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 19, 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)
|
Item 2.02. Results of Operations and Financial Condition On August 19, 2010, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the third quarter ended November 1, 2008, 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.
|
|
Dated: August 19, 2010 |
ZUMIEZ INC.
By: /s/ Richard M. Brooks |
|
|
|
| Exhibit No. | Description |
| 99.1 | Press Release of Zumiez Inc. dated August 19, 2010 |
EVERETT, WA -- (Marketwire - August 19, 2010) - Zumiez Inc. (NASDAQ: ZUMZ), a leading specialty retailer of action sports related apparel, footwear, equipment and accessories, today reported results for the second quarter ended July 31, 2010.
Total net sales for the second quarter (13 weeks) ended July 31, 2010 increased 14.7% to $97.7 million from $85.2 million reported in the second quarter (13 weeks) ended August 1, 2009. Comparable store sales for the second fiscal quarter of 2010 increased 9.3% vs. a decrease of 18.8% for the second quarter of fiscal 2009. The Company posted net income for the quarter of $0.1 million or $0.00 per diluted share. These results include costs of approximately $1.0 million, or $0.02 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 $3.1 million or ($0.10) per diluted share in the second quarter of the prior fiscal year which included a charge of $1.3 million, or approximately $0.03 per diluted share, associated with the settlement agreement of a previously disclosed lawsuit.
Total net sales for the first six months (26 weeks) ended July 31, 2010 increased 15.3% to $186.8 million from $162.0 million reported in the first six months (26 weeks) of the prior year. The Company posted a net loss of $1.8 million or ($0.06) per diluted share in the first six months of fiscal 2010 compared to a net loss in the first six months of the prior fiscal year of $4.7 million or ($0.16) per diluted share. Results for the first six months of fiscal 2010 include costs of $2.2 million, or approximately $0.05 per diluted share, associated with the relocation of the Company's distribution center. 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 aforementioned lawsuit. Comparable store sales increased 9.2% in the first six months of fiscal 2010 vs. a decrease of 17.2% for the first six months of 2009.
At July 31, 2010, the Company had cash and current marketable securities of $91.3 million compared to cash and current marketable securities of $82.1 million at August 1, 2009.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, "We were very pleased with the top-line growth we generated during the second quarter and improved earnings results relative to last year, driven by comparable stores sales that were at the high-end of our guidance range. The merchandise and pricing initiatives we have implemented continue to resonate with consumers and are fueling gains across our business, including stronger than expected product margins. We are encouraged by our improved trends year-to-date, and optimistic that we have the right strategies in place to build on our positive momentum as we begin the important second half of the year."
2010 Outlook
The Company is introducing guidance for the three months ending October 30, 2010 of net income per diluted share of approximately $0.21 to $0.24. This guidance is based on an anticipated comparable store sales increase in the mid single digit range for the third quarter of fiscal 2010.
We currently intend to open 27 new stores in fiscal 2010 with an opening cadence similar to fiscal 2009.
A conference call will be held today to discuss second quarter 2010 results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (617)-597-5379 followed by the conference identification code of 49576155.
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 July 31, 2010 we operated 393 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 quarterly report on Form 10-Q for the quarter ended May 1, 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 per share amounts)
(Unaudited)
Three Months Ended
------------------------------------------
July 31, % of August 1, % of
2010 Sales 2009 Sales
--------- --------- --------- ---------
Net sales $ 97,702 100.0% $ 85,170 100.0%
Cost of goods sold 66,986 68.6% 60,526 71.1%
--------- --------- --------- ---------
Gross profit 30,716 31.4% 24,644 28.9%
Selling, general and
administrative expenses 30,959 31.7% 29,870 35.0%
--------- --------- --------- ---------
Operating loss (243) (0.3%) (5,226) (6.1%)
Interest income, net 352 0.4% 307 0.4%
Other income, net 47 0.0% - 0.0%
--------- --------- --------- ---------
Income (loss) before income
taxes 156 0.1% (4,919) (5.7%)
Provision (benefit) for income
taxes 42 0.0% (1,834) (2.1%)
--------- --------- --------- ---------
Net income (loss) $ 114 0.1% $ (3,085) (3.6%)
========= ========= ========= =========
Basic earnings (loss) per
share $ 0.00 $ (0.10)
========= =========
Diluted earnings (loss) per
share $ 0.00 $ (0.10)
========= =========
Weighted average shares used in
computation of earnings (loss)
per share:
Basic 29,954 29,496
Diluted 30,650 29,496
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Six Months Ended
------------------------------------------
July 31, % of August 1, % of
2010 Sales 2009 Sales
--------- --------- --------- ---------
Net sales $ 186,798 100.0% $ 161,977 100.0%
Cost of goods sold 130,330 69.8% 115,434 71.3%
--------- --------- --------- ---------
Gross profit 56,468 30.2% 46,543 28.7%
Selling, general and
administrative expenses 59,965 32.1% 55,208 34.0%
--------- --------- --------- ---------
Operating loss (3,497) (1.9%) (8,665) (5.3%)
Interest income, net 717 0.4% 664 0.4%
Other income, net 71 0.0% - 0.0%
--------- --------- --------- ---------
Loss before income taxes (2,709) (1.5%) (8,001) (4.9%)
Benefit for income taxes (923) (0.5%) (3,257) (2.0%)
--------- --------- --------- ---------
Net loss $ (1,786) (1.0%)$ (4,744) (2.9%)
========= ========= ========= =========
Basic net loss per share $ (0.06) $ (0.16)
========= =========
Diluted net loss per share $ (0.06) $ (0.16)
========= =========
Weighted average shares used in
computation of loss per share:
Basic 29,846 29,253
Diluted 29,846 29,253
ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
July 31, January 30, August 1,
2010 2010 2009
----------- ----------- -----------
Assets (Unaudited) (Unaudited)
Current assets
Cash and cash equivalents $ 6,842 $ 1,568 $ 21,304
Marketable securities 84,475 106,483 60,748
Receivables 8,375 5,600 6,755
Income taxes receivable 3,020 - 1,399
Inventories 78,691 50,916 69,569
Prepaid expenses and other 7,652 6,102 6,319
Deferred tax assets 2,452 3,045 4,048
----------- ----------- -----------
Total current assets 191,507 173,714 170,142
Fixed assets, net 78,092 66,008 74,367
Goodwill and other intangibles 13,161 13,186 13,211
Long-term deferred tax assets 6,658 5,537 2,291
Long-term investments 2,787 872 799
Long-term other assets 1,164 948 793
----------- ----------- -----------
Total long-term assets 101,862 86,551 91,461
Total assets $ 293,369 $ 260,265 $ 261,603
=========== =========== ===========
Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable $ 48,327 $ 16,817 $ 43,352
Accrued payroll and payroll taxes 5,572 6,593 3,540
Income taxes payable - 4,006 -
Deferred rent and tenant allowances 3,614 3,248 3,157
Other liabilities 10,304 9,123 8,712
----------- ----------- -----------
Total current liabilities 67,817 39,787 58,761
Long-term deferred rent and tenant
allowances 28,046 26,375 26,980
Long-term other liabilities 1,759 1,427 212
----------- ----------- -----------
Total long-term liabilities 29,805 27,802 27,192
----------- ----------- -----------
Total liabilities 97,622 67,589 85,953
----------- ----------- -----------
Commitments and contingencies
Shareholders' equity
Preferred stock, no par value, 20,000
shares authorized; none issued and
outstanding -- -- --
Common stock, no par value,
50,000 shares authorized; 30,600
shares issued and outstanding at July
31, 2010, 30,251 shares issued and
outstanding at January 30, 2010 and
30,155 shares issued and outstanding
at August 1, 2009. 86,345 81,399 78,259
Accumulated other comprehensive income 12 101 90
Retained earnings 109,390 111,176 97,301
----------- ----------- -----------
Total shareholders' equity 195,747 192,676 175,650
----------- ----------- -----------
Total liabilities and shareholders'
equity $ 293,369 $ 260,265 $ 261,603
=========== =========== ===========
Company Contacts: Trevor Lang Chief Financial Officer & Chief Administrative Officer Zumiez Inc. (425) 551-1500, ext. 1564 Brian Leith Director of Finance & Investor Relations Zumiez Inc. (425) 551-1500, ext. 1610 Investor Contact: ICR Brendon Frey (203) 682-8200