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    Richard Magnusen • B. Riley Securities

    Richard Magnusen's questions to Zumiez Inc (ZUMZ) leadership

    Richard Magnusen's questions to Zumiez Inc (ZUMZ) leadership • Q3 2024

    Question

    Richard Magnusen asked for details on Zumiez's promotional strategy for the remainder of the holiday season, its ability to remain agile with inventory, and whether any product trends have yet to fully materialize.

    Answer

    Executive Richard Brooks stated that the company's promotional strategy remains consistent, focusing on delivering value through unique products and bundling, particularly with private labels, rather than deep, broad-based discounting. He emphasized being less promotional than competitors. CFO Christopher Work added that the apparel categories, fueled by new and private label brands, have shown strong acceleration and are expected to continue driving sales through the holiday period.

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    Richard Magnusen's questions to Zumiez Inc (ZUMZ) leadership • Q2 2024

    Question

    Richard Magnusen of B. Riley asked about the impact of rising operating and labor costs on the competitive landscape and whether Zumiez is observing competitors exiting the business in its core markets.

    Answer

    Executive Richard Brooks acknowledged that higher labor costs are a significant challenge that Zumiez is addressing through new productivity-focused labor strategies globally. He noted that all retailers face these pressures, but specifically pointed to the European market where the combination of high costs and a difficult macro environment is leading to a noticeable increase in store closures by competitors, creating a potential opportunity for market share consolidation.

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