Zumiez(ZUMZ) - 2019 Q4 - Annual Report

PART I Item 1. Business 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][21] 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][32][33] 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 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] - 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] - 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] - 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] - 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] Item 1B. Unresolved Staff Comments There are no unresolved staff comments from the SEC regarding the company's filings - The company has no unresolved staff comments[112] Item 2. Properties 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] - 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][114] - International operations are supported by leased distribution and e-commerce fulfillment centers in Delta, British Columbia (Canada), Graz, Austria (Europe), and Melbourne, Australia[115] Item 3. Legal Proceedings 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] Item 4. Mine Safety Disclosures This item is not applicable to Zumiez Inc - Mine Safety Disclosures are not applicable to the registrant[117] PART II Item 5. Market for the Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities Zumiez's common stock trades on Nasdaq under 'ZUMZ'; the Board authorized a $75.0 million share repurchase program - Zumiez common stock is traded on the Nasdaq Global Select Market under the symbol 'ZUMZ'[120] Common Stock High and Low Sales Prices | Fiscal Year | Quarter | High ($) | 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] - No cash dividends have been declared on common stock to date, and payment is evaluated periodically[126] Item 6. Selected Financial Data 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 This section analyzes Zumiez's financial performance, condition, and outlook, highlighting sales growth and strategic investments Fiscal 2018—A Review of This Past Year 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] 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][136] - The company added 13 new stores globally in fiscal 2018 (5 in North America, 7 in Europe, 1 in Australia)[132] Fiscal 2019—A Look At the Upcoming Year 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] - Investments will primarily target enhancing customer experience and creating operational efficiencies to drive operating margin expansion[137] - 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] - The company anticipates its cost structure to grow at a slower rate than 2018, aiming to grow operating profit faster than sales[138] 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] - 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] - 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] - 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] Key Performance Indicators 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] - Gross profit measures the optimization of merchandise pricing and inventory levels, with initial markups and markdowns directly affecting results[146] - 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] - Diluted earnings per share is viewed as a key indicator of success in increasing shareholder value[148] Results of Operations 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 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] - 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] - 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] Fiscal 2017 Results Compared With Fiscal 2016 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] - 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] - 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 $3.4 million valuation allowance against deferred tax assets in Austria[163] Seasonality and Quarterly Results Zumiez's business is highly seasonal, with Q3 and Q4 generating the largest portion of annual net sales and operating results - Operations are seasonal, with net sales and operating results typically lower in the first and second quarters, and highest during the back-to-school and winter holiday periods in the third and fourth fiscal quarters[164] Unaudited Quarterly Consolidated Statements of Income Data (in thousands, except per share data) | Fiscal Year | Quarter | Net Sales ($) | 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 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] 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] - 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][181] Critical Accounting Estimates 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][189][191] - 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][195][197] - 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][204] - 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][207][208] - 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][217][221] Contractual Obligations and Commercial Commitments 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] Off-Balance Sheet Arrangements 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] Impact of Inflation/Deflation 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] - Substantial increases in costs (raw materials, labor, energy) or changes in the regulatory environment could significantly impact the business[226] - Deflation could positively impact merchandise costs but adversely affect average unit retail price, leading to lower sales and operating results[226] Recent Accounting Pronouncements 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] Item 7A. Quantitative and Qualitative Disclosures About Market Risk 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] - A hypothetical 10% decrease in the current portfolio average yield rate in fiscal 2018 would have decreased net income by $0.2 million[228] - 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] - A hypothetical 10% change in foreign exchange rates in fiscal 2018 would have decreased or increased net income by $0.7 million[231] Item 8. Financial Statements and Supplementary Data 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] Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 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] Item 9A. Controls and Procedures 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] - No material changes in internal control over financial reporting occurred during the quarter ended February 2, 2019[236] - 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] - 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] Item 9B. Other Information No other information is reported under this item - No other information is reported under this item[249] PART III Item 10. Directors, Executive Officers and Corporate Governance 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] Item 11. Executive Compensation 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] Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 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] Item 13. Certain Relationships and Related Transactions, and Director Independence 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] Item 14. Principal Accountant Fees and Services 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] PART IV Item 15. Exhibits, Financial Statement Schedules 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] - 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][371] Consolidated Financial Statements 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][266] 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 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][327] - 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 $300.0 million, but no material impact on the consolidated statement of income or cash flows[321][323] Net Sales by Geographic Region (in thousands) | Region | Fiscal Year Ended Feb 2, 2019 ($) | 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] 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 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][376]