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 ...

Zumiez Inc. (NASDAQ:ZUMZ) Q2 2019 Results Conference Call September 5, 2019 5:00 PM ET Company Participants Rick Brooks - Chief Executive Officer Chris Work - Chief Financial Officer Conference Call Participants Sharon Zackfia - William Blair Janine Stichter - Jefferies Jeff Van Sinderen - B. Riley FBR Mitch Kummetz - Pivotal Research Jonathan Komp - Baird John Morris - D.A. Davidson Operator Good afternoon, ladies and gentlemen. And welcome to the Zumiez Incorporated Second Quarter Fiscal 2019 Earnings Con ...

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 MAY 4, 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. 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 re ...

Zumiez Inc. (NASDAQ:ZUMZ) Q1 2019 Earnings Conference Call June 6, 2019 5:00 PM ET Company Participants Rick Brooks - CEO Chris Work - CFO Conference Call Participants Sharon Zackfia - William Blair Jeff Van Sinderen - B. Riley FBR John Morris - D.A. Davidson Mitch Kummetz - Pivotal Research Group Jonathan Komp - Robert W. Baird Operator Good afternoon, ladies and gentlemen, and welcome to the Zumiez Inc. First Quarter Fiscal 2019 Earnings Conference Call. At this time, all participants are in a listen-only ...

PART I [Item 1. Business](index=4&type=section&id=Item%201.%20BUSINESS) Zumiez is a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women - Zumiez Inc. is a **specialty retailer** focusing on **apparel, footwear, accessories, and hardgoods** for **young men and women**, rooted in **action sports, streetwear, and unique lifestyles**[16](index=16&type=chunk)[21](index=21&type=chunk) Total Stores Operated (as of Feb 2, 2019) | Metric | Value (as of Feb 2, 2019) | | :----- | :------------------------ | | Total Stores Operated | 707 | | U.S. Stores | 608 | | Canada Stores | 50 | | Europe Stores | 41 | | Australia Stores | 8 | - The company's growth strategy includes **maximizing comparable sales** through **integrated store and online experiences**, **enhancing brand awareness** via marketing, and **opening new stores**, with approximately **13 new stores planned for fiscal 2019**[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) Private Label Merchandise (% of Net Sales) | Fiscal Year | Private Label Merchandise (% of Net Sales) | | :---------- | :----------------------------------------- | | 2018 | 13.1% | | 2017 | 16.8% | | 2016 | 20.2% | [Item 1A. Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks that could adversely affect Zumiez's business, financial condition, and operating results - The company's success is **highly dependent on its ability to anticipate and respond to volatile fashion trends** and consumer preferences; misjudging these could lead to lower sales and excess inventory[63](index=63&type=chunk) - Zumiez operates in a **highly competitive retail industry**, facing larger competitors with greater financial and marketing resources, which could necessitate price reductions and lead to customer loss[64](index=64&type=chunk) - International expansion plans carry risks such as differing competitive conditions, consumer tastes, legal/regulatory environments, and the need to build brand awareness in new markets[72](index=72&type=chunk) - Operations are seasonal, with the third and fourth fiscal quarters generating the largest portion of **net sales** and **net income**, making the company vulnerable to negative factors during these periods[73](index=73&type=chunk) - Breaches in information systems security could lead to adverse publicity, litigation, **significant** expenses, and damage to reputation due to potential theft or modification of confidential information[77](index=77&type=chunk) [Item 1B. Unresolved Staff Comments](index=21&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments from the SEC regarding the company's filings - The company has **no unresolved staff comments**[112](index=112&type=chunk) [Item 2. Properties](index=21&type=section&id=Item%202.%20Properties) Zumiez operates 707 stores under operating leases and owns its home office and domestic distribution center - All **707 stores** are occupied under operating leases, encompassing approximately **2.1 million** total square feet as of February 2, 2019[113](index=113&type=chunk) - The company owns its **63,071 square foot home office** in Lynnwood, Washington, and a **168,450 square foot domestic warehouse and distribution center** in Corona, California[113](index=113&type=chunk)[114](index=114&type=chunk) - International operations are supported by leased distribution and e-commerce fulfillment centers in Delta, British Columbia (Canada), Graz, Austria (Europe), and Melbourne, Australia[115](index=115&type=chunk) [Item 3. Legal Proceedings](index=21&type=section&id=Item%203.%20Legal%20Proceedings) Zumiez is involved in incidental litigation, not expected to materially affect financial results - The company is involved in litigation incidental to its business, but the outcome is not expected to **materially affect financial results**[116](index=116&type=chunk) [Item 4. Mine Safety Disclosures](index=21&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Zumiez Inc - Mine Safety Disclosures are **not applicable to the registrant**[117](index=117&type=chunk) PART II [Item 5. Market for the Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=23&type=section&id=Item%205.%20Market%20for%20the%20Registrant's%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Zumiez's common stock trades on Nasdaq under 'ZUMZ'; the Board authorized a $75.0 million share repurchase program - Zumiez common stock is traded on the Nasdaq Global Select Market under the symbol '**ZUMZ**'[120](index=120&type=chunk) Common Stock High and Low Sales Prices | Fiscal Year | Quarter | High ($) | Low ($) | | :---------- | :------ | :------- | :------ | | 2018 | Q1 | 26.30 | 18.55 | | 2018 | Q2 | 31.55 | 20.25 | | 2018 | Q3 | 32.70 | 21.16 | | 2018 | Q4 | 25.67 | 17.57 | | 2017 | Q1 | 21.75 | 15.90 | | 2017 | Q2 | 18.60 | 11.60 | | 2017 | Q3 | 20.10 | 11.43 | | 2017 | Q4 | 24.45 | 16.90 | - The Board of Directors authorized a share repurchase program of up to **$75.0 million** of common stock, expected to continue through February 1, 2020, with **$75.0 million** remaining available as of February 3, 2019[127](index=127&type=chunk) - No cash dividends have been declared on common stock to date, and payment is evaluated periodically[126](index=126&type=chunk) [Item 6. Selected Financial Data](index=26&type=section&id=Item%206.%20Selected%20Financial%20Data) This section provides a five-year summary of selected consolidated financial data, highlighting key trends and metrics Selected Statement of Operations Data (in thousands, except per share data) | Metric | Fiscal 2018 | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | Fiscal 2014 | | :-------------------------- | :---------- | :---------- | :---------- | :---------- | :---------- | | Net sales | $978,617 | $927,401 | $836,268 | $804,183 | $811,551 | | Gross profit | $335,936 | $309,874 | $275,002 | $268,624 | $287,083 | | Operating profit | $61,078 | $48,760 | $39,743 | $46,165 | $71,571 | | Net income | $45,205 | $26,802 | $25,904 | $28,785 | $43,192 | | Diluted EPS | $1.79 | $1.08 | $1.04 | $1.04 | $1.47 | Selected Balance Sheet Data (in thousands) | Metric | February 2, 2019 | February 3, 2018 | January 28, 2017 | January 30, 2016 | January 31, 2015 | | :-------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Cash, cash equivalents and current marketable securities | $165,334 | $121,905 | $78,826 | $75,554 | $154,644 | | Total assets | $534,190 | $499,510 | $426,683 | $414,695 | $493,705 | | Total shareholders' equity | $400,456 | $355,915 | $307,051 | $296,957 | $359,524 | Selected Company Data | Metric | Fiscal 2018 | Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | Fiscal 2014 | | :-------------------------- | :---------- | :---------- | :---------- | :---------- | :---------- | | Number of stores open at end of period | 707 | 698 | 685 | 658 | 603 |\ | Comparable sales increase (decrease) | 5.6% | 5.9% | (0.2%) | (5.3%) | 4.6% |\ | Net sales per store (in thousands) | $1,385 | $1,333 | $1,235 | $1,256 | $1,390 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Zumiez's financial performance, condition, and outlook, highlighting sales growth and strategic investments [Fiscal 2018—A Review of This Past Year](index=28&type=section&id=Fiscal%202018%E2%80%94A%20Review%20of%20This%20Past%20Year) Zumiez achieved strong sales results in fiscal 2018 with positive comparable sales growth and increased operating margins - Zumiez achieved **ten consecutive quarters of positive comparable sales growth** in fiscal 2018, driven by key brands, fashion trends, and a unique brand experience[132](index=132&type=chunk) Fiscal 2018 vs. Fiscal 2017 Key Financials | Metric | Fiscal 2018 (1) | Fiscal 2017 | % Change | | :---------------------- | :-------------- | :-------------- | :------- | | Net sales (in thousands) | $978,617 | $927,401 | 5.5% | | Operating profit (in thousands) | $61,078 | $48,760 | 25.3% | | Operating margin | 6.2% | 5.2% | | | Diluted earnings per share | $1.79 | $1.08 | 65.7% | (1) Fiscal 2018 diluted EPS includes $8.7 million benefit from U.S. federal tax legislation. - **Operating margins increased** in fiscal 2018 primarily due to **leverage of occupancy costs, reduction in inventory shrinkage, and product margin improvements**[132](index=132&type=chunk)[136](index=136&type=chunk) - The company added **13 new stores globally** in fiscal 2018 (**5 in North America, 7 in Europe, 1 in Australia**)[132](index=132&type=chunk) [Fiscal 2019—A Look At the Upcoming Year](index=29&type=section&id=Fiscal%202019%E2%80%94A%20Look%20At%20the%20Upcoming%20Year) For fiscal 2019, Zumiez plans to execute core strategies, enhance customer experience, and expand internationally - In fiscal 2019, Zumiez will focus on **continued execution of core culture and brand strategies**, alongside **strategic investments for long-term quality growth**[137](index=137&type=chunk) - Investments will primarily target **enhancing customer experience and creating operational efficiencies** to **drive operating margin expansion**[137](index=137&type=chunk) - **Store count growth in North America is expected to moderate**, while **8 new stores are planned for Europe and Australia**, consistent with fiscal 2018[137](index=137&type=chunk) - The company anticipates its **cost structure to grow at a slower rate than 2018**, aiming to **grow operating profit faster than sales**[138](index=138&type=chunk) [General](index=29&type=section&id=General) This section defines key financial terms and methodologies, including net sales, comparable sales, and cost of goods sold - **Net sales include gross sales, net of returns and promotions, and shipping revenue**, encompassing both **store and e-commerce sales**[139](index=139&type=chunk) - **Comparable sales are reported based on net sales from stores or e-commerce businesses in operation for at least one year**, **integrating both physical and digital channels**[140](index=140&type=chunk) - **Cost of goods sold comprises branded and private label merchandise costs**, including **design, sourcing, importing, inbound freight, shrinkage, buying, occupancy, e-commerce fulfillment, distribution, warehousing, and store merchandise transfer freight**[141](index=141&type=chunk) - **Selling, general and administrative expenses primarily consist of store and administrative personnel costs**, freight, store supplies, depreciation, facility expenses, training, advertising, marketing, credit card fees, insurance, and legal expenses[144](index=144&type=chunk) [Key Performance Indicators](index=30&type=section&id=Key%20Performance%20Indicators) Management evaluates net sales, gross profit, operating profit, and diluted EPS as key performance indicators - **Net sales are considered an important indicator of current performance**, impacting **cost leveraging, operating profit, cash, and working capital**[145](index=145&type=chunk) - **Gross profit measures the optimization of merchandise pricing and inventory levels**, with **initial markups and markdowns directly affecting results**[146](index=146&type=chunk) - **Operating profit is a key indicator of success**, driven by **net sales, gross profit, control over selling, general and administrative expenses, and capital expenditures**[147](index=147&type=chunk) - **Diluted earnings per share is viewed as a key indicator of success in increasing shareholder value**[148](index=148&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) This section presents a comparative analysis of Zumiez's financial results for fiscal years 2018, 2017, and 2016 Consolidated Statements of Income as a Percent of Net Sales | Metric | Fiscal 2018 | Fiscal 2017 | Fiscal 2016 | | :-------------------------------------- | :---------- | :---------- | :---------- | | Net sales | 100.0% | 100.0% | 100.0% | | Cost of goods sold | 65.7% | 66.6% | 67.1% | | Gross profit | 34.3% | 33.4% | 32.9% | | Selling, general and administrative expenses | 28.1% | 28.2% | 28.1% | | Operating profit | 6.2% | 5.2% | 4.8% | | Interest and other income (expense), net | 0.2% | 0.0% | 0.0% | | Earnings before income taxes | 6.4% | 5.2% | 4.8% | | Provision for income taxes | 1.8% | 2.3% | 1.7% | | Net income | 4.6% | 2.9% | 3.1% | [Fiscal 2018 Results Compared With Fiscal 2017](index=30&type=section&id=Fiscal%202018%20Results%20Compared%20With%20Fiscal%202017) In fiscal 2018, net sales increased by 5.5% to $978.6 million, with gross margin improving by 90 basis points Net Sales Comparison (in thousands) | Fiscal Year | Net Sales | Increase ($) | Increase (%) | | :---------- | :---------- | :----------- | :----------- | | 2018 | $978,617 | $51,200 | 5.5% | | 2017 | $927,401 | | | - Comparable sales increased by **5.6%** in fiscal 2018, driven by **higher transactions and dollars per transaction** (due to **increased average unit retail, partially offset by decreased units per transaction**)[153](index=153&type=chunk) - **Gross profit** as a percentage of **net sales** increased by **90 basis points** to **34.3%** in fiscal 2018, primarily due to **50 bps** leverage in store occupancy costs, **40 bps** lower inventory shrinkage, and **20 bps** higher product margin[154](index=154&type=chunk) - **Net income** for fiscal 2018 was **$45.2 million** (**$1.79 diluted EPS**), up from **$26.8 million** (**$1.08 diluted EPS**) in fiscal 2017, largely due to a **decrease in the effective tax rate from 44.6% to 27.5%** following **U.S. federal tax legislation**[156](index=156&type=chunk) [Fiscal 2017 Results Compared With Fiscal 2016](index=31&type=section&id=Fiscal%202017%20Results%20Compared%20With%20Fiscal%202016) In fiscal 2017, net sales grew by 10.9% to $927.4 million, with gross margin improving by 50 basis points Net Sales Comparison (in thousands) | Fiscal Year | Net Sales | Increase ($) | Increase (%) | | :---------- | :---------- | :----------- | :----------- | | 2017 | $927,401 | $91,100 | 10.9% | | 2016 | $836,268 | | | - Comparable sales increased by **5.9%** in fiscal 2017, driven by an **increase in comparable transactions, partially offset by a decrease in dollars per transaction**[160](index=160&type=chunk) - **Gross profit** as a percentage of **net sales** increased by **50 basis points** to **33.4%** in fiscal 2017, primarily due to **80 bps** leverage in store occupancy costs and **30 bps** from **STASH loyalty program deferred revenue recognition**[161](index=161&type=chunk) - **Net income** for fiscal 2017 was **$26.8 million** (**$1.08 diluted EPS**), up from **$25.9 million** (**$1.04 diluted EPS**) in fiscal 2016. The effective tax rate increased to **44.6%** from **35.6%** due to a **$3.4 million valuation allowance against deferred tax assets in Austria**[163](index=163&type=chunk) [Seasonality and Quarterly Results](index=32&type=section&id=Seasonality%20and%20Quarterly%20Results) Zumiez's business is highly seasonal, with Q3 and Q4 generating the largest portion of annual net sales and operating results - Operations are seasonal, with **net sales** and **operating results typically lower in the first and second quarters**, and **highest during the back-to-school and winter holiday periods in the third and fourth fiscal quarters**[164](index=164&type=chunk) Unaudited Quarterly Consolidated Statements of Income Data (in thousands, except per share data) | Fiscal Year | Quarter | Net Sales ($) | Operating (Loss) Profit ($) | Diluted EPS ($) | | :---------- | :------ | :------------ | :-------------------------- | :-------------- | | 2018 | Q1 | 206,287 | (1,709) | (0.10) | | 2018 | Q2 | 218,971 | 6,698 | 0.17 | | 2018 | Q3 | 248,795 | 18,394 | 0.55 | | 2018 | Q4 | 304,564 | 37,695 | 1.18 | | 2017 | Q1 | 181,155 | (6,234) | (0.18) | | 2017 | Q2 | 192,245 | (762) | (0.02) | | 2017 | Q3 | 245,756 | 18,808 | 0.48 | | 2017 | Q4 | 308,245 | 36,948 | 0.80 | [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Zumiez's liquidity sources are cash flows from operations and available cash, supporting operations and capital expenditures - **Primary** uses of cash include **operational expenditures, inventory purchases, and capital investments** for new stores, remodels, fixtures, and infrastructure improvements[167](index=167&type=chunk) Cash, Cash Equivalents and Current Marketable Securities (in thousands) | Fiscal Year End | Amount ($) | | :-------------- | :--------- | | February 2, 2019 | 165,334 | | February 3, 2018 | 121,905 | Summary of Cash Flows (in thousands) | Activity | Fiscal 2018 ($) | Fiscal 2017 ($) | Fiscal 2016 ($) | | :---------------------- | :-------------- | :-------------- | :-------------- | | Operating activities | 65,319 | 65,514 | 48,458 | | Investing activities | (36,398) | (63,970) | (51,515) | | Financing activities | 120 | 1,273 | (20,077) | | Net increase (decrease) in cash and cash equivalents | 28,381 | 3,794 | (22,916) | | Cash and cash equivalents, end of period | 52,422 | 24,041 | 20,247 | - Zumiez maintains a **secured credit agreement** with **Wells Fargo Bank, N.A.**, providing a **senior secured credit facility of up to $35.0 million** for working capital and general corporate purposes, **maturing on December 7, 2021**[176](index=176&type=chunk) - **Capital expenditures for fiscal 2018 totaled $21.0 million**, with **$15.6 million** for **new/remodeled stores** and **$2.5 million** for **website/Customer Engagement Suite improvements**. For **fiscal 2019, $21 million to $23 million is expected for capital expenditures**, including **14 new stores**[178](index=178&type=chunk)[181](index=181&type=chunk) [Critical Accounting Estimates](index=36&type=section&id=Critical%20Accounting%20Estimates) This section details Zumiez's critical accounting estimates, involving significant assumptions and judgments - **Valuation of merchandise inventories** involves assumptions on sales rates, age, and profitability for **write-down reserves**, and historical percentages for **shrinkage reserves**. A **10% decrease** in sales price would decrease **net income** by **$0.1 million** in fiscal 2018[186](index=186&type=chunk)[189](index=189&type=chunk)[191](index=191&type=chunk) - **Valuation of long-lived assets** requires estimating future cash flows and asset fair values for **impairment tests**, with declines in projected cash flow potentially leading to impairment[192](index=192&type=chunk)[195](index=195&type=chunk)[197](index=197&type=chunk) - **Revenue recognition** involves assumptions regarding future **sales returns and gift card redemption patterns**. A **10% increase** in sales return reserve would decrease **net income** by **$0.2 million** in fiscal 2018[202](index=202&type=chunk)[204](index=204&type=chunk) - **Accounting for income taxes** requires **significant** judgment in evaluating tax positions and determining the provision for income taxes, including assessing the realization of **deferred tax assets** and potential impacts from tax audits[205](index=205&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) - **Goodwill and indefinite-lived intangible assets** are tested for impairment annually, using **income and market approaches** to determine fair value. As of November 4, 2018, the **Blue Tomato reporting unit's fair value exceeded its carrying value by 9.7%**[213](index=213&type=chunk)[217](index=217&type=chunk)[221](index=221&type=chunk) [Contractual Obligations and Commercial Commitments](index=40&type=section&id=Contractual%20Obligations%20and%20Commercial%20Commitments) Zumiez's contractual obligations primarily consist of operating lease payments and purchase obligations totaling $607.9 million Contractual Obligations at February 2, 2019 (in thousands) | Type of Obligation | Total ($) | Fiscal 2019 ($) | Fiscal 2020 and 2021 ($) | Fiscal 2022 and 2023 ($) | Thereafter ($) | | :---------------------- | :-------- | :-------------- | :----------------------- | :----------------------- | :------------- | | Operating lease obligations | 391,301 | 69,293 | 127,326 | 100,658 | 94,024 | | Purchase obligations | 216,587 | 214,866 | 1,721 | — | — | | Total | 607,888 | 284,159 | 129,047 | 100,658 | 94,024 | - **Purchase obligations can generally be canceled without notice prior to shipment**, except for certain private label, packaging supplies, and international purchase orders[224](index=224&type=chunk) [Off-Balance Sheet Arrangements](index=40&type=section&id=Off-Balance%20Sheet%20Arrangements) As of February 2, 2019, Zumiez did not have any off-balance sheet arrangements - The company did not have any **off-balance sheet arrangements** as of February 2, 2019[225](index=225&type=chunk) [Impact of Inflation/Deflation](index=40&type=section&id=Impact%20of%20Inflation%2FDeflation) Inflation has not materially impacted Zumiez's net sales or operating results over the past three fiscal years - **Inflation has not had a material impact** on **net sales** or operating results for the past three fiscal years[226](index=226&type=chunk) - **Substantial increases in costs** (raw materials, labor, energy) or changes in the regulatory environment could **significantly** impact the business[226](index=226&type=chunk) - **Deflation could positively impact merchandise costs but adversely affect average unit retail price**, leading to **lower sales and operating results**[226](index=226&type=chunk) [Recent Accounting Pronouncements](index=40&type=section&id=Recent%20Accounting%20Pronouncements) Information on recent accounting pronouncements is detailed in Note 2, 'Summary of Significant Accounting Policies' - Information on recent accounting pronouncements is detailed in **Note 2, 'Summary of Significant Accounting Policies,'** in the Notes to Consolidated Financial Statements[227](index=227&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Zumiez is exposed to market risks from interest rate fluctuations and foreign currency exchange rates, impacting net income - Earnings are affected by changes in market interest rates due to investments in **short-term and long-term marketable securities**, primarily **state and local municipal securities and variable-rate demand notes**[228](index=228&type=chunk) - A hypothetical **10% decrease** in the current portfolio average yield rate in fiscal 2018 would have decreased **net income** by **$0.2 million**[228](index=228&type=chunk) - The company is exposed to foreign currency exchange rate risk as international subsidiaries operate with functional currencies other than the U.S. dollar (**Canadian dollar, Euro, Australian dollar, Swiss franc**)[231](index=231&type=chunk) - A hypothetical **10% change** in foreign exchange rates in fiscal 2018 would have decreased or increased **net income** by **$0.7 million**[231](index=231&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=41&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This item refers to the 'Index to the Consolidated Financial Statements' for detailed financial data - Financial statements and supplementary data are located in '**Index to the Consolidated Financial Statements**' in **Part IV Item 15**[233](index=233&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=41&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There have been no changes in or disagreements with accountants on accounting and financial disclosure matters - There are **no changes in or disagreements with accountants on accounting and financial disclosure**[234](index=234&type=chunk) [Item 9A. Controls and Procedures](index=41&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of February 2, 2019 - The CEO and CFO concluded that **disclosure controls and procedures** were **effective** as of February 2, 2019[235](index=235&type=chunk) - **No material changes in internal control over financial reporting** occurred during the quarter ended February 2, 2019[236](index=236&type=chunk) - Management assessed the **effectiveness** of the company's **internal control over financial reporting** as **effective** as of February 2, 2019, based on the **COSO framework**[240](index=240&type=chunk) - **Moss Adams LLP**, the independent registered public accounting firm, issued an **unqualified opinion** on the **effectiveness** of Zumiez Inc.'s **internal control over financial reporting** as of February 2, 2019[243](index=243&type=chunk) [Item 9B. Other Information](index=43&type=section&id=Item%209B.%20Other%20Information) No other information is reported under this item - **No other information is reported** under this item[249](index=249&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=45&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the proxy statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the **definitive proxy statement for the 2019 Annual Meeting of Shareholders**[252](index=252&type=chunk) [Item 11. Executive Compensation](index=45&type=section&id=Item%2011.%20Executive%20Compensation) Details concerning executive compensation and director compensation are incorporated by reference from the proxy statement - Information regarding executive compensation and the Compensation Committee is incorporated by reference from the **definitive proxy statement**[253](index=253&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=45&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) Information on security ownership and equity compensation plan details is incorporated by reference from the proxy statement - Information on security ownership and equity compensation plan is incorporated by reference from the **definitive proxy statement**[254](index=254&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=45&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the proxy statement - Information on certain relationships, related transactions, and director independence is incorporated by reference from the '**Corporate Governance**' section of the **definitive proxy statement**[255](index=255&type=chunk) [Item 14. Principal Accountant Fees and Services](index=45&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accounting fees and services is incorporated by reference from the proxy statement - Information on principal accounting fees and services is incorporated by reference from the '**Fees Paid to Independent Registered Public Accounting Firm for Fiscal 2018 and 2017**' section of the **definitive proxy statement**[256](index=256&type=chunk) PART IV [Item 15. Exhibits, Financial Statement Schedules](index=46&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all exhibits and financial statement schedules, including the index to consolidated financial statements - **All financial statement schedules are omitted** as the required information is presented in the consolidated financial statements or notes, or is not applicable/material[258](index=258&type=chunk) - The section includes an **Exhibit Index listing various documents incorporated by reference**, such as **Articles of Incorporation, Bylaws, Equity Incentive Plans, Credit Agreements, and Certifications**[370](index=370&type=chunk)[371](index=371&type=chunk) [Consolidated Financial Statements](index=47&type=section&id=Consolidated%20Financial%20Statements) This sub-section presents Zumiez Inc.'s audited consolidated financial statements for periods ended February 2, 2019 - **Moss Adams LLP** provided an **unqualified opinion on the consolidated financial statements for the three years ended February 2, 2019**, confirming **fair presentation in conformity with U.S. GAAP**[263](index=263&type=chunk)[266](index=266&type=chunk) Consolidated Balance Sheets (in thousands) | Asset/Liability/Equity | February 2, 2019 ($) | February 3, 2018 ($) | | :--------------------- | :------------------- | :------------------- | | Total current assets | 327,175 | 279,163 | | Total assets | 534,190 | 499,510 | | Total current liabilities | 93,108 | 99,247 | | Total liabilities | 133,734 | 143,595 | | Total shareholders' equity | 400,456 | 355,915 | Consolidated Statements of Income (in thousands) | Metric | Fiscal Year Ended Feb 2, 2019 ($) | Fiscal Year Ended Feb 3, 2018 ($) | Fiscal Year Ended Jan 28, 2017 ($) | | :---------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net sales | 978,617 | 927,401 | 836,268 | | Gross profit | 335,936 | 309,874 | 275,002 | | Operating profit | 61,078 | 48,760 | 39,743 | | Net income | 45,205 | 26,802 | 25,904 | | Diluted earnings per share | 1.79 | 1.08 | 1.04 | Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Fiscal Year Ended Feb 2, 2019 ($) | Fiscal Year Ended Feb 3, 2018 ($) | Fiscal Year Ended Jan 28, 2017 ($) | | :---------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | 65,319 | 65,514 | 48,458 | | Net cash used in investing activities | (36,398) | (63,970) | (51,515) | | Net cash provided by (used in) financing activities | 120 | 1,273 | (20,077) | | Net increase (decrease) in cash and cash equivalents | 28,381 | 3,794 | (22,916) | | Cash and cash equivalents, end of period | 52,422 | 24,041 | 20,247 | [Notes to Consolidated Financial Statements](index=53&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The Notes provide detailed explanations of accounting policies, including ASC 606 adoption and ASC 842 impact - The company adopted **ASC 606 (Revenue Recognition)** on February 4, 2018, using the **modified retrospective approach**, resulting in a **$2.1 million increase to retained earnings, net of taxes**, due to changes in **revenue recognition timing for e-commerce sales and gift card breakage**[325](index=325&type=chunk)[327](index=327&type=chunk) - The new lease accounting standard (**ASC 842**) will be adopted for the **fiscal year beginning February 3, 2019**, and is expected to have a **material impact on the consolidated balance sheet**, with **right-of-use assets and operating lease liabilities greater than $300.0 million**, but **no material impact on the consolidated statement of income or cash flows**[321](index=321&type=chunk)[323](index=323&type=chunk) Net Sales by Geographic Region (in thousands) | Region | Fiscal Year Ended Feb 2, 2019 ($) | Fiscal Year Ended Feb 3, 2018 ($) | Fiscal Year Ended Jan 28, 2017 ($) | | :------------ | :-------------------------------- | :-------------------------------- | :-------------------------------- | | United States | 814,153 | 774,193 | 710,976 | | Canada | 55,184 | 53,569 | 42,843 | | Europe | 101,149 | 91,729 | 79,067 | | Australia | 8,131 | 7,910 | 3,382 | | Total Net Sales | 978,617 | 927,401 | 836,268 | - The company's **effective income tax rate for fiscal 2018 was 27.5%**, a **decrease from 44.6% in fiscal 2017**, primarily due to the **U.S. Tax Cuts and Jobs Act reducing the federal tax rate from 35.0% to 21.0%**[359](index=359&type=chunk) Product Categories as a Percentage of Merchandise Sales | Product Category | Fiscal Year Ended Feb 2, 2019 | Fiscal Year Ended Feb 3, 2018 | Fiscal Year Ended Jan 28, 2017 | | :--------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Men's Apparel | 41% | 41% | 37% | | Accessories | 17% | 18% | 20% | | Footwear | 17% | 16% | 18% | | Women's Apparel | 14% | 14% | 13% | | Hardgoods | 11% | 11% | 12% | | Total | 100% | 100% | 100% | [Signatures](index=74&type=section&id=Signatures) This section contains the signatures of Zumiez Inc.'s principal executive officer, principal financial officer, and directors - The report is signed by **Richard M. Brooks, Chief Executive Officer and Director**, and **Christopher C. Work, Chief Financial Officer**, along with other directors, on **March 18, 2019**[375](index=375&type=chunk)[376](index=376&type=chunk)

Zumiez Inc. (NASDAQ:ZUMZ) Q4 2018 Results Earnings Conference Call March 14, 2019 5:00 PM ET Company Participants Rick Brooks - CEO Chris Work - CFO Conference Call Participants Sharon Zackfia - William Blair Jeff Van Sinderen - B. Riley Mitch Kummetz - Pivotal Research John Morris - D.A. Davidson Jonathan Komp - Baird Operator Good afternoon ladies and gentlemen and welcome to the Zumiez Inc. Fourth Quarter Fiscal 2018 Earnings Conference Call. At this time, all participants are in listen-only mode. We wil ...