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: May 20, 2010
(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 May 20, 2010, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the first quarter ended May 1, 2010, 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: May 20, 2010 |
ZUMIEZ INC.
By: /s/ Richard M. Brooks |
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| Exhibit No. | Description |
| 99.1 | Press Release of Zumiez Inc. dated May 20, 2010 |
EVERETT, WA -- (Marketwire - May 20, 2010) - Zumiez Inc. (NASDAQ: ZUMZ) a leading specialty retailer of action sports related apparel, footwear, equipment and accessories, today reported results for the first quarter ended May 1, 2010.
Total net sales for the first quarter (13 weeks) ended May 1, 2010 increased 16.0% to $89.1 million from $76.8 million reported in the first quarter ended May 2, 2009 (13 weeks). Comparable store sales for the first fiscal quarter of 2010 increased 9.1% vs. a decrease of 15.3% for the first quarter of fiscal 2009. The Company posted a net loss for the quarter of $1.9 million or ($0.06) per diluted share. These results include costs of approximately $1.2 million, or $0.03 per diluted share, associated with the relocation of the Company's distribution center from Everett, Washington to Corona, California. The company reported a net loss of $1.7 million or ($0.06) per diluted share in the first quarter of the prior fiscal year.
At May 1, 2010, the Company had cash and current marketable securities of $96.8 million compared to cash and current marketable securities of $81.1 million at May 2, 2009.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, "The combination of improved sales and better than expected product margins allowed us to more than offset planned operating expense increases and begin 2010 with first quarter bottom line results that were above our projections. We are optimistic that the enhancements we have made to our merchandise assortments and selling strategies over the past 12 months, both in our stores and on our website, have us well positioned for the future. At the same time, we are making important investments to our infrastructure, including investing in new systems and processes as well as the relocation of our distribution center, which we believe will help further enhance our ability to achieve our long-term objectives and build on our industry status as the leading retail destination for the action sports lifestyle."
2010 Outlook
The Company is introducing guidance for the three months ending July 31, 2010 of a net loss of approximately ($0.07) to ($0.10) per diluted share, which includes estimated pre-tax charges of $1.3 million (after-tax per diluted share of $0.03) associated with the relocation of the Company's distribution center from Everett, Washington to Corona, California. This guidance is based on an anticipated comparable store sales increase in the mid-to-high single digit range for the second quarter of fiscal 2010.
We currently intend to open approximately 25 new stores in fiscal 2010 with an opening cadence similar to fiscal 2009.
A conference call will be held today to discuss first quarter 2010 results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (617)-213-4868 followed by the conference identification code of 61758069. 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=PAB86QJ9X
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 May 1, 2010 we operated 381 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, source inventory at acceptable costs, 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 year ended January 30, 2010 as filed with the Securities and Exchange Commission and available at www.sec.gov or http://ir.zumiez.com. 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
----------------------------------------------
May 1, % of May 2, % of
2010 Sales 2009 Sales
---------- ---------- ---------- --------
Net sales $ 89,096 100.0% $ 76,808 100.0%
Cost of goods sold 63,344 71.1% 54,908 71.5%
---------- ---------- ---------- --------
Gross profit 25,752 28.9% 21,900 28.5%
Selling, general and
administrative expenses 29,006 32.6% 25,338 33.0%
---------- ---------- ---------- --------
Operating loss (3,254) (3.7%) (3,438) (4.5%)
Interest income, net 365 0.4% 357 0.5%
Other income, net 24 0.1% - 0.0%
---------- ---------- ---------- --------
Loss before income taxes (2,865) (3.2%) (3,081) (4.0%)
Benefit for income taxes (965) (1.1%) (1,423) (1.8%)
---------- ---------- ---------- --------
Net loss $ (1,900) (2.1%) $ (1,658) (2.2%)
========== ========== ========== ========
Basic net loss per share $ (0.06) $ (0.06)
========== ==========
Diluted net loss per share $ (0.06) $ (0.06)
========== ==========
Weighted average shares
used in computation of
loss per share:
Basic 29,738,181 29,314,611
Diluted 29,738,181 29,314,611
ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
May 1, January 30, May 2,
2010 2010 2009
------------- ------------- -------------
Assets (Unaudited) (Unaudited)
Current assets
Cash and cash equivalents $ 12,907 $ 22,950 $ 20,262
Marketable securities 83,909 85,101 60,819
Receivables 7,335 6,380 5,917
Income tax receivable 2,460 - 1,879
Inventory 58,618 50,916 54,051
Prepaid expenses and other 7,291 6,270 5,972
Deferred tax assets 3,750 3,045 2,256
------------- ------------- -------------
Total current assets 176,270 174,662 151,156
Fixed assets, net 77,224 66,008 75,702
Goodwill and other intangibles 13,173 13,186 13,223
Long-term marketable securities 870 872 1,664
Long-term deferred tax assets 5,644 5,537 1,680
------------- ------------- -------------
Total long-term assets 96,911 85,603 92,269
Total assets $ 273,181 $ 260,265 $ 243,425
============= ============= =============
Liabilities and Shareholders'
Equity
Current liabilities
Trade accounts payable $ 31,188 $ 16,817 $ 25,472
Accrued payroll and payroll taxes 5,998 6,593 4,115
Income taxes payable - 4,006 -
Deferred rent and tenant
allowances 3,442 3,248 2,910
Other liabilities 9,554 9,123 7,531
------------- ------------- -------------
Total current liabilities 50,182 39,787 40,028
Long-term deferred rent and
tenant allowances 27,520 26,375 25,738
Long-term other liabilities 1,441 1,427 184
------------- ------------- -------------
Total long-term liabilities 28,961 27,802 25,922
------------- ------------- -------------
Total liabilities 79,143 67,589 65,950
------------- ------------- -------------
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;
30,564,339 shares issued and
outstanding at May 1, 2010,
30,250,661 shares issued and
outstanding at January 30, 2010
and 30,116,063 shares issued
and outstanding at May 2, 2009. 84,753 81,399 77,072
Accumulated other comprehensive
income 9 101 16
Retained earnings 109,276 111,176 100,387
------------- ------------- -------------
Total shareholders' equity 194,038 192,676 177,475
------------- ------------- -------------
Total liabilities and
shareholders' equity $ 273,181 $ 260,265 $ 243,425
============= ============= =============
Company Contact: Trevor Lang Chief Financial Officer & Chief Administrative Officer Zumiez Inc. (425) 551-1500 ext. 1564 Investor Contact: ICR, Inc. Chad Jacobs / Brendon Frey (203) 682-8200