Zumiez Inc. Announces Fiscal 2020 Third Quarter Results
Zumiez Inc. (NASDAQ: ZUMZ) reported a 2.6% increase in third-quarter sales, reaching $271.0 million for the period ending October 31, 2020. Diluted EPS rose 54.7% to $1.16, up from $0.75 a year prior. Cash and current marketable securities surged 77.0% to $316.2 million. However, total sales for the first nine months fell 6.6% to $659.1 million, with net income for the same period increasing 15.3% to $33.4 million. The company withdrew its full-year guidance due to market uncertainty but announced a stock repurchase program of up to $100 million.
- Third-quarter sales increased 2.6% to $271.0 million.
- Diluted EPS increased 54.7% to $1.16.
- Cash and current marketable securities rose 77.0% to $316.2 million.
- Net income for the first nine months increased 15.3% to $33.4 million.
- Stock repurchase program authorized for up to $100 million.
- Total sales for the first nine months decreased 6.6% to $659.1 million.
- Fourth quarter-to-date sales declined approximately 3.9%.
Third Quarter 2020 Sales Increased
Third Quarter 2020 Diluted Earnings Per Share Increased
Cash and Current Marketable Securities Increased
LYNNWOOD, Wash., Dec. 03, 2020 (GLOBE NEWSWIRE) -- Zumiez Inc. (NASDAQ: ZUMZ) today reported results for the third quarter ended October 31, 2020.
Total net sales for the third quarter ended October 31, 2020 (13 weeks) increased
Total net sales for the nine months (39 weeks) ended October 31, 2020 decreased
At October 31, 2020, the Company had cash and current marketable securities of
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “We once again successfully navigated volatile market conditions and drove strong earnings growth. Following a challenging start to the third quarter due to the delayed start to back to school, sales were positive in both September and October as we capitalized on late season demand. Our performance in 2020 is a testament to the resiliency of our people and their commitment to serving our customers, the strong culture and brand loyalty we’ve fostered over many years, and the ability of our business model to adapt to changes in purchasing behavior. While there is still uncertainty around how the remainder of the holiday season will unfold, we believe we are positioned well to meet the customer’s expectations and drive value for the long-term.”
Fiscal Fourth Quarter-to-Date Sales
Total fourth quarter-to-date sales for the 31 days ended December 1, 2020 were down approximately
Outlook
Due to the fast-moving nature of this situation and the uncertainty of impacts on revenue and costs, the Company previously withdrew its full year fiscal 2020 guidance. The Company is not providing an updated outlook at this time for the fourth quarter or the year.
Share Repurchase Authorization:
On December 2, 2020, the Company’s Board of Directors approved the repurchase of up to an aggregate of
Conference Call Information
A conference call will be held today to discuss third quarter fiscal 2020 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 6946677.
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 November 28, 2020, we operated 726 stores, including 608 in the United States, 52 in Canada, 54 in Europe and 12 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 February 1, 2020 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.
Company Contact:
Darin White
Director of Finance &
Investor Relations
Zumiez Inc.
(425) 551-1500, ext. 1337
Investor Contact:
ICR
Brendon Frey
(203) 682-8200
| ZUMIEZ INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| October 31, 2020 | % of Sales | November 2, 2019 | % of Sales | |||||||||
| Net sales | $ | 270,952 | 100.0 | % | $ | 264,022 | 100.0 | % | ||||
| Cost of goods sold | 165,146 | 61.0 | % | 169,446 | 64.2 | % | ||||||
| Gross profit | 105,806 | 39.0 | % | 94,576 | 35.8 | % | ||||||
| Selling, general and administrative expenses | 67,941 | 25.0 | % | 70,266 | 26.6 | % | ||||||
| Operating profit | 37,865 | 14.0 | % | 24,310 | 9.2 | % | ||||||
| Interest income, net | 769 | 0.3 | % | 1,002 | 0.4 | % | ||||||
| Other income, net | 86 | 0.0 | % | 275 | 0.1 | % | ||||||
| Earnings before income taxes | 38,720 | 14.3 | % | 25,587 | 9.7 | % | ||||||
| Provision for income taxes | 9,581 | 3.5 | % | 6,408 | 2.4 | % | ||||||
| Net income | $ | 29,139 | 10.8 | % | $ | 19,179 | 7.3 | % | ||||
| Basic earnings per share | $ | 1.17 | $ | 0.76 | ||||||||
| Diluted earnings per share | $ | 1.16 | $ | 0.75 | ||||||||
| Weighted average shares used in computation of earnings per share: | ||||||||||||
| Basic | 24,864 | 25,231 | ||||||||||
| Diluted | 25,219 | 25,560 | ||||||||||
| Nine Months Ended | ||||||||||||
| October 31, 2020 | % of Sales | November 2, 2019 | % of Sales | |||||||||
| Net sales | $ | 659,116 | 100.0 | % | 705,376 | 100.0 | % | |||||
| Cost of goods sold | 438,724 | 66.6 | % | 467,140 | 66.2 | % | ||||||
| Gross profit | 220,392 | 33.4 | % | 238,236 | 33.8 | % | ||||||
| Selling, general and administrative expenses | 177,263 | 26.9 | % | 201,285 | 28.6 | % | ||||||
| Operating profit | 43,129 | 6.5 | % | 36,951 | 5.2 | % | ||||||
| Interest income, net | 2,637 | 0.4 | % | 2,652 | 0.4 | % | ||||||
| Other income, net | 584 | 0.1 | % | 987 | 0.2 | % | ||||||
| Earnings before income taxes | 46,350 | 7.0 | % | 40,590 | 5.8 | % | ||||||
| Provision for income taxes | 12,920 | 1.9 | % | 11,593 | 1.7 | % | ||||||
| Net income | $ | 33,430 | 5.1 | % | 28,997 | 4.1 | % | |||||
| Basic earnings per share | $ | 1.34 | 1.15 | |||||||||
| Diluted earnings per share | $ | 1.32 | 1.14 | |||||||||
| Weighted average shares used in computation of earnings per share: | ||||||||||||
| Basic | 24,913 | 25,173 | ||||||||||
| Diluted | 25,271 | 25,480 | ||||||||||
| ZUMIEZ INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | ||||||||||||||
| October 31, 2020 | February 1, 2020 | November 2, 2019 | ||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| Assets | ||||||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | $ | 84,939 | $ | 52,428 | $ | 31,929 | ||||||||
| Marketable securities | 231,234 | 198,768 | 146,718 | |||||||||||
| Receivables | 19,301 | 16,841 | 16,790 | |||||||||||
| Inventories | 160,961 | 135,095 | 183,381 | |||||||||||
| Prepaid expenses and other current assets | 9,240 | 9,456 | 10,757 | |||||||||||
| Total current assets | 505,675 | 412,588 | 389,575 | |||||||||||
| Fixed assets, net | 101,820 | 113,051 | 115,170 | |||||||||||
| Operating lease right-of-use assets | 273,796 | 301,784 | 301,736 | |||||||||||
| Goodwill | 59,540 | 57,099 | 57,580 | |||||||||||
| Intangible assets, net | 15,329 | 14,564 | 14,772 | |||||||||||
| Deferred tax assets, net | 8,192 | 6,303 | 7,424 | |||||||||||
| Other long-term assets | 9,802 | 8,869 | 8,773 | |||||||||||
| Total long-term assets | 468,479 | 501,670 | 505,455 | |||||||||||
| Total assets | $ | 974,154 | $ | 914,258 | $ | 895,030 | ||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||
| Current liabilities | ||||||||||||||
| Trade accounts payable | $ | 84,069 | $ | 47,787 | $ | 73,418 | ||||||||
| Accrued payroll and payroll taxes | 25,603 | 23,653 | 21,929 | |||||||||||
| Income taxes payable | 8,402 | 4,686 | 3,430 | |||||||||||
| Operating lease liabilities | 72,526 | 61,800 | 59,742 | |||||||||||
| Other liabilities | 25,327 | 21,784 | 18,815 | |||||||||||
| Total current liabilities | 215,927 | 159,710 | 177,334 | |||||||||||
| Long-term operating lease liabilities | 255,160 | 284,717 |
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FAQ
What were Zumiez's third quarter 2020 financial results?
Zumiez reported third quarter sales of $271.0 million, a 2.6% increase from the previous year, with diluted EPS rising 54.7% to $1.16.
How did Zumiez's cash position change in Q3 2020?
Zumiez's cash and current marketable securities increased by 77.0%, reaching $316.2 million.
What is the stock repurchase program for ZUMZ?
On December 2, 2020, Zumiez's Board of Directors approved a stock repurchase program of up to $100 million.
Did Zumiez provide guidance for 2020 after the Q3 results?
No, Zumiez withdrew its full-year fiscal 2020 guidance due to market uncertainties.
How did Zumiez perform in the first nine months of fiscal 2020?
Overall sales for the first nine months decreased 6.6% to $659.1 million, but net income increased 15.3% to $33.4 million.
Zumiez Inc.
NASDAQ:ZUMZZUMZ RankingsZUMZ Latest NewsZUMZ Stock Data
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6.19%
Apparel Retail
Retail-apparel & Accessory Stores
United States of America
LYNNWOOD
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