Washington, D.C. 20549

Form 8-K


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

Date of Report (Date of earliest event Reported): September 7, 2017  

Zumiez Inc
(Exact Name of Registrant as Specified in Charter)

(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification Number)


4001 204th Street SW, Lynnwood, WA 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))


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). 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 7, 2017, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the second quarter ended July 29, 2017, 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.

Exhibit 99.1. Press release dated September 7, 2017


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 7, 2017By: /s/ Richard M. Brooks        
  Richard M. Brooks
  Chief Executive Officer



Exhibit Number Description
99.1 Press Release dated September 7, 2017



Zumiez Inc. Announces Fiscal 2017 Second Quarter Results

Second Quarter 2017 Sales Increased 7.8% to $192.2 Million

Second Quarter 2017 Diluted Loss Per Share Improved to $(0.02)

August 2017 Comparable Sales Increased 7.4%

LYNNWOOD, Wash., Sept. 07, 2017 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ:ZUMZ) today reported results for the second quarter ended July 29, 2017.

Total net sales for the second quarter ended July 29, 2017 (13 weeks) increased 7.8% to $192.2 million from $178.3 million in the quarter ended July 30, 2016 (13 weeks). Comparable sales for the thirteen weeks ended July 29, 2017 increased 4.7% compared to a comparable sales decrease of 4.9% for the thirteen weeks ended July 30, 2016. Net loss for the second quarter of fiscal 2017 was $0.6 million, or $0.02 per diluted share, compared to a net loss of $0.8 million, or $0.03 per diluted share in the second quarter of the prior fiscal year. 

Total net sales for the six months (26 weeks) ended July 29, 2017 increased 6.3% to $373.4 million from $351.2 million reported for the six months (26 weeks) ended July 30, 2016. Comparable sales increased 3.3% for the twenty-six weeks ended July 29, 2017 compared to a comparable sales decrease of 6.2% for the twenty-six weeks ended July 30, 2016. Net loss for the first six months of fiscal 2017 was $5.1 million, or $0.21 per diluted share, compared to a net loss for the first six months of the prior fiscal year of $3.0 million, or $0.12 per diluted share.

At July 29, 2017, the Company had cash and current marketable securities of $70.7 million compared to cash and current marketable securities of $52.3 million at July 30, 2016. The increase in cash and current marketable securities was driven by cash generated through operations partially offset by capital expenditures and cash used in the acquisition of Fast Times.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, "Our business outperformed our expectations during the second quarter highlighted by a 4.7% comparable sales increase.  I am extremely pleased with how well our teams continue to execute in the current environment. Our intense focus on serving our consumer with differentiated assortments and great service is fueling market share gains and strengthening our leadership position in the industry. We will continue to invest in our people and omni-channel capabilities while tightly controlling expenses as we look to consistently drive profitable growth and increased shareholder value over the long-term.”

August 2017 Sales  
Total net sales for the four-week period ended August 26, 2017 increased 10.1% to $98.6 million, compared to $89.5 million for the four-week period ended August 27, 2016. The Company's comparable sales increased 7.4% for the four-week period ended August 26, 2017 compared to a comparable sales decrease of 1.1% for the four-week period ended August 27, 2016.

Fiscal 2017 Third Quarter Outlook  
The Company is introducing guidance for the three months ending October 28, 2017. Net sales are projected to be in the range of $236 to $241 million resulting in net income per diluted share of approximately $0.43 to $0.48. This guidance is based upon anticipated comparable sales growth between 4% and 6% for the third quarter of fiscal 2017. The Company currently intends to open approximately 18 new stores in fiscal 2017, including up to 3 stores in Canada and 4 stores in Europe and 2 stores in Australia.

A conference call will be held today to discuss second quarter fiscal 2017 results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (574) 990-9934 followed by the conference identification code of 78719001.

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 26, 2017 we operated 693 stores, including 606 in the United States, 51 in Canada, and 30 in Europe and 6 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at www.zumiez.com, www.blue-tomato.com and https://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 quarterly report on Form 10-Q for the quarter ended April 29, 2017 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.

(In thousands, except per share amounts)
 Three Months Ended
  July 29, 2017
 % of Sales  July 30, 2016
 % of Sales
Net sales$192,245  100.0% $178,272  100.0%
Cost of goods sold132,449  68.9%  123,428  69.2%
Gross profit59,796  31.1% 54,844  30.8%
Selling, general and administrative expenses60,558  31.5% 55,980  31.5%
Operating loss(762) (0.4%) (1,136) (0.7%)
Interest income, net92  0.0% 28  0.0%
Other expense, net(23) 0.0% (256) (0.1%)
Loss before income taxes(693) (0.4%) (1,364) (0.8%)
Benefit from income taxes(85) (0.1%) (526) (0.3%)
Net loss$(608) (0.3%) $(838) (0.5%)
Basic loss per share$(0.02)   $(0.03)  
Diluted loss per share$(0.02)   $(0.03)  
Weighted average shares used in computation of loss per share:       
Basic24,689    24,712   
Diluted24,689    24,712   
(In thousands, except per share amounts)
 Six Months Ended
  July 29, 2017
 % of Sales  July 30, 2016
 % of Sales
Net sales$373,399  100.0% $351,243  100.0%
Cost of goods sold261,555  70.0% 246,440  70.2%
Gross profit111,844  30.0% 104,803  29.8%
Selling, general and administrative expenses118,841  31.9% 109,879  31.2%
Operating loss(6,997) (1.9%) (5,076) (1.4%)
Interest income, net174  0.0% 59  0.0%
Other (expense) income, net(472) (0.1%) 242  0.1%
Loss before income taxes(7,295) (2.0%) (4,775) (1.3%)
Benefit from income taxes(2,239) (0.6%) (1,800) (0.5%)
Net Loss$(5,056) (1.4%) $(2,975) (0.8%)
Basic loss per share$(0.21)   $(0.12)  
Diluted loss per share$(0.21)   $(0.12)  
Weighted average shares used in computation of loss per share:       
Basic24,635    24,957   
Diluted24,635    24,957   


(In thousands)
 July 29, January 28, July 30,
20172017 2016
Assets(Unaudited)    (Unaudited)
Current assets      
Cash and cash equivalents$17,291  $20,247  $19,600 
Marketable securities53,433  58,579  32,740 
Receivables16,334  12,538  14,576 
Inventories141,782  106,924  131,823 
Prepaid expenses and other current assets15,378  13,075  13,990 
Total current assets244,218  211,363  212,729 
Fixed assets, net131,934  129,651  136,505 
Goodwill60,057  56,001  55,082 
Intangible assets, net15,903  14,610   12,005 
Deferred tax assets, net9,733  7,041   8,332 
Other long-term assets7,022   8,017  7,908 
Total long-term assets224,649  215,320  219,832 
Total assets$468,867  $426,683  $432,561 
Liabilities and Shareholders’ Equity     
Current liabilities     
Trade accounts payable$60,652  $25,529  $60,044 
Accrued payroll and payroll taxes15,684  14,914   12,754 
Income taxes payable68  1,866  507 
Deferred rent and tenant allowances8,393  8,344  8,384 
Other liabilities23,657  22,944  22,089 
Total current liabilities108,454  73,597  103,778 
Long-term deferred rent and tenant allowances40,795  41,066  43,721 
Other long-term liabilities 5,113  4,969  4,815 
Total long-term liabilities45,908  46,035  48,536 
Total liabilities154,362  119,632  152,314 
Shareholders’ equity     
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding     
Common stock, no par value, 50,000 shares authorized; 25,231 shares issued and outstanding at July 29, 2017, 24,945 shares issued and outstanding at January 28, 2017, and 24,931 shares issued and outstanding at July 30, 2016143,682  140,984  137,102 
Accumulated other comprehensive loss(6,676) (16,488) (12,802)
Retained earnings177,499  182,555  155,947 
Total shareholders’ equity314,505  307,051  280,247 
Total liabilities and shareholders’ equity$468,867  $426,683  $432,561 


(In thousands) 
 Six Months Ended
 July 29, 2017   July 30, 2016
Cash flows from operating activities:   
Net loss$  (5,056) $  (2,975)
Adjustments to reconcile net loss to net cash provided by operating activities:   
Depreciation, amortization and accretion   13,520     14,336 
Deferred taxes   (2,456)    (3,713)
Stock-based compensation expense   2,500     2,221 
Other   621     95 
Changes in operating assets and liabilities:   
Receivables   (2,092)    (842)
Inventories   (32,553)    (32,766)
Prepaid expenses and other current assets   (995)    (2,690)
Trade accounts payable   34,627     38,181 
Accrued payroll and payroll taxes   561     225 
Income taxes payable   (3,372)    (4,804)
Deferred rent and tenant allowances   (521)    (12)
Other liabilities   (1,016)    (813)
Net cash provided by operating activities   3,768     6,443 
Cash flows from investing activities:   
Additions to fixed assets   (12,461)    (11,895)
Purchases of marketable securities and other investments   (37,586)    (28,353)
Sales and maturities of marketable securities and other investments   42,615     28,658 
Net cash used in investing activities   (7,432)    (11,590)
Cash flows from financing activities:   
Proceeds from revolving credit facilities   1,791     -  
Payments on revolving credit facilities   (1,791)    -  
Repurchase of common stock   -      (19,084)
Proceeds from issuance and exercise of stock-based awards   370     518 
Payments for tax withholdings on equity awards   (172)    (121)
Net cash provided by (used in) financing activities   198     (18,687)
Effect of exchange rate changes on cash and cash equivalents   510     271 
Net decrease in cash and cash equivalents   (2,956)    (23,563)
Cash and cash equivalents, beginning of period   20,247     43,163 
Cash and cash equivalents, end of period$  17,291  $  19,600 
Supplemental disclosure on cash flow information:   
Cash paid during the period for income taxes$  3,660  $  6,736 
Accrual for purchases of fixed assets   2,550     1,835 
Accrual for repurchase of common stock   -      254 

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

Investor Contact:
Brendon Frey
(203) 682-8200