EVERETT, WA--(Marketwire - March 10, 2011) - Zumiez Inc. (
NASDAQ:
ZUMZ) a leading specialty
retailer of action sports related apparel, footwear, equipment and
accessories, today reported results for the fourth quarter and fiscal year
ended January 29, 2011.
Total net sales for the fourth quarter ended January 29, 2011 (13 weeks)
increased 17.9% to $156.2 million from $132.4 million in the quarter ended
January 30, 2010 (13 weeks). The Company posted net income for the quarter
of $15.0 million, or $0.49 per diluted share. In the prior year period,
Zumiez reported net income of $8.8 million, or $0.29 per diluted share,
which included a non-cash charge of $1.8 million, or $0.04 per diluted
share, associated with the impairment of store related assets. Comparable
store sales increased 13.0% in the fourth quarter of fiscal 2010, compared
to a 1.7% decrease in the fourth quarter of fiscal 2009.
Total net sales for fiscal 2010 (52 weeks) increased 17.5% to $478.8
million from $407.6 million in fiscal 2009 (52 weeks). The Company posted
net income of $24.2 million, or $0.79 per diluted share, including costs of
$2.4 million, or $0.05 per diluted share, associated with the relocation of
the Company's distribution center to Corona, CA from Everett, WA, and $2.1
million, or $0.04 per diluted share, for the settlement of a previously
disclosed lawsuit. In the prior year, net income was $9.1 million, or
$0.30 per diluted share, including a non-cash charge of $2.5 million, or
$0.05 per diluted share, associated with the impairment of store related
assets, and a charge of $1.4 million, or $0.03 per diluted share,
associated with the settlement of a previously disclosed lawsuit.
Comparable store sales increased 11.9% in fiscal 2010, compared to a
decrease of 10.0% in fiscal 2009.
As of January 29, 2011, the Company had cash and current marketable
securities of $128.8 million, compared to cash and current marketable
securities of $108.1 million as of January 30, 2010.
"We are very pleased with the strength of our fiscal and fourth quarter
2010 sales, up over 17%, and the significant increase in earnings for both
the year and the quarter," commented Rick Brooks, Chief Executive Officer
of Zumiez. "Our record fourth quarter earnings reflect great execution by
our team and underscores the uniqueness of our concept. We believe the
actions we are taking by focusing on a wide selection of brands and strong
customer service, combined with the people and infrastructure investments
have us well positioned to carry this momentum forward and pursue our
growth initiatives."
2011 Outlook
The Company is introducing guidance for the three months ending April 30,
2011 of a net loss per diluted share of approximately $0.03 to $0.00. This
guidance is based on an anticipated comparable store sales increase in the
mid to high single digit range for the first quarter of fiscal 2011.
The Company currently intends to open approximately 44 new stores in fiscal
2011, including its first stores in Canada, with an opening cadence similar
to fiscal 2010.
A conference call will be held today to discuss fourth quarter results and
there will be a webcast at 5:00 p.m. ET on
http://ir.zumiez.com.
Participants may also dial (857) 350-1679 followed by the conference
identification code of 16262619.
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 February 26, 2011 we operated 401 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 October 30, 2010 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
----------------------------------------
January 29, % of January 30, % of
2011 Sales 2010 Sales
----------- ------ ------------ ------
Net sales $ 156,192 100.0% $ 132,433 100.0%
Cost of goods sold 95,311 61.0% 84,338 63.7%
----------- ------ ------------ ------
Gross profit 60,881 39.0% 48,095 36.3%
Selling, general and
administrative expenses 36,867 23.6% 35,053 26.5%
----------- ------ ------------ ------
Operating profit 24,014 15.4% 13,042 9.8%
Interest income, net 409 0.3% 351 0.2%
Other (expense) income, net (111) (0.1%) 91 0.1%
----------- ------ ------------ ------
Earnings before income taxes 24,312 15.6% 13,484 10.1%
Provision for income taxes 9,307 6.0% 4,683 3.5%
----------- ------ ------------ ------
Net income $ 15,005 9.6% $ 8,801 6.6%
=========== ====== ============ ======
Basic earnings per share $ 0.50 $ 0.30
=========== ============
Diluted earnings per share $ 0.49 $ 0.29
=========== ============
Weighted average shares used in
computation of earnings per
share:
Basic 30,160 29,624
Diluted 30,927 30,256
ZUMIEZ INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Twelve Months Ended
----------------------------------------
January 29, % of January 30, % of
2011 Sales 2010 Sales
----------- ------ ------------ ------
(Unaudited)
Net sales $ 478,849 100.0% $ 407,603 100.0%
Cost of goods sold 308,452 64.4% 272,865 66.9%
----------- ------ ------------ ------
Gross profit 170,397 35.6% 134,738 33.1%
Selling, general and
administrative expenses 133,030 27.8% 122,003 30.0%
----------- ------ ------------ ------
Operating profit (loss) 37,367 7.8% 12,735 3.1%
Interest income, net 1,496 0.3% 1,176 0.3%
Other (expense) income, net (8) 0.0% 96 0.0%
----------- ------ ------------ ------
Earnings before income taxes 38,855 8.1% 14,007 3.4%
Provision for income taxes 14,652 3.0% 4,876 1.2%
----------- ------ ------------ ------
Net income $ 24,203 5.1% $ 9,131 2.2%
=========== ====== ============ ======
Basic net earnings per share $ 0.81 $ 0.31
=========== ============
Diluted net earnings per share $ 0.79 $ 0.30
=========== ============
Weighted average shares used in
computation of earnings per
share:
Basic 29,971 29,499
Diluted 30,794 30,133
ZUMIEZ INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
January 29, January 30,
2011 2010
------------ -------------
Assets (Unaudited)
Current assets
Cash and cash equivalents $ 11,357 $ 1,568
Marketable securities 117,444 106,483
Receivables 6,129 5,600
Inventories 56,303 50,916
Prepaid expenses and other 7,210 6,102
Deferred tax assets 2,418 3,045
------------ -------------
Total current assets 200,861 173,714
Fixed assets, net 78,248 66,008
Goodwill and other intangibles 13,154 13,186
Long-term deferred tax assets 5,703 5,537
Long-term investments 2,766 872
Long-term other assets 899 948
------------ -------------
Total long-term assets 100,770 86,551
Total assets $ 301,631 $ 260,265
============ =============
Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable $ 16,371 $ 16,817
Accrued payroll and payroll taxes 7,580 6,593
Income taxes payable 4,108 4,006
Deferred rent and tenant allowances 3,719 3,248
Other liabilities 13,683 9,123
------------ -------------
Total current liabilities 45,461 39,787
Long-term deferred rent and tenant allowances 27,629 26,375
Long-term other liabilities 1,806 1,427
------------ -------------
Total long-term liabilities 29,435 27,802
------------ -------------
Total liabilities 74,896 67,589
------------ -------------
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; 30,835 shares issued and
outstanding at January 29, 2011 and 30,251
shares issued and outstanding at January 30,
2010 91,373 81,399
Accumulated other comprehensive (loss) income (17) 101
Retained earnings 135,379 111,176
------------ -------------
Total shareholders' equity 226,735 192,676
------------ -------------
Total liabilities and shareholders' equity $ 301,631 $ 260,265
============ =============
Contact Information: Company Contact:
Brian Leith
Director of Finance &
Investor Relations
Zumiez Inc.
(425) 551-1500, ext. 1610
Investor Contact:
ICR
Brendon Frey
(203) 682-8200