Zumiez Inc. (NASDAQ:ZUMZ) Q2 2022 Earnings Conference Call September 8, 2022 5:00 PM ET Company Participants Rick Brooks - Chief Executive Officer Chris Work - Chief Financial Officer Conference Call Participants Sharon Zackfia - William Blair Jeff Van Sinderen - B. Riley Mitch Kummetz - Seaport Research Corey Tarlowe - Jefferies Presentation Operator Good afternoon, ladies and gentlemen, and welcome to the Zumiez Inc. Second Quarter Fiscal 2022 Earnings Conference Call. At this time, all participants are i ...

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 JULY 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 000-51300 ZUMIEZ INC. Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, i ...

OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 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 APRIL 30, 2022 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) Q1 2022 Earnings Conference Call June 2, 2022 5:00 PM ET Company Participants Rick Brooks – Chief Executive Officer Chris Work – Chief Financial Officer Conference Call Participants Richard Magnuson – B. Riley Corey Tarlowe – Jefferies Mitch Kummetz – Seaport Research Operator Good afternoon, ladies and gentlemen, and welcome to the Zumiez Incorporated First Quarter Fiscal 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. We will conduct a que ...

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: January 29, 2022 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 ...

Financial Data and Key Metrics Changes - In Q4 2021, net sales increased by 4.6% year-over-year to a record $346.7 million, with diluted earnings per share reaching $1.70, also a quarterly record [7][24] - For the full year 2021, total sales were $1.18 billion, up 19.5% from $990.7 million in 2020, and diluted earnings per share increased to $4.85 from $3 in the previous year [25][30] - Gross margin for Q4 2021 was 38.6%, a slight decrease from 39.1% in the previous year, primarily due to increased costs related to inventory shrinkage and obsolescence [22] Business Line Data and Key Metrics Changes - In Q4 2021, the men's category was the largest growth category, followed by footwear, accessories, and women's, while hardgoods was the only negative category [21] - For the full year, North America net sales were $1.03 billion, an increase of 19.1% over 2020, while other international net sales were $153.2 million, up 22.5% from the previous year [26] Market Data and Key Metrics Changes - North America net sales in Q4 2021 were $287 million, a 0.6% increase over 2020, while other international net sales (Europe and Australia) were $59.6 million, up 28.8% from last year [20] - The company experienced temporary COVID-related closures in Europe, which was open for approximately 94% of potential operating days during Q4 2021 [21] Company Strategy and Development Direction - The company plans to open approximately 34 new stores in 2022, including 15 in North America, 14 in Europe, and 5 in Australia, indicating a focus on expansion [44] - The strategy emphasizes a consumer-centric approach, leveraging a channelless organization to enhance customer experience and operational efficiency [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the impact of rising inflation and the ongoing conflict in Ukraine on consumer spending and overall business performance [12][40] - The company anticipates challenges in the first half of 2022 due to tough comparisons with the previous year's stimulus-fueled results, but expects improvement in the second half during peak shopping seasons [39][41] Other Important Information - The company repurchased 4.6 million shares at an average cost of $43.30 per share during 2021, with $83.3 million remaining on the current share repurchase authorization as of the end of the fiscal year [32] - Inventory levels decreased by 4.2% year-over-year, indicating a healthy inventory position despite supply chain challenges [33] Q&A Session Summary Question: Outlook for store growth and confidence in expansion - Management highlighted market opportunities identified through trade area analysis and substantial savings in lease costs as key factors supporting confidence in store growth [49][50] Question: Expectations for the year and impact of external factors - Management acknowledged the challenges posed by the Ukraine conflict and inflation but expressed confidence in the brand's strength and consumer demand during peak seasons [58][59] Question: Profitability of Blue Tomato and European market outlook - Management indicated that while Blue Tomato was not profitable in 2021, they expect to reach breakeven in 2022, contingent on a more normalized environment [68][69]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Financial statements reflect a strong recovery from COVID-19, with doubled net income and assets of $978.2 million [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to $978.2 million, while shareholders' equity declined due to stock repurchases Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Oct 30, 2021 (Unaudited) | Jan 30, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $546,934 | $535,277 | | Inventories | $175,108 | $134,354 | | **Total Assets** | **$978,189** | **$998,364** | | **Total Current Liabilities** | $217,641 | $195,452 | | **Total Liabilities** | **$446,447** | **$445,768** | | **Total Shareholders' Equity** | **$531,742** | **$552,596** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales grew 27.0% and net income surged to $81.1 million for the nine-month period, showing strong recovery Performance Summary (in thousands, except per share data) | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $289,455 | $270,952 | $837,190 | $659,116 | | Gross Profit | $114,664 | $105,806 | $322,797 | $220,392 | | Operating Profit | $39,842 | $37,865 | $106,075 | $43,129 | | Net Income | $30,702 | $29,139 | $81,085 | $33,430 | | Diluted EPS | $1.25 | $1.16 | $3.20 | $1.32 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased to $71.9 million due to inventory investment, with significant cash used for share repurchases Net Cash Flow by Activity (9 Months Ended, in thousands) | Activity | Oct 30, 2021 | Oct 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $71,936 | $81,754 | | Net cash provided by (used in) investing activities | $26,219 | $(38,261) | | Net cash used in financing activities | $(96,217) | $(12,551) | - The significant use of cash in financing activities was driven by **$98.5 million in common stock repurchases** during the first nine months of 2021[14](index=14&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail store operations, COVID-19 impacts, a class-action settlement, and a new $150 million share repurchase program - The company operates **733 stores** under various names across the U.S, Canada, Europe, and Australia as of October 30, 2021[16](index=16&type=chunk) - Due to COVID-19, stores were open approximately **96.2%** of possible days in the first nine months of 2021, compared to only **72.8%** in 2020[18](index=18&type=chunk) Net Sales by Geographic Region (Nine Months Ended, in thousands) | Region | Oct 30, 2021 | Oct 31, 2020 | | :--- | :--- | :--- | | United States | $707,070 | $542,956 | | Canada | $36,577 | $37,384 | | Europe | $82,192 | $70,519 | | Australia | $11,351 | $8,257 | | **Total Net Sales** | **$837,190** | **$659,116** | - The company reached a resolution for a class action lawsuit, recording an estimated settlement of **$2.8 million** in SG&A expenses[39](index=39&type=chunk) - In September 2021, the Board approved a new share repurchase program of up to **$150 million**, with **$86.3 million** remaining available[50](index=50&type=chunk) - Subsequent to the quarter's end, the company repurchased an additional **0.5 million shares for $23.1 million**[60](index=60&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Strong sales growth of 27.0% drove significant gross margin improvement, with liquidity remaining strong despite share repurchases [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Nine-month sales growth of 27.0% leveraged fixed costs, expanding gross margin by 520 basis points - **Q3 2021 vs Q3 2020**: Net sales increased **6.8%**, gross profit margin increased **60 basis points**, and SG&A as a percent of sales increased **80 basis points**[79](index=79&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) - **9 Months 2021 vs 9 Months 2020**: Net sales increased **27.0%**, gross profit margin increased **520 basis points**, and SG&A as a percent of sales decreased **100 basis points**[84](index=84&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by cash from operations, with planned capital expenditures of $19-21 million and significant share repurchases - The company expects to spend approximately **$19 million to $21 million** on capital expenditures in fiscal 2021 for new stores and remodels[92](index=92&type=chunk) - Net cash from operating activities decreased by **$9.8 million** year-over-year, primarily due to a significant investment in inventory[93](index=93&type=chunk) - The company maintains two credit facilities with **no outstanding borrowings** as of October 30, 2021[98](index=98&type=chunk)[99](index=99&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk profile has not materially changed from the prior fiscal year-end - There have been **no significant changes** to the company's market risk profile since the fiscal year-end on January 30, 2021[156](index=156&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in internal controls - Management concluded that the company's disclosure controls and procedures were **effective** as of the end of the quarter[157](index=157&type=chunk) - **No changes** occurred in the company's internal control over financial reporting during the third quarter that would materially affect these controls[158](index=158&type=chunk) [Part II. Other Information](index=32&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various routine litigation incidental to its business, with outcomes being unpredictable - The company is periodically involved in litigation arising from its ordinary course of business and refers to **Note 5** of the financial statements for details[159](index=159&type=chunk)[160](index=160&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) Key business risks include the COVID-19 pandemic, fashion trends, competition, and reliance on international manufacturing - The **COVID-19 pandemic** continues to pose a material risk to the business through potential store closures and supply chain disruptions[106](index=106&type=chunk)[107](index=107&type=chunk) - The business is highly dependent on **anticipating fashion trends**, and failure to do so could lead to excess inventory and markdowns[113](index=113&type=chunk) - Most merchandise is produced by **foreign manufacturers**, exposing the company to risks from international trade and supply chain disruptions[118](index=118&type=chunk) - The business relies heavily on **customer traffic** to its physical stores and e-commerce sites, and a decline could materially harm sales[119](index=119&type=chunk) - The **omni-channel strategy** requires significant investment and may not deliver the anticipated results if it fails to meet customer expectations[137](index=137&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 2,235,000 shares in Q3 and authorized a new $150 million repurchase program Common Stock Repurchases (Q3 2021) | Period | Total Shares Purchased (thousands) | Average Price Paid per Share | | :--- | :--- | :--- | | Aug 1 - Aug 28, 2021 | 342 | $41.91 | | Aug 29 - Oct 2, 2021 | 844 | $40.97 | | Oct 3 - Oct 30, 2021 | 1,049 | $40.72 | | **Total** | **2,235** | **N/A** | - A new share repurchase program of up to **$150 million** was approved in September 2021, expected to continue through January 28, 2023[162](index=162&type=chunk)

Zumiez Inc. (NASDAQ:ZUMZ) Q3 2021 Earnings Conference Call December 2, 2021 5:00 PM ET Company Participants Richard Brooks - CEO Christopher Work - CFO Conference Call Participants Sharon Zackfia - William Blair Jeff Van Sinderen - B. Riley Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the corresponding text be unclear. The machine-assisted output provided is ...

Zumiez Inc. (NASDAQ:ZUMZ) Q2 2021 Results Conference Call September 9, 2021 4:30 PM ET Company Participants Richard Brooks – Chief Executive Officer Christopher Work – Chief Financial Officer Conference Call Participants Janine Stitcher – Jefferies Richard Magnusen – B. Riley Jonathan Komp – Baird Mitch Kummetz – Pivotal Research Operator Good afternoon, ladies and gentlemen, and welcome to Zumiez, Inc.'s Second Quarter Fiscal 2021 earnings conference call. At this time, all participants are in a listen-onl ...

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 JULY 31, 2021 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) ...