LYNNWOOD, Wash., June 02, 2022 (GLOBE NEWSWIRE) -- 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 April 30, 2022.

Net sales for the first quarter ended April 30, 2022 (13 weeks) decreased 20.9% to $220.7 million from $279.1 million in the first quarter ended May 1, 2021 (13 weeks). Compared to the pre-pandemic first quarter ended May 4, 2019 (13 weeks), first quarter 2022 net sales increased 3.6%. Net loss for the first quarter of fiscal 2022 was $(0.4) million, or $(0.02) per diluted share, compared to net income of $26.4 million, or $1.03 per diluted share, in the first quarter of the prior fiscal year. Net income for the first quarter of 2019 was $0.8 million, or $0.03 per diluted share.

At April 30, 2022, the Company had cash and current marketable securities of $173.0 million compared to cash and current marketable securities of $400.4 million at May 1, 2021. The decrease was driven by share repurchases and capital expenditures partially offset by cash generated through operations. The Company repurchased 1.9 million shares in the first quarter of 2022 at an average cost of $43.51 per share and a total cost of $83.3 million which fully completed the existing authorized program. The Company currently has no open repurchase authorizations.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, "Our first quarter top line performance came in on the high side of our expectations for the quarter as we experienced another period of full price selling across each of our geographic regions. As forecasted, the first quarter was meaningfully impacted by the anniversary of record U.S. stimulus in early 2021 as well as the impacts of inflation and overall competition for the discretionary dollar. On the expense side we experienced some headwinds in the first quarter of this year around labor, shipping and logistics costs as well as a shift in timing of certain marketing and training investments that resulted in us missing our EPS guidance. As we look to the balance of the year, we are cognizant that the current macroeconomic environment is likely to deteriorate further and near-term year-over-year comparisons remain challenging. However, we have a strong balance sheet and remain confident in our consumer centric growth strategy and flexible operating model that has proven resilient to a variety of challenges over time. Despite the economic back drop, we believe the Company remains well positioned to capture share in each of our global markets while we continue advancing our strategic initiatives and generating value for our shareholders."

May 2022 Sales

Net sales for the four-week period ended May 28, 2022 decreased 20.9% compared to the four-week period ended May 29, 2021 and increased 3.3% compared to the four-week period ended June 1, 2019.

Fiscal 2022 Second Quarter Outlook

The Company is introducing guidance for the three months ending July 30, 2022. Net sales are projected to be in the range of $232 to $239 million. Consolidated operating margins are expected to between 5.0% and 6.5% resulting in earnings per diluted share of approximately $0.45 to $0.55. The Company currently intends to open approximately 34 new stores in fiscal 2022, including up to 15 stores in North America, 14 stores in Europe and 5 stores in Australia.

Conference call Information

A conference call will be held today to discuss first quarter fiscal 2022 results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (844) 309-0606 (domestic) or (574) 990-9934 (international) followed by the conference identification code of 9374922.

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 28, 2022, we operated 741 stores, including 601 in the United States, 52 in Canada, 69 in Europe and 19 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 29, 2022 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.

Company Contact:

Darin White

Vice president of Finance &

Investor Relations

Zumiez Inc.

(425) 551-1500, ext. 1337

Investor Contact:

ICR

Brendon Frey

(203) 682-8200

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended
	April 30, 2022			% of Sales			May 1, 2021	% of Sales
Net sales	$	220,686		100.0	%	$	279,069	100.0	%
Cost of goods sold		148,312		67.2	%		175,900	63.0	%
Gross profit		72,374		32.8	%		103,169	37.0	%
Selling, general and administrative expenses		71,877		32.6	%		68,889	24.7	%
Operating profit		497		0.2	%		34,280	12.3	%
Interest income, net		492		0.2	%		975	0.3	%
Other income, net		172		0.1	%		254	0.1	%
Earnings before income taxes		1,161		0.5	%		35,509	12.7	%
Provision for income taxes		1,558		0.7	%		9,124	3.2	%
Net (loss) income	$	(397	)	(0.2	%)	$	26,385	9.5	%
Basic (loss) earnings per share	$	(0.02	)			$	1.05
Diluted (loss) earnings per share	$	(0.02	)			$	1.03
Weighted average shares used in computation of earnings per share:
Basic		19,533					25,167
Diluted		19,533					25,676

ZUMIEZ INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	April 30, 2022			January 29, 2022			May 1, 2021
	(Unaudited)						(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	62,501		$	117,223		$	81,503
Marketable securities		110,452			177,260			318,888
Receivables		23,609			14,427			20,481
Inventories		141,883			128,728			136,498
Prepaid expenses and other current assets		10,348			10,011			9,481
Total current assets		348,793			447,649			566,851
Fixed assets, net		90,313			91,451			96,004
Operating lease right-of-use assets		240,052			230,187			259,790
Goodwill		55,325			57,560			61,307
Intangible assets, net		14,091			14,698			15,996
Deferred tax assets, net		7,910			8,659			6,168
Other long-term assets		11,630			11,808			11,688
Total long-term assets		419,321			414,363			450,953
Total assets	$	768,114		$	862,012		$	1,017,804

Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable	$	65,108		$	55,638		$	75,610
Accrued payroll and payroll taxes		19,334			31,209			24,784
Operating lease liabilities		69,327			63,577			67,433
Other liabilities		24,528			34,015			25,419
Total current liabilities		178,297			184,439			193,246
Long-term operating lease liabilities		207,953			204,309			238,553
Other long-term liabilities		4,967			4,946			4,224
Total long-term liabilities		212,920			209,255			242,777
Total liabilities		391,217			393,694			436,023

Shareholders' equity
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding		—			—			—
Common stock, no par value, 50,000 shares authorized; 19,459 shares issued and outstanding at April 30, 2022, 21,215 shares issued and outstanding at January 29, 2022, and 25,780 shares issued and outstanding at May 1, 2021		182,899			180,824			174,921
Accumulated other comprehensive (loss) income		(23,274	)		(13,463	)		446
Retained earnings		217,272			300,957			406,414
Total shareholders' equity		376,897			468,318			581,781
Total liabilities and shareholders' equity	$	768,114		$	862,012		$	1,017,804

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended
	April 30, 2022			May 1, 2021
Cash flows from operating activities:
Net (loss) income	$	(397	)	$	26,385
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation, amortization and accretion		5,416			5,889
Noncash lease expense		16,495			15,968
Deferred taxes		1,838			4,063
Stock-based compensation expense		1,700			1,740
Impairment of long-lived assets		-			2,079
Other		(72	)		(246	)
Changes in operating assets and liabilities:
Receivables		(4,172	)		(2,019	)
Inventories		(14,580	)		(1,813	)
Prepaid expenses and other assets		(280	)		(2,098	)
Trade accounts payable		9,672			5,796
Accrued payroll and payroll taxes		(11,696	)		(3,141	)
Income taxes payable		(4,987	)		(3,690	)
Operating lease liabilities		(18,403	)		(18,776	)
Other liabilities		(5,011	)		(3,212	)
Net cash (used in) provided by operating activities		(24,477	)		26,925
Cash flows from investing activities:
Additions to fixed assets		(3,562	)		(2,825	)
Purchases of marketable securities and other investments		(1,914	)		(60,692	)
Sales and maturities of marketable securities and other investments		64,041			42,249
Net cash provided by (used in) investing activities		58,565			(21,268	)
Cash flows from financing activities:
Proceeds from issuance and exercise of stock-based awards		782			2,039
Payments for tax withholdings on equity awards		(407	)		(486	)
Common stock repurchased		(87,860	)		—
Net cash (used in) provided by financing activities		(87,485	)		1,553
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(1,497	)		766
Net (decrease) increase in cash, cash equivalents, and restricted cash		(54,894	)		7,976
Cash, cash equivalents, and restricted cash, beginning of period		124,052			80,690
Cash, cash equivalents, and restricted cash, end of period	$	69,158		$	88,666
Supplemental disclosure on cash flow information:
Cash paid during the period for income taxes	$	4,657		$	8,738
Accrual for purchases of fixed assets		2,530			553

Zumiez Inc. Announces Fiscal 2022 First Quarter Results