Zumiez Inc. (NASDAQ:ZUMZ) Q3 2023 Earnings Conference Call November 30, 2023 5:00 PM ET
Company Participants
Rick Brooks - CEO
Chris Work - CFO
Conference Call Participants
Mitch Kummetz - Seaport
Richard Magnusen - B. Riley
Mantero Moreno-Cheek - Jefferies
Operator
Good afternoon, ladies and gentlemen. Welcome to the Zumiez Inc. Third Quarter Fiscal 2023 Earnings Conference Call. [Operator Instructions] Before we begin, I'd like to remind everyone in 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 today is available in Zumiez filing in the SEC.
At this time, I'd like to turn the call over to Rick Brooks, Chief Executive Officer. Mr. Brooks.
Rick Brooks
Hello, everyone, and thanks 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 third quarter and the start to the holiday season before handing the call over to Chris, who will take you through the financials and some thoughts on the rest of the year. After that, we'll open the call to your questions.
Our performance in the third quarter came in slightly ahead of our expectations as the year-over-year sales trends continued to improve compared with the first and second quarters. Given that the operating environment remained challenging, particularly in the U.S., causing our customers to be more selective about when and where they spend their money, we are encouraged by our results during the key weeks of the back-to-school selling season.
At the same time, we were not surprised that our sales trends pulled back somewhat during the second half of Q3. As we move beyond the peak back-to-school season. The industry has been volatile all year, marked by muted peaks and deeper valleys as inflationary impacts continued to weigh on discretionary spending combined with increased competition for wallet share from spending on services and experiences. Higher promotional activity to clear elevated inventory levels across our retail sector has added to the headwinds pressuring our full price selling model.
In response to this backdrop, we've continued to adjust our merchandise mix and brand assortments to bring newness to our offering as well as more value through private label brands to support our diverse customer base.