Form 8-K
0001318008 False 0001318008 2023-03-09 2023-03-09 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):  March 9, 2023

_______________________________

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 March 9, 2023, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the fourth quarter and fiscal year ended January 28, 2023, 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 March 9, 2023
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: March 9, 2023By: /s/ Richard M. Brooks        
  Richard M. Brooks
  Chief Executive Officer
  

 

EdgarFiling

EXHIBIT 99.1

Zumiez Inc. Announces Fiscal 2022 Fourth Quarter Results

LYNNWOOD, Wash., March 09, 2023 (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 fourth quarter and fiscal year ended January 28, 2023.

Net sales for the fourth quarter ended January 28, 2023 (13 weeks) decreased 19.2% to $280.1 million from $346.7 million in the fourth quarter ended January 29, 2022 (13 weeks). Net income in the fourth quarter of fiscal 2022 was $11.4 million, or $0.59 per diluted share, compared to net income of $38.2 million, or $1.70 per diluted share, in the fourth quarter of the prior fiscal year.

Total net sales for the twelve months (52 weeks) ended January 28, 2023 decreased 19.0% to $958.4 million from $1,183.9 million reported for the twelve months (52 weeks) ended January 29, 2022. Net income for fiscal 2022 was $21.0 million, or $1.08 per diluted share, compared to net income for fiscal 2021 of $119.3 million, or $4.85 per diluted share.

At January 28, 2023, the Company had cash and current marketable securities of $173.5 million compared to cash and current marketable securities of $294.5 million at January 29, 2022. The decrease was driven by share repurchases of $87.9 million and capital expenditures of $25.6 million over this time period.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We concluded a challenging fiscal 2022 with fourth quarter results that were ahead of our guidance, but below year ago levels. While the operating environment has been difficult and our recent financial performance disappointing, our commitment to serving consumers with world class service and highly differentiated, sought-after merchandise, is as strong as ever and has the business positioned to recover quickly when the macroeconomic conditions improve. I am confident that the channel-less retail model and strong corporate culture we have built and evolved over Zumiez’s 45-year history and brought to Canada, Europe and Australia will continue to separate our banners from the competition and drive profitable growth for our shareholders over the long-term.”

Fiscal First Quarter-to-Date Sales
Total first quarter-to-date sales for the 35 days ended March 4, 2023 decreased 15.5%, compared with the same 35-day time period in the prior year ended March 5, 2022. Total comparable sales for the 35-day period ending March 4, 2023 decreased 16.6% from the comparable period in the prior year.

Outlook
Fiscal 2023 First Quarter Outlook
The Company is introducing guidance for the three months ending April 29, 2023. Net sales are projected to be in the range of $178 to $184 million. Earnings per share are expected to be between a loss of $0.85 and a loss of $0.95.

The Company currently intends to open approximately 23 new stores in fiscal 2023, including up to 8 stores in North America, 10 stores in Europe and 5 stores in Australia.

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 February 25, 2023, we operated 756 stores, including 607 in the United States, 50 in Canada, 78 in Europe and 21 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 29, 2022 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.


ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

   Three Months Ended
   January 28, % of  January 29, % of
   2023  Sales  2022  Sales
   (Unaudited)   (Unaudited)  
Net sales $280,110  100.0%  346,677  100.0%
Cost of goods sold  184,841  66.0%  212,744  61.4%
Gross profit  95,269  34.0%  133,933  38.6%
Selling, general and administrative expenses  80,059  28.6%  82,198  23.7%
Operating profit  15,210  5.4%  51,735  14.9%
Interest income, net  645  0.2%  759  0.2%
Other income (expense), net  293  0.1%  (1,462) -0.4%
Earnings before income taxes  16,148  5.7%  51,032  14.7%
Provision for income taxes  4,716  1.7%  12,828  3.7%
Net income $11,432  4.0% $38,204  11.0%
Basic earnings per share $0.60    $1.73   
Diluted earnings per share $0.59    $1.70   
Weighted average shares used in computation of earnings per share:       
Basic  19,114     22,056   
Diluted  19,255     22,451   
          
          
   Fiscal Year Ended
   January 28, % of  January 29, % of
   2023  Sales  2022  Sales
   (Unaudited)      
Net sales $958,380  100.0% $1,183,867  100.0%
Cost of goods sold  633,702  66.1%  727,137  61.4%
Gross profit  324,678  33.9%  456,730  38.6%
Selling, general and administrative expenses  293,578  30.7%  298,920  25.3%
Operating profit  31,100  3.2%  157,810  13.3%
Interest income, net  1,924  0.3%  3,592  0.4%
Other expense, net  (557) -0.1%  (891) -0.1%
Earnings before income taxes  32,467  3.4%  160,511  13.6%
Provision for income taxes  11,433  1.2%  41,222  3.5%
Net income $21,034  2.2% $119,289  10.1%
Basic earnings per share $1.10    $4.93   
Diluted earnings per share $1.08    $4.85   
Weighted average shares used in computation of earnings per share:       
Basic  19,208     24,187   
Diluted  19,428     24,593   

 

ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

  January 28, 2023 January 29, 2022
  (Unaudited)  
Assets    
Current assets    
Cash and cash equivalents $81,503  $117,223 
Marketable securities  91,986   177,260 
Receivables  20,613   14,427 
Inventories  134,824   128,728 
Prepaid expenses and other current assets  11,252   10,011 
Total current assets  340,178   447,649 
Fixed assets, net  93,746   91,451 
Operating lease right-of-use assets  222,240   230,187 
Goodwill  56,566   57,560 
Intangible assets, net  14,443   14,698 
Deferred tax assets, net  8,205   8,659 
Other long-term assets  12,525   11,808 
Total long-term assets  407,725   414,363 
Total assets $747,903  $862,012 
     
Liabilities and Shareholders’ Equity    
Current liabilities    
Trade accounts payable $40,379  $55,638 
Accrued payroll and payroll taxes  16,321   31,209 
Operating lease liabilities  65,460   63,577 
Other liabilities  23,649   34,015 
Total current liabilities  145,809   184,439 
Long-term operating lease liabilities  188,835   204,309 
Other long-term liabilities  5,931   4,946 
Total long-term liabilities  194,766   209,255 
Total liabilities  340,575   393,694 
     
Shareholders’ equity    
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding      
Common stock, no par value, 50,000 shares authorized; 19,489 shares issued and outstanding at January 28, 2023 and 21,215 shares issued and outstanding at January 29, 2022  188,418   180,824 
Accumulated other comprehensive loss  (19,793)  (13,463)
Retained earnings  238,703   300,957 
Total shareholders’ equity  407,328   468,318 
Total liabilities and shareholders’ equity $747,903  $862,012 
     

 

ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

  Fiscal Year Ended
  January 28, 2023 January 29, 2022
  (Unaudited)  
Cash flows from operating activities:    
Net income $21,034  $119,289 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:    
Depreciation, amortization and accretion  21,626   22,930 
Noncash lease expense  67,394   64,466 
Deferred taxes  2,485   2,374 
Stock-based compensation expense  6,991   6,816 
Impairment of long-lived assets  2,081   2,229 
Other  1,176   2,728 
Changes in operating assets and liabilities:    
Receivables  (1,716)  2,884 
Inventories  (5,279)  2,587 
Prepaid expenses and other assets  (1,082)  (2,824)
Trade accounts payable  (15,484)  (14,060)
Accrued payroll and payroll taxes  (14,895)  3,649 
Income taxes payable  (2,320)  (5,101)
Operating lease liabilities  (76,605)  (77,657)
Other liabilities  (5,785)  4,640 
Net cash (used in) provided by operating activities  (379)  134,950 
Cash flows from investing activities:    
Additions to fixed assets  (25,627)  (15,749)
Purchases of marketable securities and other investments  (1,914)  (160,328)
Sales and maturities of marketable securities and other investments  81,750   277,720 
Net cash provided by investing activities  54,209   101,643 
Cash flows from financing activities:    
Proceeds from revolving credit facilities  3,979    
Payments on revolving credit facilities  (3,979)   
Proceeds from issuance and exercise of stock-based awards  1,111   3,001 
Payments for tax withholdings on equity awards  (508)  (621)
Common stock repurchased  (87,860)  (193,789)
Net cash used in financing activities  (87,257)  (191,409)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash  (2,172)  (1,822)
Net (decrease) increase in cash, cash equivalents, and restricted cash  (35,599)  43,362 
Cash, cash equivalents, and restricted cash, beginning of period  124,052   80,690 
Cash, cash equivalents, and restricted cash, end of period $88,453  $124,052 
Supplemental disclosure on cash flow information:    
Cash paid during the period for income taxes $11,309  $42,767 
Accrual for repurchase of common stock  -   4,572 
Accrual for purchases of fixed assets  1,433   984 

 

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

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