Zumiez, Inc. engages in retailing apparel, footwear and accessories for young men and women. It also offers hardgoods including skateboards, snowboards, bindings, components, and other equipment. It operates under the Zumiez, Blue Tomato, and Fast Times brands. The company was founded by Thomas D. Campion on July 3, 1978 and is headquartered in Lynnwood, WA.
Failure to anticipate, identify and respond to changing fashion trends, customer preferences and other fashion-related factors could have a material adverse effect on us.
We may be unable to compete favorably in the highly competitive retail industry, and if we lose customers to our competitors, our sales could decrease.
Failure to successfully integrate any businesses that we acquire could have an adverse impact on our results of operations and financial performance.
Our sales and inventory levels fluctuate on a seasonal basis. Accordingly, our quarterly results of operations are volatile and may fluctuate significantly.
Significant fluctuations and volatility in the cost of raw materials, global labor, shipping and other costs related to the production of our merchandise may have a material adverse effect on our business, results of operations and financial conditions.
Most of our merchandise is produced by foreign manufacturers; therefore, the availability, quality and costs of our merchandise may be negatively affected by risks associated with international trade and other international conditions.
Our business could be adversely affected by increased labor costs, including costs related to an increase in minimum wage and health care.
Our business could suffer if a manufacturer fails to use acceptable labor and environmental practices.
If we fail to develop and maintain good relationships with vendors, or if a vendor is otherwise unable or unwilling to supply us with adequate quantities of their products at acceptable prices, our business and financial performance could suffer.
Our business is susceptible to weather conditions that are out of our control, including the potential risks of unpredictable weather patterns and any weather patterns associated with naturally occurring global climate change, and the resultant unseasonable weather could have a negative impact on our results of operations.
Our omni-channel strategy may not have the return we anticipate, which could have an adverse effect on our results of operations.
If we lose key executives or are unable to attract and retain the talent required for our business, our financial performance could suffer.
A decline in cash flows from operations could have a material adverse effect on our business and growth plans.
The terms of our secured credit agreement impose certain restrictions on us that may impair our ability to respond to changing business and economic conditions, which could have a significant adverse impact on our business. Additionally, our business could suffer if our ability to acquire financing is reduced or eliminated.
The effects of war, acts of terrorism, threat of terrorism, or other types of mall violence, could adversely affect our business.
Our inability or failure to protect our intellectual property or our infringement of other’s intellectual property could have a negative impact on our operating results.
Our operations expose us to the risk of litigation, which could lead to significant potential liability and costs that could harm our business, financial condition or results of operations.
Failure to comply with federal, state, local or foreign laws and regulations, or changes in these laws and regulations, could have an adverse impact on our results of operations and financial performance.
Fluctuations in our tax obligations and effective tax rate may result in volatility in our operating results.
We may fail to meet analyst expectations, which could cause the price of our stock to decline.
The reduction of total outstanding shares through the execution of a share repurchase program of common stock may increase the risk that a group of shareholders could form a group to become a controlling shareholder.
Net sales were $228.4 million for the three months ended August 3, 2019 compared to $219.0 million for the three months ended August 4, 2018, an increase of $9.4 million or 4.3%. The increase primarily reflected an increase in comparable sales of $7.9 million and the net addition of 7 stores (made up of 3 new stores in North America, 7 new stores in Europe and 3 new stores in Australia partially offset by 6 store closures in North America) subsequent to August 4, 2018 partially offset by a decrease of $1.2 million due to changes in foreign currency rates. By region, North America sales increased $5.9 million or 2.9% and other international sales (which consists of Europe and Australia sales) increased $3.5 million or 20.2% for the three months ended August 3, 2019 compared to the three months ended August 4, 2018. Excluding the impact of changes in foreign exchange rates, North America sales increased $6.1 million or 3.0% and other international sales increased $4.5 million or 25.8% for the three months ended August 3, 2019 compared to the three months ended August 4, 2018.