Zumiez Inc.

Good afternoon, ladies and gentlemen, and welcome to the Zoomies Inc. Second Quarter Fiscal 2026 Earnings Conference Call. At this time, all participants are in 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 Zooming Inc.'s 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 these factors that could cause actual results to differ materially from the information that will be disclosed is available in Zumi's filings with the SEC. At this time, I'd like to turn the call over to Rick Brooks, Chief Executive Officer. Mr. Brooks?

With me today is Chris Work, our Chief Financial Officer.

and the trends we're seeing so far in the third quarter before providing an update on our strategic priorities for the remainder of the year. Chris will then take you through our financial results along with our outlook for the third quarter. After that, we'll open the call to your questions. Our second quarter sales decreased 2.5% from the prior year. While we're disappointed that results are short of expectations due to softness in the U.S., We're encouraged by the diversification of our global business where our international entities provided positive sales growth for the quarter. Our current quarter date trends through Labor Day have shown similar results to the second quarter. The U.S. is trending down after very strong performance over the similar period in the two prior years, growing 14.1% in 2024 and 13.2% in 2025. while our international needs have seen low single digit positive comparable sales in the same timeframe this year. Current overall sales results have been meaningfully impacted by our US sales deceleration, driven by softness in footwear and an overall drop in transactions. We know from experience that these down cycles are generally temporary and we're actively working to refine our merchandise assortments and further lean into our customer experience initiatives to improve the trajectory. As we move forward, we're executing on both our domestic and international strategies to continue advancing the business. First, domestically, we're evaluating all areas of business to positively impact the customer through the important holiday cycle and into 2027. As we reflect on the U.S. business second quarter and back to school results through Labor Day, the footwear category has been the most significant headwind, accounting for 70% of the total U.S. sales decline from the prior year through that timeframe. Forward has been challenged since the second quarter of 2025, and the year-over-year comparisons get easier as we head into the fourth quarter of this year. We've also seen evolution in apparel trends that have positively driven the business for over two years. These changes created a sense of urgency to work with our brand partners as well as our own private label brands to bring newness and changes to our assortment. On the service front, we continue to invest in our people with training focused on capturing every sale. We are learning more about our customers through our data initiatives, which are enhancing our ability to communicate with them in relevant ways to improve the effectiveness of marketing initiatives and evaluate where operational changes are needed in the business to enhance the customer experience. As we've said for some time, our job is to meet consumers where they are and continue to move with them in this important stage of their life. Identifying and leaning on trends has been at the core of Zimney's success throughout our history, and we have confidence that our teams will deliver as we move through this transitional period. Second, internationally we remain focused on the key strategic priorities that have helped us improve the business dating back to the fourth quarter last year. This includes Driving revenue through refreshing our product mix with innovative, distinctive offerings. Continued growth of private label that supplemented our branded product and resonated with our customers while enhancing our margin profile. Maintaining a rigorous commitment to profitability optimization in each market. This includes executing a premium pricing strategy to drive margin expansion while managing expenses to grow at the bottom line. With the positive inflection in our sales, we are making traction on this initiative in each of the international markets. Lastly, we continue to maintain our solid financial foundation, which is the backbone of our ability to manage volatility while funding initiatives aimed at serving our customer. Our financial position remains a source of real strength, giving us the flexibility to continue investing in our strategic objectives while also delivering value to shareholders through our share repurchase program. Financial flexibility matters more than ever in a consumer environment where the speed of trend cycles has never been faster. And it underpins confidence in our ability to navigate whatever comes next while continuing to build long-term shareholder value. Let me be clear, I'm disappointed with our current results and our people are working hard to improve the business. I have confidence in our team to make the changes needed to positively impact the fourth quarter and 2027. Closing, I want to thank our entire organization for the continued hard work and dedication to our customers. It remains the foundation of everything we do. Let me hand things over to Chris for the finance review.