# EDGAR Filing Document

**Accession Number:** 0001318008
**File Stem:** 0001171843-23-001553
**Filing Date:** 2023-3
**Character Count:** 18478
**Document Hash:** 20619e746c45af3376c0149b5d353c10
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001171843-23-001553.hdr.sgml**: 20230309

**ACCESSION NUMBER**: 0001171843-23-001553

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230309

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230309

**DATE AS OF CHANGE**: 20230309

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Zumiez Inc
- **CENTRAL INDEX KEY:** 0001318008
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-APPAREL & ACCESSORY STORES [5600]
- **IRS NUMBER:** 911040022
- **STATE OF INCORPORATION:** WA
- **FISCAL YEAR END:** 0129

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-51300
- **FILM NUMBER:** 23719924

**BUSINESS ADDRESS:**
- **STREET 1:** 4001 204TH STREET  SW
- **CITY:** LYNNWOOD
- **STATE:** WA
- **ZIP:** 98036
- **BUSINESS PHONE:** 425-551-1500

**MAIL ADDRESS:**
- **STREET 1:** 4001 204TH STREET  SW
- **CITY:** LYNNWOOD
- **STATE:** WA
- **ZIP:** 98036

?xml version="1.0" encoding="utf-8"?Form 8-K

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

### Washington, D.C. 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): March 9, 2023
_______________________________

#### Zumiez Inc.
(Exact name of registrant as specified in its charter)

_______________________________

---

| | | |
|:---|:---|:---|
| **Washington** | **000-51300** | **91-1040022** |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |

---

#### 4001 204th Street SW

#### Lynnwood, Washington 98036
(Address of Principal Executive Offices) (Zip Code)

(425) 551-1500

(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:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock | ZUMZ | Nasdaq Global Select |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 2.02. Results of Operations and Financial Condition.**

On March 9, 2023, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the fourth quarter and fiscal year ended January 28, 2023, 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.**

<br> [99.1](exh_991.htm) [Press Release dated March 9, 2023](exh_991.htm) <br> 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

#### SIGNATURE
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.

---

| | | |
|:---|:---|:---|
|  | **Zumiez Inc.** | **Zumiez Inc.** |
| Date: March 9, 2023 | By: | <u>/s/ Richard M. Brooks&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> |
|  |  | Richard M. Brooks |
|  |  | Chief Executive Officer |

---

## Exhibit 99.1

**EXHIBIT 99.1**

**Zumiez Inc. Announces Fiscal 2022 Fourth Quarter Results**

LYNNWOOD, Wash., March 09, 2023 (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 fourth quarter and fiscal year ended January 28, 2023.

Net sales for the fourth quarter ended January 28, 2023 (13 weeks) decreased 19.2% to $280.1 million from $346.7 million in the fourth quarter ended January 29, 2022 (13 weeks). Net income in the fourth quarter of fiscal 2022 was $11.4 million, or $0.59 per diluted share, compared to net income of $38.2 million, or $1.70 per diluted share, in the fourth quarter of the prior fiscal year.

Total net sales for the twelve months (52 weeks) ended January 28, 2023 decreased 19.0% to $958.4 million from $1,183.9 million reported for the twelve months (52 weeks) ended January 29, 2022. Net income for fiscal 2022 was $21.0 million, or $1.08 per diluted share, compared to net income for fiscal 2021 of $119.3 million, or $4.85 per diluted share.

At January 28, 2023, the Company had cash and current marketable securities of $173.5 million compared to cash and current marketable securities of $294.5 million at January 29, 2022. The decrease was driven by share repurchases of $87.9 million and capital expenditures of $25.6 million over this time period.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, "We concluded a challenging fiscal 2022 with fourth quarter results that were ahead of our guidance, but below year ago levels. While the operating environment has been difficult and our recent financial performance disappointing, our commitment to serving consumers with world class service and highly differentiated, sought-after merchandise, is as strong as ever and has the business positioned to recover quickly when the macroeconomic conditions improve. I am confident that the channel-less retail model and strong corporate culture we have built and evolved over Zumiez's 45-year history and brought to Canada, Europe and Australia will continue to separate our banners from the competition and drive profitable growth for our shareholders over the long-term."

<u>Fiscal First Quarter-to-Date Sales</u> 

Total first quarter-to-date sales for the 35 days ended March 4, 2023 decreased 15.5%, compared with the same 35-day time period in the prior year ended March 5, 2022. Total comparable sales for the 35-day period ending March 4, 2023 decreased 16.6% from the comparable period in the prior year.

<u>Outlook</u>

<u>Fiscal 2023 First Quarter Outlook</u>

The Company is introducing guidance for the three months ending April 29, 2023. Net sales are projected to be in the range of $178 to $184 million. Earnings per share are expected to be between a loss of $0.85 and a loss of $0.95.

The Company currently intends to open approximately 23 new stores in fiscal 2023, including up to 8 stores in North America, 10 stores in Europe and 5 stores in Australia.

<u>Conference call Information</u> 

To access the conference call, please pre-register using this link (registration link). Registrants will receive confirmation with dial-in details. The conference call will also be available to interested parties through a live webcast at https://ir.zumiez.com. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at https://ir.zumiez.com.

**<u>About Zumiez Inc.</u>**

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 February 25, 2023, we operated 756 stores, including 607 in the United States, 50 in Canada, 78 in Europe and 21 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at zumiez.com, zumiez.ca, blue-tomato.com and fasttimes.com.au.

**<u>Safe Harbor Statement</u>**

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 January 29, 2022 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 OPERATIONS** 

**(In thousands, except per share amounts)** 

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **January 28,**<br>**2023** | **% of**<br>**Sales** | **January 29,**<br>**2022** | **% of**<br>**Sales** |
|  | **(Unaudited)** | | **(Unaudited)** | |
| Net sales | $280110 | 100.0% | 346677 | 100.0% |
| Cost of goods sold | 184841 | 66.0% | 212744 | 61.4% |
| **Gross profit** | 95269 | 34.0% | 133933 | 38.6% |
| Selling, general and administrative expenses | 80059 | 28.6% | 82198 | 23.7% |
| **Operating profit** | 15210 | 5.4% | 51735 | 14.9% |
| Interest income, net | 645 | 0.2% | 759 | 0.2% |
| Other income (expense), net | 293 | 0.1% | (1462) | -0.4% |
| **Earnings before income taxes** | 16148 | 5.7% | 51032 | 14.7% |
| Provision for income taxes | 4716 | 1.7% | 12828 | 3.7% |
| **Net income** | $11432 | 4.0% | $38204 | 11.0% |
| Basic earnings per share | $0.60 |  | $1.73 |  |
| Diluted earnings per share | $0.59 |  | $1.70 |  |
| Weighted average shares used in computation of earnings per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 19114 |  | 22056 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 19255 |  | 22451 |  |
|  | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** |
|  | **January 28,** | **% of** | **January 29,** | **% of** |
|  | **2023** | **Sales** | **2022** | **Sales** |
|  | **(Unaudited)** |  |  |  |
| Net sales | $958380 | 100.0% | $1183867 | 100.0% |
| Cost of goods sold | 633702 | 66.1% | 727137 | 61.4% |
| **Gross profit** | 324678 | 33.9% | 456730 | 38.6% |
| Selling, general and administrative expenses | 293578 | 30.7% | 298920 | 25.3% |
| **Operating profit** | 31100 | 3.2% | 157810 | 13.3% |
| Interest income, net | 1924 | 0.3% | 3592 | 0.4% |
| Other expense, net | (557) | -0.1% | (891) | -0.1% |
| **Earnings before income taxes** | 32467 | 3.4% | 160511 | 13.6% |
| Provision for income taxes | 11433 | 1.2% | 41222 | 3.5% |
| **Net income** | $21034 | 2.2% | $119289 | 10.1% |
| Basic earnings per share | $1.10 |  | $4.93 |  |
| Diluted earnings per share | $1.08 |  | $4.85 |  |
| Weighted average shares used in computation of earnings per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 19208 |  | 24187 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 19428 |  | 24593 |  |

---

**ZUMIEZ INC.** 

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | **January 28, 2023** | **January 29, 2022** |
|  | **(Unaudited)** | |
| **Assets** | | |
| **Current assets** | | |
| Cash and cash equivalents | $81503 | $117223 |
| Marketable securities | 91986 | 177260 |
| Receivables | 20613 | 14427 |
| Inventories | 134824 | 128728 |
| Prepaid expenses and other current assets | 11252 | 10011 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | 340178 | 447649 |
| Fixed assets, net | 93746 | 91451 |
| Operating lease right-of-use assets | 222240 | 230187 |
| Goodwill | 56566 | 57560 |
| Intangible assets, net | 14443 | 14698 |
| Deferred tax assets, net | 8205 | 8659 |
| Other long-term assets | 12525 | 11808 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total long-term assets** | 407725 | 414363 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $747903 | $862012 |
| **Liabilities and Shareholders' Equity** |  |  |
| **Current liabilities** |  |  |
| Trade accounts payable | $40379 | $55638 |
| Accrued payroll and payroll taxes | 16321 | 31209 |
| Operating lease liabilities | 65460 | 63577 |
| Other liabilities | 23649 | 34015 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | 145809 | 184439 |
| Long-term operating lease liabilities | 188835 | 204309 |
| Other long-term liabilities | 5931 | 4946 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total long-term liabilities** | 194766 | 209255 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 340575 | 393694 |
| **Shareholders' equity** |  |  |
| Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding |  |  |
| Common stock, no par value, 50,000 shares authorized; 19,489 shares issued and outstanding at January 28, 2023 and 21,215 shares issued and outstanding at January 29, 2022 | 188418 | 180824 |
| Accumulated other comprehensive loss | (19793) | (13463) |
| Retained earnings | 238703 | 300957 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' equity** | 407328 | 468318 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' equity** | $747903 | $862012 |

---

**ZUMIEZ INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Fiscal Year Ended** | **Fiscal Year Ended** |
|  | **January 28, 2023** | **January 29, 2022** |
|  | **(Unaudited)** | |
| **Cash flows from operating activities:** | | |
| Net income | $21034 | $119289 |
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: |  |  |
| Depreciation, amortization and accretion | 21626 | 22930 |
| Noncash lease expense | 67394 | 64466 |
| Deferred taxes | 2485 | 2374 |
| Stock-based compensation expense | 6991 | 6816 |
| Impairment of long-lived assets | 2081 | 2229 |
| Other | 1176 | 2728 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables | (1716) | 2884 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | (5279) | 2587 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (1082) | (2824) |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts payable | (15484) | (14060) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and payroll taxes | (14895) | 3649 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | (2320) | (5101) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (76605) | (77657) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (5785) | 4640 |
| **Net cash (used in) provided by operating activities** | (379) | 134950 |
| **Cash flows from investing activities:** |  |  |
| Additions to fixed assets | (25627) | (15749) |
| Purchases of marketable securities and other investments | (1914) | (160328) |
| Sales and maturities of marketable securities and other investments | 81750 | 277720 |
| **Net cash provided by investing activities** | 54209 | 101643 |
| **Cash flows from financing activities:** |  |  |
| Proceeds from revolving credit facilities | 3979 |  |
| Payments on revolving credit facilities | (3979) |  |
| Proceeds from issuance and exercise of stock-based awards | 1111 | 3001 |
| Payments for tax withholdings on equity awards | (508) | (621) |
| Common stock repurchased | (87860) | (193789) |
| **Net cash used in financing activities** | (87257) | (191409) |
| **Effect of exchange rate changes on cash, cash equivalents, and restricted cash** | (2172) | (1822) |
| **Net (decrease) increase in cash, cash equivalents, and restricted cash** | (35599) | 43362 |
| **Cash, cash equivalents, and restricted cash, beginning of period** | 124052 | 80690 |
| **Cash, cash equivalents, and restricted cash, end of period** | $88453 | $124052 |
| **Supplemental disclosure on cash flow information:** |  |  |
| Cash paid during the period for income taxes | $11309 | $42767 |
| Accrual for repurchase of common stock |  | 4572 |
| Accrual for purchases of fixed assets | 1433 | 984 |

---

**Company Contact:**

Darin White

Director of Finance &

Investor Relations

Zumiez Inc.

(425) 551-1500, ext. 1337

**Investor Contact:**

ICR

Brendon Frey

(203) 682-8200