Form 8-K
0001318008 False 0001318008 2020-12-02 2020-12-02 iso4217:USD xbrli:shares iso4217:USD xbrli:shares



Washington, D.C. 20549





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

Date of Report (Date of earliest event reported):  December 2, 2020


Zumiez Inc.

(Exact name of registrant as specified in its charter)


(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

4001 204th Street SW

Lynnwood, Washington 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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockZUMZNasdaq Global Select

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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 3, 2020, Zumiez Inc. (the "Company") issued a press release (the "Press Release") reporting its financial results for the third quarter ended October 31, 2020, 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 8.01. Other Events.

On December 2, 2020, Zumiez Inc. approved the repurchase of up to an aggregate of $100 million of its Common Stock (the "Repurchase Program"). The repurchases will be made from time to time on the open market at prevailing market prices. The Repurchase Program is expected to continue through the fiscal year 2021 that will end on January 29, 2022, unless the time period is extended or shortened by the Board of Directors. The Repurchase Program supersedes all previously approved and authorized stock repurchase programs.

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1. Press release dated December 3, 2020
Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)



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 3, 2020By: /s/ Richard M. Brooks        
  Richard M. Brooks
  Chief Executive Officer




Zumiez Inc. Announces Fiscal 2020 Third Quarter Results

Third Quarter 2020 Sales Increased 2.6% to $271.0 Million
Third Quarter 2020 Diluted Earnings Per Share Increased 54.7% to $1.16
Cash and Current Marketable Securities Increased 77.0% to $316.2 Million

LYNNWOOD, Wash., Dec. 03, 2020 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ: ZUMZ) today reported results for the third quarter ended October 31, 2020.

Total net sales for the third quarter ended October 31, 2020 (13 weeks) increased 2.6% to $271.0 million from $264.0 million in the quarter ended November 2, 2019 (13 weeks). Due to store closures, stores were open for approximately 95% of the third quarter of 2020 measured as the total number of store days open in the quarter divided by the total number of store days available. For the stores that were open, comparable sales for the thirteen weeks ended October 31, 2020 increased 8.1% compared to the same period a year ago. Net income for the third quarter of fiscal 2020 was $29.1 million, or $1.16 per diluted share, compared to net income of $19.2 million, or $0.75 per diluted share in the third quarter of the prior fiscal year.

Total net sales for the nine months (39 weeks) ended October 31, 2020 decreased 6.6% to $659.1 million from $705.4 million reported for the nine months (39 weeks) ended November 2, 2019. Net income for the first nine months of fiscal 2020 increased 15.3% to $33.4 million, or $1.32 per diluted share, compared to net income for the first nine months of the prior fiscal year of $29.0 million, or $1.14 per diluted share.

At October 31, 2020, the Company had cash and current marketable securities of $316.2 million compared to cash and current marketable securities of $178.6 million at November 2, 2019. The increase in cash and current marketable securities was driven by cash generated through operations including cash deferment of $53.0 million composed of lower inventory levels, landlord payments, extended vendor terms and payroll tax payments as well as net income improvements related to abatements, credits and expense reductions. This increase was partially offset by $13.4 million of share repurchases through the Company’s stock buyback program prior to our stores closing in March due to COVID-19 and other planned capital expenditures.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We once again successfully navigated volatile market conditions and drove strong earnings growth. Following a challenging start to the third quarter due to the delayed start to back to school, sales were positive in both September and October as we capitalized on late season demand. Our performance in 2020 is a testament to the resiliency of our people and their commitment to serving our customers, the strong culture and brand loyalty we’ve fostered over many years, and the ability of our business model to adapt to changes in purchasing behavior. While there is still uncertainty around how the remainder of the holiday season will unfold, we believe we are positioned well to meet the customer’s expectations and drive value for the long-term.”

Fiscal Fourth Quarter-to-Date Sales
Total fourth quarter-to-date sales for the 31 days ended December 1, 2020 were down approximately 3.9%, compared with the same 31 day time period in the prior year ended December 3, 2019. Comparable sales for the 31 days ended December 1, 2020 were down 1.7%. By channel, open store comparable sales decreased 7.8% and e-commerce sales increased 16.7%. During this timeframe we had roughly 3% fewer open store days than last year due to governmental orders and potential safety concerns. We also experienced significant metering of traffic and reduced hours where required by local governments. We expect that the store closures and various other operating restrictions will fluctuate as we move through the quarter.

Due to the fast-moving nature of this situation and the uncertainty of impacts on revenue and costs, the Company previously withdrew its full year fiscal 2020 guidance. The Company is not providing an updated outlook at this time for the fourth quarter or the year.

Share Repurchase Authorization:

On December 2, 2020, the Company’s Board of Directors approved the repurchase of up to an aggregate of $100 million of its Common Stock (the “Repurchase Program”). The repurchases will be made from time to time on the open market at prevailing market prices. The Repurchase Program is expected to continue through the fiscal year 2021 ending January 29, 2022, unless the time period is extended or shortened by the Board of Directors. The Repurchase Program supersedes all previously approved and authorized stock repurchase programs.

Conference Call Information
A conference call will be held today to discuss third quarter fiscal 2020 results and will be webcast at 5:00 p.m. ET on Participants may also dial (574) 990-9934 followed by the conference identification code of 6946677.

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 November 28, 2020, we operated 726 stores, including 608 in the United States, 52 in Canada, 54 in Europe and 12 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at,, and

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 February 1, 2020 as filed with the Securities and Exchange Commission and available at 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.

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

Investor Contact:
Brendon Frey
(203) 682-8200

(In thousands, except per share amounts)
  Three Months Ended
  October 31, 2020 % of Sales  November 2, 2019 % of Sales
Net sales $270,952 100.0% $264,022 100.0%
Cost of goods sold  165,146 61.0%  169,446 64.2%
Gross profit  105,806 39.0%  94,576 35.8%
Selling, general and administrative expenses  67,941 25.0%  70,266 26.6%
Operating profit  37,865 14.0%  24,310 9.2%
Interest income, net  769 0.3%  1,002 0.4%
Other income, net  86 0.0%  275 0.1%
Earnings before income taxes  38,720 14.3%  25,587 9.7%
Provision for income taxes  9,581 3.5%  6,408 2.4%
Net income $29,139 10.8% $19,179 7.3%
Basic earnings per share $1.17   $0.76  
Diluted earnings per share $1.16   $0.75  
Weighted average shares used in computation of earnings per share:        
Basic  24,864    25,231  
Diluted  25,219    25,560  
  Nine Months Ended
  October 31, 2020 % of Sales  November 2, 2019 % of Sales
Net sales $659,116 100.0%  705,376 100.0%
Cost of goods sold  438,724 66.6%  467,140 66.2%
Gross profit  220,392 33.4%  238,236 33.8%
Selling, general and administrative expenses  177,263 26.9%  201,285 28.6%
Operating profit  43,129 6.5%  36,951 5.2%
Interest income, net  2,637 0.4%  2,652 0.4%
Other income, net  584 0.1%  987 0.2%
Earnings before income taxes  46,350 7.0%  40,590 5.8%
Provision for income taxes  12,920 1.9%  11,593 1.7%
Net income $33,430 5.1%  28,997 4.1%
Basic earnings per share $1.34    1.15  
Diluted earnings per share $1.32    1.14  
Weighted average shares used in computation of earnings per share:          
Basic  24,913    25,173  
Diluted  25,271    25,480  

(In thousands)
 October 31, 2020 February 1, 2020 November 2, 2019
 (Unaudited)   (Unaudited)
Current assets     
Cash and cash equivalents$84,939  $52,428  $31,929 
Marketable securities 231,234   198,768   146,718 
Receivables 19,301   16,841   16,790 
Inventories 160,961   135,095   183,381 
Prepaid expenses and other current assets 9,240   9,456   10,757 
Total current assets 505,675   412,588   389,575 
Fixed assets, net 101,820   113,051   115,170 
Operating lease right-of-use assets 273,796   301,784   301,736 
Goodwill 59,540   57,099   57,580 
Intangible assets, net 15,329   14,564   14,772 
Deferred tax assets, net 8,192   6,303   7,424 
Other long-term assets 9,802   8,869   8,773 
Total long-term assets 468,479   501,670   505,455 
Total assets$974,154  $914,258  $895,030 
Liabilities and Shareholders’ Equity     
Current liabilities     
Trade accounts payable$84,069  $47,787  $73,418 
Accrued payroll and payroll taxes 25,603   23,653   21,929 
Income taxes payable 8,402   4,686   3,430 
Operating lease liabilities 72,526   61,800   59,742 
Other liabilities 25,327   21,784   18,815 
Total current liabilities 215,927   159,710   177,334 
Long-term operating lease liabilities 255,160   284,717   287,400 
Other long-term liabilities 3,881   3,745   3,457 
Total long-term liabilities 259,041   288,462   290,857 
Total liabilities 474,968   448,172   468,191 
Shareholders’ equity           
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding        
Common stock, no par value, 50,000 shares authorized; 25,472 shares issued and
outstanding at October 31, 2020, 25,828 shares issued and outstanding at February 1, 2020
and 25,805 shares issued and outstanding at November 2, 2019
 167,119   161,458   159,251 
Accumulated other comprehensive loss (5,165)  (12,591)  (11,747)
Retained earnings 337,232   317,219   279,335 
Total shareholders’ equity 499,186   466,086   426,839 
Total liabilities and shareholders’ equity$974,154  $914,258  $895,030 

(In thousands)
  Nine Months Ended
  October 31, 2020 November 2, 2019
Cash flows from operating activities:    
Net income $33,430  $28,997 
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation, amortization and accretion  17,909   18,776 
Noncash lease expense  45,797   42,960 
Deferred taxes  (2,155)  29 
Stock-based compensation expense  4,795   4,819 
Impairment of long-lived assets  4,443   123 
Other  (430)  (562)
Changes in operating assets and liabilities:        
  Receivables  (1,030)  3,190 
  Inventories  (24,856)  (54,687)
  Prepaid expenses and other assets  532   (934)
  Trade accounts payable  36,196   38,186 
  Accrued payroll and payroll taxes  1,711   971 
  Income taxes payable  2,629   (2,586)
  Operating lease liabilities  (40,945)  (45,512)
  Other liabilities  3,728   (4,316)
Net cash provided by operating activities  81,754   29,454 
Cash flows from investing activities:        
Additions to fixed assets  (7,488)  (13,871)
Purchases of marketable securities and other investments  (135,515)  (165,912)
Sales and maturities of marketable securities and other investments  104,742   132,974 
Net cash used in investing activities  (38,261)  (46,809)
Cash flows from financing activities:        
Proceeds from issuance and exercise of stock-based awards  959   1,604 
Payments for tax withholdings on equity awards  (93)  (238)
Common stock repurchased  (13,417)   
Net cash (used in) provided by financing activities  (12,551)  1,366 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash  1,899   (242)
Net increase (decrease) in cash, cash equivalents, and restricted cash  32,841   (16,231)
Cash, cash equivalents, and restricted cash, beginning of period  58,991   54,271 
Cash, cash equivalents, and restricted cash, end of period $91,832  $38,040 
Supplemental disclosure on cash flow information:    
Cash paid during the period for income taxes $11,933  $14,024 
Accrual for purchases of fixed assets  346   1,412