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): December 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 December 6, 2018, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the third quarter ended November 3, 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 December 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: December 6, 2018By: /s/ Richard M. Brooks        
  Richard M. Brooks
  Chief Executive Officer



Exhibit Number Description
99.1 Press Release dated December 6, 2018



Zumiez Inc. Announces Fiscal 2018 Third Quarter Results

Third Quarter 2018 Comparable Sales increased 4.8% 
Third Quarter 2018 Diluted Earnings Per Share Improved to $0.55 
November 2018 Comparable Sales Increased 2.3%

LYNNWOOD, Wash., Dec. 06, 2018 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ: ZUMZ) today reported results for the third quarter ended November 3, 2018.

Total net sales for the third quarter ended November 3, 2018 (13 weeks) increased 1.2% to $248.8 million from $245.8 million in the quarter ended October 28, 2017 (13 weeks). Comparable sales for the thirteen weeks ended November 3, 2018 increased 4.8% compared to a comparable sales increase of 7.9% for the thirteen weeks ended October 28, 2017. Net income for the third quarter of fiscal 2018 was $13.8 million, or $0.55 per diluted share, compared to net income of $11.9 million, or $0.48 per diluted share in the third quarter of the prior fiscal year.

Total net sales for the nine months (39 weeks) ended November 3, 2018 increased 8.9% to $674.1 million from $619.2 million reported for the nine months (39 weeks) ended October 28, 2017.  Comparable sales increased 6.3% for the thirty-nine weeks ended November 3, 2018 compared to a comparable sales increase of 5.1% for the thirty-nine weeks ended October 28, 2017. Net income for the first nine months of fiscal 2018 was $15.6 million, or $0.62 per diluted share, compared to net income for the first nine months of the prior fiscal year of $6.9 million, or $0.28 per diluted share.

At November 3, 2018, the Company had cash and current marketable securities of $127.9 million compared to cash and current marketable securities of $85.8 million at October 28, 2017. The increase in cash and current marketable securities was primarily driven by cash generated through operations, partially offset by capital expenditures.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We are very pleased with our third quarter performance and strong back-to-school season.  The third quarter represented our ninth quarter of positive comparable sales and consisted of meaningful full priced selling throughout the period.  With 140 basis points of improvement between product margins and inventory shrink, we were able to offset the loss of a high volume week due to the calendar shift and deliver earnings per share ahead of our expectations. The fourth quarter has gotten off to a positive start driven by robust demand over the Black Friday weekend and Cyber Monday. We are confident that our differentiated product offering, seamless multi-channel shopping experience, and superior customer service has Zumiez well positioned for a strong finish to the year and sustained success over the long-term.”

November 2018 Sales
Total net sales for the four-week period ended December 1, 2018 increased 9.4% to $84.4 million, compared to $77.1 million for the four-week period ended November 25, 2017. The Company's comparable sales increased 2.3% for the four-week period ended December 1, 2018 compared to a comparable sales increase of 7.8% for the four-week period ended November 25, 2017.

Fiscal 2018 Fourth Quarter Outlook
The Company is introducing guidance for the three months ending February 2, 2019. Net sales are projected to be in the range of $295 to $301 million resulting in net income per diluted share of approximately $1.02 to $1.08. This guidance is based upon anticipated comparable sales growth between 0% and 2% for the fourth quarter of fiscal 2018. The Company has opened 12 new stores this year through December 1, 2018 including 5 stores in North America and 7 stores in Europe.  We plan to open one more store in 2018.

A conference call will be held today to discuss third 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 1995029.

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 December 1, 2018 we operated 708 stores, including 610 in the United States, 50 in Canada, 41 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 August 4, 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
  November 3, 2018  % of Sales    October 28, 2017   % of Sales
Net sales $248,795  100.0% $245,756  100.0%
Cost of goods sold  161,922  65.1%  162,389  66.1%
Gross profit  86,873  34.9%  83,367  33.9%
Selling, general and administrative expenses  68,479  27.5%  64,559  26.2%
Operating profit  18,394  7.4%  18,808  7.7%
Interest income, net  493  0.1%  111  0.0%
Other expense, net  (74) 0.1%  (326) (0.1%)
Earnings before income taxes  18,813  7.6%  18,593  7.6%
Provision for income taxes  4,990  2.0%  6,671  2.7%
Net income $13,823  5.6% $11,922  4.9%
Basic earnings per share $0.55    $0.48   
Diluted earnings per share $0.55    $0.48   
Weighted average shares used in computation of earnings per share:        
Basic  24,974     24,712   
Diluted  25,261     24,804   

(In thousands, except per share amounts)
   Nine Months Ended
  November 3, 2018  % of Sales    October 28, 2017   % of Sales
Net sales $674,052  100.0% $619,156  100.0%
Cost of goods sold  452,057  67.1%  423,944  68.5%
Gross profit  221,995  32.9%  195,212  31.5%
Selling, general and administrative expenses  198,613  29.4%  183,401  29.6%
Operating profit  23,382  3.5%  11,811  1.9%
Interest income, net  1,015  0.1%  284  0.0%
Other expense, net  (308) 0.0%  (798) (0.1%)
Earnings before income taxes  24,089  3.6%  11,297  1.8%
Provision for income taxes  8,496  1.3%  4,432  0.7%
Net income $15,593  2.3% $6,865  1.1%
Basic earnings per share $0.63    $0.28   
Diluted earnings per share $0.62    $0.28   
Weighted average shares used in computation of earnings per share:          
Basic  24,920     24,660   
Diluted  25,220     24,845   

(In thousands)
  November 3, 2018 February 3, 2018 October 28, 2017
  (Unaudited)   (Unaudited)
Current assets      
Cash and cash equivalents $29,640   $24,041  $10,660 
Marketable securities  98,236  97,864 75,109 
Receivables  17,521  17,027 15,761 
Inventories  186,938  125,826 156,986 
Prepaid expenses and other current assets  15,853  14,405 14,372 
Total current assets  348,188  279,163 272,888 
Fixed assets, net  123,074  128,852 130,898 
Goodwill  58,619  62,912 59,544 
Intangible assets, net  15,203  16,696 15,645 
Deferred tax assets, net  4,438  4,174 9,842 
Other long-term assets  7,197  7,713 7,452 
Total long-term assets  208,531  220,347 223,381 
Total assets $556,719   $499,510  $496,269 
Liabilities and Shareholders’ Equity      
Current liabilities      
Trade accounts payable $90,060   $37,861  $61,676 
Accrued payroll and payroll taxes  21,724  20,650 15,782 
Income taxes payable  2,782    5,796   5,454 
Deferred rent and tenant allowances  7,790  8,073 8,468 
Other liabilities  24,645  26,867 33,456 
Total current liabilities  147,001  99,247 124,836 
Long-term deferred rent and tenant allowances  37,631  39,275 39,869 
Other long-term liabilities  3,315  5,073 4,981 
Total long-term liabilities  40,946  44,348 44,850 
Total liabilities  187,947  143,595 169,686 
Shareholders’ equity      
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding          
Common stock, no par value, 50,000 shares authorized; 25,532 shares issued and outstanding at November 3, 2018, 25,249 shares issued and outstanding at February 3, 2018 and 25,252 shares issued and outstanding at October 28, 2017  151,658  146,523 145,230 
Accumulated other comprehensive (loss) income  (9,888) 35 (8,067)
Retained earnings  227,002  209,357 189,420 
Total shareholders’ equity  368,772  355,915 326,583 
Total liabilities and shareholders’ equity $556,719   $499,510  $496,269 

(In thousands)
   Nine Months Ended
   November 3, 2018   October 28, 2017
Cash flows from operating activities:    
Net income $15,593  $6,865 
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation, amortization and accretion  21,249   20,338 
Deferred taxes  (919)  (2,625)
Stock-based compensation expense  4,431   3,720 
Other  482   1,189 
Changes in operating assets and liabilities:    
Receivables  (1,680)  (2,449)
Inventories  (63,892)  (48,491)
Prepaid expenses and other current assets  (1,904)  (578)
Trade accounts payable  53,037   35,693 
Accrued payroll and payroll taxes  1,342   699 
Income taxes payable  (2,206)  2,856 
Deferred rent and tenant allowances  (1,564)  (1,240)
Other liabilities  (6,845)  (2,108)
Net cash provided by operating activities  17,124   13,869 
Cash flows from investing activities:    
Additions to fixed assets  (15,683)  (19,072)
Purchases of marketable securities and other investments  (116,430)  (80,198)
Sales and maturities of marketable securities and other investments  115,536   63,365 
Net cash used in investing activities  (16,577)  (35,905)
Cash flows from financing activities:    
Proceeds from revolving credit facilities  32,776   19,412 
Payments on revolving credit facilities  (27,651)  (7,841)
Proceeds from issuance and exercise of stock-based awards  899   697 
Payments for tax withholdings on equity awards  (195)  (171)
Net cash provided by financing activities  5,829   12,097 
Effect of exchange rate changes on cash and cash equivalents  (777)  352 
Net increase (decrease) in cash and cash equivalents  5,599   (9,587)
Cash and cash equivalents, beginning of period  24,041   20,247 
Cash and cash equivalents, end of period $29,640  $10,660 
Supplemental disclosure on cash flow information:    
Cash paid during the period for income taxes $11,893  $4,434 
Accrual for purchases of fixed assets  1,477   2,190 

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

Investor Contact:
Brendon Frey
(203) 682-8200