UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: December 01, 2011
(Date of earliest event reported)
Zumiez Inc.
(Exact name of registrant as specified in its charter)
WA
(State or other jurisdiction
of incorporation)
000-51300
(Commission File Number)
91-1040022
(IRS Employer
Identification Number)
6300 Merrill Creek Parkway, Suite B, Everett, Washington
(Address of principal executive offices)
98203
(Zip Code)
4255511500
(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:
- o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
- o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
- o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
- o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
- o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Item 2.02. Results of Operations and Financial Condition On December 1, 2011, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the third quarter ended October 29, 2011, 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
(a) Financial statements:
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.
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Dated: December 01, 2011 |
ZUMIEZ INC.
By: /s/ Richard M. Brooks |
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| Exhibit No. | Description |
| 99.1 | Press Release of Zumiez Inc. dated December 01, 2011 |
Third Quarter Sales Increased 13.3% to $154.0 Million; Third Quarter Diluted EPS Increased 12.5% to $0.45; November 2011 Comparable Store Sales Increased 8.4%
EVERETT, WA -- (Marketwire - December 01, 2011) - Zumiez Inc. (NASDAQ: ZUMZ), a leading specialty retailer of action sports related apparel, footwear, equipment and accessories, today reported record third quarter results for the quarter ended October 29, 2011.
Total net sales for the third quarter (13 weeks) ended October 29, 2011 increased 13.3% to $154.0 million from $135.9 million reported in the third quarter (13 weeks) ended October 30, 2010. Comparable store sales for the third quarter of fiscal 2011 increased 6.0% on top of a comparable store sales increase of 14.4% in the third quarter of fiscal 2010. Net income in the third quarter of fiscal 2011 increased 14.8% to $14.1 million, or $0.45 per diluted share from net income of $12.3 million, or $0.40 per diluted share in the third quarter of the prior fiscal year.
Total net sales for the nine months (39 weeks) ended October 29, 2011 increased 15.3% to $372.0 million from $322.7 million reported for the nine months (39 weeks) ended October 30, 2010. The Company reported net income of $18.6 million, or $0.60 per diluted share in the first nine months of fiscal 2011 compared to net income in the first nine months of the prior fiscal year of $9.2 million, or $0.30 per diluted share. Results for the first nine months of fiscal 2010 include costs of $2.4 million, or approximately $0.05 per diluted share, associated with the relocation of the Company's distribution center, and $2.1 million, or approximately $0.04 per diluted share, for the settlement of a previously disclosed lawsuit. Comparable store sales increased 8.3% in the first nine months of fiscal 2011 on top of a comparable store sales increase of 11.3% in the first nine months of fiscal 2010.
At October 29, 2011, the Company had cash and current marketable securities of $137.1 million compared to cash and current marketable securities of $98.9 million at October 30, 2010.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, "Our merchandise, new store opening, and ecommerce strategies once again allowed us to deliver on our goal of consistent sales and earnings growth. During the third quarter we continued to execute on key initiatives aimed at driving productivity, expanding our geographic footprint, and bringing our unique in-store experience to the internet. We are pleased with the current pace of growth for our business and believe our product assortment has us well positioned for the remainder of the holiday selling period."
November 2011 Sales
Total sales for the four-week period ended November 26, 2011 increased 16.2% to $46.9 million, compared to $40.4 million for the four-week period ended November 27, 2010. The Company's comparable store sales increased 8.4% for the four-week period on top of a comparable store sales increase of 20.7% increase in the year ago period.
Fourth Quarter 2011 Outlook
The Company is introducing guidance for the three months ending January 28, 2012 of net income per diluted share of approximately $0.52 to $0.54. This guidance is based on an anticipated comparable store sales increase in the mid single digit range and total sales in the range of $174 to $177 million for the fourth quarter of fiscal 2011.
We have opened all 45 new stores planned in fiscal 2011, including our first stores in Canada.
A conference call will be held today to discuss third quarter 2011 results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (617)-597-5378 followed by the conference identification code of 45036960.
About Zumiez Inc.
Zumiez is a leading specialty retailer of action sports related apparel, footwear, equipment and accessories. Our stores cater to young men and women between ages 12-24, focusing on skateboarding, surfing, snowboarding, motocross and BMX. As of November 26, 2011 we operated 434 stores in the United States and 10 stores in Canada, which are primarily located in shopping malls, and our web site address is www.zumiez.com.
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-Q for the quarter ended July 30, 2011 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
------------------------------------------------
October 29, October 30,
2011 % of Sales 2010 % of Sales
----------- ---------- ----------- ----------
Net sales $ 153,951 100.0% $ 135,859 100.0%
Cost of goods sold 93,807 60.9% 83,267 61.3%
----------- ---------- ----------- ----------
Gross profit 60,144 39.1% 52,592 38.7%
Selling, general and
administrative expenses 37,327 24.3% 33,617 24.7%
----------- ---------- ----------- ----------
Operating profit 22,817 14.8% 18,975 14.0%
Interest income, net 440 0.3% 370 0.3%
Other (expense) income,
net (129) (0.1%) 32 0.0%
----------- ---------- ----------- ----------
Earnings before income
taxes 23,128 15.0% 19,377 14.3%
Provision for income taxes 8,991 5.8% 7,065 5.2%
----------- ---------- ----------- ----------
Net income $ 14,137 9.2% $ 12,312 9.1%
=========== ========== =========== ==========
Basic earnings per share $ 0.46 $ 0.41
=========== ===========
Diluted earnings per share $ 0.45 $ 0.40
=========== ===========
Weighted average shares
used in computation of
earnings per share:
Basic 30,599 30,029
Diluted 31,122 30,762
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Nine Months Ended
------------------------------------------------
October 29, October 30,
2011 % of Sales 2010 % of Sales
----------- ---------- ----------- ----------
Net sales $ 372,015 100.0% $ 322,657 100.0%
Cost of goods sold 241,152 64.8% 214,068 66.3%
----------- ---------- ----------- ----------
Gross profit 130,863 35.2% 108,589 33.7%
Selling, general and
administrative expenses 101,944 27.4% 95,236 29.6%
----------- ---------- ----------- ----------
Operating profit 28,919 7.8% 13,353 4.1%
Interest income, net 1,387 0.4% 1,087 0.4%
Other (expense) income,
net (71) (0.1%) 103 0.0%
----------- ---------- ----------- ----------
Earnings before income
taxes 30,235 8.1% 14,543 4.5%
Provision for income taxes 11,621 3.1% 5,345 1.6%
----------- ---------- ----------- ----------
Net income $ 18,614 5.0% $ 9,198 2.9%
=========== ========== =========== ==========
Basic earnings per share $ 0.61 $ 0.31
=========== ===========
Diluted earnings per share $ 0.60 $ 0.30
=========== ===========
Weighted average shares
used in computation of
earnings per share:
Basic 30,487 29,908
Diluted 31,093 30,696
ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
October 29, January 29, October 30,
2011 2011 2010
------------- ------------- -------------
Assets (Unaudited) (Unaudited)
Current assets
Cash and cash equivalents $ 13,881 $ 11,357 $ 8,314
Marketable securities 123,177 117,444 90,630
Receivables 8,717 6,129 6,854
Inventories 93,839 56,303 83,091
Prepaid expenses and other 8,235 7,210 7,867
Deferred tax assets 2,599 2,418 3,166
------------- ------------- -------------
Total current assets 250,448 200,861 199,922
Fixed assets, net 87,597 78,248 77,646
Goodwill and other intangibles 13,154 13,154 13,154
Long-term deferred tax assets 3,415 5,703 5,740
Long-term investments 2,698 2,766 2,853
Long-term other assets 493 899 1,121
------------- ------------- -------------
Total long-term assets 107,357 100,770 100,514
Total assets $ 357,805 $ 301,631 $ 300,436
============= ============= =============
Liabilities and Shareholders'
Equity
Current liabilities
Trade accounts payable $ 40,296 $ 16,371 $ 36,976
Accrued payroll and payroll taxes 8,489 7,580 8,194
Income taxes payable 6,224 4,108 2,765
Deferred rent and tenant
allowances 4,225 3,719 3,695
Other liabilities 12,410 13,683 10,406
------------- ------------- -------------
Total current liabilities 71,644 45,461 62,036
Long-term deferred rent and
tenant allowances 32,506 27,629 28,085
Long-term other liabilities 1,942 1,806 1,801
------------- ------------- -------------
Total long-term liabilities 34,448 29,435 29,886
------------- ------------- -------------
Total liabilities 106,092 74,896 91,922
------------- ------------- -------------
Commitments and contingencies
Shareholders' equity
Preferred stock, no par value,
20,000 shares authorized; none
issued and outstanding - - -
Common stock, no par value,
50,000 shares authorized; 31,129
shares issued and outstanding at
October 29, 2011, 30,835 shares
issued and outstanding at
January 29, 2011 and 30,669
shares issued and outstanding at
October 30, 2010 97,647 91,373 88,102
Accumulated other comprehensive
income (loss) 73 (17) 38
Retained earnings 153,993 135,379 120,374
------------- ------------- -------------
Total shareholders' equity 251,713 226,735 208,514
------------- ------------- -------------
Total liabilities and
shareholders' equity $ 357,805 $ 301,631 $ 300,436
============= ============= =============
Company Contact: Brian Leith Director of Finance & Investor Relations Zumiez Inc. (425) 551-1500, ext. 1610 Investor Contact: ICR Brendon Frey (203) 682-8200