Zumiez Inc. (NASDAQ:ZUMZ) Q3 2020 Results Earnings Conference Call December 3, 2020 5:00 PM ET Company Participants Rick Brooks - Chief Executive Officer Chris Work - Chief Financial Officer Conference Call Participants Janine Stichter - Jefferies Sharon Zackfia - William Blair Jeff Van Sinderen - B. Riley Jonathan Komp - Baird Mitch Kummetz - Pivotal Research Operator Good afternoon, ladies and gentlemen. And welcome to the Zumiez Inc. third quarter fiscal 2020 earnings conference call. At this time, all p ...

Zumiez, Inc. (NASDAQ:ZUMZ) Q2 2020 Results Conference Call September 10, 2020 5:00 PM ET Company Participants Rick Brooks - CEO Chris Work - CFO Conference Call Participants Sharon Zackfia - William Blair Janine Stichter - Jefferies Jeff Van Sinderen - B. Riley Mitch Kummetz - Pivotal Research Steven Nowotarski - Baird Operator Good afternoon, ladies and gentlemen. And welcome to the Zumiez Inc. Second Quarter Fiscal 2020 Earnings Conference Call. At this time, all participants are in listen-only mode. We ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Washington 91-1040022 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) FORM 10-Q 4001 204th Street SW, Lynnwood, WA 98036 (Address of principal executive offices) (Zip Code) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Registrant's telephone number, including area code: (425) 551-1500 FOR THE QUARTERLY PERIOD ENDED AUGUST 1, 2020 OR ☐ TRANSIT ...

Part I [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents unaudited interim financial statements, reflecting a significant net loss of **$21.1 million** due to COVID-19 store closures [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased from **$914.3 million** to **$861.4 million**, with shareholders' equity declining to **$431.2 million** Balance Sheet Highlights (In thousands) | Balance Sheet Highlights (In thousands) | May 2, 2020 (Unaudited) | February 1, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $375,595 | $412,588 | | Cash and cash equivalents | $63,731 | $52,428 | | Marketable securities | $153,494 | $198,768 | | Inventories | $136,354 | $135,095 | | **Total Assets** | **$861,433** | **$914,258** | | **Total Current Liabilities** | $156,881 | $159,710 | | **Total Liabilities** | **$430,279** | **$448,172** | | **Total Shareholders' Equity** | **$431,154** | **$466,086** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales fell **35.3%** to **$137.8 million**, resulting in a net loss of **$21.1 million** and **($0.84)** diluted loss per share Statement of Operations (In thousands, except per share) | Statement of Operations (In thousands, except per share) | Three Months Ended May 2, 2020 | Three Months Ended May 4, 2019 | | :--- | :--- | :--- | | Net sales | $137,772 | $212,928 | | Gross profit | $23,736 | $66,464 | | Operating (loss) profit | $(27,848) | $968 | | Net (loss) income | $(21,101) | $793 | | Diluted (loss) earnings per share | $(0.84) | $0.03 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations was **$17.5 million**, while investing activities provided **$42.7 million** and financing used **$13.1 million** Cash Flow Summary (In thousands) | Cash Flow Summary (In thousands) | Three Months Ended May 2, 2020 | Three Months Ended May 4, 2019 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(17,542) | $9,862 | | Net cash provided by investing activities | $42,734 | $2,285 | | Net cash (used in) provided by financing activities | $(13,082) | $345 | | **Net increase in cash, cash equivalents, and restricted cash** | **$11,257** | **$12,026** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail COVID-19's impact, including **9%** of stores open and a **$1.5 million** impairment charge, alongside revenue and repurchase data - Due to the COVID-19 pandemic, the company began closing its retail stores globally between March 16 and March 19, 2020, with only 65 of its 719 stores (**9%**) open as of May 2, 2020[18](index=18&type=chunk)[25](index=25&type=chunk) - The company recorded **$1.5 million** in impairment charges related to long-lived assets and operating lease right-of-use assets due to COVID-19 store closures[29](index=29&type=chunk) Net Sales by Geographic Region (In thousands) | Net Sales by Geographic Region (In thousands) | Three Months Ended May 2, 2020 | Three Months Ended May 4, 2019 | | :--- | :--- | :--- | | United States | $110,364 | $176,918 | | Canada | $6,173 | $11,032 | | Europe | $19,600 | $22,946 | | Australia | $1,635 | $2,032 | | **Total Net Sales** | **$137,772** | **$212,928** | - During the quarter, the company repurchased **694,000** shares of its common stock for a total cost of **$13.4 million**, at an average price of **$19.31** per share[60](index=60&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A details Q1 2020 performance, heavily impacted by COVID-19, with net sales down **35.3%** but comparable sales up **12.9%** - In response to COVID-19, the company took several actions to preserve financial liquidity, including suspending hiring, reducing operating costs, cutting capital spending, canceling inventory orders, suspending rent payments, and pausing share repurchases[83](index=83&type=chunk)[87](index=87&type=chunk) - Net sales decreased by **35.3%** to **$137.8 million**, primarily due to COVID-19 store closures, partially offset by a **12.9%** increase in comparable sales from e-commerce[85](index=85&type=chunk)[86](index=86&type=chunk) - Gross profit margin decreased by **1,400 basis points** to **17.2%**, mainly due to deleveraging fixed costs and increased web fulfillment expenses[87](index=87&type=chunk) [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Net sales fell **35.3%** due to COVID-19, gross profit margin contracted to **17.2%**, leading to a **$21.1 million** net loss Key Metrics (% of Net Sales) | Key Metrics (% of Net Sales) | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Gross Profit | 17.2% | 31.2% | | SG&A Expenses | 37.4% | 30.7% | | Operating (Loss) Profit | (20.2)% | 0.5% | | Net (Loss) Income | (15.3)% | 0.4% | - Comparable sales increased by **$15.3 million** or **12.9%**, driven by strong e-commerce sales, particularly in the hardgoods category[86](index=86&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) Company maintained strong liquidity with **$217 million** cash and investments, no debt, and reduced capital expenditure plans - The company ended the quarter with **$217 million** in cash and investments and no debt[84](index=84&type=chunk) - Capital expenditure plans for fiscal 2020 were reduced to approximately **$10-11 million** from an earlier estimate of **$18-20 million**[93](index=93&type=chunk) - The company has an undrawn **$35.0 million** senior secured credit facility maturing in December 2021[98](index=98&type=chunk) [Risk Factors](index=22&type=section&id=Risk%20Factors) Key business risks include ongoing COVID-19 impacts, potential store closures, supply chain disruptions, and market competition - The COVID-19 pandemic is a major risk, with potential for continued adverse impacts from store closures, reduced consumer spending, supply chain disruptions, and macroeconomic recession[105](index=105&type=chunk)[106](index=106&type=chunk)[109](index=109&type=chunk) - The business is highly seasonal, with sales and profitability disproportionately higher in the third and fourth fiscal quarters due to holiday shopping[122](index=122&type=chunk) - Reliance on foreign manufacturers exposes the company to risks from international trade, tariffs, political instability, and public health emergencies[116](index=116&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk profile has not significantly changed since the prior fiscal year-end - The company's market risk profile at May 2, 2020, has not significantly changed from the profile disclosed in its Annual Report on Form 10-K[155](index=155&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - Based on evaluation, the company's disclosure controls and procedures were effective as of May 2, 2020[156](index=156&type=chunk) - No material changes occurred in the company's internal control over financial reporting during the quarter[157](index=157&type=chunk) Part II [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a putative class action lawsuit regarding California wage and hour laws - The company is defending a putative class action lawsuit, *Alexia Herrera v. Zumiez Inc.*, concerning California wage and hour laws[50](index=50&type=chunk)[159](index=159&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) This section cross-references risk factors from MD&A and the Annual Report, noting no material changes - This section refers to Risk Factors in the MD&A and Annual Report on Form 10-K, with no material changes noted[160](index=160&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common stock repurchases: **694,000** shares for **$13.4 million** under a **$100 million** program Share Repurchase Activity | Share Repurchase Activity | Value | | :--- | :--- | | Period | March 1, 2020 - April 4, 2020 | | Total Shares Purchased | 694,000 | | Average Price Paid per Share | $19.31 | | Total Cost (in thousands) | $13,417 (calculated) | | Remaining Authorization (in thousands) | $86,583 | [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL financial data - Lists exhibits filed, including CEO and CFO certifications under Sarbanes-Oxley Act and XBRL financial data[163](index=163&type=chunk)

Financial Data and Key Metrics Changes - First quarter net sales decreased 35.3% to $137.8 million compared to $212.9 million in the first quarter of 2019, driven by COVID-19 impacts and store closures [25][31] - Cash and current marketable securities increased 29.3% to $217.2 million as of May 2, 2020, compared to $168 million in Q4 2019 [21] - Net loss for the first quarter was $21.1 million or $0.84 per share compared to net income of $0.8 million or $0.03 per share in the first quarter of 2019 [31] Business Line Data and Key Metrics Changes - All categories experienced total sales declines, with hard goods being the least negatively impacted [26] - E-commerce sales grew significantly, with online sales increasing by 75.9% during the store closures [26] - Comparable sales for May increased 79.6%, with open store comparable sales up 38.5% and e-commerce comparable sales up 181.6% [33] Market Data and Key Metrics Changes - North American net sales decreased 38% to $116.6 million, while other international net sales decreased 15% to $21.2 million [25] - Total May sales were down 8.6% compared to the same period in 2019, showing improvement from the first quarter decline [32] Company Strategy and Development Direction - The company is focusing on long-term strategic investments, including real estate opportunities and enhancing its omnichannel environment [16] - Plans to open approximately nine new stores in 2020, down from an initial plan of 20 stores, indicating a cautious approach to expansion [35] - The company aims to leverage its strong financial position to navigate the current retail environment and capitalize on potential market consolidation [17][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about emerging stronger from the crisis, citing the strength of the company's culture and brand [17] - There is significant uncertainty regarding consumer spending and the overall economic environment, leading to cautious planning for the remainder of the year [49] - The company is actively managing costs and aligning its expense structure with anticipated sales losses [34] Other Important Information - The company suspended most rent payments while negotiating with landlords for potential rent relief during store closures [9] - The company maintained full pay for full-time employees throughout the pandemic, emphasizing its commitment to its workforce [10] Q&A Session Summary Question: Observations on sales recovery and regional variations - Management noted that 87% of opened stores have comped positively, with strong performance in both indoor and outdoor centers [45] Question: Inventory leverage for back-to-school - Management expressed confidence in being able to manage inventory effectively, despite uncertainties regarding back-to-school dynamics [54] Question: Digital component profitability - Management highlighted the integration of digital and physical sales channels, noting that both contribute similarly to overall profitability [60]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: February 1, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 000-51300 ZUMIEZ INC. (Exact name of Registrant as specified in its charter) Washington 91-1040022 (State or other jurisdiction of (IRS Employer incorporation or organization) Ident ...

Zumiez Inc. (NASDAQ:ZUMZ) Q4 2019 Earnings Conference Call March 12, 2020 5:00 PM ET Company Participants Rick Brooks – Chief Executive Officer Chris Work – Chief Financial Officer Conference Call Participants Janine Stichter – Jefferies Jeff Van Sinderen – B. Riley FBR Jonathan Komp – Baird Mitch Kummetz – Pivotal Research Operator Good afternoon, ladies and gentlemen, and welcome to the Zumiez Inc. Fourth Quarter Fiscal 2019 Earnings Conference Call. [Operator Instructions] Before we begin, I'd like to re ...

WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION FOR THE QUARTERLY PERIOD ENDED NOVEMBER 2, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 000-51300 ZUMIEZ INC. (Exact name of registrant as specified in its charter) Washington 91-1040022 (State or other jurisdiction of (I.R.S. Employer incorporation or organizati ...

Zumiez Inc. (NASDAQ:ZUMZ) Q3 2019 Earnings Conference Call December 5, 2019 5:00 PM ET Company Participants Rick Brooks - CEO Chris Work - CFO Conference Call Participants Sharon Zackfia - William Blair Janine Stichter - Jefferies Mitch Kummetz - Pivotal Research Jonathan Komp - Baird John Morris - DA Davidson Operator Good afternoon, ladies and gentlemen, and welcome to the Zumiez Inc. Third Quarter Fiscal 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. We will cond ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED AUGUST 3, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 000-51300 ZUMIEZ INC. (Exact name of registrant as specified in its charter) Washington 91-1040022 (State or other jurisdiction of (I.R.S. Employer incorporation or organization ...