UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: August 20, 2009
(Date of earliest event reported)
Zumiez Inc.
(Exact name of registrant as specified in its charter)
WA
(State or other jurisdiction
of incorporation)
000-51300
(Commission File Number)
91-1040022
(IRS Employer
Identification Number)
6300 Merrill Creek Parkway, Suite B, Everett, Washington
(Address of principal executive offices)
98203
(Zip Code)
4255511500
(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:
- o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
- o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
- o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
- o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
- o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Item 2.02. Results of Operations and Financial Condition On August 20, 2009, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the second quarter ended August 1, 2009, 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
(a) Financial statements:
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.
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Dated: August 20, 2009 |
ZUMIEZ INC.
By: /s/ Richard M. Brooks |
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| Exhibit No. | Description |
| 99.1 | Press Release of Zumiez Inc. dated August 20, 2009 |
EVERETT, WA -- (Marketwire - August 20, 2009) - Zumiez Inc. (NASDAQ: ZUMZ) today reported results for the second quarter ended August 1, 2009.
Total net sales for the second quarter (13 weeks) ended August 1, 2009 decreased 7.7% to $85.2 million from $92.3 million reported in the second quarter ended August 2, 2008 (13 weeks). The company posted a net loss for the quarter of $3.1 million or ($0.10) per diluted share for the fiscal 2009 second quarter. These results include a charge of $1.3 million, or approximately $0.03 per diluted share, associated with the settlement agreement of a previously disclosed lawsuit. Net income in the second quarter of the prior fiscal year was $2.7 million or $0.09 per diluted share. Comparable store sales for the second fiscal quarter of 2009 decreased 18.8% vs. a decrease of 1.7% for the second quarter of 2008.
Total net sales for the first six months (26 weeks) ended August 1, 2009 decreased 5.3% to $162.0 million from $171.0 million reported in the first six months of the prior year. The company posted a net loss of $4.7 million or ($0.16) per diluted share in the first six months of fiscal 2009 compared to net income in the first six months of the prior fiscal year of $4.1 million or $0.14 per diluted share. Results for the first six months of fiscal 2009 include a charge of $1.3 million, or approximately $0.03 per diluted share, associated with the settlement agreement of a previously disclosed lawsuit. Comparable store sales decreased 17.2% in the first six months of fiscal 2009 vs. a decrease of 1.3% for the first six months of 2008.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated: "As the second quarter progressed, we experienced improved sales trends throughout the majority of our store base which allowed us to once again exceed our initial projections. We have worked diligently to provide the consumer with merchandise assortments that are both trend right and compellingly priced while at the same time maintain our product margins and protect the integrity of our brands. Despite the weak and volatile market conditions, we are encouraged with our ability to effectively manage our inventory and improve our cash position during a time when consumer discretionary spending is down. While comparisons do begin to moderate in the back half of the year, we believe it is prudent to remain cautious with regard to our near-term outlook until consumer trends stabilize and visibility improves. That said, we are optimistic about our future growth prospects and the long-term potential of our business."
Outlook
The Company is introducing guidance for the three months ending October 31, 2009 of net income of approximately $0.05 to $0.07 per diluted share. This guidance is based on an anticipated comparable store sales decline in the mid-to-low teen range for the third quarter of fiscal 2009.
We intend to open approximately 36 new stores in fiscal 2009 with an opening cadence similar to fiscal 2008.
A conference call will be held today to discuss second quarter results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (617)-213-4861 followed by the conference identification code of 46689110. Telephonic participants can reduce pre-call hold time by registering for the conference in advance via the following link:
https://www.theconferencingservice.com/prereg/key.process?key=PQPK4GQ3H
About Zumiez Inc.
Zumiez is a leading specialty retailer of action sports related apparel, footwear, equipment and accessories. Our stores cater to young men and women between ages 12-24, focusing on skateboarding, surfing, snowboarding, motocross and BMX. As of August 1, 2009 we operate 369 stores, which are primarily located in shopping malls and our web site address is www.zumiez.com.
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 quarterly report on Form 10-Q for the quarter ended May 2, 2009 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 OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)
Three Months Ended
-------------------------------------------------
August 1, August 2,
2009 % of Sales 2008 % of Sales
---------- ---------- ----------- ----------
Net sales $ 85,170 100.0% $ 92,258 100.0%
Cost of goods sold 60,526 71.1% 62,155 67.4%
---------- ---------- ----------- ----------
Gross profit 24,644 28.9% 30,103 32.6%
Selling, general and
administrative expenses 29,870 35.0% 26,191 28.4%
---------- ---------- ----------- ----------
Operating (loss) profit (5,226) (6.1%) 3,912 4.2%
Interest income, net 307 0.4% 495 0.6%
---------- ---------- ----------- ----------
(Loss) earnings before
income taxes (4,919) (5.7%) 4,407 4.8%
(Benefit) provision for
income taxes (1,834) (2.1%) 1,680 1.8%
---------- ---------- ----------- ----------
Net (loss) income $ (3,085) (3.6%) $ 2,727 3.0%
========== ========== =========== ==========
Basic net (loss) income
per share $ (0.10) $ 0.09
========== ===========
Diluted net (loss)
income per share $ (0.10) $ 0.09
========== ===========
Weighted average shares
used in computation of
(loss) earnings per
share:
Basic 29,496,039 29,072,536
Diluted 29,496,039 29,378,589
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)
Six Months Ended
-------------------------------------------------
August 1, August 2,
2009 % of Sales 2008 % of Sales
---------- ---------- ----------- ----------
Net sales $ 161,977 100.0% $ 170,960 100.0%
Cost of goods sold 115,434 71.3% 116,297 68.0%
---------- ---------- ----------- ----------
Gross profit 46,543 28.7% 54,663 32.0%
Selling, general and
administrative expenses 55,208 34.0% 49,125 28.7%
---------- ---------- ----------- ----------
Operating (loss) profit (8,665) (5.3%) 5,538 3.3%
Interest income, net 664 0.4% 1,084 0.6%
---------- ---------- ----------- ----------
(Loss) earnings before
income taxes (8,001) (4.9%) 6,622 3.9%
(Benefit) provision for
income taxes (3,257) (2.0%) 2,533 1.5%
---------- ---------- ----------- ----------
Net (loss) income $ (4,744) (2.9%) $ 4,089 2.4%
========== ========== =========== ==========
Basic net (loss) income
per share $ (0.16) $ 0.14
========== ===========
Diluted net (loss)
income per share $ (0.16) $ 0.14
========== ===========
Weighted average shares
used in computation of
(loss) earnings per
share:
Basic 29,252,545 29,042,861
Diluted 29,252,545 29,374,015
ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
August 1, January 31, August 2,
2009 2009 2008
----------- ----------- -----------
(Unaudited) (Unaudited)
Assets
Current assets
Cash and cash equivalents $ 21,304 $ 33,057 $ 8,075
Marketable securities 60,748 45,525 58,516
Receivables 7,486 4,555 8,276
Income tax receivable 1,399 - -
Inventory 69,569 51,974 72,080
Prepaid expenses and other 6,381 5,614 5,655
Deferred tax assets 4,048 2,588 3,267
----------- ----------- -----------
Total current assets 170,935 143,313 155,869
Leasehold improvements and equipment,
net 74,367 73,932 75,994
Goodwill and other intangibles 13,211 13,236 13,154
Marketable securities - long-term 799 1,767 1,847
Deferred tax assets 2,291 1,101 1,655
----------- ----------- -----------
Total long-term assets 90,668 90,036 92,650
Total assets $ 261,603 $ 233,349 $ 248,519
=========== =========== ===========
Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable $ 43,352 $ 15,909 $ 44,594
Book overdraft - - 2,201
Accrued payroll and payroll taxes 3,540 4,739 3,495
Income taxes payable - 238 2,730
Current portion of deferred rent and
tenant allowances 3,227 2,735 2,631
Other accrued liabilities 8,642 7,600 8,673
----------- ----------- -----------
Total current liabilities 58,761 31,221 64,324
Long-term deferred rent and tenant
allowances, less current portion 27,192 24,177 22,657
----------- ----------- -----------
Total liabilities 85,953 55,398 86,981
----------- ----------- -----------
Commitments and contingencies
Shareholders' equity
Preferred stock, no par value,
20,000,000 shares authorized; none
issued and outstanding - - -
Common stock, no par value,
50,000,000 shares authorized;
30,155,034 shares issued and
outstanding at August 1, 2009,
29,533,067 shares issued and
outstanding at January 31, 2009 and
29,399,608 shares issued and
outstanding at August 2, 2008 78,259 75,789 72,544
Accumulated other comprehensive income 90 117 64
Retained earnings 97,301 102,045 88,930
----------- ----------- -----------
Total shareholders' equity 175,650 177,951 161,538
----------- ----------- -----------
Total liabilities and shareholders'
equity $ 261,603 $ 233,349 $ 248,519
=========== =========== ===========
Company Contact: Trevor Lang Chief Financial Officer Zumiez Inc. (425) 551-1500 ext. 1564 Investor Contact: Integrated Corporate Relations Chad Jacobs / Brendon Frey (203) 682-8200