Zumiez Inc. Announces Record Fiscal 2021 First Quarter Results
June 03 2021 - 4:05PM
Zumiez Inc. (NASDAQ: ZUMZ) a leading specialty retailer of apparel,
footwear, equipment and accessories for young men and women, today
reported results for the first quarter ended May 1, 2021.
Net sales for the first quarter ended May 1, 2021 (13 weeks)
increased 102.6% to $279.1 million from $137.8 million in the first
quarter ended May 2, 2020 (13 weeks). Compared to the first quarter
ended May 4, 2019 (13 weeks), first quarter 2021 net sales
increased 31.1%. Net income in the first quarter of fiscal 2021 was
$26.4 million, or $1.03 per diluted share, compared to a net loss
of $21.1 million, or $(0.84) per diluted share, in the first
quarter of the prior fiscal year. Net income for the first quarter
of 2019 was $0.08 million, or $0.03 per diluted share.
At May 1, 2021, the Company had cash and current marketable
securities of $400.4 million compared to cash and current
marketable securities of $217.2 million at May 2, 2020. The
increase in cash and current marketable securities was driven by
cash generated through operations partially offset by capital
expenditures.
“After demonstrating great resiliency during the
height of the pandemic, our business has exceeded pre-COVID levels
even as a portion of our global store fleet remains closed. Our
performance amidst very challenging conditions over the past year,
and more recently as the operating environment has improved,
underscores our market leading position and the strength of our
business model. Sales trends accelerated as the first quarter
progressed driven by our ability to capture meaningful share of the
heightened discretionary spending in the U.S. related to government
stimulus, especially in our stores, as customers are becoming
increasingly comfortable returning to in person shopping. The
strong sales gains on both a one and two year basis combined with
the shift back to our historical channel mix following elevated
online spending in 2020, fueled a dramatic increase in first
quarter profitability. We are very pleased with our start to 2021
and are optimistic that we can maintain our positive momentum over
the remainder of the year. With our strong balance sheet and
differentiated strategies, we are well positioned to add to our
global market share and return increased value to our shareholders
over the long-term.”
May 2021 SalesNet sales for the four-week period ended May 29,
2021 increased 42.4% compared to the four-week period ended May 30,
2020 and increased 30.5% compared to the four-week period ended
June 1, 2019.
OutlookDue to the continued fast-moving nature of this situation
and the uncertainty of impacts on revenue and costs, the Company is
not providing an outlook at this time for the second quarter or the
year.
Conference call Information A conference call will be held today
to discuss first quarter fiscal 2021 results and will be webcast at
5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial
(574) 990-9934 followed by the conference identification code of
7239969.
About Zumiez Inc.
Zumiez is a leading specialty retailer of apparel, footwear,
accessories and hardgoods for young men and women who want to
express their individuality through the fashion, music, art and
culture of action sports, streetwear, and other unique lifestyles.
As of May 29, 2021, we operated 723 stores, including 602 in the
United States, 52 in Canada, 54 in Europe and 15 in Australia. We
operate under the names Zumiez, Blue Tomato and Fast Times.
Additionally, we operate ecommerce web sites at zumiez.com,
zumiez.ca, blue-tomato.com and fasttimes.com.au.
Safe Harbor Statement
Certain statements in this press release and oral statements
relating thereto made from time to time by representatives of the
Company may constitute forward-looking statements for purposes of
the safe harbor provisions under the Private Securities Litigation
Reform Act of 1995. These statements include, without limitation,
predictions and guidance relating to the Company's future financial
performance, brand and product category diversity, ability to
adjust product mix, integration of acquired businesses, growing
customer demand for our products and new store openings. In some
cases, you can identify forward-looking statements by terminology
such as, "may," "should," "expects," "plans," "anticipates,"
"believes," "estimates," "predicts," "potential," "continue," or
the negative of these terms or other comparable terminology. These
forward-looking statements are based on management's current
expectations but they involve a number of risks and uncertainties.
Actual results and the timing of events could differ materially
from those anticipated in the forward-looking statements as a
result of risks and uncertainties, which include, without
limitation, those described in the Company’s annual report on Form
10-K for the fiscal year ended January 30, 2021 as filed with the
Securities and Exchange Commission and available at www.sec.gov.
You are urged to consider these factors carefully in evaluating the
forward-looking statements herein and are cautioned not to place
undue reliance on such forward-looking statements, which are
qualified in their entirety by this cautionary statement. The
forward-looking statements speak only as of the date on which they
are made and the Company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events
or circumstances.
|
|
ZUMIEZ INC. CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (LOSS) (In thousands, except
per share amounts) (Unaudited) |
|
|
|
|
|
Three Months Ended |
|
|
May 1, 2021 |
|
% of Sales |
|
|
May 2, 2020 |
|
% of Sales |
Net sales |
|
$ |
279,069 |
|
100.0 |
% |
|
$ |
137,772 |
|
|
100.0 |
% |
Cost of goods sold |
|
|
175,900 |
|
63.0 |
% |
|
|
114,036 |
|
|
82.8 |
% |
Gross profit |
|
|
103,169 |
|
37.0 |
% |
|
|
23,736 |
|
|
17.2 |
% |
Selling, general and administrative expenses |
|
|
68,889 |
|
24.7 |
% |
|
|
51,584 |
|
|
37.4 |
% |
Operating profit (loss) |
|
|
34,280 |
|
12.3 |
% |
|
|
(27,848 |
) |
|
(20.2 |
%) |
Interest income, net |
|
|
975 |
|
0.3 |
% |
|
|
1,074 |
|
|
0.8 |
% |
Other income, net |
|
|
254 |
|
0.1 |
% |
|
|
106 |
|
|
0.0 |
% |
Earnings (loss) before income taxes |
|
|
35,509 |
|
12.7 |
% |
|
|
(26,668 |
) |
|
(19.4 |
%) |
Provision for (benefit from) income taxes |
|
|
9,124 |
|
3.2 |
% |
|
|
(5,567 |
) |
|
(4.1 |
%) |
Net income (loss) |
|
$ |
26,385 |
|
9.5 |
% |
|
$ |
(21,101 |
) |
|
(15.3 |
%) |
Basic earnings (loss) per share |
|
$ |
1.05 |
|
|
|
$ |
(0.84 |
) |
|
|
Diluted earnings (loss) per share |
|
$ |
1.03 |
|
|
|
$ |
(0.84 |
) |
|
|
Weighted average shares used in computation of earnings (loss) per
share: |
|
|
|
|
|
|
|
|
Basic |
|
|
25,167 |
|
|
|
|
25,040 |
|
|
|
Diluted |
|
|
25,676 |
|
|
|
|
25,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZUMIEZ INC. CONDENSED CONSOLIDATED BALANCE
SHEETS(In thousands) |
|
|
|
|
|
|
|
|
|
May 1, 2021 |
|
January 30, 2021 |
|
May 2, 2020 |
|
|
(Unaudited) |
|
|
|
(Unaudited) |
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
81,503 |
|
$ |
73,622 |
|
$ |
63,731 |
|
Marketable securities |
|
|
318,888 |
|
|
301,920 |
|
|
153,494 |
|
Receivables |
|
|
20,481 |
|
|
16,558 |
|
|
16,837 |
|
Inventories |
|
|
136,498 |
|
|
134,354 |
|
|
136,354 |
|
Prepaid expenses and other current assets |
|
|
9,481 |
|
|
8,823 |
|
|
5,179 |
|
Total current assets |
|
|
566,851 |
|
|
535,277 |
|
|
375,595 |
|
Fixed assets, net |
|
|
96,004 |
|
|
98,352 |
|
|
109,573 |
|
Operating lease right-of-use assets |
|
|
259,790 |
|
|
267,152 |
|
|
285,416 |
|
Goodwill |
|
|
61,307 |
|
|
61,470 |
|
|
56,706 |
|
Intangible assets, net |
|
|
15,996 |
|
|
16,029 |
|
|
14,366 |
|
Deferred tax assets, net |
|
|
6,168 |
|
|
9,927 |
|
|
11,206 |
|
Other long-term assets |
|
|
11,688 |
|
|
10,157 |
|
|
8,571 |
|
Total long-term assets |
|
|
450,953 |
|
|
463,087 |
|
|
485,838 |
|
Total assets |
|
$ |
1,017,804 |
|
$ |
998,364 |
|
$ |
861,433 |
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Trade accounts payable |
|
$ |
75,610 |
|
$ |
69,751 |
|
$ |
49,497 |
|
Accrued payroll and payroll taxes |
|
|
24,784 |
|
|
27,911 |
|
|
13,173 |
|
Income taxes payable |
|
|
3,698 |
|
|
6,317 |
|
|
4,430 |
|
Operating lease liabilities |
|
|
67,433 |
|
|
66,993 |
|
|
70,584 |
|
Other liabilities |
|
|
21,721 |
|
|
24,480 |
|
|
19,197 |
|
Total current liabilities |
|
|
193,246 |
|
|
195,452 |
|
|
156,881 |
|
Long-term operating lease liabilities |
|
|
238,553 |
|
|
246,123 |
|
|
269,608 |
|
Other long-term liabilities |
|
|
4,224 |
|
|
4,193 |
|
|
3,790 |
|
Total long-term liabilities |
|
|
242,777 |
|
|
250,316 |
|
|
273,398 |
|
Total liabilities |
|
|
436,023 |
|
|
445,768 |
|
|
430,279 |
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
|
|
|
|
Preferred stock, no par value, 20,000 shares authorized; none
issued and outstanding |
|
|
— |
|
|
— |
|
|
— |
|
Common stock, no par value, 50,000 shares authorized; 25,780
shares issued and outstanding at May 1, 2021, 25,599 shares issued
and outstanding at January 30, 2021, and and 25,431 shares issued
and outstanding at May 1, 2021 |
|
|
174,921 |
|
|
171,628 |
|
|
163,349 |
|
Accumulated other comprehensive income (loss) |
|
|
446 |
|
|
939 |
|
|
(14,896 |
) |
Retained earnings |
|
|
406,414 |
|
|
380,029 |
|
|
282,701 |
|
Total shareholders’ equity |
|
|
581,781 |
|
|
552,596 |
|
|
431,154 |
|
Total liabilities and shareholders’ equity |
|
$ |
1,017,804 |
|
$ |
998,364 |
|
$ |
861,433 |
|
|
|
|
|
|
|
|
|
|
|
ZUMIEZ INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(In
thousands)(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
|
May 1, 2021 |
|
May 2, 2020 |
Cash flows from operating activities: |
|
|
|
|
Net income (loss) |
|
$ |
26,385 |
|
|
$ |
(21,101 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
Depreciation, amortization and accretion |
|
|
5,889 |
|
|
|
6,096 |
|
Noncash lease expense |
|
|
15,968 |
|
|
|
14,996 |
|
Deferred taxes |
|
|
4,063 |
|
|
|
(4,856 |
) |
Stock-based compensation expense |
|
|
1,740 |
|
|
|
1,556 |
|
Impairment of long-lived assets |
|
|
2,079 |
|
|
|
1,514 |
|
Other |
|
|
(246 |
) |
|
|
(173 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
Receivables |
|
|
(2,019 |
) |
|
|
1,918 |
|
Inventories |
|
|
(1,813 |
) |
|
|
(2,031 |
) |
Prepaid expenses and other assets |
|
|
(2,098 |
) |
|
|
4,354 |
|
Trade accounts payable |
|
|
5,796 |
|
|
|
1,074 |
|
Accrued payroll and payroll taxes |
|
|
(3,141 |
) |
|
|
(10,423 |
) |
Income taxes payable |
|
|
(3,690 |
) |
|
|
(1,078 |
) |
Operating lease liabilities |
|
|
(18,776 |
) |
|
|
(6,948 |
) |
Other liabilities |
|
|
(3,212 |
) |
|
|
(2,440 |
) |
Net cash provided by (used in) operating
activities |
|
|
26,925 |
|
|
|
(17,542 |
) |
Cash flows from investing activities: |
|
|
|
|
Additions to fixed assets |
|
|
(2,825 |
) |
|
|
(2,504 |
) |
Purchases of marketable securities and other investments |
|
|
(60,692 |
) |
|
|
(9,106 |
) |
Sales and maturities of marketable securities and other
investments |
|
|
42,249 |
|
|
|
54,344 |
|
Net cash (used in) provided by investing
activities |
|
|
(21,268 |
) |
|
|
42,734 |
|
Cash flows from financing activities: |
|
|
|
|
Proceeds from issuance and exercise of stock-based awards |
|
|
2,039 |
|
|
|
428 |
|
Payments for tax withholdings on equity awards |
|
|
(486 |
) |
|
|
(93 |
) |
Common stock repurchased |
|
|
— |
|
|
|
(13,417 |
) |
Net cash provided by (used in) financing
activities |
|
|
1,553 |
|
|
|
(13,082 |
) |
Effect of exchange rate changes on cash, cash equivalents,
and restricted cash |
|
|
766 |
|
|
|
(853 |
) |
Net increase (decrease) in cash, cash equivalents, and
restricted cash |
|
|
7,976 |
|
|
|
11,257 |
|
Cash, cash equivalents, and restricted cash, beginning of
period |
|
|
80,690 |
|
|
|
58,991 |
|
Cash, cash equivalents, and restricted cash, end of
period |
|
$ |
88,666 |
|
|
$ |
70,248 |
|
Supplemental disclosure on cash flow
information: |
|
|
|
|
Cash paid during the period for income taxes |
|
$ |
8,738 |
|
|
$ |
343 |
|
Accrual for purchases of fixed assets |
|
|
553 |
|
|
|
1,976 |
|
|
|
|
|
|
Company Contact:Darin WhiteDirector of Finance
& Investor RelationsZumiez Inc.(425) 551-1500, ext. 1337
Investor Contact:ICRBrendon Frey (203)
682-8200
Zumiez (NASDAQ:ZUMZ)
Historical Stock Chart
From Apr 2024 to May 2024
Zumiez (NASDAQ:ZUMZ)
Historical Stock Chart
From May 2023 to May 2024