10-Q
falseQ2--02-0300013180080001318008srt:MaximumMember2022-01-302022-07-300001318008zumz:SecuredRevolvingCreditFacilityMember2023-01-292023-07-290001318008us-gaap:CorporateDebtSecuritiesMember2023-01-280001318008zumz:SecuredRevolvingCreditFacilityMember2021-10-142021-10-140001318008us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-04-290001318008srt:MaximumMember2023-07-290001318008us-gaap:AccumulatedTranslationAdjustmentMember2023-01-280001318008us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMember2023-07-290001318008us-gaap:CorporateDebtSecuritiesMember2023-07-290001318008us-gaap:RetainedEarningsMember2023-04-302023-07-290001318008country:US2022-01-302022-07-300001318008us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-300001318008zumz:SeniorSecuredCreditFacilityThroughDecemberOneTwoThousandTwentyThreeAndThroughDecemberOneTwoThousandTwentyFourMember2021-10-140001318008zumz:SecuredRevolvingCreditFacilityMembersrt:MaximumMemberus-gaap:StandbyLettersOfCreditMember2021-10-142021-10-140001318008zumz:SecuredRevolvingCreditFacilityMembersrt:MaximumMemberzumz:CommercialLetterOfCreditMember2021-10-142021-10-140001318008us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-05-012022-07-3000013180082022-05-012022-07-300001318008country:CA2023-01-292023-07-290001318008us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-05-012022-07-300001318008us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-07-290001318008zumz:SecuredRevolvingCreditFacilityMemberzumz:UBSSwitzerlandAGMember2020-10-120001318008us-gaap:USTreasuryAndGovernmentMember2023-07-290001318008country:CA2023-07-290001318008country:CA2023-04-302023-07-290001318008us-gaap:CostOfSalesMember2023-04-302023-07-290001318008us-gaap:AccumulatedTranslationAdjustmentMember2022-04-300001318008srt:MaximumMember2022-05-012022-07-300001318008us-gaap:FairValueInputsLevel2Member2023-01-280001318008zumz:RestrictedStockAwardsAndRestrictedStockUnitsMember2023-07-290001318008us-gaap:RetainedEarningsMember2023-01-280001318008us-gaap:RetainedEarningsMember2022-05-012022-07-300001318008us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-01-280001318008zumz:SecuredRevolvingCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2021-10-142021-10-140001318008country:US2022-05-012022-07-3000013180082023-07-2900013180082023-01-292023-07-290001318008us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-04-300001318008us-gaap:CashMember2023-01-280001318008us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-04-302023-07-290001318008us-gaap:CostOfSalesMember2022-05-012022-07-300001318008us-gaap:AccumulatedTranslationAdjustmentMember2022-07-300001318008country:US2023-01-292023-07-290001318008us-gaap:RetainedEarningsMember2022-04-300001318008us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2023-01-292023-07-290001318008zumz:GiftCardsMember2023-07-290001318008zumz:COVID19Member2022-04-012022-04-010001318008srt:EuropeMember2023-07-290001318008us-gaap:CashMember2023-07-290001318008zumz:SeniorSecuredCreditFacilityThroughDecemberOneTwoThousandTwentyThreeMember2021-10-140001318008us-gaap:CorporateDebtSecuritiesMemberus-gaap:CashEquivalentsMember2023-01-280001318008us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-05-012022-07-300001318008us-gaap:RetainedEarningsMember2022-01-302022-07-300001318008zumz:GiftCardsMember2023-01-280001318008us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-04-300001318008country:US2023-07-290001318008us-gaap:AccumulatedTranslationAdjustmentMember2023-01-292023-07-290001318008us-gaap:AccumulatedTranslationAdjustmentMember2022-05-012022-07-300001318008us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-280001318008us-gaap:RetainedEarningsMember2023-01-292023-07-290001318008us-gaap:USStatesAndPoliticalSubdivisionsMember2023-01-280001318008us-gaap:AccumulatedTranslationAdjustmentMember2022-01-290001318008us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMember2023-01-280001318008srt:EuropeMember2023-04-302023-07-290001318008country:CA2022-05-012022-07-300001318008us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-302022-07-300001318008us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-07-300001318008country:CA2022-01-302022-07-300001318008srt:EuropeMember2022-01-302022-07-300001318008zumz:RestrictedStockAwardsAndRestrictedStockUnitsMember2023-01-292023-07-290001318008zumz:SecuredRevolvingCreditFacilityMemberzumz:CommercialLetterOfCreditMember2021-10-142021-10-140001318008us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2023-01-280001318008us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-2900013180082023-01-280001318008us-gaap:RetainedEarningsMember2022-01-290001318008us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-05-012022-07-300001318008zumz:SecuredRevolvingCreditFacilityMember2023-01-280001318008us-gaap:EmployeeStockOptionMember2023-01-280001318008us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-290001318008zumz:SecuredRevolvingCreditFacilityMember2023-07-290001318008us-gaap:USStatesAndPoliticalSubdivisionsMember2023-01-280001318008us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-302022-07-300001318008srt:EuropeMember2022-05-012022-07-300001318008us-gaap:CostOfSalesMember2022-01-302022-07-300001318008us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-292023-07-290001318008zumz:SecuredRevolvingCreditFacilityMembersrt:MinimumMembersrt:ScenarioForecastMember2023-10-292024-02-030001318008us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-302023-07-290001318008us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-290001318008us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-280001318008us-gaap:RetainedEarningsMember2023-04-2900013180082022-01-290001318008us-gaap:MoneyMarketFundsMember2023-07-290001318008zumz:SecuredRevolvingCreditFacilityMembersrt:MaximumMember2023-01-292023-07-290001318008us-gaap:FairValueInputsLevel1Member2023-01-280001318008srt:MinimumMember2023-07-2900013180082023-04-290001318008country:AU2023-04-302023-07-290001318008country:AU2023-01-292023-07-290001318008us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-290001318008country:AU2022-01-302022-07-300001318008us-gaap:CorporateDebtSecuritiesMember2023-01-280001318008us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-300001318008us-gaap:CashEquivalentsMember2023-01-280001318008us-gaap:AccumulatedTranslationAdjustmentMember2022-01-302022-07-300001318008us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-302022-07-300001318008us-gaap:FairValueInputsLevel1Member2023-07-290001318008zumz:SecuredRevolvingCreditFacilityMembersrt:MinimumMember2023-04-302023-07-290001318008us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-292023-07-2900013180082023-08-310001318008us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-04-290001318008us-gaap:AccumulatedTranslationAdjustmentMember2023-04-290001318008us-gaap:AccumulatedTranslationAdjustmentMember2023-04-302023-07-290001318008country:AU2022-05-012022-07-300001318008us-gaap:RetainedEarningsMember2022-07-300001318008us-gaap:FairValueInputsLevel2Member2023-07-290001318008zumz:SecuredRevolvingCreditFacilityMemberzumz:UBSSwitzerlandAGMember2022-12-302022-12-300001318008us-gaap:CostOfSalesMember2023-01-292023-07-290001318008zumz:SecuredRevolvingCreditFacilityMembersrt:MinimumMembersrt:ScenarioForecastMember2023-07-302023-10-280001318008us-gaap:EmployeeStockOptionMember2023-07-290001318008us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-01-302022-07-300001318008us-gaap:USTreasuryAndGovernmentMember2023-01-280001318008us-gaap:AccumulatedTranslationAdjustmentMember2023-07-290001318008country:US2023-04-302023-07-290001318008us-gaap:MoneyMarketFundsMember2023-01-280001318008country:AU2023-07-290001318008zumz:SecuredRevolvingCreditFacilityMemberus-gaap:StandbyLettersOfCreditMember2021-10-142021-10-140001318008zumz:STASHLoyaltyProgramMember2023-01-2800013180082022-04-300001318008us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2023-07-290001318008us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-292023-07-2900013180082022-07-300001318008us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-07-290001318008zumz:RestrictedStockAwardsAndRestrictedStockUnitsMember2023-01-280001318008zumz:SecuredRevolvingCreditFacilityMemberzumz:CommercialLetterOfCreditMember2023-01-2800013180082023-04-302023-07-290001318008us-gaap:RetainedEarningsMember2023-07-290001318008us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-07-300001318008us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-01-290001318008srt:EuropeMember2023-01-292023-07-290001318008zumz:STASHLoyaltyProgramMember2023-07-290001318008us-gaap:USStatesAndPoliticalSubdivisionsMember2023-07-290001318008us-gaap:CorporateDebtSecuritiesMember2023-07-290001318008us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-04-302023-07-290001318008us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-04-302023-07-2900013180082022-01-302022-07-300001318008zumz:SecuredRevolvingCreditFacilityMembersrt:MaximumMemberzumz:CommercialLetterOfCreditMember2023-07-290001318008us-gaap:USStatesAndPoliticalSubdivisionsMember2023-07-29iso4217:EURxbrli:purexbrli:sharesiso4217:USDxbrli:shareszumz:Storeiso4217:USD

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JULY 29, 2023

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 000-51300

 

 

ZUMIEZ INC.

(Exact name of registrant as specified in its charter)

 

 

Washington

 

91-1040022

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

4001 204th Street SW, Lynnwood, WA 98036

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (425) 551-1500

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

Smaller reporting company

 

 

 

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.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

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

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock

ZUMZ

Nasdaq Global Select

At August 31, 2023, there were 19,808,346 shares outstanding of common stock.

 

 

 


 

ZUMIEZ INC.

FORM 10-Q

TABLE OF CONTENTS

Part I.

Financial Information

 

 

 

 

 

 

Item 1.

Condensed Consolidated Financial Statements

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets at July 29, 2023 (unaudited) and January 28, 2023

3

 

 

 

 

 

 

Unaudited Condensed Consolidated Statements of Operations for the three and six months ended July 29, 2023 and July 30, 2022

4

 

 

 

 

 

 

Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended July 29, 2023 and July 30, 2022

5

 

 

 

 

 

 

Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended July 29, 2023 and July 30, 2022

6

 

 

 

 

 

 

Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended July 29, 2023 and July 30, 2022

7

 

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements

8

 

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

17

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

33

 

 

 

 

 

Item 4.

Controls and Procedures

33

 

 

 

 

Part II.

Other Information

 

 

 

 

 

 

Item 1.

Legal Proceedings

34

 

 

 

 

 

Item 1A.

Risk Factors

34

 

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

34

 

 

 

 

 

Item 3.

Defaults Upon Senior Securities

34

 

 

 

 

 

Item 4.

Mine Safety Disclosures

34

 

 

 

 

 

Item 5.

Other Information

34

 

 

 

 

 

Item 6.

Exhibits

35

 

 

 

 

Signature

36

 

 

 

2


 

ZUMIEZ INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

July 29, 2023

 

 

January 28, 2023

 

 

 

(Unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

57,854

 

 

$

81,503

 

Marketable securities

 

 

82,128

 

 

 

91,986

 

Receivables

 

 

23,910

 

 

 

20,613

 

Inventories

 

 

156,654

 

 

 

134,824

 

Prepaid expenses and other current assets

 

 

14,523

 

 

 

11,252

 

Total current assets

 

 

335,069

 

 

 

340,178

 

Fixed assets, net

 

 

94,193

 

 

 

93,746

 

Operating lease right-of-use assets

 

 

221,538

 

 

 

222,240

 

Goodwill

 

 

56,889

 

 

 

56,566

 

Intangible assets, net

 

 

14,409

 

 

 

14,443

 

Deferred tax assets, net

 

 

12,161

 

 

 

8,205

 

Other long-term assets

 

 

11,575

 

 

 

12,525

 

Total long-term assets

 

 

410,765

 

 

 

407,725

 

Total assets

 

$

745,834

 

 

$

747,903

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade accounts payable

 

$

69,773

 

 

$

40,379

 

Accrued payroll and payroll taxes

 

 

14,608

 

 

 

16,321

 

Operating lease liabilities

 

 

66,087

 

 

 

65,460

 

Other liabilities

 

 

19,312

 

 

 

23,649

 

Total current liabilities

 

 

169,780

 

 

 

145,809

 

Long-term operating lease liabilities

 

 

184,439

 

 

 

188,835

 

Other long-term liabilities

 

 

6,191

 

 

 

5,931

 

Total long-term liabilities

 

 

190,630

 

 

 

194,766

 

Total liabilities

 

 

360,410

 

 

 

340,575

 

Commitments and contingencies (Note 5)

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding

 

 

 

 

 

 

Common stock, no par value, 50,000 shares authorized; 19,809 shares issued and outstanding at July 29, 2023 and 19,489 shares issued and outstanding at January 28, 2023

 

 

192,169

 

 

 

188,418

 

Accumulated other comprehensive loss

 

 

(18,557

)

 

 

(19,793

)

Retained earnings

 

 

211,812

 

 

 

238,703

 

Total shareholders’ equity

 

 

385,424

 

 

 

407,328

 

Total liabilities and shareholders’ equity

 

$

745,834

 

 

$

747,903

 

See accompanying notes to condensed consolidated financial statements

 

3


 

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 29, 2023

 

 

 

July 30, 2022

 

 

July 29, 2023

 

 

 

July 30, 2022

 

Net sales

 

$

 

194,438

 

 

$

 

219,993

 

 

$

 

377,325

 

 

$

 

440,679

 

Cost of goods sold

 

 

 

132,760

 

 

 

 

144,929

 

 

 

 

266,290

 

 

 

 

293,242

 

Gross profit

 

 

 

61,678

 

 

 

 

75,064

 

 

 

 

111,035

 

 

 

 

147,437

 

Selling, general and administrative expenses

 

 

 

72,171

 

 

 

 

70,109

 

 

 

 

142,881

 

 

 

 

141,985

 

Operating (loss) profit

 

 

 

(10,493

)

 

 

 

4,955

 

 

 

 

(31,846

)

 

 

 

5,452

 

Interest income, net

 

 

 

775

 

 

 

 

358

 

 

 

 

1,632

 

 

 

 

850

 

Other income (expense), net

 

 

 

423

 

 

 

 

233

 

 

 

 

(118

)

 

 

 

405

 

(Loss) earnings before income taxes

 

 

 

(9,295

)

 

 

 

5,546

 

 

 

 

(30,332

)

 

 

 

6,707

 

(Benefit from) provision for income taxes

 

 

 

(786

)

 

 

 

2,479

 

 

 

 

(3,441

)

 

 

 

4,037

 

Net (loss) income

 

$

 

(8,509

)

 

$

 

3,067

 

 

$

 

(26,891

)

 

$

 

2,670

 

Basic (loss) earnings per share

 

$

 

(0.44

)

 

$

 

0.16

 

 

$

 

(1.40

)

 

$

 

0.14

 

Diluted (loss) earnings per share

 

$

 

(0.44

)

 

$

 

0.16

 

 

$

 

(1.40

)

 

$

 

0.14

 

Weighted average shares used in computation of (loss) earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

19,311

 

 

 

 

19,084

 

 

 

 

19,254

 

 

 

 

19,308

 

Diluted

 

 

 

19,311

 

 

 

 

19,262

 

 

 

 

19,254

 

 

 

 

19,592

 

See accompanying notes to condensed consolidated financial statements

 

4


 

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

July 29, 2023

 

 

July 30, 2022

 

 

 

July 29, 2023

 

 

July 30, 2022

 

Net (loss) income

 

$

(8,509

)

 

$

3,067

 

 

 

$

(26,891

)

 

$

2,670

 

Other comprehensive income (loss), net of tax and reclassification adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

385

 

 

 

(3,774

)

 

 

 

771

 

 

 

(10,146

)

Net change in unrealized gain (loss) on available-for-sale debt securities

 

 

135

 

 

 

386

 

 

 

 

465

 

 

 

(3,053

)

Other comprehensive income (loss), net

 

 

520

 

 

 

(3,388

)

 

 

 

1,236

 

 

 

(13,199

)

Comprehensive loss

 

$

(7,989

)

 

$

(321

)

 

 

$

(25,655

)

 

$

(10,529

)

See accompanying notes to condensed consolidated financial statements

 

5


 

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In thousands)

(Unaudited)

 

 

Common Stock

 

 

Accumulated
Other
Comprehensive

 

 

Retained

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Loss

 

 

Earnings

 

 

Total

 

Balance at April 29, 2023

 

 

19,782

 

 

$

190,599

 

 

$

(19,077

)

 

$

220,321

 

 

$

391,843

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(8,509

)

 

 

(8,509

)

Other comprehensive income, net

 

 

 

 

 

 

 

 

520

 

 

 

 

 

520

 

Issuance and exercise of stock-based awards

 

 

27

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

 

1,570

 

 

 

 

 

 

 

 

 

1,570

 

Balance at July 29, 2023

 

 

19,809

 

 

$

192,169

 

 

$

(18,557

)

 

$

211,812

 

 

$

385,424

 

 

 

 

Common Stock

 

 

Accumulated
Other
Comprehensive

 

 

Retained

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Loss

 

 

Earnings

 

 

Total

 

Balance at April 30, 2022

 

 

19,459

 

 

$

182,899

 

 

$

(23,274

)

 

$

217,272

 

 

$

376,897

 

Net income

 

 

 

 

 

 

 

 

 

 

 

3,067

 

 

 

3,067

 

Other comprehensive loss, net

 

 

 

 

 

 

 

 

(3,388

)

 

 

 

 

(3,388

)

Issuance and exercise of stock-based awards

 

 

15

 

 

 

(93

)

 

 

 

 

 

 

 

 

(93

)

Stock-based compensation expense

 

 

 

 

 

1,813

 

 

 

 

 

 

 

 

 

1,813

 

Balance at July 30, 2022

 

 

19,474

 

 

$

184,619

 

 

$

(26,662

)

 

$

220,339

 

 

$

378,296

 

 

 

 

Common Stock

 

 

Accumulated
Other
Comprehensive

 

 

Retained

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Loss

 

 

Earnings

 

 

Total

 

Balance at January 28, 2023

 

 

19,489

 

 

$

188,418

 

 

$

(19,793

)

 

$

238,703

 

 

$

407,328

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(26,891

)

 

 

(26,891

)

Other comprehensive income, net

 

 

 

 

 

 

 

 

1,236

 

 

 

 

 

1,236

 

Issuance and exercise of stock-based awards

 

 

320

 

 

 

275

 

 

 

 

 

 

 

 

 

275

 

Stock-based compensation expense

 

 

 

 

 

3,476

 

 

 

 

 

 

 

 

 

3,476

 

Balance at July 29, 2023

 

 

19,809

 

 

$

192,169

 

 

$

(18,557

)

 

$

211,812

 

 

$

385,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Accumulated
Other
Comprehensive

 

 

Retained

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Loss

 

 

Earnings

 

 

Total

 

Balance at January 29, 2022

 

 

21,215

 

 

$

180,824

 

 

$

(13,463

)

 

$

300,957

 

 

$

468,318

 

Net income

 

 

 

 

 

 

 

 

 

 

 

2,670

 

 

 

2,670

 

Other comprehensive loss, net

 

 

 

 

 

 

 

 

(13,199

)

 

 

 

 

(13,199

)

Issuance and exercise of stock-based awards

 

 

173

 

 

 

282

 

 

 

 

 

 

 

 

 

282

 

Stock-based compensation expense

 

 

 

 

 

3,513

 

 

 

 

 

 

 

 

 

3,513

 

Repurchase of common stock

 

 

(1,914

)

 

 

 

 

 

 

 

 

(83,288

)

 

 

(83,288

)

Balance at July 30, 2022

 

 

19,474

 

 

$

184,619

 

 

$

(26,662

)

 

$

220,339

 

 

$

378,296

 

See accompanying notes to condensed consolidated financial statements

 

6


 

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Six Months Ended

 

 

 

July 29, 2023

 

 

July 30, 2022

 

Cash flows from operating activities:

 

 

 

 

 

 

Net (loss) income

 

$

(26,891

)

 

$

2,670

 

Adjustments to reconcile net (loss) income to net cash used in operating activities:

 

 

 

 

 

 

Depreciation, amortization and accretion

 

 

10,881

 

 

 

10,598

 

Noncash lease expense

 

 

34,380

 

 

 

33,040

 

Deferred taxes

 

 

(4,060

)

 

 

3,035

 

Stock-based compensation expense

 

 

3,476

 

 

 

3,513

 

Impairment of long-lived assets

 

 

338

 

 

 

65

 

Other

 

 

84

 

 

 

(115

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Receivables

 

 

(1,113

)

 

 

(5,496

)

Inventories

 

 

(21,721

)

 

 

(24,671

)

Prepaid expenses and other assets

 

 

(3,807

)

 

 

(3,946

)

Trade accounts payable

 

 

30,150

 

 

 

17,084

 

Accrued payroll and payroll taxes

 

 

(1,676

)

 

 

(13,958

)

Income taxes payable

 

 

(1,044

)

 

 

(4,128

)

Operating lease liabilities

 

 

(38,783

)

 

 

(37,239

)

Other liabilities

 

 

(4,480

)

 

 

(4,611

)

Net cash used in operating activities

 

 

(24,266

)

 

 

(24,159

)

Cash flows from investing activities:

 

 

 

 

 

 

Additions to fixed assets

 

 

(11,879

)

 

 

(10,253

)

Purchases of marketable securities and other investments

 

 

(1,850

)

 

 

(1,914