chain bottlenecks, higher logistics costs, a tight labor market and high levels of inflation.