UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM
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CURRENT REPORT
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On June 6, 2024, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the first quarter ended May 4, 2024, 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.
On June 5, 2024, Zumiez Inc. approved the repurchase of up to an aggregate of $25 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 June 30, 2025, unless the time period is extended or shortened by the Board of Directors.
| 99.1 | Press Release dated June 6, 2024 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
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: June 6, 2024 | By: | /s/ Richard M. Brooks |
| Richard M. Brooks | ||
| Chief Executive Officer | ||
EXHIBIT 99.1
Zumiez Inc. Announces Fiscal 2024 First Quarter Results
Board Approves New Stock Repurchase Authorization
LYNNWOOD, Wash., June 06, 2024 (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 first quarter ended May 4, 2024.
Net sales for the first quarter ended May 4, 2024 (13 weeks) decreased 3.0% to $177.4 million from $182.9 million in the first quarter ended April 29, 2023 (13 weeks). Net loss in the first quarter of fiscal 2024 was $16.8 million, or $0.86 loss per diluted share, compared to a net loss of $18.4 million, or $0.96 loss per diluted share, in the first quarter of the prior fiscal year.
At May 4, 2024, the Company had cash and current marketable securities of $146.6 million compared to cash and current marketable securities of $155.3 million at April 29, 2023. The decrease was driven by capital expenditures of $17.5 million over this time period, offset by $9.1 million provided by operating activities.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “Fiscal 2024 is off to an encouraging start as we once again achieved sequential improvement in our year-over-year quarterly sales trends and both top and bottom line results exceeded our initial outlook for the quarter. The results were driven by our North American region which inflected positive in the first quarter. At the same time, our focus on improving full priced selling in Europe helped expand merchandise margins, which more than offset expense deleverage and fueled enhanced operating performance versus a year ago, even as overall sales remained under pressure. We still have much work to do to return to historic levels of both sales and profitability, but I am confident that our strategies to reinvigorate growth and reduce our cost base have us on the path to deliver further progress over the remainder of this year and beyond.”
May 2024 Sales
Net sales for the four-week period ended June 1, 2024 increased 1.8% compared to the four-week period ended May 27, 2023. Comparable sales for the four-week period ending June 1, 2024 decreased 0.2% from the comparable period in the prior year.
Fiscal 2024 Second Quarter Outlook
The Company is introducing guidance for the three months ending August 3, 2024. Net sales are projected to be in the range of $199 to $204 million. Loss per share is expected to be between $0.30 to $0.40.
The Company currently intends to open approximately 10 new stores in fiscal 2024, including up to 3 stores in North America, 3 stores in Europe and 4 stores in Australia.
Stock Repurchase Authorization
On June 5, 2024, Zumiez Inc. approved the repurchase of up to an aggregate of $25 million of common stock. The repurchase program is expected to continue through June 30, 2025 unless the time period is extended or shortened by the Board of Directors.
Conference call Information
To access today’s first quarter 2024 earnings call at 5:00 PM ET, 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 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 June 1, 2024, we operated 751 stores, including 593 in the United States, 47 in Canada, 86 in Europe and 25 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at zumiez.com, zumiez.ca, blue-tomato.com and fasttimes.com.au.
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 28, 2023 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 LOSS (In thousands, except per share amounts) (Unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| May 4, 2024 | % of Sales | April 29, 2023 | % of Sales | |||||||||||
| Net sales | $ | 177,388 | 100.0 | % | $ | 182,887 | 100.0 | % | ||||||
| Cost of goods sold | 125,489 | 70.7 | % | 133,529 | 73.0 | % | ||||||||
| Gross profit | 51,899 | 29.3 | % | 49,358 | 27.0 | % | ||||||||
| Selling, general and administrative expenses | 72,054 | 40.6 | % | 70,712 | 38.7 | % | ||||||||
| Operating loss | (20,155 | ) | -11.3 | % | (21,354 | ) | -11.7 | % | ||||||
| Interest income, net | 1,321 | 0.7 | % | 858 | 0.5 | % | ||||||||
| Other expense, net | (767 | ) | -0.4 | % | (541 | ) | -0.3 | % | ||||||
| Loss before income taxes | (19,601 | ) | -11.0 | % | (21,037 | ) | -11.5 | % | ||||||
| Benefit from income taxes | (2,821 | ) | -1.6 | % | (2,655 | ) | -1.4 | % | ||||||
| Net loss | $ | (16,780 | ) | -9.4 | % | $ | (18,382 | ) | -10.1 | % | ||||
| Basic loss per share | $ | (0.86 | ) | $ | (0.96 | ) | ||||||||
| Diluted loss earnings per share | $ | (0.86 | ) | $ | (0.96 | ) | ||||||||
| Weighted average shares used in computation of loss per share: | ||||||||||||||
| Basic | 19,465 | 19,197 | ||||||||||||
| Diluted | 19,465 | 19,197 | ||||||||||||
| ZUMIEZ INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | |||||||||||||||
| May 4, 2024 | February 3, 2024 | April 29, 2023 | |||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| Assets | |||||||||||||||
| Current assets | |||||||||||||||
| Cash and cash equivalents | $ | 74,864 | $ | 88,875 | $ | 66,655 | |||||||||
| Marketable securities | 71,757 | 82,704 | 88,684 | ||||||||||||
| Receivables | 13,415 | 13,780 | 20,655 | ||||||||||||
| Inventories | 146,815 | 128,827 | 147,871 | ||||||||||||
| Prepaid expenses and other current assets | 14,177 | 12,401 | 12,755 | ||||||||||||
| Total current assets | 321,028 | 326,587 | 336,620 | ||||||||||||
| Fixed assets, net | 89,831 | 90,508 | 94,419 | ||||||||||||
| Operating lease right-of-use assets | 192,607 | 196,775 | 216,091 | ||||||||||||
| Goodwill | 15,385 | 15,374 | 56,925 | ||||||||||||
| Intangible assets, net | 14,117 | 14,200 | 14,404 | ||||||||||||
| Deferred tax assets, net | 11,158 | 8,623 | 11,034 | ||||||||||||
| Other long-term assets | 12,495 | 12,159 | 12,005 | ||||||||||||
| Total long-term assets | 335,593 | 337,639 | 404,878 | ||||||||||||
| Total assets | $ | 656,621 | $ | 664,226 | $ | 741,498 | |||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||
| Current liabilities | |||||||||||||||
| Trade accounts payable | $ | 62,301 | $ | 38,885 | $ | 59,551 | |||||||||
| Accrued payroll and payroll taxes | 16,958 | 18,431 | 18,378 | ||||||||||||
| Operating lease liabilities | 59,191 | 60,885 | 63,866 | ||||||||||||
| Other current liabilities | 18,869 | 25,886 | 19,298 | ||||||||||||
| Total current liabilities | 157,319 | 144,087 | 161,093 | ||||||||||||
| Long-term operating lease liabilities | 155,040 | 159,877 | 182,507 | ||||||||||||
| Other long-term liabilities | 6,927 | 7,052 | 6,055 | ||||||||||||
| Total long-term liabilities | 161,967 | 166,929 | 188,562 | ||||||||||||
| Total liabilities | 319,286 | 311,016 | 349,655 | ||||||||||||
| Shareholders’ equity | |||||||||||||||
| Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding | — | — | — | ||||||||||||
| Common stock, no par value, 50,000 shares authorized; 20,318 shares issued and outstanding at May 4, 2024 and 19,833 shares issued and outstanding at February 3, 2024 | 198,047 | 196,144 | 190,599 | ||||||||||||
| Accumulated other comprehensive loss | (20,025 | ) | (19,027 | ) | (19,077 | ) | |||||||||
| Retained earnings | 159,313 | 176,093 | 220,321 | ||||||||||||
| Total shareholders’ equity | 337,335 | 353,210 | 391,843 | ||||||||||||
| Total liabilities and shareholders’ equity | $ | 656,621 | $ | 664,226 | $ | 741,498 | |||||||||
| ZUMIEZ INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| May 4, 2024 | April 29, 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (16,780 | ) | $ | (18,382 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation, amortization and accretion | 5,561 | 5,379 | ||||||
| Noncash lease expense | 14,522 | 16,313 | ||||||
| Deferred taxes | (2,590 | ) | (2,912 | ) | ||||
| Stock-based compensation expense | 1,675 | 1,906 | ||||||
| Impairment of long-lived assets | 101 | 312 | ||||||
| Other | 525 | 375 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Receivables | 1,077 | 1,030 | ||||||
| Inventories | (18,876 | ) | (13,091 | ) | ||||
| Prepaid expenses and other assets | 1,754 | (925 | ) | |||||
| Trade accounts payable | 21,763 | 18,868 | ||||||
| Accrued payroll and payroll taxes | (1,458 | ) | 2,087 | |||||
| Income taxes payable | (797 | ) | (301 | ) | ||||
| Operating lease liabilities | (17,276 | ) | (18,609 | ) | ||||
| Other liabilities | (7,778 | ) | (4,929 | ) | ||||
| Net cash used in operating activities | (18,577 | ) | (12,879 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Additions to fixed assets | (2,546 | ) | (5,438 | ) | ||||
| Purchases of marketable securities and other investments | (1,967 | ) | (1,850 | ) | ||||
| Sales and maturities of marketable securities and other investments | 12,510 | 5,571 | ||||||
| Net cash provided by (used in) investing activities | 7,997 | (1,717 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from revolving credit facilities | 3,220 | 1,549 | ||||||
| Payments on revolving credit facilities | (3,220 | ) | (1,549 | ) | ||||
| Proceeds from issuance and exercise of stock-based awards | 358 | 460 | ||||||
| Payments for tax withholdings on equity awards | (130 | ) | (185 | ) | ||||
| Net cash provided by financing activities | 228 | 275 | ||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (245 | ) | (509 | ) | ||||
| Net decrease in cash, cash equivalents, and restricted cash | (10,597 | ) | (14,830 | ) | ||||
| Cash, cash equivalents, and restricted cash, beginning of period | 94,284 | 88,453 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 83,687 | $ | 73,623 | ||||
| Supplemental disclosure on cash flow information: | ||||||||
| Cash paid during the period for income taxes | $ | 654 | $ | 536 | ||||
| Accrual for purchases of fixed assets | 2,094 | 2,323 | ||||||
Company Contact:
Darin White
Director of Finance &
Investor Relations
Zumiez Inc.
(425) 551-1500, ext. 1337
Investor Contact:
ICR
Brendon Frey
(203) 682-8200