UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): January 12, 2006
ZUMIEZ INC.
(Exact Name of Registrant as Specified in Its Charter)
Washington
(State or Other Jurisdiction of Incorporation)
000-51300 |
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91-1040022 |
(Commission File Number) |
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(IRS Employer Identification No.) |
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6300 Merrill Creek Parkway, Suite B, Everett, Washington |
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98203 |
(Address of Principal Executive Offices) |
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(Zip Code) |
(425) 551-1500
(Registrants 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 (see General Instruction A.2. below):
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))
Item 7.01. Regulation FD Disclosure.
Copies of slide presentations which will be presented by us at the Eighth Annual ICR XChange conference on January 12, 2006, and generally to members of the financial and investment community from time to time (the Investor Presentation), are attached to this report as Exhibit 99.1 and are also available on the Zumiez website at http://ir.zumiez.com.
In accordance with General Instruction B.2. of Form 8-K, the information contained in this report (including the Investor Presentation) 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. This report will not be deemed a determination or an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
99.1. Investor Presentation.
SIGNATURES
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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ZUMIEZ INC. |
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(Registrant) |
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Date: January 12, 2006 |
By: |
/s/ Richard M. Brooks |
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Richard M. Brooks |
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President and Chief Executive Officer |
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Searchable text section of graphics shown above
Zumiez Inc.
Safe Harbor Statement
Under the Private Securities Litigation Reform Act of 1995
Our presentation includes, and our response to various questions may include, forward-looking statements about the Companys revenues and earnings and about our future plans and objectives. Any such statements are subject to risks and uncertainties that could cause the actual results and the implementation of the Companys plans and operations to vary materially. These risks are discussed in the Companys filings with the S.E.C., including, without limitation, the final prospectus filed on November 9, 2005 and as subsequently amended.
[LOGO]
1
Zumiez: An Attractive and Unique Lifestyle Retailer
[GRAPHIC]
Specialty retailer of action sports apparel, footwear, equipment and accessories
Cater to young men and women between the ages of 12 and 24
Focus on action sports lifestyles including skateboarding, surfing, snowboarding, BMX and motocross
Offer a broad and relevant selection of popular brands and styles
Unique culture and integrated marketing based on a passion for the action sports lifestyle
174 stores in 19 states, primarily mall-based
3
Delivering on IPO Goals
[GRAPHIC]
Strategic Goals |
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Actions Since IPO |
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Open New Stores: |
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On track to open 42 stores in 2006 |
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Drive Comp. Store Sales: |
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Q2 2005 |
+ |
11.3 |
% |
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Q3 2005 |
+ |
9.8 |
% |
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November |
+ |
18.8 |
% |
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December |
+ |
20.9 |
% |
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Year-to-Date |
+ |
13.7 |
% |
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Expanded presence in Southern California, New York, Texas and New Jersey |
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Successful 2005 Couch Tour |
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Deliver to Bottom Line: |
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EPS growth exceeding 30% |
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Distinctive Store Experience
[GRAPHIC]
Bringing the independent specialty store to the mall
Interactive store environment
Industrial look with concrete floors and open ceilings
Store design reflects an organized chaos
Action sports imagery and relevant music
Store associates identify with the action sports lifestyle and offer superior customer service
Located near popular teen gathering spots
7
Differentiated Merchandising Strategy
Extensive selection of current and relevant action sports brands
Mix of softgoods and hardgoods affirms credibility with customers
Identify evolving fashion trends and quickly respond with a relevant merchandise assortment
Strategic use of private label merchandise
Merchandise mix trends through 3Q 2005 are consistent
Fiscal 2004
Merchandise Mix
[CHART]
8
High Impact, Integrated Marketing Approach
Grassroots marketing efforts reach customers in their environment
Local sporting and music event promotions
Advertising in popular action sports magazines
Interactive contests
Events create strong identity with our brand and culture
Zumiez Couch Tour
Series of events including professional skateboarding demonstrations from top professionals, autograph sessions, competitions and live music
12 stops in 2005, events attracted an average of 5,000 attendees, with 12 planned stops in 2006
11
Zumiez Culture: Developing Our Employees
[GRAPHIC]
Deep-rooted passion for action sports lifestyle
Attract and retain high quality employees who are enthusiastic and knowledgeable about the products we sell
Zumiez University: Intense focus on employee and manager training
Empower our store managers to make business decisions and reward success
All of our district and regional managers began as store associates or store managers
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Learning, Competition, Recognition and Fun
Emphasis on training and employee development (through Zumiez University) improves retention and store level execution
Sales driven incentive structure creates competitive, yet fun, environment consistent with action sports lifestyle
Annual 100K Event:
Training and reward for top sales associates and all managers
Allow employees from all locations to interact with each other and exchange ideas to better operate stores
Manager training sessions aimed at developing skills to improve productivity at all levels
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Disciplined Operating Philosophy
Managing growth
People
Logistics
Technology
Disciplined merchandising and purchasing strategy
Analyze sales trends, gather customer feedback, shop key markets and solicit vendor input
Rigorous new store selection process
Centralized focus on store-level execution
Stores are customized to individual market
Frequent communication between store managers and corporate management
Focused incentive structure to drive profitability
Experienced management team with decades of relevant experience
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Demonstrated Track Record
[GRAPHIC]
Consistent execution of growth strategy demonstrated through rapid growth in store count and sales
26 of 27 years with positive comp store sales
Store Growth
[CHART]
Comp Store Sales |
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8.5 |
% |
18.5 |
% |
20.2 |
% |
(1.1 |
)% |
4.3 |
% |
9.6 |
% |
13.7 |
% |
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Exceptional Store Expansion Opportunities
Zumiez is in the early phase of store expansion with the potential to grow to over 800 stores
In the Sweet Spot of Growth Cycle
American Eagle
(868)
PacSun
(798)
Aeropostale
(659)
Hot Topic
(661)
Abercrombie
(466)
Zumiez
(174)
Urban
Out.
(84)
# of Stores
As of latest 10-Q
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Growth Strategy: How We Get There
Opened 35 stores in fiscal 2005, 42 planned for fiscal 2006
Increase average store size over time from 2,700 square feet today
Accommodate expanded merchandise mix
Maintain unique in-store experience and culture
Drive store-level productivity
Leverage existing infrastructure and increase operating efficiencies
Expand brand awareness through geographic expansion and continued marketing
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Profitable Operating History
[GRAPHIC]
Summary Income Statement
($ in thousands, except per share data)
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Fiscal Year Ended |
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Nine Months Ended |
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January 31, |
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January 29, |
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October 30, |
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October 29, |
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2004 |
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2005 |
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2004 |
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2005 |
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Net sales |
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$ |
117,857 |
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$ |
153,583 |
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$ |
100,582 |
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$ |
130,188 |
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Gross margin |
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36,537 |
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50,431 |
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31,417 |
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44,035 |
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Operating profit |
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7,461 |
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12,009 |
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5,169 |
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9,505 |
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Earnings before income taxes |
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7,176 |
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11,767 |
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4,956 |
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9,776 |
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Net income |
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$ |
4,475 |
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$ |
7,267 |
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$ |
3,020 |
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$ |
6,087 |
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EPS |
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$ |
0.35 |
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$ |
0.56 |
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$ |
0.23 |
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$ |
0.45 |
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Gross Margin |
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31.0 |
% |
32.8 |
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31.2 |
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33.8 |
% |
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EBIT Margin |
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6.3 |
% |
7.8 |
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5.1 |
% |
7.3 |
% |
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Net Income Margin |
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3.8 |
% |
4.7 |
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3.0 |
% |
4.7 |
% |
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Investment Highlights
Focus On The Large And Growing Action Sports Segment
Highly Differentiated Retail Concept Bringing The Independent Store To The Mall
Deep Rooted Culture That Drives Performance
High Impact, Integrated Marketing Approach
Substantial Growth Opportunities
Disciplined Operating Philosophy and Proven Management Team
Strong Financial Track Record
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