EXHIBIT 99.1
Zumiez Inc. Announces Fiscal 2018 First Quarter Results
First Quarter Loss Per Share Improved to $0.10; May Comparable Sales Increased 7.5%
LYNNWOOD, Wash., June 07, 2018 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ:ZUMZ) a leading specialty retailer of apparel, footwear, equipment and accessories for young men and women, today reported results for the first quarter ended May 5, 2018.
Total net sales for the first quarter ended May 5, 2018 (13 weeks) increased 13.9% to $206.3 million from $181.2 million in the first quarter ended April 29, 2017 (13 weeks). Comparable sales for the thirteen weeks ended May 5, 2018 increased 8.3% compared to a comparable sales increase of 1.8% for the thirteen weeks ended April 29, 2017. Net loss in the first quarter of fiscal 2018 was $2.6 million, or $0.10 per diluted share, compared to a net loss of $4.4 million, or $0.18 per diluted share, in the first quarter of the prior fiscal year.
At May 5, 2018, cash and current marketable securities increased 54.2% to $118.0 million, compared to cash and current marketable securities of $76.5 million at April 29, 2017. The increase in cash and current marketable securities was driven by cash generated through operations partially offset by capital expenditures.
“Our new fiscal year is off to a very good start,” commented Rick Brooks, Chief Executive Officer of Zumiez Inc. “The strong top-line momentum we achieved in 2017 acclerated during the first quarter fueled by the strength of our assortments and the seamless shopping experience we’ve created for consumers who interact with our brand. With comparable sales increasing 8.3%, we generated significant expense leverage and dramatically improved our bottom line performance year-over-year. We are confident that we are on the right path to further expand our global market share and drive increased value for our customers, our employees, our brand partners, and our shareholders over the long-term.”
May 2018 Sales
Total net sales for the four-week period ended June 2, 2018 increased 12.2% to $59.7 million, compared to $53.2 million for the four-week period ended May 27, 2017. The Company's comparable sales increased 7.5% for the four-week period ended June 2, 2018 compared to a comparable sales increase of 3.3% for the four-week period ended May 27, 2017.
Fiscal 2018 Second Quarter Outlook
The Company is introducing guidance for the three months ending August 4, 2018. Net sales are projected to be in the range of $213 million to $217 million including anticipated comparable sales growth of between 3.0% and 5.0%. Consolidated operating margins are expected to be between 1.2% and 2.0% resulting in net income per share of approximately $0.04 to $0.09. The Company currently intends to open approximately 13 new stores in fiscal 2018, including up to 6 stores in the United States, 5 stores in Europe and 2 stores in Australia.
A conference call will be held today to discuss first quarter fiscal 2018 results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (574) 990-9934 followed by the conference identification code of 2578857.
About Zumiez Inc.
Zumiez is a leading specialty retailer of apparel, footwear, accessories and hardgoods for young men and women who want to express their individuality through the fashion, music, art and culture of action sports, streetwear, and other unique lifestyles. As of June 2, 2018 we operated 700 stores, including 608 in the United States, 50 in Canada, 35 in Europe and 7 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at zumiez.com, blue-tomato.com and fasttimes.com.au
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 annual report on Form 10-K for the fiscal year ended February 3, 2018 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 LOSS (In thousands, except per share amounts) (Unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| May 5, 2018 | % of Sales | April 29, 2017 | % of Sales | |||||||
| Net sales | $ | 206,287 | 100.0% | $ | 181,155 | 100.0% | ||||
| Cost of goods sold | 143,700 | 69.7% | 129,106 | 71.3% | ||||||
| Gross profit | 62,587 | 30.3% | 52,049 | 28.7% | ||||||
| Selling, general and administrative expenses | 64,296 | 31.1% | 58,283 | 32.2% | ||||||
| Operating loss | (1,709) | (0.8%) | (6,234) | (3.5%) | ||||||
| Interest income, net | 283 | 0.1% | 82 | 0.0% | ||||||
| Other expense, net | (482) | (0.2%) | (450) | (0.1%) | ||||||
| Loss before income taxes | (1,908) | (0.9%) | (6,602) | (3.6%) | ||||||
| Provision (benefit) for income taxes | 699 | 0.4% | (2,154) | (1.1%) | ||||||
| Net loss | $ | (2,607) | (1.3%) | $ | (4,448) | (2.5%) | ||||
| Basic loss per share | $ | (0.10) | $ | (0.18) | ||||||
| Diluted loss per share | $ | (0.10) | $ | (0.18) | ||||||
| Weighted average shares used in computation of loss per share: | ||||||||||
| Basic | 24,831 | 24,580 | ||||||||
| Diluted | 24,831 | 24,580 | ||||||||
| ZUMIEZ INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | |||||||||||
| May 5, 2018 | February 3, 2018 | April 29, 2017 | |||||||||
| (Unaudited) | (Unaudited) | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 29,063 | $ | 24,041 | $ | 22,320 | |||||
| Marketable securities | 88,918 | 97,864 | 54,175 | ||||||||
| Receivables | 18,466 | 17,027 | 13,992 | ||||||||
| Inventories | 128,244 | 125,826 | 122,406 | ||||||||
| Prepaid expenses and other current assets | 13,898 | 14,405 | 13,162 | ||||||||
| Total current assets | 278,589 | 279,163 | 226,055 | ||||||||
| Fixed assets, net | 126,047 | 128,852 | 132,582 | ||||||||
| Goodwill | 60,832 | 62,912 | 56,761 | ||||||||
| Intangible assets, net | 15,955 | 16,696 | 14,816 | ||||||||
| Deferred tax assets, net | 3,288 | 4,174 | 9,061 | ||||||||
| Other long-term assets | 6,993 | 7,713 | 8,161 | ||||||||
| Total long-term assets | 213,115 | 220,347 | 221,381 | ||||||||
| Total assets | $ | 491,704 | $ | 499,510 | $ | 447,436 | |||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current liabilities | |||||||||||
| Trade accounts payable | $ | 45,980 | $ | 37,861 | $ | 53,394 | |||||
| Accrued payroll and payroll taxes | 15,132 | 20,650 | 11,410 | ||||||||
| Income taxes payable | 359 | 5,796 | 67 | ||||||||
| Deferred rent and tenant allowances | 7,873 | 8,073 | 8,425 | ||||||||
| Short term borrowings | 4,696 | 943 | — | ||||||||
| Other liabilities | 21,194 | 25,924 | 22,501 | ||||||||
| Total current liabilities | 95,234 | 99,247 | 95,797 | ||||||||
| Long-term deferred rent and tenant allowances | 39,217 | 39,275 | 41,181 | ||||||||
| Other long-term liabilities | 4,768 | 5,073 | 4,889 | ||||||||
| Total long-term liabilities | 43,985 | 44,348 | 46,070 | ||||||||
| Total liabilities | 139,219 | 143,595 | 141,867 | ||||||||
| Shareholders’ equity | |||||||||||
| Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding | — | — | — | ||||||||
| Common stock, no par value, 50,000 shares authorized; 25,470 shares issued and outstanding at May 5, 2018, 25,249 shares issued and outstanding at February 3, 2018 and 25,196 shares issued and outstanding at April 29, 2017 | 148,591 | 146,523 | 142,460 | ||||||||
| Accumulated other comprehensive (loss) income | (4,908) | 35 | (14,998) | ||||||||
| Retained earnings | 208,802 | 209,357 | 178,107 | ||||||||
| Total shareholders’ equity | 352,485 | 355,915 | 305,569 | ||||||||
| Total liabilities and shareholders’ equity | $ | 491,704 | $ | 499,510 | $ | 447,436 | |||||
| ZUMIEZ INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | ||||||
| Three Months Ended | ||||||
| May 5, 2018 | April 29, 2017 | |||||
| Cash flows from operating activities: | ||||||
| Net loss | $ | (2,607) | $ | (4,448) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||
| Depreciation, amortization and accretion | 6,970 | 6,660 | ||||
| Deferred taxes | 217 | (2,033) | ||||
| Stock-based compensation expense | 1,642 | 1,278 | ||||
| Other | 588 | 385 | ||||
| Changes in operating assets and liabilities: | ||||||
| Receivables | (1,096) | (135) | ||||
| Inventories | (3,781) | (15,408) | ||||
| Prepaid expenses and other current assets | 871 | (209) | ||||
| Trade accounts payable | 7,723 | 27,919 | ||||
| Accrued payroll and payroll taxes | (5,383) | (3,525) | ||||
| Income taxes payable | (5,993) | (3,199) | ||||
| Deferred rent and tenant allowances | (32) | 328 | ||||
| Other liabilities | (2,997) | (2,946) | ||||
| Net cash (used in) provided by operating activities | (3,878) | 4,667 | ||||
| Cash flows from investing activities: | ||||||
| Additions to fixed assets | (3,585) | (7,117) | ||||
| Purchases of marketable securities and other investments | (12,932) | (20,006) | ||||
| Sales and maturities of marketable securities and other investments | 21,590 | 24,370 | ||||
| Net cash provided by (used in) investing activities | 5,073 | (2,753) | ||||
| Cash flows from financing activities: | ||||||
| Proceeds from revolving credit facilities | 17,245 | — | ||||
| Payments on revolving credit facilities | (13,347) | — | ||||
| Proceeds from issuance and exercise of stock-based awards | 621 | 370 | ||||
| Payments for tax withholdings on equity awards | (195) | (172) | ||||
| Net cash provided by financing activities | 4,324 | 198 | ||||
| Effect of exchange rate changes on cash and cash equivalents | (497) | (39) | ||||
| Net increase in cash and cash equivalents | 5,022 | 2,073 | ||||
| Cash and cash equivalents, beginning of period | 24,041 | 20,247 | ||||
| Cash and cash equivalents, end of period | $ | 29,063 | $ | 22,320 | ||
| Supplemental disclosure on cash flow information: | ||||||
| Cash paid during the period for income taxes | $ | 6,442 | $ | 3,074 | ||
| Accrual for purchases of fixed assets | 2,872 | 3,601 | ||||
Company Contact:
Darin White
Director of Finance &
Investor Relations
Zumiez Inc.
(425) 551-1500, ext. 1337
Investor Contact:
ICR
Brendon Frey
(203) 682-8200