0001318008 False 0001318008 2024-09-05 2024-09-05 iso4217:USD xbrli:shares iso4217:USD xbrli:shares
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  September 5, 2024

_______________________________

Zumiez Inc.

(Exact name of registrant as specified in its charter)

_______________________________

Washington000-5130091-1040022
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

4001 204th Street SW

Lynnwood, Washington 98036

(Address of Principal Executive Offices) (Zip Code)

(425) 551-1500

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockZUMZNasdaq Global Select

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 
 
Item 2.02. Results of Operations and Financial Condition.

On September 5, 2024, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the second quarter ended August 3, 2024, a copy of which is attached hereto as Exhibit 99.1 and the contents of which are incorporated herein by this reference.

In accordance with General Instruction B.2. of Form 8-K, the information contained in this report and the Press Release shall not be deemed "Filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.
      
99.1 Press Release dated September 5, 2024
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 Zumiez Inc.
   
  
Date: September 5, 2024By: /s/ Richard M. Brooks        
  Richard M. Brooks
  Chief Executive Officer
  

 

EXHIBIT 99.1

Zumiez Inc. Announces Fiscal 2024 Second Quarter Results

Second Quarter Comparable Sales Increased 3.6%
Second Quarter Gross Margin increased 250 basis points to 34.2%
Second Quarter Loss Per share improved to ($0.04) from ($0.44)
Third Quarter-to-date Comparable Sales up 12.1%

LYNNWOOD, Wash., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ: ZUMZ) a leading specialty retailer of apparel, footwear, equipment and accessories for young men and women, today reported results for the second quarter ended August 3, 2024.

Net sales for the second quarter ended August 3, 2024 (13 weeks) increased 8.1% to $210.2 million from $194.4 million in the second quarter ended July 29, 2023 (13 weeks). Comparable sales for the thirteen weeks ended August 3, 2024 increased 3.6%. The shift in the retail calendar had a positive impact on the second quarter results, increasing net sales growth by approximately 530 basis points. However, this shift will negatively affect net sales growth in the third quarter. Comparable sales growth, as reported, is adjusted for the calendar shift and provides a more accurate measure of operating performance. Net loss in the second quarter of fiscal 2024 was $0.8 million, or $0.04 per share, compared to a net loss of $8.5 million, or $0.44 per share, in the second quarter of the prior fiscal year.

Total net sales for the six months (26 weeks) ended August 3, 2024 increased 2.7% to $387.6 million from $377.3 million reported for the six months (26 weeks) ended July 29, 2023. The retail calendar shift positively impacted net sales growth by approximately 310 basis points year-to-date. Comparable sales increased 0.8% for the twenty-six weeks ended August 3, 2024. Net loss for the first six months of fiscal 2024 was $17.6 million, or $0.91 per share, compared to a net loss for the first six months of fiscal 2023 of $26.9 million, or $1.40 per share.

At August 3, 2024, the Company had cash and current marketable securities of $127.0 million compared to cash and current marketable securities of $140.0 million at July 29, 2023. The decrease was primarily driven by share repurchases and capital expenditures partially offset by cash flow from operations. The Company repurchased 0.9 million shares during the quarter at an average cost of $20.55 per share and a total cost of $19.4 million.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We experienced a noticeable acceleration in our sales trend as the second quarter unfolded, with July North America comparable sales increasing in the high-single digits. The work our merchandise teams have done refining our apparel and footwear assortments combined with enhanced customer engagement tactics from our in-store and online sales associates led to better than expected second quarter results and a strong back-to-school season in North America. With back-to-school a good indicator for holiday demand in the past, we are encouraged about our prospects for growth over the remainder of fiscal 2024. Looking farther ahead, we are confident that our global customer centric operating model has the Company positioned to continue building on the progress we’ve made towards delivering enhanced value for our shareholders in the years to come.”

Third Quarter To-Date
Third quarter-to-date net sales for the 30 days ending September 2, 2024 increased 6.8%, compared with the 30 day time period in the prior year ended August 28, 2023. Total comparable sales for the 30-day period ending September 2, 2024, adjusted to exclude the impact of the calendar shift, were up 12.1% from the comparable period in the prior year.

Fiscal 2024 Third Quarter Outlook
The Company is introducing guidance for the three months ending November 2, 2024. Net sales are projected to be in the range of $221 to $225 million representing growth of between 2% and 4% from the third quarter in the prior year. Adjusting for the impact of the calendar shift, net sales are expected to grow between 7% and 9% compared to the same weeks in the prior year. Consolidated operating margins are expected to be between 0.2% and 1.2% with earnings per share results between a loss of ($0.04) and income of $0.06.

The Company currently intends to open approximately 9 new stores in fiscal 2024, including up to 3 stores in North America, 3 stores in Europe and 3 stores in Australia and close approximately 25 stores by the end of the year.

Conference call Information
To access the conference call, please pre-register using this link (Registration Link) Registrants will receive confirmation with dial-in details. The conference call will also be available to interested parties through a live webcast at https://ir.zumiez.com. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at https://ir.zumiez.com.

About Zumiez Inc.
Zumiez is a leading specialty retailer of apparel, footwear, accessories and hardgoods for young men and women who want to express their individuality through the fashion, music, art and culture of action sports, streetwear, and other unique lifestyles. As of August 31, 2024, we operated 752 stores, including 593 in the United States, 46 in Canada, 86 in Europe and 27 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at zumiez.com, zumiez.ca, blue-tomato.com and fasttimes.com.au.

Safe Harbor Statement
Certain statements in this press release and oral statements relating thereto made from time to time by representatives of the Company may constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, predictions and guidance relating to the Company's future financial performance, brand and product category diversity, ability to adjust product mix, integration of acquired businesses, growing customer demand for our products and new store openings. In some cases, you can identify forward-looking statements by terminology such as, "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based on management's current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation, those described in the Company’s annual report on Form 10-K for the fiscal year ended January 28, 2023 as filed with the Securities and Exchange Commission and available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Company Contact:
Darin White
Director of Finance &
Investor Relations
Zumiez Inc.
(425) 551-1500, ext. 1337

Investor Contact:
ICR
Brendon Frey
(203) 682-8200


 
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
 
  Three Months Ended
  August 3, 2024 % of Sales  July 29, 2023 % of Sales
Net sales $210,179  100.0% $194,438  100.0%
Cost of goods sold  138,385  65.8%  132,760  68.3%
Gross profit  71,794  34.2%  61,678  31.7%
Selling, general and administrative expenses  72,187  34.4%  72,171  37.1%
Operating loss  (393) -0.2%  (10,493) -5.4%
Interest income, net  1,128  0.6%  775  0.4%
Other (expense) income, net  (179) -0.1%  423  0.2%
Income (loss) before income taxes  556  0.3%  (9,295) -4.8%
Benefit from (provision for) income taxes  1,403  0.7%  (786) -0.4%
Net loss $(847) -0.4% $(8,509) -4.4%
Basic loss per share $(0.04)   $(0.44)  
Diluted loss per share $(0.04)   $(0.44)  
Weighted average shares used in computation of loss per share:        
Basic  19,284     19,311   
Diluted  19,284     19,311   
           
  Six Months Ended
  August 3, 2024 % of Sales  July 29, 2023 % of Sales
Net sales $387,567  100.0% $377,325  100.0%
Cost of goods sold  263,874  68.1%  266,290  70.6%
Gross profit  123,693  31.9%  111,035  29.4%
         
Selling, general and administrative expenses  144,240  37.2%  142,881  37.8%
Operating loss  (20,547) -5.3%  (31,846) -8.4%
Interest income, net  2,449  0.6%  1,632  0.4%
Other expense, net  (946) -0.2%  (118) 0.0%
Loss before income taxes  (19,044) -4.9%  (30,332) -8.0%
Provision for income taxes  (1,417) -0.4%  (3,441) -0.9%
Net loss $(17,627) -4.5% $(26,891) -7.1%
           
Basic loss per share $(0.91)   $(1.40)  
Diluted loss per share $(0.91)   $(1.40)  
Weighted average shares used in computation of loss per share:          
Basic  19,375     19,254   
Diluted  19,375     19,254   


 
ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
 
  August 3, 2024 February 3, 2024 July 29, 2023
  (Unaudited)   (Unaudited)
Assets      
Current assets      
Cash and cash equivalents $65,766  $88,875  $57,854 
Marketable securities  61,194   82,704   82,128 
Receivables  23,129   13,780   23,910 
Inventories  158,753   128,827   156,654 
Prepaid expenses and other current assets  17,939   12,401   14,523 
Total current assets  326,781   326,587   335,069 
Fixed assets, net  87,573   90,508   94,193 
Operating lease right-of-use assets  203,744   196,775   221,538 
Goodwill  15,358   15,374   56,889 
Intangible assets, net  14,196   14,200   14,409 
Deferred tax assets, net  9,928   8,623   12,161 
Other long-term assets  11,947   12,159   11,575 
Total long-term assets  342,746   337,639   410,765 
Total assets $669,527  $664,226  $745,834 
       
Liabilities and Shareholders’ Equity      
Current liabilities      
Trade accounts payable $75,016  $38,885  $69,773 
Accrued payroll and payroll taxes  20,517   18,431   14,608 
Operating lease liabilities  62,759   60,885   66,087 
Other current liabilities  22,472   25,886   19,312 
Total current liabilities  180,764   144,087   169,780 
Long-term operating lease liabilities  161,663   159,877   184,439 
Other long-term liabilities  7,296   7,052   6,191 
Total long-term liabilities  168,959   166,929   190,630 
Total liabilities  349,723   311,016   360,410 
       
Shareholders’ equity      
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding  —   —   — 
Common stock, no par value, 50,000 shares authorized; 19,360 shares issued and outstanding at August 3, 2024 and 19,833 shares issued and outstanding at February 3, 2024  199,763   196,144   192,169 
Accumulated other comprehensive loss  (18,844)  (19,027)  (18,557)
Retained earnings  138,885   176,093   211,812 
Total shareholders’ equity  319,804   353,210   385,424 
Total liabilities and shareholders’ equity $669,527  $664,226  $745,834 
             


 
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
  Six Months Ended
  August 3, 2024 July 29, 2023
Cash flows from operating activities:    
Net loss $(17,627) $(26,891)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation, amortization and accretion  11,052   10,881 
Noncash lease expense  32,169   34,380 
Deferred taxes  (1,688)  (4,060)
Stock-based compensation expense  3,391   3,476 
Impairment of long-lived assets  298   338 
Other  949   84 
Changes in operating assets and liabilities:    
Receivables  (7,067)  (1,113)
Inventories  (30,665)  (21,721)
Prepaid expenses and other assets  (937)  (3,807)
Trade accounts payable  34,650   30,150 
Accrued payroll and payroll taxes  2,102   (1,676)
Income taxes payable  (1,346)  (1,044)
Operating lease liabilities  (36,817)  (38,783)
Other liabilities  (3,886)  (4,480)
Net cash used in operating activities  (15,422)  (24,266)
Cash flows from investing activities:    
Additions to fixed assets  (6,266)  (11,879)
Purchases of marketable securities  (1,967)  (1,850)
Sales and maturities of marketable securities and other investments  24,145   12,284 
Net cash provided by (used in) investing activities  15,912   (1,445)
Cash flows from financing activities:    
Proceeds from revolving credit facilities  3,220   25,682 
Payments on revolving credit facilities  (3,220)  (25,682)
Proceeds from issuance and exercise of stock-based awards  357   460 
Payments for tax withholdings on equity awards  (130)  (185)
Repurchase of common stock, including taxes  (19,581)  - 
Net cash (used in) provided by financing activities  (19,354)  275 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash  (213)  179 
Net decrease in cash, cash equivalents, and restricted cash  (19,077)  (25,257)
Cash, cash equivalents, and restricted cash, beginning of period  94,284   88,453 
Cash, cash equivalents, and restricted cash, end of period $75,207  $63,196 
Supplemental disclosure on cash flow information:    
Cash paid during the period for income taxes $1,805  $1,520 
Accrual for purchases of fixed assets $3,326   1,784 
Accrual for repurchase of common stock  479   - 

v3.24.2.u1
Cover
Sep. 05, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Sep. 05, 2024
Entity File Number 000-51300
Entity Registrant Name Zumiez Inc.
Entity Central Index Key 0001318008
Entity Tax Identification Number 91-1040022
Entity Incorporation, State or Country Code WA
Entity Address, Address Line One 4001 204th Street SW
Entity Address, City or Town Lynnwood
Entity Address, State or Province WA
Entity Address, Postal Zip Code 98036
City Area Code 425
Local Phone Number 551-1500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol ZUMZ
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Zumiez (NASDAQ:ZUMZ)
Historical Stock Chart
From Nov 2024 to Dec 2024 Click Here for more Zumiez Charts.
Zumiez (NASDAQ:ZUMZ)
Historical Stock Chart
From Dec 2023 to Dec 2024 Click Here for more Zumiez Charts.