• Zumiez Inc. Announces Fiscal 2023 Third Quarter Results

    ソース: Nasdaq GlobeNewswire / 30 11 2023 15:05:00   America/Chicago

    LYNNWOOD, Wash., Nov. 30, 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 third quarter ended October 28, 2023.

    Net sales for the third quarter ended October 28, 2023 (13 weeks) decreased 8.9% to $216.3 million from $237.6 million in the third quarter ended October 29, 2022 (13 weeks). Net loss in the third quarter of fiscal 2023 was $2.2 million, or $0.12 per diluted share, compared to net income of $6.9 million, or $0.36 per diluted share, in the third quarter of the prior fiscal year.

    Total net sales for the nine months (39 weeks) ended October 28, 2023 decreased 12.5% to $593.7 million from $678.3 million reported for the nine months (39 weeks) ended October 29, 2022. Net loss for the first nine months of fiscal 2023 was $29.1 million, or $1.51 per diluted share, compared to net income for the first nine months of fiscal 2022 of $9.6 million, or $0.49 per diluted share.

    At October 28, 2023, the Company had cash and current marketable securities of $135.8 million compared to cash and current marketable securities of $141.1 million at October 29, 2022. The decrease was primarily driven by capital expenditures partially offset by cash flow from operating activities.

    Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “Third quarter results came in just ahead of our guidance for sales and earnings as we saw sequential improvement in the year-over-year sales comparisons from the first two quarters of 2023. Given the challenging macroeconomic backdrop, we are encouraged by the strength of newer brand introductions and fashion trends that we look to capitalize upon in the important holiday season. While 2023 has certainly been difficult, the adjustments we’ve made to our merchandise assortment and our steadfast commitment to providing consumers with superior service and a highly differentiated shopping experience will continue to separate us from the competition and position Zumiez to recapture operating margin as our sales recover.”

    Fourth Quarter To-Date
    Total fourth quarter-to-date total sales for the 31 days ending November 28, 2023 decreased 4.6%, compared with the same 31-day time period in the prior year ended November 29, 2022. Total comparable sales for the 31-day period ending November 28, 2023 decreased 6.0% from the comparable period in the prior year.

    Fiscal 2023 Fourth Quarter Outlook
    The Company is introducing guidance for the three months ending February 3, 2024. Net sales are projected to be in the range of $275 to $281 million inclusive of the 53rd week. Consolidated operating margins are expected to between 1.5% and 2.5% resulting in earnings per diluted share of approximately $0.24 to $0.34. The Company currently intends to open 19 new stores in fiscal 2023, including up to 5 stores in North America, 10 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 November 25, 2023, we operated 771 stores, including 610 in the United States, 49 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
      October 28, 2023 % of Sales  October 29, 2022 % of Sales
    Net sales $216,339  100.0% $237,591  100.0%
    Cost of goods sold  143,135  66.2%  155,608  65.5%
    Gross profit  73,204  33.8%  81,983  34.5%
    Selling, general and administrative expenses  73,361  33.9%  71,544  30.1%
    Operating (loss) profit   (157) -0.1%  10,439  4.4%
    Interest income, net  948  0.4%  428  0.1%
    Other income, net  (1,037) -0.4%  (1,256) -0.5%
    (Loss) earnings before income taxes  (246) -0.1%  9,611  4.0%
    Provision for (Benefit from) income taxes  1,985  0.9%  2,679  1.1%
    Net (loss) income $(2,231) -1.0% $6,932  2.9%
    Basic (loss) earnings per share $(0.12)   $0.36   
    Diluted (loss) earnings per share $(0.12)   $0.36   
    Weighted average shares used in computation of (loss) earnings per share:        
    Basic  19,327     19,101   
    Diluted  19,327     19,248   
               
      Nine Months Ended
      October 28, 2023 % of Sales  October 29, 2022 % of Sales
    Net sales $593,664  100.0% $678,270  100.0%
    Cost of goods sold  409,425  69.0%  448,861  66.2%
    Gross profit  184,239  31.0%  229,409  33.8%
    Selling, general and administrative expenses  216,243  36.3%  213,519  31.5%
    Operating (loss) profit  (32,004) -5.3%  15,890  2.3%
    Interest income, net  2,581  0.4%  1,279  0.2%
    Other (expense) income, net  (1,156) -0.2%  (850) -0.1%
    (Loss) earnings before income taxes  (30,579) -5.1%  16,319  2.4%
    Provision for (Benefit from) income taxes  (1,456) -0.2%  6,717  1.0%
    Net (loss) income $(29,122) -4.9% $9,602  1.4%
               
    Basic (loss) earnings per share $(1.51)   $0.50   
    Diluted (loss) earnings per share $(1.51)   $0.49   
    Weighted average shares used in computation of (loss) earnings per share:          
    Basic  19,278     19,239   
    Diluted  19,278     19,490   
               


    ZUMIEZ INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
     
      October 28, 2023 January 28, 2023 October 29, 2022
      (Unaudited)   (Unaudited)
    Assets      
    Current assets      
    Cash and cash equivalents $48,968  $81,503  $49,336 
    Marketable securities  86,857   91,986   91,776 
    Receivables  23,022   20,613   19,824 
    Inventories  175,882   134,824   177,205 
    Prepaid expenses and other current assets  11,315   11,252   15,166 
    Total current assets  346,044   340,178   353,307 
    Fixed assets, net  92,925   93,746   91,590 
    Operating lease right-of-use assets  212,984   222,240   220,420 
    Goodwill  55,145   56,566   52,899 
    Intangible assets, net  13,819   14,443   13,199 
    Deferred tax assets, net  10,788   8,205   6,794 
    Other long-term assets  11,321   12,525   11,598 
    Total long-term assets  396,982   407,725   396,500 
    Total assets $743,026  $747,903  $749,807 
           
    Liabilities and Shareholders’ Equity      
    Current liabilities      
    Trade accounts payable $74,337  $40,379  $69,076 
    Accrued payroll and payroll taxes  18,756   16,321   20,557 
    Operating lease liabilities  69,084   65,460   65,236 
    Other liabilities  19,602   23,649   20,677 
    Total current liabilities  181,779   145,809   175,546 
    Long-term operating lease liabilities  176,233   188,835   188,818 
    Other long-term liabilities   5,550   5,931   4,773 
    Total long-term liabilities  181,783   194,766   193,591 
    Total liabilities  363,562   340,575   369,137 
           
    Shareholders’ equity      
    Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding  —   —   — 
    Common stock, no par value, 50,000 shares authorized; 19,836 shares issued and outstanding at October 28, 2023, 19,489 shares issued and outstanding at January 28, 2023, and 19,490 shares issued and outstanding at October 29, 2022  194,230   188,418   186,684 
    Accumulated other comprehensive loss  (24,347)  (19,793)  (33,285)
    Retained earnings  209,581   238,703   227,271 
    Total shareholders’ equity  379,464   407,328   380,670 
    Total liabilities and shareholders’ equity $743,026  $747,903  $749,807 
              


    ZUMIEZ INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)
    		 
      
      Nine Months Ended 
      October 28, 2023 October 29, 2022 
    Cash flows from operating activities:     
    Net (loss) income $(29,122) $9,602  
    Adjustments to reconcile net (loss) income to net cash used in operating activities:     
    Depreciation, amortization and accretion  16,209   15,802  
    Noncash lease expense  51,607   50,074  
    Deferred taxes  (3,014)  3,441  
    Stock-based compensation expense  5,108   5,249  
    Impairment of long-lived assets  925   372  
    Other  943   1,331  
    Changes in operating assets and liabilities:     
    Receivables  (1,767)  (2,317) 
    Inventories  (43,186)  (52,020) 
    Prepaid expenses and other assets  (273)  (5,365) 
    Trade accounts payable  34,270   14,570  
    Accrued payroll and payroll taxes  2,684   (10,191) 
    Income taxes payable  252   (1,790) 
    Operating lease liabilities  (52,656)  (56,796) 
    Other liabilities  (4,902)  (8,374) 
    Net cash used in operating activities  (22,922)  (36,412) 
    Cash flows from investing activities:     
    Additions to fixed assets  (16,210)  (17,720) 
    Purchases of marketable securities and other investments  (28,679)  (1,914) 
    Sales and maturities of marketable securities and other investments  34,506   80,051  
    Net cash (used in) provided by investing activities  (10,383)  60,417  
    Cash flows from financing activities:     
    Proceeds from revolving credit facilities  25,682   19,844  
    Payments on revolving credit facilities  (25,682)  (19,844) 
    Proceeds from issuance and exercise of stock-based awards  890   1,110  
    Payments for tax withholdings on equity awards  (185)  (499) 
    Common stock repurchased  —   (87,860) 
    Net cash provided by (used in) financing activities  705   (87,249) 
    Effect of exchange rate changes on cash, cash equivalents, and restricted cash  (1,643)  (4,978) 
    Net decrease in cash, cash equivalents, and restricted cash  (34,243)  (68,222) 
    Cash, cash equivalents, and restricted cash, beginning of period  88,453   124,052  
    Cash, cash equivalents, and restricted cash, end of period $54,210  $55,830  
    Supplemental disclosure on cash flow information:     
    Cash paid during the period for income taxes $1,686  $5,166  
    Accrual for purchases of fixed assets  2,780   1,802  
              

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

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


シェアする