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: November 19, 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 November 19, 2009, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the third quarter ended October 31, 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: November 19, 2009 |
ZUMIEZ INC.
By: /s/ Richard M. Brooks |
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| Exhibit No. | Description |
| 99.1 | Press Release of Zumiez Inc. dated November 19, 2009 |
EVERETT, WA -- (Marketwire - November 19, 2009) - Zumiez Inc. (NASDAQ: ZUMZ) today reported results for the third quarter ended October 31, 2009.
Total net sales for the third quarter (13 weeks) ended October 31, 2009 increased 0.8% to $113.2 million from $112.2 million reported in the third quarter (13 weeks) ended November 1, 2008. The Company posted net income for the quarter of $5.1 million or $0.17 per diluted share versus net income of $6.8 million or $0.23 per diluted share in the third quarter of the prior fiscal year. Comparable store sales decreased 8.0% for the third fiscal quarter of 2009 compared to a 5.8% decrease in the third quarter of 2008.
Total net sales for the first nine months (39 weeks) ended October 31, 2009 decreased 2.8% to $275.2 million from $283.2 million reported in the first nine months (39 weeks) of the prior year. The Company posted net income of $0.3 million or $0.01 per diluted share in the first nine months of fiscal 2009 compared to net income in the first nine months of the prior fiscal year of $10.9 million or $0.37 per diluted share. Results for the first nine months of fiscal 2009 include a charge of approximately $1.3 million, or $0.03 per diluted share, associated with the proposed settlement agreement of a previously disclosed lawsuit. Comparable store sales decreased 13.6% in the first nine months of fiscal 2009 compared with a decrease of 3.2% for the first nine months of 2008.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated: "I want to credit our entire team for our better than expected third quarter performance. By carefully managing our inventory, working closely with our branded and private label vendors to design programs that would deliver improved merchandise margins, and finding ways to inspire consumers who visited our stores, we were able to exceed our initial third quarter expectations and saw a meaningful improvement in our same store sales trends relative to the first half of fiscal 2009. Our results are particularly encouraging given that overall traffic and spending patterns continued to be volatile and the difficult macroeconomic environment continues. Although still challenging, we are also pleased to have seen some improved trends in certain of our larger, Western markets, most notably California. Looking ahead, we believe we have a good plan in place for the Holiday season."
Outlook
The Company is introducing guidance for the three months ending January 30, 2010 of net income of approximately $0.18 to $0.22 per diluted share. This guidance is based on an anticipated comparable store sales decline in the high-to-mid single digit range for the fourth quarter of fiscal 2009.
We have opened all 36 new stores in fiscal 2009.
A conference call will be held today to discuss third quarter results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (617) 614-3453 followed by the conference identification code of 18887706.
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 October 31, 2009 we operate 378 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 August 1, 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
-------------------------------------
October 31, % of November 1, % of
2009 Sales 2008 Sales
----------- ----- ----------- -----
Net sales $ 113,192 100.0% $ 112,245 100.0%
Cost of goods sold 73,093 64.6% 72,982 65.0%
----------- ----- ----------- -----
Gross profit 40,099 35.4% 39,263 35.0%
Selling, general and administrative
expenses 31,742 28.0% 28,879 25.7%
----------- ----- ----------- -----
Operating profit 8,357 7.4% 10,384 9.3%
Interest income, net 161 0.1% 576 0.5%
Other income 5 0.0% 36 0.0%
----------- ----- ----------- -----
Earnings before income taxes 8,523 7.5% 10,996 9.8%
Provision for income taxes 3,450 3.0% 4,178 3.7%
----------- ----- ----------- -----
Net income $ 5,073 4.5% $ 6,818 6.1%
=========== ===== =========== =====
Basic net income per share $ 0.17 $ 0.23
=========== ===========
Diluted net income per share $ 0.17 $ 0.23
=========== ===========
Weighted average shares used in
computation of earnings per share:
Basic 29,562,733 29,172,869
Diluted 30,243,944 29,373,990
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)
Nine Months Ended
--------------------------------------
October 31, % of November 1, % of
2009 Sales 2008 Sales
---------- ------ ----------- ------
Net sales $ 275,169 100.0% $ 283,205 100.0%
Cost of goods sold 188,527 68.5% 189,279 66.8%
---------- ------ ----------- ------
Gross profit 86,642 31.5% 93,926 33.2%
Selling, general and administrative
expenses 86,950 31.6% 78,004 27.5%
---------- ------ ----------- ------
Operating (loss) profit (308) (0.1%) 15,922 5.7%
Interest income, net 825 0.3% 1,660 0.6%
Other Income 5 0.0% 36 0.0%
---------- ------ ----------- ------
Earnings before income taxes 522 0.2% 17,618 6.3%
Provision for income taxes 193 0.1% 6,711 2.4%
---------- ------ ----------- ------
Net income $ 329 0.1% $ 10,907 3.9%
========== ====== =========== ======
Basic net income per share $ 0.01 $ 0.37
========== ===========
Diluted net income per share $ 0.01 $ 0.37
========== ===========
Weighted average shares used in
computation of earnings per share:
Basic 29,457,792 29,086,196
Diluted 30,038,982 29,394,416
ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
October 31, January 31, November 1,
2009 2009 2008
------------ ------------ -----------
(Unaudited) (Unaudited)
Assets
Current assets
Cash and cash equivalents $ 10,489 $ 33,057 $ 9,249
Marketable securities 71,315 45,525 56,348
Receivables 7,879 4,555 6,695
Inventory 76,381 51,974 81,847
Prepaid expenses and other 6,404 5,614 5,935
Deferred tax assets 2,995 2,588 3,390
------------ ------------ -----------
Total current assets 175,463 143,313 163,464
Leasehold improvements and
equipment, net 71,819 73,932 78,331
Goodwill and other intangibles 13,198 13,236 13,248
Marketable securities - long-term 832 1,767 1,694
Deferred tax assets 4,595 1,101 1,881
------------ ------------ -----------
Total long-term assets 90,444 90,036 95,154
Total assets $ 265,907 $ 233,349 $ 258,618
============ ============ ===========
Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable $ 33,748 $ 15,909 $ 41,912
Book overdraft - - 4,047
Accrued payroll and payroll taxes 6,133 4,739 4,578
Income taxes payable 2,705 238 4,586
Current portion of deferred rent and
tenant allowances 3,368 2,682 2,689
Other accrued liabilities 8,315 7,653 6,862
------------ ------------ -----------
Total current liabilities 54,269 31,221 64,674
Long-term deferred rent and tenant
allowances, less current portion 27,632 24,000 23,956
Other long-term liabilities 1,310 177 165
------------ ------------ -----------
Total current liabilities 28,942 24,177 24,121
------------ ------------ -----------
Total liabilities 83,211 55,398 88,795
------------ ------------ -----------
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;
30,254,949 shares issued and
outstanding at October 31, 2009,
29,533,067 shares issued and
outstanding at January 31, 2009 and
29,578,967 shares issued and
outstanding at November 1, 2008. 80,227 75,789 74,234
Accumulated other comprehensive income 95 117 (159)
Retained earnings 102,374 102,045 95,748
------------ ------------ -----------
Total shareholders' equity 182,696 177,951 169,823
------------ ------------ -----------
Total liabilities and
shareholders' equity $ 265,907 $ 233,349 $ 258,618
============ ============ ===========
Company Contact: Trevor Lang Chief Financial Officer Zumiez Inc. (425) 551-1500 ext. 1564 Investor Contact: ICR Chad Jacobs / Brendon Frey (203) 682-8200