• Zumiez Inc. Announces Fiscal 2023 Fourth Quarter Results

    المصدر: Nasdaq GlobeNewswire / 14 مارس 2024 15:05:00   America/Chicago

    LYNNWOOD, Wash., March 14, 2024 (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 February 3, 2024.

    Net sales for the fourth quarter ended February 3, 2024 (14 weeks) increased 0.6% to $281.8 million from $280.1 million in the fourth quarter ended January 28, 2023 (13 weeks). Net loss in the fourth quarter of fiscal 2023 was $33.5 million, or $1.73 per share, compared to net income of $11.4 million, or $0.59 per diluted share, in the fourth quarter of the prior fiscal year. Fiscal 2023 fourth quarter results reflect a goodwill impairment charge of $41.1 million, or $2.13 per share after-tax, related to the Company’s decision to slow store growth and focus on profitability in Europe and the corresponding impact on the future cash flow projections of its Blue Tomato business.

    Total net sales for the twelve months (53 weeks) ended February 3, 2024 decreased 8.6% to $875.5 million from $958.4 million reported for the twelve months (52 weeks) ended January 28, 2023. Net loss for fiscal 2023 inclusive of the $41.1 million goodwill impairment charge was $62.6 million, or $3.25 per share, compared to net income for fiscal 2022 of $21.0 million, or $1.08 per diluted share.

    At February 3, 2024, the Company had cash and current marketable securities of $171.6 million compared to cash and current marketable securities of $173.5 million at January 28, 2023. The slight decrease was primarily driven by capital expenditures, offset by cash flow from operating activities.

    Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We concluded a difficult year with stronger than anticipated fourth quarter results as our consolidated monthly sales trend accelerated in January. Within our recent performance, there were multiple areas that showed a marked improvement, led by our North American men’s business which grew year-over-year in the fourth quarter. While we are encouraged by our stronger than anticipated fourth quarter and sustained quarterly improvements as we moved through the year, the global operating environment remains challenging and therefore we are further adjusting our strategies to balance the interests of our shareholders and customers. For 2024, this includes slowing store growth in Europe and focusing on increasing the productivity of our current footprint in the region. We are also continuing to close underperforming stores in the U.S., reducing labor costs to align with lower revenue levels, and looking to drive even greater efficiencies throughout the organization. At the same time, we’ll invest to ensure we are winning with the consumer by launching new, highly sought-after brands, maintaining our best-in-class service levels, and strengthening our customer connections. We have successfully navigated down cycles before and I am confident in our teams’ ability to return the Company to growth and enhanced profitability both in the near-term and the years ahead.”

    Fiscal First Quarter-to-Date Sales
    Total first quarter-to-date sales for the four weeks ended March 2, 2024 decreased 3.1%, from the four weeks ended February 25, 2023. Comparable sales for the four weeks ended March 2, 2024 decreased 6.2% from the four weeks ended March 4, 2023. From a regional perspective, comparable sales for North America decreased 2.6% and other international comparable sales decreased 17.8%.

    Fiscal 2023 First Quarter Outlook
    The Company is introducing guidance for the three months ending May 4, 2024. Net sales are projected to be in the range of $167 to $172 million. Earnings per share are expected to be between a loss of $1.09 and a loss of $1.19.

    The Company currently intends to open approximately 10 new stores in fiscal 2024, including up to 3 stores in North America, 3 stores in Europe and 4 stores in Australia.

    Conference call Information
    To access the conference call, please pre-register (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.

    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 March 2, 2024, we operated 753 stores, including 594 in the United States, 47 in Canada, 87 in Europe and 25 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.

    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 January 28, 2023 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
      February 3,
     % of January 28, % of
      2024 Sales 2023 Sales
       (Unaudited)   (Unaudited)  
    Net sales $281,822  100.0%  280,110  100.0%
    Cost of goods sold  185,171  65.7%  184,841  66.0%
    Gross profit  96,651  34.3%  95,269  34.0%
    Selling, general and administrative expenses  129,436  45.9%  80,059  28.6%
    Operating (loss) profit  (32,785) -11.6%  15,210  5.4%
    Interest income, net  941  0.3%  645  0.2%
    Other income (expense), net  545  0.2%  293  0.1%
    (Loss) Earnings before income taxes  (31,299) -11.1%  16,148  5.8%
    Provision for income taxes  2,188  0.8%  4,716  1.7%
    Net (loss) income $(33,487) -11.9% $11,432  4.1%
    Basic earnings per share $(1.73)   $0.60   
    Diluted earnings per share $(1.73)   $0.59   
    Weighted average shares used in computation of earnings per share:       
    Basic  19,323     19,114   
    Diluted  19,323     19,255   
              
              
      Fiscal Year Ended
      February 3,
     % of January 28, % of
      2024 Sales 2023 Sales
       (Unaudited)      
    Net sales $875,486  100.0% $958,380  100.0%
    Cost of goods sold  594,596  67.9%  633,702  66.1%
    Gross profit  280,890  32.1%  324,678  33.9%
    Selling, general and administrative expenses  345,679  39.5%  293,578  30.7%
    Operating (loss) profit  (64,789) -7.4%  31,100  3.2%
    Interest income, net  3,522  0.4%  1,924  0.2%
    Other expense, net  (611) -0.1%  (557) -0.1%
    (Loss) Earnings before income taxes  (61,878) -7.1%  32,467  3.4%
    Provision for income taxes  732  0.1%  11,433  1.2%
    Net (loss) income $(62,610) -7.2% $21,034  2.2%
    Basic earnings per share $(3.25)   $1.10   
    Diluted earnings per share $(3.25)   $1.08   
    Weighted average shares used in computation of earnings per share:       
    Basic  19,290     19,208   
    Diluted  19,290     19,428   
              


     
    ZUMIEZ INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
         
      February 3,
    2024
     January 28,
    2023
      (Unaudited)  
    Assets    
    Current assets    
    Cash and cash equivalents $88,875  $81,503 
    Marketable securities  82,704   91,986 
    Receivables  13,780   20,613 
    Inventories  128,827   134,824 
    Prepaid expenses and other current assets  12,401   11,252 
    Total current assets  326,587   340,178 
    Fixed assets, net  90,508   93,746 
    Operating lease right-of-use assets  196,775   222,240 
    Goodwill  15,374   56,566 
    Intangible assets, net  14,200   14,443 
    Deferred tax assets, net  8,623   8,205 
    Other long-term assets  12,159   12,525 
    Total long-term assets  337,639   407,725 
    Total assets $664,226  $747,903 
         
    Liabilities and Shareholders’ Equity    
    Current liabilities    
    Trade accounts payable $38,885  $40,379 
    Accrued payroll and payroll taxes  18,431   16,321 
    Operating lease liabilities  60,885   65,460 
    Other liabilities  25,886   23,649 
    Total current liabilities  144,087   145,809 
    Long-term operating lease liabilities  159,877   188,835 
    Other long-term liabilities  7,052   5,931 
    Total long-term liabilities  166,929   194,766 
    Total liabilities  311,016   340,575 
         
    Shareholders’ equity    
    Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding      
    Common stock, no par value, 50,000 shares authorized; 19,833 shares issued and outstanding at February 3, 2024 and 19,489 shares issued and outstanding at January 28, 2023  196,144   188,418 
    Accumulated other comprehensive loss  (19,027)  (19,793)
    Retained earnings  176,093   238,703 
    Total shareholders’ equity  353,210   407,328 
    Total liabilities and shareholders’ equity $664,226  $747,903 
         


     
    ZUMIEZ INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)
       
      Fiscal Year Ended
      February 3,
    2024
     January 28,
    2023
      (Unaudited)  
    Cash flows from operating activities:    
    Net (loss) income $(62,610) $21,034 
    Adjustments to reconcile net income to net cash (used in) provided by operating activities:    
    Depreciation, amortization and accretion  22,763   21,626 
    Noncash lease expense  68,164   67,394 
    Deferred taxes  (1,050)  2,485 
    Stock-based compensation expense  7,022   6,991 
    Impairment of goodwill and long-lived assets  43,904   2,081 
    Other  206   1,176 
    Changes in operating assets and liabilities:  -   - 
    Receivables  6,859   (1,716)
    Inventories  5,809   (5,279)
    Prepaid expenses and other assets  (1,817)  (1,082)
    Trade accounts payable  (907)  (15,484)
    Accrued payroll and payroll taxes  2,170   (14,895)
    Income taxes payable  2,090   (2,320)
    Operating lease liabilities  (78,983)  (76,605)
    Other liabilities  1,135   (5,785)
    Net cash provided by (used in) operating activities  14,755   (379)
    Cash flows from investing activities:    
    Additions to fixed assets  (20,350)  (25,627)
    Purchases of marketable securities and other investments  (38,348)  (1,914)
    Sales and maturities of marketable securities and other investments  50,150   81,750 
    Net cash (used in) provided by investing activities  (8,548)  54,209 
    Cash flows from financing activities:    
    Proceeds from revolving credit facilities  49,440   22,688 
    Payments on revolving credit facilities  (49,440)  (22,688)
    Proceeds from issuance and exercise of stock-based awards  704   1,111 
    Payments for tax withholdings on equity awards     (508)
    Common stock repurchased     (87,860)
    Net cash provided by (used in) financing activities  704   (87,257)
    Effect of exchange rate changes on cash, cash equivalents, and restricted cash  (1,080)  (2,172)
    Net increase (decrease) in cash, cash equivalents, and restricted cash  5,831   (35,599)
    Cash, cash equivalents, and restricted cash, beginning of period  88,453   124,052 
    Cash, cash equivalents, and restricted cash, end of period $94,284  $88,453 
    Supplemental disclosure on cash flow information:    
    Cash paid during the period for income taxes $2,065  $11,309 
    Accrual for purchases of fixed assets  800   1,433 
         
    See accompanying notes to consolidated financial statements
         

    Company Contact:
    Darin White
    Director of Finance &
    Investor Relations
    Zumiez Inc.
    (425) 551-1500, ext. 1337

    Investor Contact:
    ICR
    Brendon Frey
    (203) 682-8200


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