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 6, 2018  

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 6, 2018, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the second quarter ended August 4, 2018, 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 6, 2018


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 6, 2018By: /s/ Richard M. Brooks        
  Richard M. Brooks
  Chief Executive Officer



Exhibit Number Description
99.1 Press Release dated September 6, 2018



Zumiez Inc. Announces Fiscal 2018 Second Quarter Results

Second Quarter 2018 Sales Increased 13.9% to $219.0 Million
Second Quarter 2018 Earnings Per Share Improved to $0.17
August 2018 Comparable Sales Increased 9.5%

LYNNWOOD, Wash., Sept. 06, 2018 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ: ZUMZ) today reported results for the second quarter ended August 4, 2018.

Total net sales for the second quarter ended August 4, 2018 (13 weeks) increased 13.9% to $219.0 million from $192.2 million in the quarter ended July 29, 2017 (13 weeks). Comparable sales for the thirteen weeks ended August 4, 2018 increased 6.3% compared to a comparable sales increase of 4.7% for the thirteen weeks ended July 29, 2017. Net income for the second quarter of fiscal 2018 was $4.4 million, or $0.17 per diluted share, compared to a net loss of $0.6 million, or $0.02 per diluted share in the second quarter of the prior fiscal year.

Total net sales for the six months (26 weeks) ended August 4, 2018 increased 13.9% to $425.3 million from $373.4 million reported for the six months (26 weeks) ended July 29, 2017. Comparable sales increased 7.2% for the twenty-six weeks ended August 4, 2018 compared to a comparable sales increase of 3.3% for the twenty-six weeks ended July 29, 2017. Net income for the first six months of fiscal 2018 was $1.8 million, or $0.07 per diluted share, compared to a net loss for the first six months of the prior fiscal year of $5.1 million, or $0.21 per diluted share.

At August 4, 2018, the Company had cash and current marketable securities of $132.9 million compared to cash and current marketable securities of $70.7 million at July 29, 2017. The increase in cash and current marketable securities was driven by cash generated through operations partially offset by capital expenditures. 

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We delivered our strongest second quarter in several years.  Our differentiated merchandise offering combined with our authentic brand positioning and seamless multi-channel shopping experience continue to drive robust comparable sales gains.  We also expanded product margins by 30 basis points through increased full price selling and meaningfully leveraged our expenses on higher sales.  The broad based improvements across our business fueled a marked improvement in profitability compared with a year ago.  We are very encouraged by our recent performance, and with the second half of the year off to a solid start, we are heading into our busiest selling season with great momentum.”   

August 2018 Sales
Total net sales for the four-week period ended September 1, 2018 increased 9.0% to $107.4 million, compared to $98.6 million for the four-week period ended August 26, 2017. The Company's comparable sales increased 9.5% for the four-week period ended September 1, 2018 compared to a comparable sales increase of 7.4% for the four-week period ended August 26, 2017.

Fiscal 2018 Third Quarter & Full Year Outlook
The Company is introducing guidance for the three months ending November 3, 2018. Net sales are projected to be in the range of $247 to $252 million including anticipated comparable sales growth of between 4.0% and 6.0%. Consolidated operating margins are expected to between 6.5% and 7.0% resulting in net income per diluted share of approximately $0.45 to $0.51. The Company currently intends to open approximately 13 new stores in fiscal 2018, including up to 5 stores in the United States, 7 stores in Europe and 1 store in Australia.

Conference call Information
A conference call will be held today to discuss second quarter fiscal 2018 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 7348439.

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 September 1, 2018 we operated 703 stores, including 610 in the United States, 50 in Canada, 36 in Europe and 7 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at zumiez.com, 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 quarterly report on Form 10-Q for the quarter ended May 5, 2018 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 
  August 4, 2018  % of Sales    July 29, 2017   % of Sales  
Net sales $218,971  100.0% $192,245  100.0% 
Cost of goods sold  146,436  66.9%  132,449  68.9% 
Gross profit  72,535  33.1%  59,796  31.1% 
Selling, general and administrative expenses  65,837  30.0%  60,558  31.5% 
Operating profit (loss)  6,698  3.1%  (762) (0.4%) 
Interest income, net  238  0.1%  92  0.0% 
Other income (expense), net  248  0.1%  (23) 0.0% 
Earnings (loss) before income taxes  7,184  3.3%  (693) (0.4%) 
Provision (benefit) for income taxes  2,807  1.3%  (85) (0.1%) 
Net income (loss) $4,377  2.0% $(608) (0.3%) 
Basic earnings (loss) per share $0.18    $(0.02)   
Diluted earnings (loss) per share $0.17    $(0.02)   
Weighted average shares used in computation of earnings (loss) per share:         
Basic  24,955     24,689    
Diluted  25,188     24,689    

(In thousands, except per share amounts)  

   Six Months Ended  
  August 4, 2018  % of Sales    July 29, 2017   % of Sales  
Net sales $425,257  100.0%  373,399  100.0% 
Cost of goods sold  290,136  68.2%  261,555  70.0% 
Gross profit  135,121  31.8%  111,844  30.0% 
Selling, general and administrative expenses  130,133  30.6%  118,841  31.9% 
Operating profit (loss)  4,988  1.2%  (6,997) (1.9%) 
Interest income, net  521  0.1%  174  0.0% 
Other expense, net  (233) (0.1%)  (472) (0.1%) 
Earnings (loss) before income taxes  5,276  1.2%  (7,295) (2.0%) 
Provision (benefit) for income taxes  3,506  0.8%  (2,239) (0.6%) 
Net income (loss) $1,770  0.4%  (5,056) (1.4%) 
Basic earnings (loss) per share $0.07     (0.21)   
Diluted earnings (loss) per share $0.07     (0.21)   
Weighted average shares used in computation of earnings (loss) per share:           
Basic  24,894     24,635    
Diluted  25,211     24,635    

(In thousands)

  August 4, 2018 February 3, 2018 July 29, 2017 
  (Unaudited)   (Unaudited) 
Current assets       
Cash and cash equivalents $41,409   $ 24,041  $ 17,291  
Marketable securities  91,500  97,864 53,433  
Receivables  20,554  17,027 16,334  
Inventories  149,656  125,826 141,782  
Prepaid expenses and other current assets  16,169  14,405 15,378  
Total current assets  319,288  279,163 244,218  
Fixed assets, net  125,141  128,852 131,934  
Goodwill  59,336  62,912 60,057  
Intangible assets, net  15,470  16,696 15,903  
Deferred tax assets, net  4,417  4,174 9,733  
Other long-term assets  6,815  7,713 7,022  
Total long-term assets  211,179  220,347 224,649  
Total assets $530,467   $ 499,510  $ 468,867  
Liabilities and Shareholders’ Equity       
Current liabilities       
Trade accounts payable $79,370   $ 37,861  $ 60,652  
Accrued payroll and payroll taxes  15,640  20,650 15,684  
Income taxes payable  2,580    5,796   68  
Deferred rent and tenant allowances  7,895  8,073 8,393  
Short term borrowings  5,623    943     
Other liabilities  21,274  25,924 23,657  
Total current liabilities  132,382  99,247 108,454  
Long-term deferred rent and tenant allowances  38,265  39,275 40,795  
Other long-term liabilities  4,781  5,073 5,113  
Total long-term liabilities  43,046  44,348 45,908  
Total liabilities  175,428  143,595 154,362  
Shareholders’ equity       
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding           
Common stock, no par value, 50,000 shares authorized; 25,520 shares issued and
outstanding at August 4, 2018, 25,249 shares issued and outstanding at February 3, 2018
and 25,231 shares issued and outstanding at July 29, 2017
  149,961  146,523 143,682  
Accumulated other comprehensive (loss) income  (8,101) 35 (6,676) 
Retained earnings  213,179  209,357 177,499  
Total shareholders’ equity  355,039  355,915 314,505  
Total liabilities and shareholders’ equity $530,467   499,510  468,867  

(In thousands) 

   Six Months Ended  
   August 4, 2018   July 29, 2017  
Cash flows from operating activities:     
Net income (loss) $1,770  $(5,056) 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:     
Depreciation, amortization and accretion  13,920   13,520  
Deferred taxes  (990)  (2,456) 
Stock-based compensation expense  3,012   2,500  
Other  310   621  
Changes in operating assets and liabilities:     
Receivables  (4,099)  (2,092) 
Inventories  (25,993)  (32,553) 
Prepaid expenses and other current assets  (1,570)  (995) 
Trade accounts payable  40,815   34,627  
Accrued payroll and payroll taxes  (4,785)  561  
Income taxes payable  (2,973)  (3,372) 
Deferred rent and tenant allowances  (872)  (521) 
Other liabilities  (2,997)  (1,016) 
Net cash provided by operating activities  15,548   3,768  
Cash flows from investing activities:     
Additions to fixed assets  (9,061)  (12,461) 
Purchases of marketable securities and other investments  (35,046)  (37,586) 
Sales and maturities of marketable securities and other investments  41,200   42,615  
Net cash used in investing activities  (2,907)  (7,432) 
Cash flows from financing activities:     
Proceeds from revolving credit facilities  29,227   1,791  
Payments on revolving credit facilities  (24,233)  (1,791) 
Proceeds from issuance and exercise of stock-based awards  621   370  
Payments for tax withholdings on equity awards  (195)  (172) 
Net cash provided by financing activities  5,420   198  
Effect of exchange rate changes on cash and cash equivalents  (693)  510  
Net increase (decrease) in cash and cash equivalents  17,368   (2,956) 
Cash and cash equivalents, beginning of period  24,041   20,247  
Cash and cash equivalents, end of period $41,409  $17,291  
Supplemental disclosure on cash flow information:     
Cash paid during the period for income taxes $7,362  $3,660  
Accrual for purchases of fixed assets  3,496   2,550  

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

Investor Contact:
Brendon Frey
(203) 682-8200