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Second Quarter Comparable Sales Increased 3.6%
Second Quarter Gross Margin increased 250 basis points to 34.2%
Second Quarter Loss Per share improved to (
Third Quarter-to-date Comparable Sales up 12.1%
Net sales for the second quarter ended
Total net sales for the six months (26 weeks) ended
At
Third Quarter To-Date
Third quarter-to-date net sales for the 30 days ending
Fiscal 2024 Third Quarter Outlook
The Company is introducing guidance for the three months ending
The Company currently intends to open approximately 9 new stores in fiscal 2024, including up to 3 stores in
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
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
Company Contact:
Director of Finance &
Investor Relations
(425) 551-1500, ext. 1337
Investor Contact:
ICR
(203) 682-8200
| ZUMIEZ INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) |
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| Three Months Ended | ||||||||||||||
| % of Sales | % of Sales | |||||||||||||
| Net sales | $ | 210,179 | 100.0 | % | $ | 194,438 | 100.0 | % | ||||||
| Cost of goods sold | 138,385 | 65.8 | % | 132,760 | 68.3 | % | ||||||||
| Gross profit | 71,794 | 34.2 | % | 61,678 | 31.7 | % | ||||||||
| Selling, general and administrative expenses | 72,187 | 34.4 | % | 72,171 | 37.1 | % | ||||||||
| Operating loss | (393 | ) | -0.2 | % | (10,493 | ) | -5.4 | % | ||||||
| Interest income, net | 1,128 | 0.6 | % | 775 | 0.4 | % | ||||||||
| Other (expense) income, net | (179 | ) | -0.1 | % | 423 | 0.2 | % | |||||||
| Income (loss) before income taxes | 556 | 0.3 | % | (9,295 | ) | -4.8 | % | |||||||
| Benefit from (provision for) income taxes | 1,403 | 0.7 | % | (786 | ) | -0.4 | % | |||||||
| Net loss | $ | (847 | ) | -0.4 | % | $ | (8,509 | ) | -4.4 | % | ||||
| Basic loss per share | $ | (0.04 | ) | $ | (0.44 | ) | ||||||||
| Diluted loss per share | $ | (0.04 | ) | $ | (0.44 | ) | ||||||||
| Weighted average shares used in computation of loss per share: | ||||||||||||||
| Basic | 19,284 | 19,311 | ||||||||||||
| Diluted | 19,284 | 19,311 | ||||||||||||
| Six Months Ended | ||||||||||||||
| % of Sales | % of Sales | |||||||||||||
| Net sales | $ | 387,567 | 100.0 | % | $ | 377,325 | 100.0 | % | ||||||
| Cost of goods sold | 263,874 | 68.1 | % | 266,290 | 70.6 | % | ||||||||
| Gross profit | 123,693 | 31.9 | % | 111,035 | 29.4 | % | ||||||||
| Selling, general and administrative expenses | 144,240 | 37.2 | % | 142,881 | 37.8 | % | ||||||||
| Operating loss | (20,547 | ) | -5.3 | % | (31,846 | ) | -8.4 | % | ||||||
| Interest income, net | 2,449 | 0.6 | % | 1,632 | 0.4 | % | ||||||||
| Other expense, net | (946 | ) | -0.2 | % | (118 | ) | 0.0 | % | ||||||
| Loss before income taxes | (19,044 | ) | -4.9 | % | (30,332 | ) | -8.0 | % | ||||||
| Provision for income taxes | (1,417 | ) | -0.4 | % | (3,441 | ) | -0.9 | % | ||||||
| Net loss | $ | (17,627 | ) | -4.5 | % | $ | (26,891 | ) | -7.1 | % | ||||
| Basic loss per share | $ | (0.91 | ) | $ | (1.40 | ) | ||||||||
| Diluted loss per share | $ | (0.91 | ) | $ | (1.40 | ) | ||||||||
| Weighted average shares used in computation of loss per share: | ||||||||||||||
| Basic | 19,375 | 19,254 | ||||||||||||
| Diluted | 19,375 | 19,254 | ||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) |
||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Assets | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | $ | 65,766 | $ | 88,875 | $ | 57,854 | ||||||
| Marketable securities | 61,194 | 82,704 | 82,128 | |||||||||
| Receivables | 23,129 | 13,780 | 23,910 | |||||||||
| Inventories | 158,753 | 128,827 | 156,654 | |||||||||
| Prepaid expenses and other current assets | 17,939 | 12,401 | 14,523 | |||||||||
| Total current assets | 326,781 | 326,587 | 335,069 | |||||||||
| Fixed assets, net | 87,573 | 90,508 | 94,193 | |||||||||
| Operating lease right-of-use assets | 203,744 | 196,775 | 221,538 | |||||||||
| 15,358 | 15,374 | 56,889 | ||||||||||
| Intangible assets, net | 14,196 | 14,200 | 14,409 | |||||||||
| Deferred tax assets, net | 9,928 | 8,623 | 12,161 | |||||||||
| Other long-term assets | 11,947 | 12,159 | 11,575 | |||||||||
| Total long-term assets | 342,746 | 337,639 | 410,765 | |||||||||
| Total assets | $ | 669,527 | $ | 664,226 | $ | 745,834 | ||||||
| Liabilities and Shareholders’ Equity | ||||||||||||
| Current liabilities | ||||||||||||
| Trade accounts payable | $ | 75,016 | $ | 38,885 | $ | 69,773 | ||||||
| Accrued payroll and payroll taxes | 20,517 | 18,431 | 14,608 | |||||||||
| Operating lease liabilities | 62,759 | 60,885 | 66,087 | |||||||||
| Other current liabilities | 22,472 | 25,886 | 19,312 | |||||||||
| Total current liabilities | 180,764 | 144,087 | 169,780 | |||||||||
| Long-term operating lease liabilities | 161,663 | 159,877 | 184,439 | |||||||||
| Other long-term liabilities | 7,296 | 7,052 | 6,191 | |||||||||
| Total long-term liabilities | 168,959 | 166,929 | 190,630 | |||||||||
| Total liabilities | 349,723 | 311,016 | 360,410 | |||||||||
| Shareholders’ equity | ||||||||||||
| Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding | — | — | — | |||||||||
| Common stock, no par value, 50,000 shares authorized; 19,360 shares issued and outstanding at |
199,763 | 196,144 | 192,169 | |||||||||
| Accumulated other comprehensive loss | (18,844 | ) | (19,027 | ) | (18,557 | ) | ||||||
| Retained earnings | 138,885 | 176,093 | 211,812 | |||||||||
| Total shareholders’ equity | 319,804 | 353,210 | 385,424 | |||||||||
| Total liabilities and shareholders’ equity | $ | 669,527 | $ | 664,226 | $ | 745,834 | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||||
| Six Months Ended | ||||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (17,627 | ) | $ | (26,891 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation, amortization and accretion | 11,052 | 10,881 | ||||||
| Noncash lease expense | 32,169 | 34,380 | ||||||
| Deferred taxes | (1,688 | ) | (4,060 | ) | ||||
| Stock-based compensation expense | 3,391 | 3,476 | ||||||
| Impairment of long-lived assets | 298 | 338 | ||||||
| Other | 949 | 84 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Receivables | (7,067 | ) | (1,113 | ) | ||||
| Inventories | (30,665 | ) | (21,721 | ) | ||||
| Prepaid expenses and other assets | (937 | ) | (3,807 | ) | ||||
| Trade accounts payable | 34,650 | 30,150 | ||||||
| Accrued payroll and payroll taxes | 2,102 | (1,676 | ) | |||||
| Income taxes payable | (1,346 | ) | (1,044 | ) | ||||
| Operating lease liabilities | (36,817 | ) | (38,783 | ) | ||||
| Other liabilities | (3,886 | ) | (4,480 | ) | ||||
| Net cash used in operating activities | (15,422 | ) | (24,266 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Additions to fixed assets | (6,266 | ) | (11,879 | ) | ||||
| Purchases of marketable securities | (1,967 | ) | (1,850 | ) | ||||
| Sales and maturities of marketable securities and other investments | 24,145 | 12,284 | ||||||
| Net cash provided by (used in) investing activities | 15,912 | (1,445 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from revolving credit facilities | 3,220 | 25,682 | ||||||
| Payments on revolving credit facilities | (3,220 | ) | (25,682 | ) | ||||
| Proceeds from issuance and exercise of stock-based awards | 357 | 460 | ||||||
| Payments for tax withholdings on equity awards | (130 | ) | (185 | ) | ||||
| Repurchase of common stock, including taxes | (19,581 | ) | - | |||||
| Net cash (used in) provided by financing activities | (19,354 | ) | 275 | |||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (213 | ) | 179 | |||||
| Net decrease in cash, cash equivalents, and restricted cash | (19,077 | ) | (25,257 | ) | ||||
| Cash, cash equivalents, and restricted cash, beginning of period | 94,284 | 88,453 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 75,207 | $ | 63,196 | ||||
| Supplemental disclosure on cash flow information: | ||||||||
| Cash paid during the period for income taxes | $ | 1,805 | $ | 1,520 | ||||
| Accrual for purchases of fixed assets | $ | 3,326 | 1,784 | |||||
| Accrual for repurchase of common stock | 479 | - | ||||||
Zumiez Inc