Form 8-K
0001318008 False 0001318008 2021-09-09 2021-09-09 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):  September 9, 2021


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 September 9, 2021, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the second quarter ended July 31, 2021, 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 9, 2021

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: September 9, 2021By: /s/ Richard M. Brooks        
  Richard M. Brooks
  Chief Executive Officer




Zumiez Inc. Announces Fiscal 2021 Second Quarter Results

Net Sales Increased 7.3% to $268.7 Million
Diluted Earnings Per Share of $0.94

LYNNWOOD, Wash., Sept. 09, 2021 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ: ZUMZ) a leading specialty retailer of apparel, footwear, equipment and accessories for young men and women, today reported results for the second quarter ended July 31, 2021.

Net sales for the second quarter ended July 31, 2021 (13 weeks) increased 7.3% to $268.7 million from $250.4 million in the second quarter ended August 1, 2020 (13 weeks). Compared to the second quarter ended August 3, 2019 (13 weeks), second quarter 2021 net sales increased 17.6%. Net income in the second quarter of fiscal 2021 was $24.0 million, or $0.94 per diluted share, compared to net income of $25.4 million, or $1.01 per diluted share, in the second quarter of the prior fiscal year. Net income for the second quarter of 2019 was $9.0 million, or $0.36 per diluted share. Our second quarter 2021 net income was negatively impacted by $2.8 million, or approximately $0.08 per diluted share related to the conditional settlement of a California class action lawsuit.

Total net sales for the six months (26 weeks) ended July 31, 2021 increased 41.1% to $547.7 million from $388.2 million reported for the six months (26 weeks) ended August 1, 2020. Compared to the first six months (26 weeks) ended August 3, 2019, net sales increased 24.1%. Net income for the first six months of 2021 was $50.4 million, or $1.96 per diluted share, compared to net income for the first six months of fiscal 2020 of $4.3 million, or $0.17 per diluted share, and compared to net income for the first six months of fiscal 2019 of $9.8 million, or $0.39 per diluted share.

At July 31, 2021, the Company had cash and current marketable securities of $412.0 million compared to cash and current marketable securities of $299.1 million at August 1, 2020. The increase in cash and current marketable securities was driven by cash generated through operations partially offset by capital expenditures. The Company repurchased 0.2 million shares during the quarter at an average cost of $44.21 per share and a total cost of $10.9 million.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “Our second quarter performance reflects the sustained success our business has experienced over the past several years. After driving solid growth as we reopened our stores in the second quarter of last year, our teams once again did a terrific job adapting to the current environment to fulfill robust demand for our distinct merchandise offering. Stronger than expected full priced selling helped offset a portion of expenses that were reintroduced following temporary cost savings last year during the height of the pandemic, resulting in second quarter profitability that meaningfully exceeded our projections. The third quarter has started off well driven by a more normalized back to school shopping season, and while operating conditions remain volatile, we believe the flexibility of our business model provides us with key competitive advantages that we can leverage to maintain our positive momentum heading into the holidays. With our strong balance sheet and differentiated strategies, we are well positioned to add to our global market share and return increased value to our shareholders over the long-term.”

Third Quarter To-Date
Total third quarter-to-date total sales for the 37 days ending September 6, 2021 increased 23.2%, compared with the same 37-day time period in the prior year ended September 7, 2020. Compared to the 37-day period ended September 9, 2019, total net sales increased 6.7%. Total comparable sales for the 37-day period ending September 6, 2021 were up 10.5% from the comparable period in the prior year, and increased 5.4% from the comparable period in 2019. Third quarter to date as of September 7, 2021, the Company has repurchased an additional 0.5 million shares of stock at an average price of $41.62 and a total cost of $20.5 million. This brings 2021 fiscal year-to-date share repurchases to 0.7 million shares at an average cost of $42.49 per share for a total cost of $31.4 million.

Due to the continued fast-moving nature of this situation and the uncertainty of impacts on revenue and costs, the Company is not providing an outlook at this time for the third quarter or the year.

Conference call Information
A conference call will be held today to discuss second quarter fiscal 2021 results and will be webcast at 5:00 p.m. ET on Participants may also dial (844) 309-0606 (domestic) or (574) 990-9934 (international) followed by the conference identification code of 8085802.

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 August 28, 2021, we operated 727 stores, including 603 in the United States, 52 in Canada, 55 in Europe and 17 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 January 30, 2021 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.

(In thousands, except per share amounts)

  Three Months Ended 
  July 31, 2021 % of Sales  August 1, 2020 % of Sales 
Net sales $268,666  100.0% $250,392 100.0% 
Cost of goods sold  163,701  60.9%  159,542 63.7% 
Gross profit  104,965  39.1%  90,850 36.3% 
Selling, general and administrative expenses  73,011  27.2%  57,738 23.1% 
Operating profit   31,954  11.9%  33,112 13.2% 
Interest income, net  965  0.4%  794 0.3% 
Other (expense) income, net  (151) (0.1%)  392 0.2% 
Earnings before income taxes  32,768  12.2%  34,298 13.7% 
Provision for income taxes  8,770  3.3%  8,906 3.6% 
Net income  $23,998  8.9% $25,392 10.1% 
Basic earnings per share $0.95    $1.02   
Diluted earnings per share $0.94    $1.01   
Weighted average shares used in computation of earnings per share:         
Basic  25,274     24,837   
Diluted  25,651     25,128   
  Six Months Ended 
  July 31, 2021 % of Sales  August 1, 2020 % of Sales 
Net sales $547,735  100.0%  388,164 100.0% 
Cost of goods sold  339,602  62.0%  273,578 70.5% 
Gross profit  208,133  38.0%  114,586 29.5% 
Selling, general and administrative expenses  141,900  25.9%  109,322 28.1% 
Operating profit  66,233  12.1%  5,264 1.4% 
Interest income, net  1,940  0.4%  1,868 0.5% 
Other income, net  103  0.0%  498 0.1% 
Earnings before income taxes  68,276  12.5%  7,630 2.0% 
Provision for income taxes  17,893  3.3%  3,339 0.9% 
Net income $50,383  9.20%  4,291 1.1% 
Basic earnings per share $2.00     0.17   
Diluted earnings per share $1.96     0.17   
Weighted average shares used in computation of earnings per share:           
Basic  25,221     24,938   
Diluted  25,675     25,277   

(In thousands)

  July 31, 2021 January 30, 2021 August 1, 2020 
  (Unaudited)   (Unaudited) 
Current assets       
Cash and cash equivalents $74,207  $73,622 $133,905  
Marketable securities  337,772   301,920  165,227  
Receivables  24,834   16,558  24,811  
Inventories  149,368   134,354  126,701  
Prepaid expenses and other current assets  11,656   8,823  10,560  
Total current assets  597,837   535,277  461,204  
Fixed assets, net  92,921   98,352  106,151  
Operating lease right-of-use assets  246,592   267,152  277,322  
Goodwill  60,440   61,470  60,225  
Intangible assets, net  15,629   16,029  15,577  
Deferred tax assets, net  5,879   9,927  7,080  
Other long-term assets  11,444   10,157  9,337  
Total long-term assets  432,905   463,087  475,692  
Total assets $1,030,742  $998,364 $936,896  
Liabilities and Shareholders’ Equity       
Current liabilities       
Trade accounts payable $80,174  $69,751 $75,318  
Accrued payroll and payroll taxes  23,371   27,911  17,816  
Income taxes payable  7,494   6,317  5,534  
Operating lease liabilities  65,844   66,993  74,558  
Other liabilities  28,270   24,480  30,374  
Total current liabilities  205,153   195,452  203,600  
Long-term operating lease liabilities  223,043   246,123  259,412  
Other long-term liabilities   8,250   4,193  3,858  
Total long-term liabilities  231,293   250,316  263,270  
Total liabilities  436,446   445,768  466,870  
Shareholders’ equity       
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding         
Common stock, no par value, 50,000 shares authorized; 25,559 shares issued and outstanding at July 31, 2021, 25,599 shares issued and outstanding at January 30, 2021, and and 25,450 shares issued and outstanding at August 1, 2020  176,951   171,628  165,056  
Accumulated other comprehensive (loss) income  (2,144)  939  (3,123) 
Retained earnings  419,489   380,029  308,093  
Total shareholders’ equity  594,296   552,596  470,026  
Total liabilities and shareholders’ equity $1,030,742  $998,364 $936,896  

(In thousands)

  Six Months Ended  
  July 31, 2021 August 1, 2020 
Cash flows from operating activities:      
Net income $50,383  $4,291   
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation, amortization and accretion  11,639   12,005   
Noncash lease expense  32,044   30,167   
Deferred taxes  4,260   (1,144)  
Stock-based compensation expense  3,431   3,146   
Impairment of long-lived assets  2,079   2,128   
Other  1,064   (428)  
Changes in operating assets and liabilities:      
Receivables  (5,353)  (5,871)  
Inventories  (15,408)  9,926   
Prepaid expenses and other assets  (4,173)  (937)  
Trade accounts payable  10,178   27,323   
Accrued payroll and payroll taxes  (4,462)  (6,134)  
Income taxes payable  (304)  (317)  
Operating lease liabilities  (40,413)  (20,868)  
Other liabilities  7,165   8,718   
Net cash provided by operating activities  52,130   62,005   
Cash flows from investing activities:      
Additions to fixed assets  (5,418)  (5,024)  
Purchases of marketable securities and other investments  (112,888)  (35,720)  
Sales and maturities of marketable securities and other investments  75,234   71,387   
Net cash (used in) provided by investing activities  (43,072)  30,643   
Cash flows from financing activities:      
Proceeds from issuance and exercise of stock-based awards  2,452   545   
Payments for tax withholdings on equity awards  (560)  (93)  
Common stock repurchased  (10,481)  (13,417)  
Net cash used in financing activities  (8,589)  (12,965)  
Effect of exchange rate changes on cash, cash equivalents, and restricted cash  139   2,146   
Net increase in cash, cash equivalents, and restricted cash  608   81,829   
Cash, cash equivalents, and restricted cash, beginning of period  80,690   58,991   
Cash, cash equivalents, and restricted cash, end of period $81,298  $140,820   
Supplemental disclosure on cash flow information:      
Cash paid during the period for income taxes $13,542  $4,630   
Accrual for purchases of fixed assets  686   381   
Accrual for repurchase of common stock  442      

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

Investor Contact:
Brendon Frey
(203) 682-8200