Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Mar. 09, 2020 | Aug. 02, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 1, 2020 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ZUMZ | ||
Entity Registrant Name | Zumiez Inc | ||
Entity Central Index Key | 0001318008 | ||
Current Fiscal Year End Date | --02-01 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 25,806,179 | ||
Entity Public Float | $ 465,760,341 | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 000-51300 | ||
Entity Incorporation, State or Country Code | WA | ||
Entity Tax Identification Number | 91-1040022 | ||
Entity Address, Address Line One | 4001 204th Street SW | ||
Entity Address, City or Town | Lynnwood | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98036 | ||
City Area Code | 425 | ||
Local Phone Number | 551-1500 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE The information required by Part III of this report is incorporated by reference from the Registrant’s definitive proxy statement, relating to the Annual Meeting of Shareholders scheduled to be held June 3, 2020, which definitive proxy statement will be filed not later than 120 days after the end of the fiscal year to which this report relates. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Current assets | ||
Cash and cash equivalents | $ 52,428 | $ 52,422 |
Marketable securities | 198,768 | 112,912 |
Receivables | 16,841 | 17,776 |
Inventories | 135,095 | 129,268 |
Prepaid expenses and other current assets | 9,456 | 14,797 |
Total current assets | 412,588 | 327,175 |
Fixed assets, net | 113,051 | 120,503 |
Operating lease right-of-use assets | 301,784 | |
Goodwill | 57,099 | 58,813 |
Intangible assets, net | 14,564 | 15,260 |
Deferred tax assets, net | 6,303 | 5,259 |
Other long-term assets | 8,869 | 7,180 |
Total long-term assets | 501,670 | 207,015 |
Total assets | 914,258 | 534,190 |
Current liabilities | ||
Trade accounts payable | 47,787 | 35,293 |
Accrued payroll and payroll taxes | 23,653 | 21,015 |
Income taxes payable | 4,686 | 5,817 |
Deferred rent and tenant allowances | 7,489 | |
Operating lease liabilities | 61,800 | |
Other liabilities | 21,784 | 23,494 |
Total current liabilities | 159,710 | 93,108 |
Long-term deferred rent and tenant allowances | 37,076 | |
Long-term operating lease liabilities | 284,717 | |
Other long-term liabilities | 3,745 | 3,550 |
Total long-term liabilities | 288,462 | 40,626 |
Total liabilities | 448,172 | 133,734 |
Commitments and contingencies (Note 11) | ||
Shareholders’ equity | ||
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding | ||
Common stock, no par value, 50,000 shares authorized; 25,828 shares issued and outstanding at February 1, 2020 and 25,521 shares issued and outstanding at February 2, 2019 | 161,458 | 153,066 |
Accumulated other comprehensive loss | (12,591) | (9,224) |
Retained earnings | 317,219 | 256,614 |
Total shareholders’ equity | 466,086 | 400,456 |
Total liabilities and shareholders’ equity | $ 914,258 | $ 534,190 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 01, 2020 | Feb. 02, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | ||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 25,828,000 | 25,521,000 |
Common stock, shares outstanding | 25,828,000 | 25,521,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 1,034,129 | $ 978,617 | $ 927,401 |
Cost of goods sold | 667,566 | 642,681 | 617,527 |
Gross profit | 366,563 | 335,936 | 309,874 |
Selling, general and administrative expenses | 280,756 | 274,858 | 261,114 |
Operating profit | 85,807 | 61,078 | 48,760 |
Interest income, net | 3,654 | 1,692 | 495 |
Other income (expense), net | 1,532 | (440) | (852) |
Earnings before income taxes | 90,993 | 62,330 | 48,403 |
Provision for income taxes | 24,112 | 17,125 | 21,601 |
Net income | $ 66,881 | $ 45,205 | $ 26,802 |
Basic earnings per share | $ 2.65 | $ 1.81 | $ 1.09 |
Diluted earnings per share | $ 2.62 | $ 1.79 | $ 1.08 |
Weighted average shares used in computation of earnings per share: | |||
Basic | 25,200 | 24,936 | 24,679 |
Diluted | 25,535 | 25,212 | 24,878 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 66,881 | $ 45,205 | $ 26,802 |
Other comprehensive (loss) income, net of tax and reclassification adjustments: | |||
Foreign currency translation | (4,426) | (9,379) | 16,583 |
Net change in unrealized gain (loss) on available-for-sale debt securities | 1,059 | 120 | (60) |
Other comprehensive (loss) income, net | (3,367) | (9,259) | 16,523 |
Comprehensive income | $ 63,514 | $ 35,946 | $ 43,325 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Beginning Balance at Jan. 28, 2017 | $ 307,051 | $ 140,984 | $ (16,488) | $ 182,555 |
Beginning Balance, shares at Jan. 28, 2017 | 24,945 | |||
Net income | 26,802 | 26,802 | ||
Other comprehensive income (loss), net | 16,523 | 16,523 | ||
Issuance and exercise of stock-based awards | 507 | $ 507 | ||
Issuance and exercise of stock-based awards, shares | 304 | |||
Stock-based compensation expense | 5,032 | $ 5,032 | ||
Ending Balance at Feb. 03, 2018 | 355,915 | $ 146,523 | 35 | 209,357 |
Ending Balance, shares at Feb. 03, 2018 | 25,249 | |||
Net income | 45,205 | 45,205 | ||
Other comprehensive income (loss), net | (9,259) | (9,259) | ||
Issuance and exercise of stock-based awards | 672 | $ 672 | ||
Issuance and exercise of stock-based awards, shares | 272 | |||
Stock-based compensation expense | 5,871 | $ 5,871 | ||
Cumulative effect of accounting change | Accounting Standards Update 2014-09 [Member] | 2,052 | 2,052 | ||
Ending Balance at Feb. 02, 2019 | $ 400,456 | $ 153,066 | (9,224) | 256,614 |
Ending Balance, shares at Feb. 02, 2019 | 25,521 | 25,521 | ||
Net income | $ 66,881 | 66,881 | ||
Other comprehensive income (loss), net | (3,367) | (3,367) | ||
Issuance and exercise of stock-based awards | 2,010 | $ 2,010 | ||
Issuance and exercise of stock-based awards, shares | 307 | |||
Stock-based compensation expense | 6,382 | $ 6,382 | ||
Cumulative effect of accounting change | Accounting Standards Update 2016-02 [Member] | (6,276) | (6,276) | ||
Ending Balance at Feb. 01, 2020 | $ 466,086 | $ 161,458 | $ (12,591) | $ 317,219 |
Ending Balance, shares at Feb. 01, 2020 | 25,828 | 25,828 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 66,881 | $ 45,205 | $ 26,802 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and accretion | 25,449 | 27,316 | 27,288 |
Noncash lease expense | 58,223 | ||
Deferred taxes | 899 | (1,809) | 3,282 |
Stock-based compensation expense | 6,382 | 5,871 | 5,032 |
Other | (441) | 2,326 | 2,344 |
Changes in operating assets and liabilities: | |||
Receivables | 3,396 | (2,002) | (3,216) |
Inventories | (6,825) | (6,222) | (14,848) |
Prepaid expenses and other assets | 433 | (648) | (950) |
Trade accounts payable | 12,756 | (2,374) | 11,584 |
Accrued payroll and payroll taxes | 2,735 | 628 | 5,359 |
Income taxes payable | (1,127) | 780 | 3,575 |
Deferred rent and tenant allowances | (2,420) | (2,494) | |
Operating lease liabilities | (62,217) | ||
Other liabilities | (902) | (1,245) | 1,766 |
Net cash provided by operating activities | 105,642 | 65,406 | 65,524 |
Cash flows from investing activities: | |||
Additions to fixed assets | (18,818) | (21,028) | (24,062) |
Purchases of marketable securities and other investments | (236,838) | (148,646) | (129,036) |
Sales and maturities of marketable securities and other investments | 152,725 | 133,276 | 89,128 |
Net cash used in investing activities | (102,931) | (36,398) | (63,970) |
Cash flows from financing activities: | |||
Proceeds from revolving credit facilities | 34,629 | 21,466 | |
Payments on revolving credit facilities | (35,181) | (20,700) | |
Proceeds from issuance and exercise of stock-based awards | 2,332 | 899 | 698 |
Payments for tax withholdings on equity awards | (322) | (227) | (191) |
Net cash provided by financing activities | 2,010 | 120 | 1,273 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (429) | (660) | 977 |
Net increase in cash, cash equivalents, and restricted cash | 4,292 | 28,468 | 3,804 |
Cash, cash equivalents, and restricted cash, beginning of period | 54,271 | 25,803 | 21,999 |
Cash, cash equivalents, and restricted cash, end of period | 58,563 | 54,271 | 25,803 |
Supplemental disclosure on cash flow information: | |||
Cash paid during the period for income taxes | 24,138 | 18,345 | 14,851 |
Accrual for purchases of fixed assets | $ 1,152 | $ 1,805 | $ 1,300 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Nature of Business and Basis of Presentation | 1. Nature of Business and Basis of Presentation Nature of Business —Zumiez Inc., including its wholly-owned subsidiaries, (“Zumiez”, the “Company,” “we,” “us,” “its” and “our”) is a global 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. At February 1, 2020, we operated 718 stores; 607 in the United States (“U.S.”), 52 in Canada, 48 in Europe and 11 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce websites at zumiez.com , zumiez.ca, blue-tomato.com and fasttimes.com.au. Fiscal Year— We use a fiscal calendar widely used by the retail industry that results in a fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to January 31. Each fiscal year consists of four 13-week quarters, with an extra week added to the fourth quarter every five or six years. The fiscal years ended February 1, 2020 and February 2, 2019 were 52-week periods. The fiscal year ended February 3, 2018 was a 53-week period. Basis of Presentation— The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Zumiez Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation. Reclassification— Certain prior period restricted cash amounts have been reclassified to be consistent with current year presentation within our consolidated statement of cash flows. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates —The preparation of financial statements in conformity with U.S. GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements as well as the reported amounts of revenues and expenses during the reporting period. These estimates can also affect supplemental information disclosed by us, including information about contingencies, risk and financial condition. Actual results could differ from these estimates and assumptions. Fair Value of Financial Instruments —We disclose the estimated fair value of our financial instruments. Financial instruments are generally defined as cash, evidence of ownership interest in an entity or a contractual obligation that both conveys to one entity a right to receive cash or other financial instruments from another entity and imposes on the other entity the obligation to deliver cash or other financial instruments to the first entity. Our financial instruments, other than those presented in Note 12, “Fair Value Measurements,” include cash and cash equivalents, receivables, payables and other liabilities. The carrying amounts of cash and cash equivalents, receivables, payables and other liabilities approximate fair value because of the short-term nature of these instruments. Our policy is to present transfers into and transfers out of hierarchy levels as of the actual date of the event or change in circumstances that caused the transfer. Cash and Cash Equivalents —We consider all highly liquid investments with original maturity of three months or less when purchased to be cash equivalents. Concentration of Risk —We maintain our cash and cash equivalents in accounts with major financial institutions in the form of demand deposits, money market accounts, and corporate debt securities. Deposits in these financial institutions may exceed the amount of federal deposit insurance provided on such deposits. Restricted Cash— Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are recorded as restricted cash in other long-term assets on our consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows (in thousands): February 1, 2020 February 2, 2019 February 3, 2018 Cash and cash equivalents $ 52,428 $ 52,422 $ 24,041 Restricted cash included in other long-term assets 6,135 1,849 1,762 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 58,563 $ 54,271 $ 25,803 Restricted cash included in other long-term assets represents amounts held as insurance collateral and collateral for bank guarantees on certain store operating leases. Marketable Securities —Our marketable securities primarily consist of U.S treasury and government agency securities, corporate debt securities, state and local municipal securities and variable-rate demand notes. Variable-rate demand notes are considered highly liquid. Although the variable-rate demand notes have long-term nominal maturity dates, the interest rates generally reset weekly. Despite the long-term nature of the underlying securities of the variable-rate demand notes, we have the ability to quickly liquidate these securities, which have an embedded put option that allows the bondholder to sell the security at par plus accrued interest. Investments are considered to be impaired when a decline in fair value is determined to be other-than-temporary. If the cost of an investment exceeds its fair value, we evaluate information about the underlying investment that is publicly available such as analyst reports, applicable industry data and other pertinent information and assess our intent and ability to hold the security. For fixed-income securities, we also evaluate whether we have plans to sell the security or it is more likely than not we will be required to sell the security before recovery. The investment would be written down to its fair value at the time the impairment is deemed to have occurred and a new cost basis is established. Future adverse changes in market conditions, poor operating results of underlying investments or other factors could result in losses that may not be reflected in an investment’s current carrying value, possibly requiring an impairment charge in the future. Inventories —Merchandise inventories are valued at the lower of cost or net realizable value. The cost of merchandise inventories are based upon an average cost methodology. Merchandise inventories may include items that have been written down to our best estimate of their net realizable value. Our decisions to write-down our merchandise inventories are based on their current rate of sale, the age of the inventory, the profitability of the inventory and other factors. The inventory related to this reserve is not marked up in subsequent periods. The inventory reserve includes inventory whose net realizable value is below cost and an estimate for inventory shrinkage. Shrinkage refers to a reduction in inventory due to shoplifting, employee theft and other matters. We estimate an inventory shrinkage reserve for anticipated losses at February 1, 2020 and February 2, 2019 in the amounts of $4.4 million and $4.6 million. Fixed Assets— Fixed assets primarily consist of leasehold improvements, fixtures, land, buildings, computer equipment, software and store equipment. Fixed assets are stated at cost less accumulated depreciation utilizing the straight-line method over the assets’ estimated useful lives. The useful lives of our major classes of fixed assets are as follows: Leasehold improvements Lesser of 10 years or the term of the lease Fixtures 3 to 7 years Buildings, land and building and land improvements 15 to 39 years Computer equipment, software, store equipment & other 3 to 5 years The cost and related accumulated depreciation of assets sold or otherwise disposed of is removed from fixed assets and the related gain or loss is recorded in selling, general and administrative expenses on the consolidated statements of income. Asset Retirement Obligations— An asset retirement obligation (“ARO”) represents a legal obligation associated with the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development or normal operation of that long-lived asset. Our AROs are associated with leasehold improvements that, at the end of a lease, we are contractually obligated to remove in order to comply with certain lease agreements. The ARO balance at February 1, 2020 and February 2, 2019 is $3.1 million and $3.0 million and is recorded in other liabilities and other long-term liabilities on the consolidated balance sheets and will be subsequently adjusted for changes in fair value. The associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life. Valuation of Long-Lived Assets— We review the carrying value of long-lived assets or asset groups (defined as a store, corporate facility or distribution center) for impairment when events or changes in circumstances indicate that the carrying values may not be recoverable. Recoverability of assets to be held and used is determined by a comparison of the carrying amount of an asset or asset group to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered impaired, the impairment recognized is measured by comparing the fair value of the assets or asset group to the carrying values. The estimation of future cash flows from operating activities requires significant judgments of factors that include forecasting future sales, gross profit and operating expenses. In addition to historical results, current trends and initiatives, long-term macro-economic and industry factors are qualitatively considered. Additionally, management seeks input from store operations related to local economic conditions. Impairment charges are included in selling, general and administrative expenses on the consolidated statements of income. Goodwill— Goodwill represents the excess of purchase price over the fair value of acquired tangible and identifiable intangible net assets. We test goodwill for impairment on an annual basis or more frequently if indicators of impairment are present. We perform our annual impairment measurement test on the first day of the fourth quarter. Events that may trigger an early impairment review include significant changes in the current business climate, future expectations of economic conditions, declines in our operating results of our reporting units, or an expectation that the carrying amount may not be recoverable. We have an option to test goodwill for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than the carrying amount. If we choose not to perform the qualitative test or we determine that it is more likely than not that the fair value of the reporting unit is less than the carrying amount, we perform a quantitative two-step impairment test. The first step compares the carrying value of the reporting unit to its estimated fair value, which is based on the perspective of a market-participant. If the fair value of the reporting unit is lower than the carrying value, then a second step is performed to quantify the amount of the impairment. The second step includes estimating the fair value of the reporting unit by taking the net assets of the reporting unit as if the reporting unit had been acquired in a business combination. Then, the implied fair value of the reporting unit’s goodwill is compared to the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying amount. We generally determine the fair value of each of our reporting units based on a combination of the income approach and the market valuation approaches. Key assumptions in the income approach include estimating future cash flows, long-term growth rates and weighted average cost of capital. Our ability to realize the future cash flows used in our fair value calculations is affected by factors such as changes in economic conditions, operating performance and our business strategies. Key assumptions in the market approaches include identifying companies and transactions with comparable business factors, such as earnings growth, profitability, business and financial risk. Intangible Assets— Our intangible assets consist of trade names and trademarks with indefinite lives and certain definite-lived intangible assets. We test our indefinite-lived intangible assets for impairment on an annual basis, or more frequently if indicators of impairment are present. We test our indefinite-lived assets by estimating the fair value of the asset and comparing that to the carrying value, an impairment loss is recorded for the amount that carrying value exceeds the estimated fair value. The fair value of the trade names and trademarks is determined using the relief from royalty method. This method assumes that the trade name and trademarks have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. The assumptions used in this method requires management judgment and estimates in forecasting future revenue growth, discount rates, and royalty rates. Definite-lived intangible assets, which consist of developed technology, customer relationships and non-compete agreements, are amortized using the straight-line method over their estimated useful lives. Additionally, we test the definite-lived intangible assets when facts and circumstances indicate that the carrying values may not be recoverable. We first assess the recoverability of our definite-lived intangible assets by comparing the undiscounted cash flows of the definite-lived asset less its carrying value. If the undiscounted cash flows are less than the carrying value, we then determine the estimated fair value of our definite-lived asset by taking the estimated future operating cash flows derived from the operation to which the asset relates over its remaining useful life, using a discounted cash flow analysis and comparing it to the carrying value. Any impairment would be measured as the difference between the carrying amount and the estimated fair value. Changes in any of these estimates, projections and assumptions could have a material effect of the fair value of these assets in future measurement periods and result in an impairment which could materially affect our results of operations. Leases – We determine at inception if a contract is or contains a lease. The lease classification is determined at the commencement date in which a majority of our contracts are operating leases for retail store locations. We do not have any material leases, individually or in the aggregate, classified as a finance leasing arrangement. Upon modification of a contract, we reassess if a contract is or contains a lease. For contracts that contain both lease and non-lease components, such as common area maintenance, we allocate the consideration to the components based on the relative standalone price. At the commencement date of a lease, we recognize (1) a right-of-use asset representing our right to use the underlying asset during the lease term and (2) a lease liability for the present value of the lease payments not yet made. The lease term includes the options to extend the lease, only to the extent it is reasonably certain that we will exercise such extension options and not exercise such early termination options, respectively. The majority of our store operating leases include ongoing co-tenancy requirements or early termination option that reduce lease payments, permit lease termination, or both, in the event that co-tenants cease to operate for specific periods or if stated sales levels are not met in specific periods. As the rate implicit in the lease is not readily determinable for our leases, we discount our lease payments using our incremental borrowing rate. Our incremental borrowing rate is based on information available at commencement date and represents the rate of interest we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The right-of-use asset is measured at the present value of fixed lease payments not yet made with adjustments for initial direct costs, lease prepayments and lease incentives received. The right-of-use asset is reduced over time by the recognition of straight-line expense less the accretion of the lease liability under the effective interest method. The lease liability is measured at the present value of fixed lease payments not yet made. We evaluate the carrying value of right-of-use assets for indicators of impairment and perform an analysis of the recoverability of the related asset group. If the carrying value of the asset group is determined to be in excess of the estimated fair value, we record an impairment loss in our consolidated statements of income. Additionally, we review the carrying value of the right-of-use assets for impairment when events or changes in circumstances indicate that the carrying values may not be recoverable, require reassessment of the leases, and remeasurement if needed. Our store operating leases may include fixed minimum lease payments, as contractually stated in the lease agreement or variable lease payments, which are generally based on a percentage of the store’s net sales in excess of a specified threshold or are dependent on changes in an index. Operating lease expense relating to fixed lease payments is recognized on a straight-line basis over the lease term and lease expense relating to variable payments is expensed as incurred. Operating lease expense is recorded in the cost of goods sold expenses on the consolidated statements of income. Claims and Contingencies— We are subject to various claims and contingencies related to lawsuits, insurance, regulatory and other matters arising out of the normal course of business. We accrue a liability if the likelihood of an adverse outcome is probable and the amount is estimable. If the likelihood of an adverse outcome is only reasonably possible (as opposed to probable), or if an estimate is not determinable, we provide disclosure of a material claim or contingency. Revenue Recognition— Revenue is recognized upon purchase at our retail store locations. For our ecommerce sales, revenue is recognized when control passes to the customer upon shipment. Taxes collected from our customers are recorded on a net basis. We accrue for estimated sales returns by customers based on historical return experience. The allowance for sales returns at February 1, 2020 and February 2, 2019 was $3.1 million and $3.3 million, respectively. We record the sale of gift cards as a current liability and recognize revenue when a customer redeems a gift card. The current liability for gift cards was $4.3 million at both February 1, 2020 and February 2, 2019. Additionally, the portion of gift cards that will not be redeemed (“gift card breakage”) is recognized in proportion of the patterns used by the customer based on our historical redemption patterns. For the fiscal years ended February 1, 2020, February 2, 2019 and February 3, 2018, we recorded net sales related to gift card breakage income of $1.7 million, $1.5 million and $1.1 million, respectively. Loyalty Program— We have a customer loyalty program, the Zumiez STASH, which allows members to earn points for purchases or performance of certain activities. The points can be redeemed for a broad range of rewards, including product and experiential rewards. Points earned for purchases are recorded as a current liability and a reduction of net sales based on the relative fair value of the points at the time the points are earned and estimated redemption rates. Revenue is recognized upon redemption of points for rewards. Points earned for the performance of activities are recorded as a current liability based on the estimated cost of the points and as marketing expense when redeemed. The deferred revenue related to our customer loyalty program at February 1, 2020 and February 2, 2019 was $0.7 million and $2.1 million, respectively. Cost of Goods Sold— Cost of goods sold consists of branded merchandise costs and our private label merchandise costs including design, sourcing, importing and inbound freight costs. Our cost of goods sold also includes shrinkage, buying, occupancy, ecommerce fulfillment, distribution and warehousing costs (including associated depreciation) and freight costs for store merchandise transfers. Cash consideration received from vendors is reported as a reduction of cost of goods sold if the inventory has sold, a reduction of the carrying value of the inventory if the inventory is still on hand, or a reduction of selling, general and administrative expense if the amounts are reimbursements of specific, incremental and identifiable costs of selling the vendors’ products. Shipping Revenue and Costs— We include shipping revenue related to ecommerce sales in net sales and the related freight cost is charged to cost of goods sold. Selling, General and Administrative Expense— Selling, general and administrative expenses consist primarily of store personnel wages and benefits, administrative staff and infrastructure expenses, freight costs for merchandise shipments from the distribution centers to the stores, store supplies, depreciation on fixed assets at the home office and stores, facility expenses, training expenses, advertising and marketing costs. Credit card fees, insurance, public company expenses, legal expenses, amortization of intangibles assets and other miscellaneous operating costs are also included in selling, general and administrative expenses. Advertising— We expense advertising costs as incurred, except for catalog costs, which are expensed once the catalog is mailed. Advertising expenses are net of sponsorships and vendor reimbursements. Advertising expense was $11.3 million, $12.2 million and $10.8 million for the fiscal years ended February 1, 2020, February 2, 2019 and February 3, 2018, respectively. Stock-Based Compensation— We account for stock-based compensation by recording the estimated fair value of stock-based awards granted as compensation expense over the vesting period, net of estimated forfeitures. Stock-based compensation expense is attributed using the straight-line method. We estimate forfeitures of stock-based awards based on historical experience and expected future activity. The fair value of restricted stock awards and units is measured based on the closing price of our common stock on the date of grant. The fair value of stock option grants is estimated on the date of grant using the Black-Scholes option pricing model. Common Stock Share Repurchases— We may repurchase shares of our common stock under authorizations made from time to time by our Board of Directors. Under applicable Washington State law, shares repurchased are retired and not presented separately as treasury stock on the consolidated financial statements. Instead, the value of repurchased shares is deducted from retained earnings. Income Taxes— We use the asset and liability method of accounting for income taxes. Using this method, deferred tax assets and liabilities are recorded based on the differences between the financial reporting and tax basis of assets and liabilities. The deferred tax assets and liabilities are calculated using the enacted tax rates and laws that we expect to be in effect when the differences are expected to reverse. We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, it is determined that it is more likely than not that all or some portion of the deferred tax benefit will not be realized. The valuation allowance on our deferred tax assets was $6.8 million at February 1, 2020 and $5.2 million at February 2, 2019. We regularly evaluate the likelihood of realizing the benefit of income tax positions that we have taken in various federal, state and foreign filings by considering all relevant facts, circumstances and information available. If we believe it is more likely than not that our position will be sustained, we recognize a benefit at the largest amount that we believe is cumulatively greater than 50% likely to be realized. Interest and penalties related to income tax matters are classified as a component of income tax expense. Unrecognized tax benefits are recorded in other long-term liabilities on the consolidated balance sheets. Our tax provision for interim periods is determined using an estimate of our annual effective rate, adjusted for discrete items, if any, that are taken into account in the relevant period. As the fiscal year progresses, we periodically refine our estimate based on actual events and earnings by jurisdiction. This ongoing estimation process can result in changes to our expected effective tax rate for the full fiscal year. When this occurs, we adjust the income tax provision during the quarter in which the change in estimate occurs so that our year-to-date provision equals our expected annual rate. Earnings per Share— Basic earnings per share is based on the weighted average number of common shares outstanding during the period. Diluted earnings per share is based on the weighted average number of common shares and common share equivalents outstanding during the period. The dilutive effect of stock options and restricted stock is applicable only in periods of net income. Common share equivalents included in the computation represent shares issuable upon assumed exercise of outstanding stock options, employee stock purchase plan funds held to acquire stock and non-vested restricted stock. Potentially anti-dilutive securities not included in the calculation of diluted earnings per share are options to purchase common stock where the option exercise price is greater than the average market price of our common stock during the period reported. Foreign Currency Translation— Assets and liabilities denominated in foreign currencies are translated into U.S. dollars, the reporting currency, at the exchange rate prevailing at the balance sheet date. Revenue and expenses denominated in foreign currencies are translated into U.S. dollars at the monthly average exchange rate for the period and the translation adjustments are reported as an element of accumulated other comprehensive (loss) income on the consolidated balance sheets. Segment Reporting— We identify our operating segments according to how our business activities are managed and evaluated. Our operating segments have been aggregated and are reported as one reportable segment based on the similar nature of products sold, production, merchandising and distribution processes involved, target customers and economic characteristics. Recent Accounting Standards— In December 2019, the Financial Accounting Standards Board (“FASB”) issued an update simplifying the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. We expect to early adopt this update for the fiscal year, and interim periods, beginning February 2, 2020. We do not expect this update to have a material impact on our consolidated financial statements. In August 2018, the FASB issued a new standard over customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The standard requires implementation costs incurred in a hosting arrangement that is a service contract be accounted for in accordance with ASC 350-40. The new standard is effective for annual periods beginning after December 15, 2019, with early adoption permitted. We adopted this standard prospectively for the fiscal year beginning February 3, 2019 and the impact on our consolidated financial statements was not material. In January 2017, the FASB issued a new standard simplifying the test for goodwill impairment. The standard eliminates Step 2 from the goodwill impairment test. The standard requires entities perform the goodwill impairment test by comparing the fair value of a reporting unit to its carrying amount and recognize the impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total goodwill allocated to that reporting unit. The new standard is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. We do not expect this standard to have any impact on our consolidated financial statements. In February 2016, the FASB issued a comprehensive standard related to lease accounting to increase transparency and comparability among organizations in Topic 842 (“ASC 842”). The standard requires the recognition of right-of-use assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. In July 2018, the FASB issued an update that allows companies an optional transition method to recognize a cumulative effect adjustment to the opening balance of retained earnings recorded at the beginning of the period of adoption. The new standard was effective for the fiscal year beginning after December 15, 2018. We adopted this standard for the fiscal year beginning February 3, 2019, using the optional transition method. We elected the package of practical expedients available upon adoption that allows us (1) to not reassess whether expired or existing contracts contain leases, (2) to not reassess lease classification for existing leases, and (3) to not reassess initial direct costs for existing leases. Comparative financial information for prior periods have not been restated and continues to be reported under Topic 840, the leasing standard in effect for those periods. The adoption of this standard resulted in a material change to our consolidated balance sheet, primarily related to the (1) recognition of $297.3 The following table summarizes the changes made to our consolidated balance sheet at February 3, 2019 (in thousands): As Reported February 2, 2019 Adjustment for ASC 842 As Adjusted February 3, 2019 Assets Prepaid expenses and other current assets $ 14,797 $ (5,739 ) $ 9,058 Operating lease right-of-use assets — 297,326 297,326 Deferred tax assets, net 5,259 2,345 7,604 Other long-term assets 7,180 (2,094 ) 5,086 Liabilities Deferred rent and tenant allowances 7,489 (7,489 ) — Operating lease liabilities — 52,958 52,958 Long-term deferred rent and tenant allowances 37,076 (37,076 ) — Long-term operating lease liabilities — 289,721 289,721 Equity Retained Earnings 256,614 (6,276 ) 250,338 |
Revenue
Revenue | 12 Months Ended |
Feb. 01, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. Revenue The following table disaggregates net sales by geographic region (in thousands): Fiscal Year Ended February 1, February 2, February 3, 2020 2019 2018 United States $ 855,906 $ 814,153 $ 774,193 Canada 58,350 55,184 53,569 Europe 109,401 101,149 91,729 Australia 10,472 8,131 7,910 Net sales $ 1,034,129 $ 978,617 $ 927,401 Net sales for the year ended February 1, 2020 included $6.4 million decrease due to the change in foreign exchange rates, which consisted of $0.7 million in Canada, $5.1 million in Europe and $0.6 million in Australia. |
Cash, Cash Equivalents and Mark
Cash, Cash Equivalents and Marketable Securities | 12 Months Ended |
Feb. 01, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Marketable Securities | 4. Cash, Cash Equivalents and Marketable Securities The following tables summarize the estimated fair value of our cash, cash equivalents and marketable securities and the gross unrealized holding gains and losses (in thousands): February 1, 2020 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Estimated Fair Value Cash and cash equivalents: Cash $ 34,233 $ — $ — $ 34,233 Money market funds 9,850 — — 9,850 Corporate debt securities 8,345 — — 8,345 Total cash and cash equivalents 52,428 — — 52,428 Marketable securities: U.S. treasury and government agency securities 25,452 142 (2 ) 25,592 Corporate debt securities 148,608 1,121 — 149,729 State and local government securities 22,310 207 — 22,517 Variable-rate demand notes 930 — — 930 Total marketable securities $ 197,300 $ 1,470 $ (2 ) $ 198,768 February 2, 2019 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Estimated Fair Value Cash and cash equivalents: Cash $ 26,336 $ — $ — $ 26,336 Money market funds 3,689 — — 3,689 Corporate debt securities 22,397 22,397 Total cash and cash equivalents 52,422 — — 52,422 Marketable securities: U.S. treasury and government agency securities 4,326 2 - 4,328 Corporate debt securities 55,122 98 (8 ) 55,212 State and local government securities 51,462 13 (43 ) 51,432 Variable-rate demand notes 1,940 — — 1,940 Total marketable securities $ 112,850 $ 113 $ (51 ) $ 112,912 All of our available-for-sale debt securities have an effective maturity date of five years or less and may be liquidated, at our discretion, prior to maturity. The following tables summarize the gross unrealized holding losses and fair value for investments in an unrealized loss position, and the length of time that individual securities have been in a continuous loss position (in thousands): February 1, 2020 Less Than Twelve Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Marketable securities: U.S. treasury and government agency securities $ 567 $ (2 ) $ — $ — $ 567 $ (2 ) Corporate debt securities $ — $ — $ — $ — $ — $ — State and local government securities $ — $ — $ — $ — $ — $ — Total marketable securities $ 567 $ (2 ) $ — $ — $ 567 $ (2 ) February 2, 2019 Less Than Twelve Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Marketable securities: U.S. treasury and government agency securities $ — $ — $ — $ — $ — $ — Corporate debt securities $ 14,523 $ (8 ) $ — $ — $ 14,523 $ (8 ) State and local government securities 26,986 (20 ) 9,548 (23 ) 36,534 (43 ) Total marketable securities $ 41,509 $ (28 ) $ 9,548 $ (23 ) $ 51,057 $ (51 ) We did not record a realized loss for other-than-temporary impairments during the fiscal years ended February 1, 2020, February 2, 2019 and February 3, 2018. |
Receivables
Receivables | 12 Months Ended |
Feb. 01, 2020 | |
Receivables [Abstract] | |
Receivables | 5. Receivables Receivables consisted of the following (in thousands): February 1, 2020 February 2, 2019 Credit cards receivable $ 10,810 $ 10,813 Vendor receivable 2,637 3,065 Insurance receivable - 1,076 Tenant allowances receivable 1,220 675 Income tax receivable - 201 Other receivables 2,174 1,946 Receivables $ 16,841 $ 17,776 |
Fixed Assets
Fixed Assets | 12 Months Ended |
Feb. 01, 2020 | |
Property Plant And Equipment [Abstract] | |
Fixed Assets | 6. Fixed Assets Fixed assets consisted of the following (in thousands): February 1, 2020 February 2, 2019 Leasehold improvements $ 190,778 $ 186,431 Fixtures 88,056 88,543 Buildings, land and building and land improvements 28,184 28,189 Computer equipment, software, store equipment and other 40,109 35,253 Fixed assets, at cost 347,127 338,416 Less: Accumulated depreciation (234,076 ) (217,913 ) Fixed assets, net $ 113,051 $ 120,503 Depreciation expense on fixed assets is recognized on our consolidated income statement as follows (in thousands): Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Cost of goods sold $ 1,173 $ 1,284 $ 985 Selling, general and administrative expenses 23,861 24,844 25,246 Depreciation expense $ 25,034 $ 26,128 $ 26,231 Impairment of Long-Lived Assets— We recorded $0.2 million, $1.7 million and $1.6 million of impairment of long-lived assets in selling, general and administrative expenses on the consolidated statements of income for the years ended February 1, 2020, February 2, 2019 and February 3, 2018. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets The following tables summarize the changes in the carrying amount of goodwill (in thousands): Balance as of February 3, 2018 $ 62,912 Effects of foreign currency translation (4,099 ) Balance as of February 2, 2019 58,813 Effects of foreign currency translation (1,714 ) Balance as of February 1, 2020 $ 57,099 There was no impairment of goodwill for the fiscal years ended February 1, 2020, February 2, 2019 and February 3, 2018. The following table summarizes the gross carrying amount, accumulated amortization and the net carrying amount of intangible assets (in thousands): February 1, 2020 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangible assets not subject to amortization: Trade names and trademarks $ 14,500 $ — $ 14,500 Intangible assets subject to amortization: Developed technology 3,315 3,315 — Customer relationships 2,456 2,456 — Non-compete agreements 201 137 64 Total intangible assets $ 20,472 $ 5,908 $ 14,564 February 2, 2019 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangible assets not subject to amortization: Trade names and trademarks $ 15,147 $ — $ 15,147 Intangible assets subject to amortization: Developed technology 3,437 3,437 — Customer relationships 2,546 2,546 — Non-compete agreements 218 105 113 Total intangible assets $ 21,348 $ 6,088 $ 15,260 There was no impairment of intangible assets for the fiscal years ended February 1, 2020, February 2, 2019 and February 3, 2018. Amortization expense of intangible assets for each of the fiscal years ended February 1, 2020, February 2, 2019 and February 3, 2018 was $0.1 million. Amortization expense of intangible assets is recorded in selling, general and administrative expense on the consolidated statements of income. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Feb. 02, 2019 | |
Payables And Accruals [Abstract] | |
Other Liabilities | 8. Other liabilities consisted of the following (in thousands): February 1, 2020 February 2, 2019 Accrued indirect taxes $ 6,637 $ 6,373 Accrued payables 4,886 5,626 Unredeemed gift cards 4,347 4,279 Allowance for sales returns 3,100 3,304 Deferred revenue 728 2,167 Other current liabilities 2,086 1,745 Other liabilities $ 21,784 $ 23,494 |
Revolving Credit Facilities and
Revolving Credit Facilities and Debt | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facilities and Debt | 9. Revolving Credit Facilities and Debt On December 7, 2018, the Company entered into a secured credit agreement with Wells Fargo Bank, N.A., which provided us with a senior secured credit facility (“credit facility”) of up to $35.0 million. The secured revolving credit facility is available for working capital and other general corporate purposes. The senior secured credit facility provides for the issuance of standby letters of credit in an amount not to exceed $17.5 million outstanding at any time and with a term not to exceed 365 days. The commercial line of credit provides for the issuance of commercial letters of credit in an amount not to exceed $10.0 million and with terms not to exceed 120 days. The amount of borrowings available at any time under our credit facility is reduced by the amount of standby and commercial letters of credit outstanding at that time. The credit facility replaces our asset-based revolving credit agreement (“ABL Facility”) with Wells Fargo Bank, N.A., which provided for a senior secured revolving credit facility of up to $100 million, subject to a borrowing base, with a letter of credit sub-limit of $10 million, which was entered into on February 5, 2016 and was to mature on February 5, 2021. All obligations under the credit facility are joint and several with Zumiez Services and guaranteed by certain of our subsidiaries. The credit facility is secured by a first-priority security interest in substantially all of the personal property (but not the real property) of the borrowers and guarantors. Amounts borrowed under the credit facility bear interest at an adjusted LIBOR rate plus a margin of 1.25% per annum. The credit facility contains various representations, warranties and restrictive covenants that, among other things and subject to specified circumstances and exceptions, restrict our ability to incur indebtedness (including guarantees), grant liens, make investments, pay dividends or distributions with respect to capital stock, make prepayments on other indebtedness, engage in mergers, dispose of certain assets or change the nature of their business. The credit facility contains certain financial maintenance covenants that generally require the Registrant to have net income after taxes of at least $5.0 million on a trailing four-quarter basis and a quick ratio of 1.25:1.0 at the end of each fiscal quarter. The credit facility contains certain affirmative covenants, including reporting requirements such as delivery of financial statements, certificates and notices of certain events, maintaining insurance, and providing additional guarantees and collateral in certain circumstances. The credit facility includes customary events of default including non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross-default to other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of guarantees or security interests, material judgments and change of control. There were no borrowings outstanding under the credit facility at February 1, 2020 or February 2, 2019. We had no open commercial letters of credit outstanding under our secured revolving credit facility at February 1, 2020 or February 2, 2019. |
Leases
Leases | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Leases | 10. Leases At February 1, 2020, we had operating leases for our retail stores, certain distribution and fulfillment facilities, vehicles and equipment. Our remaining lease terms vary from one month to ten years, with varying renewal and termination options. At February 1, 2020, the weighted-average of the remaining lease term was 5.9 years 3.3% The following table presents components of lease expense (in thousands): Year Ended February 1, 2020 Operating lease expense $ 70,070 Variable lease expense 5,836 Total lease expense (1) $ 75,906 (1) Total lease expense does not include common area maintenance charges and other non-lease components. Supplemental cash flow information related to leases is as follows (in thousands): February 1, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (62,217 ) Right-of-use assets obtained in exchange for new operating lease liabilities 64,870 At February 1, 2020, the maturities of our operating leases liabilities are as follows (in thousands): Fiscal 2020 $ 72,077 Fiscal 2021 72,456 Fiscal 2022 63,966 Fiscal 2023 53,655 Fiscal 2024 46,014 Thereafter 73,131 Total minimum lease payments 381,299 Less: interest (34,782 ) Present value of lease obligations 346,517 Less: current portion (61,800 ) Long-term lease obligations (2) $ 284,717 (2) Amounts in the table does not include contingent rent, common area maintenance charges and other non-lease components. At February 1, 2020, we have excluded from the table above operating leases that were contractually executed, but have not yet commenced. These operating leases are expected to commence in fiscal 2020 and is immaterial to the Company. For the fiscal years ended February 2, 2019 and February 3, 2018, the Company’s total rent expense in accordance with our historical accounting policies under Topic 840 is as follows (in thousands): Year Ended February 2, 2019 Minimum rent expense $ 79,761 Contingent rent expense 3,901 Total lease expense (3) $ 83,662 (3) Amounts in the table does not include real estate taxes, insurance, common area maintenance charges and other executory costs obligations . At February 2, 2019, the Company’s future minimum lease payments in accordance with our historical accounting policies under Topic 840 were as follows (in thousands): Fiscal 2019 $ 69,293 Fiscal 2020 66,364 Fiscal 2021 60,962 Fiscal 2022 55,155 Fiscal 2023 45,503 Thereafter 94,024 Total minimum lease payments (4) $ 391,301 (4) Amounts in the table does not include contingent rent and real estate taxes, insurance, common area maintenance charges and other executory costs obligations . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 01, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Purchase Commitments— At February 1, 2020 and February 2, 2019, we had outstanding purchase orders to acquire merchandise from vendors of $212.5 million and $216.6 million, respectively. We have an option to cancel these commitments with no notice prior to shipment, except for certain private label, packaging supplies and international purchase orders in which we are obligated to repay contractual amounts upon cancellation. Litigation— We are involved from time to time in claims, proceedings and litigation arising in the ordinary course of business. We have made accruals with respect to these matters, where appropriate, which are reflected in our consolidated financial statements. For some matters, the amount of liability is not probable or the amount cannot be reasonably estimated and therefore accruals have not been made. We may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if we believe settlement is in the best interest of our shareholders. A putative class action, Alexia Herrera, on behalf of herself and all other similarly situated, v. Zumiez Inc. Insurance Reserves— We use a combination of third-party insurance and self-insurance for a number of risk management activities including workers’ compensation, general liability and employee-related health care benefits. We maintain reserves for our self-insured losses, which are estimated based on actuarial based analysis of historical claims experience. The self-insurance reserve for fiscal years ended February 1, 2020 and February 2, 2019 was $1.9 million and $2.1 million, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 01, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 12. Fair Value Measurements We apply the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1—Quoted prices in active markets for identical assets or liabilities; • Level 2—Quoted prices for similar assets or liabilities in active markets or inputs that are observable; and • Level 3—Inputs that are unobservable. The following tables summarize assets measured at fair value on a recurring basis (in thousands): February 1, 2020 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 9,850 $ — $ — Corporate debt securities — 8,345 — Marketable securities: Treasury and agency securities — 25,592 — Corporate debt securities — 149,729 — State and local government securities — 22,517 — Variable-rate demand notes — 930 — Long-term other assets: Money market funds 1,711 — — Total $ 11,561 $ 207,113 $ — February 2, 2019 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 3,689 $ — $ — Corporate debt securities 22,397 — — Marketable securities: Treasury and agency securities — 4,328 Corporate debt securities — 55,212 State and local government securities — 51,432 — Variable-rate demand notes — 1,940 — Long-term other assets: Money market funds 1,404 — — Total $ 27,490 $ 112,912 $ — The Level 2 marketable securities primarily include U.S treasury and government agency securities, corporate debt securities, state and local municipal securities, and variable-rate demand notes. Fair values are based on quoted market prices for similar assets or liabilities or determined using inputs that use readily observable market data that are actively quoted and can be validated through external sources, including third-party pricing services, brokers and market transactions. We review the pricing techniques and methodologies of the independent pricing service for Level 2 investments and believe that its policies adequately consider market activity, either based on specific transactions for the security valued or based on modeling of securities with similar credit quality, duration, yield and structure that were recently traded. We monitor security-specific valuation trends and we make inquiries with the pricing service about material changes or the absence of expected changes to understand the underlying factors and inputs and to validate the reasonableness of the pricing. Assets measured at fair value on a nonrecurring basis include items such as long-lived assets resulting from impairment, if deemed necessary. There were no material assets measured at fair value on a nonrecurring basis for the fiscal years ended February 1, 2020 and February 2, 2019. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Feb. 01, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 13. Stockholders’ Equity Share Repurchase— In December 2019, our Board of Directors approved the repurchase of up to an aggregate of $100 million of common stock. Repurchases may be made from time to time on the open market at prevailing market prices. This program is expected to continue through January 30, 2021, unless the time period is extended or shortened by the Board of Directors. This repurchase program supersedes all previously approved and authorized share repurchase programs. Accumulated Other Comprehensive (Loss) Income— The component of accumulated other comprehensive (loss) income and the adjustments to other comprehensive (loss) income for amounts reclassified from accumulated other comprehensive (loss) income into net income is as follows (in thousands): Foreign currency translation adjustments Net unrealized gains (losses) on available-for- sale investments Accumulated other comprehensive income (loss) Balance at January 28, 2017 $ (16,474 ) $ (14 ) $ (16,488 ) Other comprehensive income, net (1) 16,583 (60 ) 16,523 Balance at February 3, 2018 $ 109 $ (74 ) $ 35 Other comprehensive loss, net (1) (9,379 ) 120 (9,259 ) Balance at February 2, 2019 $ (9,270 ) $ 46 $ (9,224 ) Other comprehensive loss, net (1) (4,426 ) 1,059 (3,367 ) Balance at February 1, 2020 $ (13,696 ) $ 1,105 $ (12,591 ) (1) Other comprehensive (loss) income before reclassifications is $1.7 million, net of taxes for net unrealized gains (losses) on available-for-sale investments and $ 0.6 million, net of taxes for net unrealized gains (losses) reclassified from accumulated other comprehensive (loss) income for the fiscal year ended Other comprehensive (loss) income before reclassifications is net of taxes less than $0.1 million |
Equity Awards
Equity Awards | 12 Months Ended |
Feb. 02, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Awards | 14. Equity Awards General— We maintain several equity incentive plans under which we may grant incentive stock options, nonqualified stock options, stock bonuses, restricted stock awards, restricted stock units and stock appreciation rights to employees (including officers), non-employee directors and consultants. Stock-Based Compensation— Total stock-based compensation expense is recognized on our consolidated income statements as follows (in thousands): Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Cost of goods sold $ 1,265 $ 1,130 $ 1,001 Selling, general and administrative expenses 5,117 4,741 4,031 Total stock-based compensation expense $ 6,382 $ 5,871 $ 5,032 At February 1, 2020, there was $8.10 million of total unrecognized compensation cost related to unvested stock options and restricted stock. This cost has a weighted-average recognition period of 1.2 years. Restricted Equity Awards — The following table summarizes the activity of restricted stock awards and restricted stock units, collectively defined as “restricted equity awards” (in thousands, except grant date weighted-average fair value): Restricted Equity Awards Grant Date Weighted- Average Fair Value Intrinsic Value Outstanding at January 28, 2017 442 $ 23.05 Granted 290 $ 17.20 Vested (183 ) $ 22.67 Forfeited (25 ) $ 19.56 Outstanding at February 3, 2018 524 $ 20.11 Granted 262 $ 23.94 Vested (217 ) $ 20.85 Forfeited (25 ) $ 20.70 Outstanding at February 2, 2019 544 $ 21.63 Granted 245 $ 24.82 Vested (218 ) $ 22.17 Forfeited (30 ) $ 22.30 Outstanding at February 1, 2020 541 $ 22.82 $ 16,876 The following table summarizes additional information related to restricted equity awards activity (in thousands): Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Vest date fair value of restricted stock vested $ 5,339 $ 4,627 $ 3,116 Stock Options —We had 0.3 million stock options outstanding at February 1, 2020 with a grant date weighted average exercise price of $23.38. We had 0.3 million stock options outstanding at February 2, 2019 with a grant date weighted average exercise price of $23.06 and 0.3 million stock options outstanding at February 3, 2018 with a grant date weighted average exercise price of $22.82. Employee Stock Purchase Plan— We offer an Employee Stock Purchase Plan (“ESPP”) for eligible employees to purchase our common stock at a 15% discount of the lesser of fair market value of the stock on the first business day or the last business day of the offering period, subject to maximum contribution thresholds. The number of shares issued under our ESPP was less than 0.1 million for each of the fiscal years ended February 1, 2020, February 2, 2019 and February 3, 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes The components of earnings before income taxes are (in thousands): Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 United States $ 93,737 $ 68,276 $ 54,397 Foreign (2,744 ) (5,946 ) (5,994 ) Total earnings before income taxes $ 90,993 $ 62,330 $ 48,403 The components of the provision for income taxes are (in thousands): Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Current: Federal $ 17,634 $ 14,374 $ 14,514 State and local 4,376 3,481 2,477 Foreign 1,220 1,079 1,328 Total current 23,230 18,934 18,319 Deferred: Federal 241 (1,186 ) 2,598 State and local 277 (443 ) 237 Foreign 364 (180 ) 447 Total deferred 882 (1,809 ) 3,282 Provision for income taxes $ 24,112 $ 17,125 $ 21,601 The reconciliation of the income tax provision at the U.S. federal statutory rate to our effective income tax rate is as follows: Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 U.S. federal statutory tax rate 21.0 % 21.0 % 33.7 % State and local income taxes, net of federal effect 4.0 4.1 3.9 Change in valuation allowance 2.1 3.0 7.0 Foreign earnings, net (0.2 ) (0.3 ) 0.6 Other (0.4 ) (0.3 ) (0.6 ) Effective tax rate 26.5 % 27.5 % 44.6 % On December 22, 2017, the U.S. Tax Cuts and Jobs Act, a significant modification of existing U.S. federal tax legislation, was enacted which reduced our U.S. federal tax rate from 35.0% to 21.0%, effective January 1, 2018. The components of deferred income taxes are (in thousands): February 1, 2020 February 2, 2019 Deferred tax assets: Deferred rent $ — $ 11,037 Lease Liability $ 69,857 $ — Net operating losses 13,074 11,480 Employee benefits, including stock-based compensation 2,315 2,050 Accrued liabilities 1,288 1,341 Inventory 1,111 1,148 Other 1,151 1,130 Total deferred tax assets 88,796 28,186 Deferred tax liabilities: Property and equipment (7,315 ) (8,328 ) Right of Use Asset (58,068 ) — Goodwill and other intangibles (9,352 ) (8,706 ) Other (930 ) (708 ) Total deferred tax liabilities (75,665 ) (17,742 ) Net valuation allowances (6,828 ) (5,185 ) Net deferred tax assets $ 6,303 $ 5,259 At February 1, 2020 and February 2, 2019, we had foreign net operating loss carryovers that could be utilized to reduce future years’ tax liabilities of $53.2 million and $46.1 million, respectively. The tax-effected foreign net operating loss carryovers were $13.1 million and $11.5 million at February 1, 2020 and February 2, 2019, respectively. The net operating loss carryovers have an indefinite carryforward period and currently will not expire. At February 1, 2020 and February 2, 2019, we had valuation allowances on our deferred tax assets of $6.8 million and $5.2 million, respectively, due to the uncertainty of the realization of certain deferred tax assets related to foreign net operating loss carryovers. We file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. Our U.S. federal income tax returns are no longer subject to examination for years before fiscal 2017 and with few exceptions, we are no longer subject to U.S. state examinations for years before fiscal 2014. We are no longer subject to examination for all foreign income tax returns before fiscal 2013. |
Earnings per Share, Basic and D
Earnings per Share, Basic and Diluted | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share, Basic and Diluted | 16. Earnings per Share, Basic and Diluted The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Net income $ 66,881 $ 45,205 $ 26,802 Weighted average common shares for basic earnings per share 25,200 24,936 24,679 Dilutive effect of stock options and restricted stock 335 276 199 Weighted average common shares for diluted earnings per share 25,535 25,212 24,878 Basic earnings per share $ 2.65 $ 1.81 $ 1.09 Diluted earnings per share $ 2.62 $ 1.79 $ 1.08 Total anti-dilutive common stock options not included in the calculation of diluted earnings per share was less than 0.1 million for fiscal year ended February 1, 2020, and 0.1 million and 0.3 million for the fiscal years ended February 2, 2019 and February 3, 2018, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Feb. 01, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 17. Related Party Transactions The Zumiez Foundation is a charitable based nonprofit organization focused on meeting various needs of the under-privileged. Our Chairman of the Board is also the President of the Zumiez Foundation. We committed charitable contributions to the Zumiez Foundation of $1.3 million, $0.9 million and $0.8 million for the fiscal years ended February 1, 2020, February 2, 2019, and February 3, 2018, respectively. We have accrued charitable contributions payable to the Zumiez Foundation of $1.2 million and $0.8 million at February 1, 2020 and February 2, 2019, respectively. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | 18. Segment Reporting Our operating segments have been aggregated and are reported as one reportable segment based on the similar nature of products sold, production, merchandising and distribution processes involved, target customers and economic characteristics. The following table is a summary of product categories as a percentage of merchandise sales: Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Men's Apparel 39 % 41 % 41 % Footwear 18 % 17 % 16 % Accessories 17 % 17 % 18 % Women's Apparel 13 % 14 % 14 % Hardgoods 13 % 11 % 11 % Total 100 % 100 % 100 % The following tables present summarized geographical information (in thousands): Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Net sales (1): United States $ 855,906 $ 814,153 $ 774,193 Foreign 178,223 164,464 153,208 Total net sales $ 1,034,129 $ 978,617 $ 927,401 February 1, 2020 February 2, 2019 Long-lived assets: United States $ 91,574 $ 100,509 Foreign 30,346 27,174 Total long-lived assets $ 121,920 $ 127,683 (1) Net sales are allocated based on the location in which the sale was originated. Store sales are allocated based on the location of the store and ecommerce sales are allocated to the U.S. for sales on zumiez.com and to foreign for sales on zumiez.ca, blue-tomato.com fasttimes.com.au |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year— We use a fiscal calendar widely used by the retail industry that results in a fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to January 31. Each fiscal year consists of four 13-week quarters, with an extra week added to the fourth quarter every five or six years. The fiscal years ended February 1, 2020 and February 2, 2019 were 52-week periods. The fiscal year ended February 3, 2018 was a 53-week period. |
Basis of Presentation | Basis of Presentation— The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Zumiez Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation. |
Reclassification | Reclassification— Certain prior period restricted cash amounts have been reclassified to be consistent with current year presentation within our consolidated statement of cash flows. |
Use of Estimates | Use of Estimates —The preparation of financial statements in conformity with U.S. GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements as well as the reported amounts of revenues and expenses during the reporting period. These estimates can also affect supplemental information disclosed by us, including information about contingencies, risk and financial condition. Actual results could differ from these estimates and assumptions. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments —We disclose the estimated fair value of our financial instruments. Financial instruments are generally defined as cash, evidence of ownership interest in an entity or a contractual obligation that both conveys to one entity a right to receive cash or other financial instruments from another entity and imposes on the other entity the obligation to deliver cash or other financial instruments to the first entity. Our financial instruments, other than those presented in Note 12, “Fair Value Measurements,” include cash and cash equivalents, receivables, payables and other liabilities. The carrying amounts of cash and cash equivalents, receivables, payables and other liabilities approximate fair value because of the short-term nature of these instruments. Our policy is to present transfers into and transfers out of hierarchy levels as of the actual date of the event or change in circumstances that caused the transfer. |
Cash and Cash Equivalents | Cash and Cash Equivalents —We consider all highly liquid investments with original maturity of three months or less when purchased to be cash equivalents. |
Concentration of Risk | Concentration of Risk —We maintain our cash and cash equivalents in accounts with major financial institutions in the form of demand deposits, money market accounts, and corporate debt securities. Deposits in these financial institutions may exceed the amount of federal deposit insurance provided on such deposits. |
Restricted Cash | Restricted Cash— Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are recorded as restricted cash in other long-term assets on our consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows (in thousands): February 1, 2020 February 2, 2019 February 3, 2018 Cash and cash equivalents $ 52,428 $ 52,422 $ 24,041 Restricted cash included in other long-term assets 6,135 1,849 1,762 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 58,563 $ 54,271 $ 25,803 Restricted cash included in other long-term assets represents amounts held as insurance collateral and collateral for bank guarantees on certain store operating leases. |
Marketable Securities | Marketable Securities —Our marketable securities primarily consist of U.S treasury and government agency securities, corporate debt securities, state and local municipal securities and variable-rate demand notes. Variable-rate demand notes are considered highly liquid. Although the variable-rate demand notes have long-term nominal maturity dates, the interest rates generally reset weekly. Despite the long-term nature of the underlying securities of the variable-rate demand notes, we have the ability to quickly liquidate these securities, which have an embedded put option that allows the bondholder to sell the security at par plus accrued interest. Investments are considered to be impaired when a decline in fair value is determined to be other-than-temporary. If the cost of an investment exceeds its fair value, we evaluate information about the underlying investment that is publicly available such as analyst reports, applicable industry data and other pertinent information and assess our intent and ability to hold the security. For fixed-income securities, we also evaluate whether we have plans to sell the security or it is more likely than not we will be required to sell the security before recovery. The investment would be written down to its fair value at the time the impairment is deemed to have occurred and a new cost basis is established. Future adverse changes in market conditions, poor operating results of underlying investments or other factors could result in losses that may not be reflected in an investment’s current carrying value, possibly requiring an impairment charge in the future. |
Inventories | Inventories —Merchandise inventories are valued at the lower of cost or net realizable value. The cost of merchandise inventories are based upon an average cost methodology. Merchandise inventories may include items that have been written down to our best estimate of their net realizable value. Our decisions to write-down our merchandise inventories are based on their current rate of sale, the age of the inventory, the profitability of the inventory and other factors. The inventory related to this reserve is not marked up in subsequent periods. The inventory reserve includes inventory whose net realizable value is below cost and an estimate for inventory shrinkage. Shrinkage refers to a reduction in inventory due to shoplifting, employee theft and other matters. We estimate an inventory shrinkage reserve for anticipated losses at February 1, 2020 and February 2, 2019 in the amounts of $4.4 million and $4.6 million. |
Fixed Assets | Fixed Assets— Fixed assets primarily consist of leasehold improvements, fixtures, land, buildings, computer equipment, software and store equipment. Fixed assets are stated at cost less accumulated depreciation utilizing the straight-line method over the assets’ estimated useful lives. The useful lives of our major classes of fixed assets are as follows: Leasehold improvements Lesser of 10 years or the term of the lease Fixtures 3 to 7 years Buildings, land and building and land improvements 15 to 39 years Computer equipment, software, store equipment & other 3 to 5 years The cost and related accumulated depreciation of assets sold or otherwise disposed of is removed from fixed assets and the related gain or loss is recorded in selling, general and administrative expenses on the consolidated statements of income. |
Asset Retirement Obligations | Asset Retirement Obligations— An asset retirement obligation (“ARO”) represents a legal obligation associated with the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development or normal operation of that long-lived asset. Our AROs are associated with leasehold improvements that, at the end of a lease, we are contractually obligated to remove in order to comply with certain lease agreements. The ARO balance at February 1, 2020 and February 2, 2019 is $3.1 million and $3.0 million and is recorded in other liabilities and other long-term liabilities on the consolidated balance sheets and will be subsequently adjusted for changes in fair value. The associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets— We review the carrying value of long-lived assets or asset groups (defined as a store, corporate facility or distribution center) for impairment when events or changes in circumstances indicate that the carrying values may not be recoverable. Recoverability of assets to be held and used is determined by a comparison of the carrying amount of an asset or asset group to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered impaired, the impairment recognized is measured by comparing the fair value of the assets or asset group to the carrying values. The estimation of future cash flows from operating activities requires significant judgments of factors that include forecasting future sales, gross profit and operating expenses. In addition to historical results, current trends and initiatives, long-term macro-economic and industry factors are qualitatively considered. Additionally, management seeks input from store operations related to local economic conditions. Impairment charges are included in selling, general and administrative expenses on the consolidated statements of income. |
Goodwill | Goodwill— Goodwill represents the excess of purchase price over the fair value of acquired tangible and identifiable intangible net assets. We test goodwill for impairment on an annual basis or more frequently if indicators of impairment are present. We perform our annual impairment measurement test on the first day of the fourth quarter. Events that may trigger an early impairment review include significant changes in the current business climate, future expectations of economic conditions, declines in our operating results of our reporting units, or an expectation that the carrying amount may not be recoverable. We have an option to test goodwill for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than the carrying amount. If we choose not to perform the qualitative test or we determine that it is more likely than not that the fair value of the reporting unit is less than the carrying amount, we perform a quantitative two-step impairment test. The first step compares the carrying value of the reporting unit to its estimated fair value, which is based on the perspective of a market-participant. If the fair value of the reporting unit is lower than the carrying value, then a second step is performed to quantify the amount of the impairment. The second step includes estimating the fair value of the reporting unit by taking the net assets of the reporting unit as if the reporting unit had been acquired in a business combination. Then, the implied fair value of the reporting unit’s goodwill is compared to the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying amount. We generally determine the fair value of each of our reporting units based on a combination of the income approach and the market valuation approaches. Key assumptions in the income approach include estimating future cash flows, long-term growth rates and weighted average cost of capital. Our ability to realize the future cash flows used in our fair value calculations is affected by factors such as changes in economic conditions, operating performance and our business strategies. Key assumptions in the market approaches include identifying companies and transactions with comparable business factors, such as earnings growth, profitability, business and financial risk. |
Intangible Assets | Intangible Assets— Our intangible assets consist of trade names and trademarks with indefinite lives and certain definite-lived intangible assets. We test our indefinite-lived intangible assets for impairment on an annual basis, or more frequently if indicators of impairment are present. We test our indefinite-lived assets by estimating the fair value of the asset and comparing that to the carrying value, an impairment loss is recorded for the amount that carrying value exceeds the estimated fair value. The fair value of the trade names and trademarks is determined using the relief from royalty method. This method assumes that the trade name and trademarks have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. The assumptions used in this method requires management judgment and estimates in forecasting future revenue growth, discount rates, and royalty rates. Definite-lived intangible assets, which consist of developed technology, customer relationships and non-compete agreements, are amortized using the straight-line method over their estimated useful lives. Additionally, we test the definite-lived intangible assets when facts and circumstances indicate that the carrying values may not be recoverable. We first assess the recoverability of our definite-lived intangible assets by comparing the undiscounted cash flows of the definite-lived asset less its carrying value. If the undiscounted cash flows are less than the carrying value, we then determine the estimated fair value of our definite-lived asset by taking the estimated future operating cash flows derived from the operation to which the asset relates over its remaining useful life, using a discounted cash flow analysis and comparing it to the carrying value. Any impairment would be measured as the difference between the carrying amount and the estimated fair value. Changes in any of these estimates, projections and assumptions could have a material effect of the fair value of these assets in future measurement periods and result in an impairment which could materially affect our results of operations. |
Leases | Leases – We determine at inception if a contract is or contains a lease. The lease classification is determined at the commencement date in which a majority of our contracts are operating leases for retail store locations. We do not have any material leases, individually or in the aggregate, classified as a finance leasing arrangement. Upon modification of a contract, we reassess if a contract is or contains a lease. For contracts that contain both lease and non-lease components, such as common area maintenance, we allocate the consideration to the components based on the relative standalone price. At the commencement date of a lease, we recognize (1) a right-of-use asset representing our right to use the underlying asset during the lease term and (2) a lease liability for the present value of the lease payments not yet made. The lease term includes the options to extend the lease, only to the extent it is reasonably certain that we will exercise such extension options and not exercise such early termination options, respectively. The majority of our store operating leases include ongoing co-tenancy requirements or early termination option that reduce lease payments, permit lease termination, or both, in the event that co-tenants cease to operate for specific periods or if stated sales levels are not met in specific periods. As the rate implicit in the lease is not readily determinable for our leases, we discount our lease payments using our incremental borrowing rate. Our incremental borrowing rate is based on information available at commencement date and represents the rate of interest we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The right-of-use asset is measured at the present value of fixed lease payments not yet made with adjustments for initial direct costs, lease prepayments and lease incentives received. The right-of-use asset is reduced over time by the recognition of straight-line expense less the accretion of the lease liability under the effective interest method. The lease liability is measured at the present value of fixed lease payments not yet made. We evaluate the carrying value of right-of-use assets for indicators of impairment and perform an analysis of the recoverability of the related asset group. If the carrying value of the asset group is determined to be in excess of the estimated fair value, we record an impairment loss in our consolidated statements of income. Additionally, we review the carrying value of the right-of-use assets for impairment when events or changes in circumstances indicate that the carrying values may not be recoverable, require reassessment of the leases, and remeasurement if needed. Our store operating leases may include fixed minimum lease payments, as contractually stated in the lease agreement or variable lease payments, which are generally based on a percentage of the store’s net sales in excess of a specified threshold or are dependent on changes in an index. Operating lease expense relating to fixed lease payments is recognized on a straight-line basis over the lease term and lease expense relating to variable payments is expensed as incurred. Operating lease expense is recorded in the cost of goods sold expenses on the consolidated statements of income. |
Claims and Contingencies | Claims and Contingencies— We are subject to various claims and contingencies related to lawsuits, insurance, regulatory and other matters arising out of the normal course of business. We accrue a liability if the likelihood of an adverse outcome is probable and the amount is estimable. If the likelihood of an adverse outcome is only reasonably possible (as opposed to probable), or if an estimate is not determinable, we provide disclosure of a material claim or contingency. |
Revenue Recognition | Revenue Recognition— Revenue is recognized upon purchase at our retail store locations. For our ecommerce sales, revenue is recognized when control passes to the customer upon shipment. Taxes collected from our customers are recorded on a net basis. We accrue for estimated sales returns by customers based on historical return experience. The allowance for sales returns at February 1, 2020 and February 2, 2019 was $3.1 million and $3.3 million, respectively. We record the sale of gift cards as a current liability and recognize revenue when a customer redeems a gift card. The current liability for gift cards was $4.3 million at both February 1, 2020 and February 2, 2019. Additionally, the portion of gift cards that will not be redeemed (“gift card breakage”) is recognized in proportion of the patterns used by the customer based on our historical redemption patterns. For the fiscal years ended February 1, 2020, February 2, 2019 and February 3, 2018, we recorded net sales related to gift card breakage income of $1.7 million, $1.5 million and $1.1 million, respectively. |
Loyalty Program | Loyalty Program— We have a customer loyalty program, the Zumiez STASH, which allows members to earn points for purchases or performance of certain activities. The points can be redeemed for a broad range of rewards, including product and experiential rewards. Points earned for purchases are recorded as a current liability and a reduction of net sales based on the relative fair value of the points at the time the points are earned and estimated redemption rates. Revenue is recognized upon redemption of points for rewards. Points earned for the performance of activities are recorded as a current liability based on the estimated cost of the points and as marketing expense when redeemed. The deferred revenue related to our customer loyalty program at February 1, 2020 and February 2, 2019 was $0.7 million and $2.1 million, respectively. |
Cost of Goods Sold | Cost of Goods Sold— Cost of goods sold consists of branded merchandise costs and our private label merchandise costs including design, sourcing, importing and inbound freight costs. Our cost of goods sold also includes shrinkage, buying, occupancy, ecommerce fulfillment, distribution and warehousing costs (including associated depreciation) and freight costs for store merchandise transfers. Cash consideration received from vendors is reported as a reduction of cost of goods sold if the inventory has sold, a reduction of the carrying value of the inventory if the inventory is still on hand, or a reduction of selling, general and administrative expense if the amounts are reimbursements of specific, incremental and identifiable costs of selling the vendors’ products. |
Shipping Revenue and Costs | Shipping Revenue and Costs— We include shipping revenue related to ecommerce sales in net sales and the related freight cost is charged to cost of goods sold. |
Selling, General and Administrative Expense | Selling, General and Administrative Expense— Selling, general and administrative expenses consist primarily of store personnel wages and benefits, administrative staff and infrastructure expenses, freight costs for merchandise shipments from the distribution centers to the stores, store supplies, depreciation on fixed assets at the home office and stores, facility expenses, training expenses, advertising and marketing costs. Credit card fees, insurance, public company expenses, legal expenses, amortization of intangibles assets and other miscellaneous operating costs are also included in selling, general and administrative expenses. |
Advertising | Advertising— We expense advertising costs as incurred, except for catalog costs, which are expensed once the catalog is mailed. Advertising expenses are net of sponsorships and vendor reimbursements. Advertising expense was $11.3 million, $12.2 million and $10.8 million for the fiscal years ended February 1, 2020, February 2, 2019 and February 3, 2018, respectively. |
Stock-Based Compensation | Stock-Based Compensation— We account for stock-based compensation by recording the estimated fair value of stock-based awards granted as compensation expense over the vesting period, net of estimated forfeitures. Stock-based compensation expense is attributed using the straight-line method. We estimate forfeitures of stock-based awards based on historical experience and expected future activity. The fair value of restricted stock awards and units is measured based on the closing price of our common stock on the date of grant. The fair value of stock option grants is estimated on the date of grant using the Black-Scholes option pricing model. |
Common Stock Share Repurchases | Common Stock Share Repurchases— We may repurchase shares of our common stock under authorizations made from time to time by our Board of Directors. Under applicable Washington State law, shares repurchased are retired and not presented separately as treasury stock on the consolidated financial statements. Instead, the value of repurchased shares is deducted from retained earnings. |
Income Taxes | Income Taxes— We use the asset and liability method of accounting for income taxes. Using this method, deferred tax assets and liabilities are recorded based on the differences between the financial reporting and tax basis of assets and liabilities. The deferred tax assets and liabilities are calculated using the enacted tax rates and laws that we expect to be in effect when the differences are expected to reverse. We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, it is determined that it is more likely than not that all or some portion of the deferred tax benefit will not be realized. The valuation allowance on our deferred tax assets was $6.8 million at February 1, 2020 and $5.2 million at February 2, 2019. We regularly evaluate the likelihood of realizing the benefit of income tax positions that we have taken in various federal, state and foreign filings by considering all relevant facts, circumstances and information available. If we believe it is more likely than not that our position will be sustained, we recognize a benefit at the largest amount that we believe is cumulatively greater than 50% likely to be realized. Interest and penalties related to income tax matters are classified as a component of income tax expense. Unrecognized tax benefits are recorded in other long-term liabilities on the consolidated balance sheets. Our tax provision for interim periods is determined using an estimate of our annual effective rate, adjusted for discrete items, if any, that are taken into account in the relevant period. As the fiscal year progresses, we periodically refine our estimate based on actual events and earnings by jurisdiction. This ongoing estimation process can result in changes to our expected effective tax rate for the full fiscal year. When this occurs, we adjust the income tax provision during the quarter in which the change in estimate occurs so that our year-to-date provision equals our expected annual rate. |
Earnings per Share | Earnings per Share— Basic earnings per share is based on the weighted average number of common shares outstanding during the period. Diluted earnings per share is based on the weighted average number of common shares and common share equivalents outstanding during the period. The dilutive effect of stock options and restricted stock is applicable only in periods of net income. Common share equivalents included in the computation represent shares issuable upon assumed exercise of outstanding stock options, employee stock purchase plan funds held to acquire stock and non-vested restricted stock. Potentially anti-dilutive securities not included in the calculation of diluted earnings per share are options to purchase common stock where the option exercise price is greater than the average market price of our common stock during the period reported. |
Foreign Currency Translation | Foreign Currency Translation— Assets and liabilities denominated in foreign currencies are translated into U.S. dollars, the reporting currency, at the exchange rate prevailing at the balance sheet date. Revenue and expenses denominated in foreign currencies are translated into U.S. dollars at the monthly average exchange rate for the period and the translation adjustments are reported as an element of accumulated other comprehensive (loss) income on the consolidated balance sheets. |
Segment Reporting | Segment Reporting— We identify our operating segments according to how our business activities are managed and evaluated. Our operating segments have been aggregated and are reported as one reportable segment based on the similar nature of products sold, production, merchandising and distribution processes involved, target customers and economic characteristics. |
Recent Accounting Standards | Recent Accounting Standards— In December 2019, the Financial Accounting Standards Board (“FASB”) issued an update simplifying the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. We expect to early adopt this update for the fiscal year, and interim periods, beginning February 2, 2020. We do not expect this update to have a material impact on our consolidated financial statements. In August 2018, the FASB issued a new standard over customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The standard requires implementation costs incurred in a hosting arrangement that is a service contract be accounted for in accordance with ASC 350-40. The new standard is effective for annual periods beginning after December 15, 2019, with early adoption permitted. We adopted this standard prospectively for the fiscal year beginning February 3, 2019 and the impact on our consolidated financial statements was not material. In January 2017, the FASB issued a new standard simplifying the test for goodwill impairment. The standard eliminates Step 2 from the goodwill impairment test. The standard requires entities perform the goodwill impairment test by comparing the fair value of a reporting unit to its carrying amount and recognize the impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total goodwill allocated to that reporting unit. The new standard is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. We do not expect this standard to have any impact on our consolidated financial statements. In February 2016, the FASB issued a comprehensive standard related to lease accounting to increase transparency and comparability among organizations in Topic 842 (“ASC 842”). The standard requires the recognition of right-of-use assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. In July 2018, the FASB issued an update that allows companies an optional transition method to recognize a cumulative effect adjustment to the opening balance of retained earnings recorded at the beginning of the period of adoption. The new standard was effective for the fiscal year beginning after December 15, 2018. We adopted this standard for the fiscal year beginning February 3, 2019, using the optional transition method. We elected the package of practical expedients available upon adoption that allows us (1) to not reassess whether expired or existing contracts contain leases, (2) to not reassess lease classification for existing leases, and (3) to not reassess initial direct costs for existing leases. Comparative financial information for prior periods have not been restated and continues to be reported under Topic 840, the leasing standard in effect for those periods. The adoption of this standard resulted in a material change to our consolidated balance sheet, primarily related to the (1) recognition of $297.3 The following table summarizes the changes made to our consolidated balance sheet at February 3, 2019 (in thousands): As Reported February 2, 2019 Adjustment for ASC 842 As Adjusted February 3, 2019 Assets Prepaid expenses and other current assets $ 14,797 $ (5,739 ) $ 9,058 Operating lease right-of-use assets — 297,326 297,326 Deferred tax assets, net 5,259 2,345 7,604 Other long-term assets 7,180 (2,094 ) 5,086 Liabilities Deferred rent and tenant allowances 7,489 (7,489 ) — Operating lease liabilities — 52,958 52,958 Long-term deferred rent and tenant allowances 37,076 (37,076 ) — Long-term operating lease liabilities — 289,721 289,721 Equity Retained Earnings 256,614 (6,276 ) 250,338 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Summary of Reconciliation of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows (in thousands): February 1, 2020 February 2, 2019 February 3, 2018 Cash and cash equivalents $ 52,428 $ 52,422 $ 24,041 Restricted cash included in other long-term assets 6,135 1,849 1,762 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 58,563 $ 54,271 $ 25,803 |
Summary of Useful Lives of Major Classes of Fixed Assets | The useful lives of our major classes of fixed assets are as follows: Leasehold improvements Lesser of 10 years or the term of the lease Fixtures 3 to 7 years Buildings, land and building and land improvements 15 to 39 years Computer equipment, software, store equipment & other 3 to 5 years |
Summary of Changes Made to Consolidated Balance Sheet | The following table summarizes the changes made to our consolidated balance sheet at February 3, 2019 (in thousands): As Reported February 2, 2019 Adjustment for ASC 842 As Adjusted February 3, 2019 Assets Prepaid expenses and other current assets $ 14,797 $ (5,739 ) $ 9,058 Operating lease right-of-use assets — 297,326 297,326 Deferred tax assets, net 5,259 2,345 7,604 Other long-term assets 7,180 (2,094 ) 5,086 Liabilities Deferred rent and tenant allowances 7,489 (7,489 ) — Operating lease liabilities — 52,958 52,958 Long-term deferred rent and tenant allowances 37,076 (37,076 ) — Long-term operating lease liabilities — 289,721 289,721 Equity Retained Earnings 256,614 (6,276 ) 250,338 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Net Sales by Geographic Region | The following table disaggregates net sales by geographic region (in thousands): Fiscal Year Ended February 1, February 2, February 3, 2020 2019 2018 United States $ 855,906 $ 814,153 $ 774,193 Canada 58,350 55,184 53,569 Europe 109,401 101,149 91,729 Australia 10,472 8,131 7,910 Net sales $ 1,034,129 $ 978,617 $ 927,401 |
Cash, Cash Equivalents and Ma_2
Cash, Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Estimated Fair Value of Cash, Cash Equivalents and Marketable Securities | The following tables summarize the estimated fair value of our cash, cash equivalents and marketable securities and the gross unrealized holding gains and losses (in thousands): February 1, 2020 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Estimated Fair Value Cash and cash equivalents: Cash $ 34,233 $ — $ — $ 34,233 Money market funds 9,850 — — 9,850 Corporate debt securities 8,345 — — 8,345 Total cash and cash equivalents 52,428 — — 52,428 Marketable securities: U.S. treasury and government agency securities 25,452 142 (2 ) 25,592 Corporate debt securities 148,608 1,121 — 149,729 State and local government securities 22,310 207 — 22,517 Variable-rate demand notes 930 — — 930 Total marketable securities $ 197,300 $ 1,470 $ (2 ) $ 198,768 February 2, 2019 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Estimated Fair Value Cash and cash equivalents: Cash $ 26,336 $ — $ — $ 26,336 Money market funds 3,689 — — 3,689 Corporate debt securities 22,397 22,397 Total cash and cash equivalents 52,422 — — 52,422 Marketable securities: U.S. treasury and government agency securities 4,326 2 - 4,328 Corporate debt securities 55,122 98 (8 ) 55,212 State and local government securities 51,462 13 (43 ) 51,432 Variable-rate demand notes 1,940 — — 1,940 Total marketable securities $ 112,850 $ 113 $ (51 ) $ 112,912 |
Summary of Gross Unrealized Holding Losses and Fair Value for Investments in an Unrealized Loss Position | The following tables summarize the gross unrealized holding losses and fair value for investments in an unrealized loss position, and the length of time that individual securities have been in a continuous loss position (in thousands): February 1, 2020 Less Than Twelve Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Marketable securities: U.S. treasury and government agency securities $ 567 $ (2 ) $ — $ — $ 567 $ (2 ) Corporate debt securities $ — $ — $ — $ — $ — $ — State and local government securities $ — $ — $ — $ — $ — $ — Total marketable securities $ 567 $ (2 ) $ — $ — $ 567 $ (2 ) February 2, 2019 Less Than Twelve Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Marketable securities: U.S. treasury and government agency securities $ — $ — $ — $ — $ — $ — Corporate debt securities $ 14,523 $ (8 ) $ — $ — $ 14,523 $ (8 ) State and local government securities 26,986 (20 ) 9,548 (23 ) 36,534 (43 ) Total marketable securities $ 41,509 $ (28 ) $ 9,548 $ (23 ) $ 51,057 $ (51 ) |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Receivables [Abstract] | |
Summary of Receivables | Receivables consisted of the following (in thousands): February 1, 2020 February 2, 2019 Credit cards receivable $ 10,810 $ 10,813 Vendor receivable 2,637 3,065 Insurance receivable - 1,076 Tenant allowances receivable 1,220 675 Income tax receivable - 201 Other receivables 2,174 1,946 Receivables $ 16,841 $ 17,776 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Fixed Assets | Fixed assets consisted of the following (in thousands): February 1, 2020 February 2, 2019 Leasehold improvements $ 190,778 $ 186,431 Fixtures 88,056 88,543 Buildings, land and building and land improvements 28,184 28,189 Computer equipment, software, store equipment and other 40,109 35,253 Fixed assets, at cost 347,127 338,416 Less: Accumulated depreciation (234,076 ) (217,913 ) Fixed assets, net $ 113,051 $ 120,503 |
Summary of Depreciation Expense | Depreciation expense on fixed assets is recognized on our consolidated income statement as follows (in thousands): Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Cost of goods sold $ 1,173 $ 1,284 $ 985 Selling, general and administrative expenses 23,861 24,844 25,246 Depreciation expense $ 25,034 $ 26,128 $ 26,231 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | The following tables summarize the changes in the carrying amount of goodwill (in thousands): Balance as of February 3, 2018 $ 62,912 Effects of foreign currency translation (4,099 ) Balance as of February 2, 2019 58,813 Effects of foreign currency translation (1,714 ) Balance as of February 1, 2020 $ 57,099 |
Summary of Gross Carrying Amount, Accumulated Amortization and Net Carrying Amount of Intangible Assets | The following table summarizes the gross carrying amount, accumulated amortization and the net carrying amount of intangible assets (in thousands): February 1, 2020 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangible assets not subject to amortization: Trade names and trademarks $ 14,500 $ — $ 14,500 Intangible assets subject to amortization: Developed technology 3,315 3,315 — Customer relationships 2,456 2,456 — Non-compete agreements 201 137 64 Total intangible assets $ 20,472 $ 5,908 $ 14,564 February 2, 2019 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangible assets not subject to amortization: Trade names and trademarks $ 15,147 $ — $ 15,147 Intangible assets subject to amortization: Developed technology 3,437 3,437 — Customer relationships 2,546 2,546 — Non-compete agreements 218 105 113 Total intangible assets $ 21,348 $ 6,088 $ 15,260 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Payables And Accruals [Abstract] | |
Summary of Other Liabilities | Other liabilities consisted of the following (in thousands): February 1, 2020 February 2, 2019 Accrued indirect taxes $ 6,637 $ 6,373 Accrued payables 4,886 5,626 Unredeemed gift cards 4,347 4,279 Allowance for sales returns 3,100 3,304 Deferred revenue 728 2,167 Other current liabilities 2,086 1,745 Other liabilities $ 21,784 $ 23,494 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The following table presents components of lease expense (in thousands): Year Ended February 1, 2020 Operating lease expense $ 70,070 Variable lease expense 5,836 Total lease expense (1) $ 75,906 (1) Total lease expense does not include common area maintenance charges and other non-lease components. |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows (in thousands): February 1, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (62,217 ) Right-of-use assets obtained in exchange for new operating lease liabilities 64,870 |
Schedule of Maturities of Operating Leases Liabilities | At February 1, 2020, the maturities of our operating leases liabilities are as follows (in thousands): Fiscal 2020 $ 72,077 Fiscal 2021 72,456 Fiscal 2022 63,966 Fiscal 2023 53,655 Fiscal 2024 46,014 Thereafter 73,131 Total minimum lease payments 381,299 Less: interest (34,782 ) Present value of lease obligations 346,517 Less: current portion (61,800 ) Long-term lease obligations (2) $ 284,717 (2) Amounts in the table does not include contingent rent, common area maintenance charges and other non-lease components. |
Schedule of Total Rent Expense | For the fiscal years ended February 2, 2019 and February 3, 2018, the Company’s total rent expense in accordance with our historical accounting policies under Topic 840 is as follows (in thousands): Year Ended February 2, 2019 Minimum rent expense $ 79,761 Contingent rent expense 3,901 Total lease expense (3) $ 83,662 (3) Amounts in the table does not include real estate taxes, insurance, common area maintenance charges and other executory costs obligations . |
Schedule of Future Minimum Lease Payment | At February 2, 2019, the Company’s future minimum lease payments in accordance with our historical accounting policies under Topic 840 were as follows (in thousands): Fiscal 2019 $ 69,293 Fiscal 2020 66,364 Fiscal 2021 60,962 Fiscal 2022 55,155 Fiscal 2023 45,503 Thereafter 94,024 Total minimum lease payments (4) $ 391,301 (4) Amounts in the table does not include contingent rent and real estate taxes, insurance, common area maintenance charges and other executory costs obligations . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | The following tables summarize assets measured at fair value on a recurring basis (in thousands): February 1, 2020 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 9,850 $ — $ — Corporate debt securities — 8,345 — Marketable securities: Treasury and agency securities — 25,592 — Corporate debt securities — 149,729 — State and local government securities — 22,517 — Variable-rate demand notes — 930 — Long-term other assets: Money market funds 1,711 — — Total $ 11,561 $ 207,113 $ — February 2, 2019 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 3,689 $ — $ — Corporate debt securities 22,397 — — Marketable securities: Treasury and agency securities — 4,328 Corporate debt securities — 55,212 State and local government securities — 51,432 — Variable-rate demand notes — 1,940 — Long-term other assets: Money market funds 1,404 — — Total $ 27,490 $ 112,912 $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | The component of accumulated other comprehensive (loss) income and the adjustments to other comprehensive (loss) income for amounts reclassified from accumulated other comprehensive (loss) income into net income is as follows (in thousands): Foreign currency translation adjustments Net unrealized gains (losses) on available-for- sale investments Accumulated other comprehensive income (loss) Balance at January 28, 2017 $ (16,474 ) $ (14 ) $ (16,488 ) Other comprehensive income, net (1) 16,583 (60 ) 16,523 Balance at February 3, 2018 $ 109 $ (74 ) $ 35 Other comprehensive loss, net (1) (9,379 ) 120 (9,259 ) Balance at February 2, 2019 $ (9,270 ) $ 46 $ (9,224 ) Other comprehensive loss, net (1) (4,426 ) 1,059 (3,367 ) Balance at February 1, 2020 $ (13,696 ) $ 1,105 $ (12,591 ) (1) Other comprehensive (loss) income before reclassifications is $1.7 million, net of taxes for net unrealized gains (losses) on available-for-sale investments and $ 0.6 million, net of taxes for net unrealized gains (losses) reclassified from accumulated other comprehensive (loss) income for the fiscal year ended Other comprehensive (loss) income before reclassifications is net of taxes less than $0.1 million |
Equity Awards (Tables)
Equity Awards (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Total Stock-Based Compensation Expense | Total stock-based compensation expense is recognized on our consolidated income statements as follows (in thousands): Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Cost of goods sold $ 1,265 $ 1,130 $ 1,001 Selling, general and administrative expenses 5,117 4,741 4,031 Total stock-based compensation expense $ 6,382 $ 5,871 $ 5,032 |
Summary of Activity of Restricted Stock Awards and Restricted Stock Units | The following table summarizes the activity of restricted stock awards and restricted stock units, collectively defined as “restricted equity awards” (in thousands, except grant date weighted-average fair value): Restricted Equity Awards Grant Date Weighted- Average Fair Value Intrinsic Value Outstanding at January 28, 2017 442 $ 23.05 Granted 290 $ 17.20 Vested (183 ) $ 22.67 Forfeited (25 ) $ 19.56 Outstanding at February 3, 2018 524 $ 20.11 Granted 262 $ 23.94 Vested (217 ) $ 20.85 Forfeited (25 ) $ 20.70 Outstanding at February 2, 2019 544 $ 21.63 Granted 245 $ 24.82 Vested (218 ) $ 22.17 Forfeited (30 ) $ 22.30 Outstanding at February 1, 2020 541 $ 22.82 $ 16,876 |
Summary of Additional Information Related to Restricted Equity Awards Activity | The following table summarizes additional information related to restricted equity awards activity (in thousands): Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Vest date fair value of restricted stock vested $ 5,339 $ 4,627 $ 3,116 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Earnings before Income Taxes | The components of earnings before income taxes are (in thousands): Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 United States $ 93,737 $ 68,276 $ 54,397 Foreign (2,744 ) (5,946 ) (5,994 ) Total earnings before income taxes $ 90,993 $ 62,330 $ 48,403 |
Components of Provision for Income Taxes | The components of the provision for income taxes are (in thousands): Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Current: Federal $ 17,634 $ 14,374 $ 14,514 State and local 4,376 3,481 2,477 Foreign 1,220 1,079 1,328 Total current 23,230 18,934 18,319 Deferred: Federal 241 (1,186 ) 2,598 State and local 277 (443 ) 237 Foreign 364 (180 ) 447 Total deferred 882 (1,809 ) 3,282 Provision for income taxes $ 24,112 $ 17,125 $ 21,601 |
Reconciliation of Effective Income Tax Rate to U.S. Federal Statutory Rate | The reconciliation of the income tax provision at the U.S. federal statutory rate to our effective income tax rate is as follows: Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 U.S. federal statutory tax rate 21.0 % 21.0 % 33.7 % State and local income taxes, net of federal effect 4.0 4.1 3.9 Change in valuation allowance 2.1 3.0 7.0 Foreign earnings, net (0.2 ) (0.3 ) 0.6 Other (0.4 ) (0.3 ) (0.6 ) Effective tax rate 26.5 % 27.5 % 44.6 % |
Components of Deferred Income Taxes | The components of deferred income taxes are (in thousands): February 1, 2020 February 2, 2019 Deferred tax assets: Deferred rent $ — $ 11,037 Lease Liability $ 69,857 $ — Net operating losses 13,074 11,480 Employee benefits, including stock-based compensation 2,315 2,050 Accrued liabilities 1,288 1,341 Inventory 1,111 1,148 Other 1,151 1,130 Total deferred tax assets 88,796 28,186 Deferred tax liabilities: Property and equipment (7,315 ) (8,328 ) Right of Use Asset (58,068 ) — Goodwill and other intangibles (9,352 ) (8,706 ) Other (930 ) (708 ) Total deferred tax liabilities (75,665 ) (17,742 ) Net valuation allowances (6,828 ) (5,185 ) Net deferred tax assets $ 6,303 $ 5,259 |
Earnings per Share, Basic and_2
Earnings per Share, Basic and Diluted (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Net income $ 66,881 $ 45,205 $ 26,802 Weighted average common shares for basic earnings per share 25,200 24,936 24,679 Dilutive effect of stock options and restricted stock 335 276 199 Weighted average common shares for diluted earnings per share 25,535 25,212 24,878 Basic earnings per share $ 2.65 $ 1.81 $ 1.09 Diluted earnings per share $ 2.62 $ 1.79 $ 1.08 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Summary of Product Categories as a Percentage of Merchandise Sales | The following table is a summary of product categories as a percentage of merchandise sales: Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Men's Apparel 39 % 41 % 41 % Footwear 18 % 17 % 16 % Accessories 17 % 17 % 18 % Women's Apparel 13 % 14 % 14 % Hardgoods 13 % 11 % 11 % Total 100 % 100 % 100 % |
Summary of Net Sales by Geographical Area | The following tables present summarized geographical information (in thousands): Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Net sales (1): United States $ 855,906 $ 814,153 $ 774,193 Foreign 178,223 164,464 153,208 Total net sales $ 1,034,129 $ 978,617 $ 927,401 (1) Net sales are allocated based on the location in which the sale was originated. Store sales are allocated based on the location of the store and ecommerce sales are allocated to the U.S. for sales on zumiez.com and to foreign for sales on zumiez.ca, blue-tomato.com fasttimes.com.au |
Summary of Long-lived Assets by Geographical Area | February 1, 2020 February 2, 2019 Long-lived assets: United States $ 91,574 $ 100,509 Foreign 30,346 27,174 Total long-lived assets $ 121,920 $ 127,683 |
Nature of Business and Basis _3
Nature of Business and Basis of Presentation - Additional Information (Detail) | Feb. 01, 2020Store |
Nature Of Business And Basis Of Presentation [Line Items] | |
Operated stores | 718 |
United States [Member] | |
Nature Of Business And Basis Of Presentation [Line Items] | |
Operated stores | 607 |
Canada [Member] | |
Nature Of Business And Basis Of Presentation [Line Items] | |
Operated stores | 52 |
Europe [Member] | |
Nature Of Business And Basis Of Presentation [Line Items] | |
Operated stores | 48 |
Australia [Member] | |
Nature Of Business And Basis Of Presentation [Line Items] | |
Operated stores | 11 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Restricted Cash And Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 52,428 | $ 52,422 | $ 24,041 |
Restricted cash included in other long-term assets | 6,135 | 1,849 | 1,762 |
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 58,563 | $ 54,271 | $ 25,803 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 03, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Significant Accounting Policies [Line Items] | ||||
Inventory valuation reserve | $ 4,400 | $ 4,600 | ||
Asset retirement obligations | 3,100 | 3,000 | ||
Allowance for sales returns | 3,100 | 3,300 | ||
Current liability for gift cards | 4,300 | 4,300 | ||
Deferred revenue related to our customer loyalty program | 700 | 2,100 | ||
Advertising expenses | 11,300 | 12,200 | $ 10,800 | |
Valuation allowance on deferred tax assets | 6,828 | 5,185 | ||
Operating lease right-of-use assets | $ 297,326 | 301,784 | ||
Operating lease liabilities | 346,517 | |||
Accounting Standards Update 2016-02 [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Operating lease right-of-use assets | 297,326 | |||
Operating lease liabilities | 342,700 | |||
Derecognized deferred rent and tenant allowance | 44,600 | |||
Cumulative-effect adjustment to retained earnings, net of tax | $ 6,300 | (6,276) | ||
Gift Card Breakage Revenue [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Deferred revenue recognized | $ 1,700 | $ 1,500 | $ 1,100 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Useful Lives of Major Classes of Fixed Assets (Detail) | 12 Months Ended |
Feb. 02, 2019 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Leasehold improvements | Lesser of 10 years or the term of the lease |
Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Buildings Land and Building and Land Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
Buildings Land and Building and Land Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 39 years |
Computer Equipment, Software Store Equipment & Other [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Computer Equipment, Software Store Equipment & Other [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Changes Made to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 02, 2019 |
Assets | |||
Prepaid expenses and other current assets | $ 9,456 | $ 9,058 | $ 14,797 |
Operating lease right-of-use assets | 301,784 | 297,326 | |
Deferred tax assets, net | 6,303 | 7,604 | 5,259 |
Other long-term assets | 8,869 | 5,086 | 7,180 |
Liabilities | |||
Deferred rent and tenant allowances | 7,489 | ||
Operating lease liabilities | 61,800 | 52,958 | |
Long-term deferred rent and tenant allowances | 37,076 | ||
Long-term operating lease liabilities | 284,717 | 289,721 | |
Equity | |||
Retained earnings | $ 317,219 | 250,338 | $ 256,614 |
Accounting Standards Update 2016-02 [Member] | |||
Assets | |||
Prepaid expenses and other current assets | (5,739) | ||
Operating lease right-of-use assets | 297,326 | ||
Deferred tax assets, net | 2,345 | ||
Other long-term assets | (2,094) | ||
Liabilities | |||
Deferred rent and tenant allowances | (7,489) | ||
Operating lease liabilities | 52,958 | ||
Long-term deferred rent and tenant allowances | (37,076) | ||
Long-term operating lease liabilities | 289,721 | ||
Equity | |||
Retained earnings | $ (6,276) |
Revenue - Disaggregation of Net
Revenue - Disaggregation of Net Sales by Geographic Region (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 1,034,129 | $ 978,617 | $ 927,401 |
United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 855,906 | 814,153 | 774,193 |
Canada [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 58,350 | 55,184 | 53,569 |
Europe [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 109,401 | 101,149 | 91,729 |
Australia [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 10,472 | $ 8,131 | $ 7,910 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Disaggregation Of Revenue [Line Items] | |
Decrease in net sales due to change in foreign exchange rates | $ 6.4 |
Canada [Member] | |
Disaggregation Of Revenue [Line Items] | |
Decrease in net sales due to change in foreign exchange rates | 0.7 |
Europe [Member] | |
Disaggregation Of Revenue [Line Items] | |
Decrease in net sales due to change in foreign exchange rates | 5.1 |
Australia [Member] | |
Disaggregation Of Revenue [Line Items] | |
Decrease in net sales due to change in foreign exchange rates | $ 0.6 |
Cash, Cash Equivalents and Ma_3
Cash, Cash Equivalents and Marketable Securities - Summary of Estimated Fair Value of Cash, Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost, Cash and cash equivalents | $ 52,428 | $ 52,422 | $ 24,041 |
Estimated Fair Value, Cash and cash equivalents | 52,428 | 52,422 | |
Amortized Cost, Marketable securities | 197,300 | 112,850 | |
Gross Unrealized Holding Gains, Marketable securities | 1,470 | 113 | |
Gross Unrealized Holding Losses, Marketable securities | (2) | (51) | |
Estimated Fair Value, Marketable securities | 198,768 | 112,912 | |
Cash [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost, Cash and cash equivalents | 34,233 | 26,336 | |
Estimated Fair Value, Cash and cash equivalents | 34,233 | 26,336 | |
Money Market Funds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost, Cash and cash equivalents | 9,850 | 3,689 | |
Estimated Fair Value, Cash and cash equivalents | 9,850 | 3,689 | |
U.S. Treasury and Government Agency Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost, Marketable securities | 25,452 | 4,326 | |
Gross Unrealized Holding Gains, Marketable securities | 142 | 2 | |
Gross Unrealized Holding Losses, Marketable securities | (2) | ||
Estimated Fair Value, Marketable securities | 25,592 | 4,328 | |
Corporate Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost, Cash and cash equivalents | 8,345 | 22,397 | |
Estimated Fair Value, Cash and cash equivalents | 8,345 | 22,397 | |
Amortized Cost, Marketable securities | 148,608 | 55,122 | |
Gross Unrealized Holding Gains, Marketable securities | 1,121 | 98 | |
Gross Unrealized Holding Losses, Marketable securities | (8) | ||
Estimated Fair Value, Marketable securities | 149,729 | 55,212 | |
State and Local Government Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost, Marketable securities | 22,310 | 51,462 | |
Gross Unrealized Holding Gains, Marketable securities | 207 | 13 | |
Gross Unrealized Holding Losses, Marketable securities | (43) | ||
Estimated Fair Value, Marketable securities | 22,517 | 51,432 | |
Variable-rate Demand Notes [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost, Marketable securities | 930 | 1,940 | |
Estimated Fair Value, Marketable securities | $ 930 | $ 1,940 |
Cash, Cash Equivalents and Ma_4
Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Cash And Cash Equivalents [Abstract] | |||
Effective maturity period | 5 years | ||
Realized loss for other-than-temporary impairments | $ 0 | $ 0 | $ 0 |
Cash, Cash Equivalents and Ma_5
Cash, Cash Equivalents and Marketable Securities - Summary of Gross Unrealized Holding Losses and Fair Value for Investments in an Unrealized Loss Position (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Fair Value, Less Than 12 Months | $ 567 | $ 41,509 |
Marketable securities, Fair Value, 12 Months or Greater | 9,548 | |
Marketable securities, Fair Value, Total | 567 | 51,057 |
Marketable securities, Unrealized Losses, Less Than 12 Months | (2) | (28) |
Marketable securities, Unrealized Losses, 12 Months or Greater | (23) | |
Marketable securities, Unrealized Losses, Total | (2) | (51) |
U.S. Treasury and Government Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Fair Value, Less Than 12 Months | 567 | |
Marketable securities, Fair Value, Total | 567 | |
Marketable securities, Unrealized Losses, Less Than 12 Months | (2) | |
Marketable securities, Unrealized Losses, Total | $ (2) | |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Fair Value, Less Than 12 Months | 14,523 | |
Marketable securities, Fair Value, Total | 14,523 | |
Marketable securities, Unrealized Losses, Less Than 12 Months | (8) | |
Marketable securities, Unrealized Losses, Total | (8) | |
State and Local Government Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Fair Value, Less Than 12 Months | 26,986 | |
Marketable securities, Fair Value, 12 Months or Greater | 9,548 | |
Marketable securities, Fair Value, Total | 36,534 | |
Marketable securities, Unrealized Losses, Less Than 12 Months | (20) | |
Marketable securities, Unrealized Losses, 12 Months or Greater | (23) | |
Marketable securities, Unrealized Losses, Total | $ (43) |
Receivables - Summary of Receiv
Receivables - Summary of Receivables (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Receivables [Abstract] | ||
Credit cards receivable | $ 10,810 | $ 10,813 |
Vendor receivable | 2,637 | 3,065 |
Insurance receivable | 1,076 | |
Tenant allowances receivable | 1,220 | 675 |
Income tax receivable | 201 | |
Other receivables | 2,174 | 1,946 |
Receivables | $ 16,841 | $ 17,776 |
Fixed Assets - Summary of Fixed
Fixed Assets - Summary of Fixed Assets (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | $ 347,127 | $ 338,416 |
Less: Accumulated depreciation | (234,076) | (217,913) |
Fixed assets, net | 113,051 | 120,503 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 190,778 | 186,431 |
Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 88,056 | 88,543 |
Buildings Land and Building and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 28,184 | 28,189 |
Computer equipment, software, store equipment and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | $ 40,109 | $ 35,253 |
Fixed Assets - Summary of Depre
Fixed Assets - Summary of Depreciation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 25,034 | $ 26,128 | $ 26,231 |
Cost of Goods Sold [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 1,173 | 1,284 | 985 |
Selling, General and Administrative Expenses [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 23,861 | $ 24,844 | $ 25,246 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Selling, General and Administrative Expenses [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of long-lived assets | $ 0.2 | $ 1.7 | $ 1.6 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning Balance | $ 58,813 | $ 62,912 |
Effects of foreign currency translation | (1,714) | (4,099) |
Ending Balance | $ 57,099 | $ 58,813 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Impairment of intangible assets | 0 | 0 | 0 |
Amortization expense of intangible assets | $ 100,000 | $ 100,000 | $ 100,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Gross Carrying Amount, Accumulated Amortization and Net Carrying Amount of Intangible Assets (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 20,472 | $ 21,348 |
Accumulated Amortization | 5,908 | 6,088 |
Intangible Assets, Net | 14,564 | 15,260 |
Trade Names and Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 14,500 | 15,147 |
Intangible Assets, Net | 14,500 | 15,147 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,315 | 3,437 |
Accumulated Amortization | 3,315 | 3,437 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,456 | 2,546 |
Accumulated Amortization | 2,456 | 2,546 |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 201 | 218 |
Accumulated Amortization | 137 | 105 |
Intangible Assets, Net | $ 64 | $ 113 |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Liabilities (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Accrued indirect taxes | $ 6,637 | $ 6,373 |
Accrued payables | 4,886 | 5,626 |
Unredeemed gift cards | 4,347 | 4,279 |
Allowance for sales returns | 3,100 | 3,304 |
Deferred revenue | 728 | 2,167 |
Other current liabilities | 2,086 | 1,745 |
Other liabilities | $ 21,784 | $ 23,494 |
Revolving Credit Facility and D
Revolving Credit Facility and Debt - Additional Information (Detail) | Dec. 07, 2018USD ($) | Feb. 05, 2016USD ($) | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) |
Line of Credit Facility [Line Items] | ||||
Maturity date | Feb. 5, 2021 | |||
Secured Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity under revolving credit facility | $ 35,000,000 | $ 100,000,000 | ||
Minimum quick ratio under covenant terms of credit agreement | 1.25 | |||
Outstanding borrowings under revolving lines of credit | $ 0 | $ 0 | ||
Secured Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Secured Revolving Credit Facility [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Minimum required covenant amount of net income after taxes | 5,000,000 | |||
Secured Revolving Credit Facility [Member] | Standby Letters of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Letter of credit outstanding amount | $ 17,500,000 | |||
Secured Revolving Credit Facility [Member] | Standby Letters of Credit [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit expiration term | 365 days | |||
Secured Revolving Credit Facility [Member] | Commercial Letters of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity under revolving credit facility | $ 10,000,000 | |||
Letter of credit outstanding amount | $ 10,000,000 | |||
Commercial letters of credit outstanding | $ 0 | $ 0 | ||
Secured Revolving Credit Facility [Member] | Commercial Letters of Credit [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit expiration term | 120 days |
Leases - Additional Information
Leases - Additional Information (Detail) | Feb. 01, 2020 |
Lessee Lease Description [Line Items] | |
Weighted-average remaining lease term | 5 years 10 months 24 days |
Weighted-average operating lease discount rate | 3.30% |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease, lease terms | 10 years |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease, lease terms | 1 month |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Lease Cost [Abstract] | |
Operating lease expense | $ 70,070 |
Variable lease expense | 5,836 |
Total lease expense | $ 75,906 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ (62,217) |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 64,870 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Leases Liabilities (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 03, 2019 |
Operating Lease Liabilities Payments Due [Abstract] | ||
Fiscal 2020 | $ 72,077 | |
Fiscal 2021 | 72,456 | |
Fiscal 2022 | 63,966 | |
Fiscal 2023 | 53,655 | |
Fiscal 2024 | 46,014 | |
Thereafter | 73,131 | |
Total minimum lease payments | 381,299 | |
Less: interest | (34,782) | |
Present value of lease obligations | 346,517 | |
Less: current portion | (61,800) | $ (52,958) |
Long-term lease obligations | $ 284,717 | $ 289,721 |
Leases - Schedule of Total Rent
Leases - Schedule of Total Rent Expense (Detail) $ in Thousands | 12 Months Ended |
Feb. 02, 2019USD ($) | |
Lease Cost [Abstract] | |
Minimum rent expense | $ 79,761 |
Contingent rent expense | 3,901 |
Total lease expense | $ 83,662 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payment (Detail) $ in Thousands | Feb. 02, 2019USD ($) |
Lease Cost [Abstract] | |
Fiscal 2019 | $ 69,293 |
Fiscal 2020 | 66,364 |
Fiscal 2021 | 60,962 |
Fiscal 2022 | 55,155 |
Fiscal 2023 | 45,503 |
Thereafter | 94,024 |
Total minimum lease payments | $ 391,301 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Feb. 01, 2020 | Feb. 02, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
Outstanding purchase orders | $ 212.5 | $ 216.6 |
Self-insurance reserve | $ 1.9 | $ 2.1 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 02, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | $ 198,768 | $ 112,912 | |
Long-term other assets | 8,869 | $ 5,086 | 7,180 |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | 11,561 | 27,490 | |
Level 1 [Member] | Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 9,850 | 3,689 | |
Long-term other assets | 1,711 | 1,404 | |
Level 1 [Member] | Corporate Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 22,397 | ||
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | 207,113 | 112,912 | |
Level 2 [Member] | Corporate Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 8,345 | ||
Marketable securities | 149,729 | 55,212 | |
Level 2 [Member] | Treasury and Agency Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 25,592 | 4,328 | |
Level 2 [Member] | State and Local Government Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 22,517 | 51,432 | |
Level 2 [Member] | Variable-rate Demand Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | $ 930 | $ 1,940 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | Dec. 31, 2019USD ($) |
Maximum [Member] | |
Equity Class Of Treasury Stock [Line Items] | |
Shares approved to purchase under stock repurchase program, value | $ 100,000,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ (9,224) | $ 35 | $ (16,488) |
Other comprehensive income (loss), net | (3,367) | (9,259) | 16,523 |
Ending Balance | (12,591) | (9,224) | 35 |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (9,270) | 109 | (16,474) |
Other comprehensive income (loss), net | (4,426) | (9,379) | 16,583 |
Ending Balance | (13,696) | (9,270) | 109 |
Net Unrealized Gains (Losses) on Available-for-Sale Investments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 46 | (74) | (14) |
Other comprehensive income (loss), net | 1,059 | 120 | (60) |
Ending Balance | $ 1,105 | $ 46 | $ (74) |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Accumulated Other Comprehensive (Loss) Income (Parenthetical) (Detail) - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive (loss) income, tax | $ 0 | $ 0 | $ 0 |
Net Unrealized Gains (Losses) on Available-for-Sale Investments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive (loss) income, tax | 1,700,000 | 100,000 | 100,000 |
Accumulated Other Comprehensive (Loss) Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive (loss) income, tax | $ 600,000 | $ 100,000 | $ 100,000 |
Equity Awards - Summary of Tota
Equity Awards - Summary of Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 6,382 | $ 5,871 | $ 5,032 |
Cost of Goods Sold [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 1,265 | 1,130 | 1,001 |
Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 5,117 | $ 4,741 | $ 4,031 |
Equity Awards - Additional Info
Equity Awards - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost related to unvested stock options, restricted stock awards and restricted stock units | $ 8,100 | ||
Weighted-average remaining recognition period related to unvested stock options, restricted stock awards and restricted stock units | 1 year 2 months 12 days | ||
Number of shares issued under ESPP | 0.1 | 0.1 | 0.1 |
Percentage of discount on purchase of common stock through ESPP | 15.00% | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding | 0.3 | 0.3 | 0.3 |
Grant date weighted average exercise price | $ 23.38 | $ 23.06 | $ 22.82 |
Equity Awards - Summary of Acti
Equity Awards - Summary of Activity of Restricted Stock Awards and Restricted Stock Units (Detail) - Restricted Stock Awards and Restricted Stock Units [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Equity Awards, Beginning Balance | 544 | 524 | 442 |
Restricted Equity Awards, Granted | 245 | 262 | 290 |
Restricted Equity Awards, Vested | (218) | (217) | (183) |
Restricted Equity Awards, Forfeited | (30) | (25) | (25) |
Restricted Equity Awards, Ending Balance | 541 | 544 | 524 |
Grant Date Weighted-Average Fair Value, Beginning Balance | $ 21.63 | $ 20.11 | $ 23.05 |
Grant Date Weighted-Average Fair Value, Granted | 24.82 | 23.94 | 17.20 |
Grant Date Weighted-Average Fair Value, Vested | 22.17 | 20.85 | 22.67 |
Grant Date Weighted-Average Fair Value, Forfeited | 22.30 | 20.70 | 19.56 |
Grant Date Weighted-Average Fair Value, Ending Balance | $ 22.82 | $ 21.63 | $ 20.11 |
Intrinsic Value, Ending Balance | $ 16,876 |
Equity Awards - Summary of Addi
Equity Awards - Summary of Additional Information Related to Restricted Equity Awards Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vest date fair value of restricted stock vested | $ 5,339 | $ 4,627 | $ 3,116 |
Income Taxes - Components of Ea
Income Taxes - Components of Earnings before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 93,737 | $ 68,276 | $ 54,397 |
Foreign | (2,744) | (5,946) | (5,994) |
Earnings before income taxes | $ 90,993 | $ 62,330 | $ 48,403 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Current: | |||
Federal | $ 17,634 | $ 14,374 | $ 14,514 |
State and local | 4,376 | 3,481 | 2,477 |
Foreign | 1,220 | 1,079 | 1,328 |
Total current | 23,230 | 18,934 | 18,319 |
Deferred: | |||
Federal | 241 | (1,186) | 2,598 |
State and local | 277 | (443) | 237 |
Foreign | 364 | (180) | 447 |
Total deferred | 882 | (1,809) | 3,282 |
Provision for income taxes | $ 24,112 | $ 17,125 | $ 21,601 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate to U.S. Federal Statutory Rate (Detail) | 11 Months Ended | 12 Months Ended | 25 Months Ended | ||
Dec. 31, 2017 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |||||
U.S. federal statutory tax rate | 35.00% | 21.00% | 21.00% | 33.70% | 21.00% |
State and local income taxes, net of federal effect | 4.00% | 4.10% | 3.90% | ||
Change in valuation allowance | 2.10% | 3.00% | 7.00% | ||
Foreign earnings, net | (0.20%) | (0.30%) | 0.60% | ||
Other | (0.40%) | (0.30%) | (0.60%) | ||
Effective tax rate | 26.50% | 27.50% | 44.60% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | 25 Months Ended | ||
Dec. 31, 2017 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |||||
U.S. federal tax rate | 35.00% | 21.00% | 21.00% | 33.70% | 21.00% |
Foreign net operating loss carryovers | $ 53,200 | $ 46,100 | $ 53,200 | ||
Tax-effected foreign net operating loss carryovers | 13,074 | 11,480 | 13,074 | ||
Valuation allowances on deferred tax assets | $ 6,828 | $ 5,185 | $ 6,828 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Deferred tax assets: | ||
Deferred rent | $ 11,037 | |
Lease Liability | $ 69,857 | |
Net operating losses | 13,074 | 11,480 |
Employee benefits, including stock-based compensation | 2,315 | 2,050 |
Accrued liabilities | 1,288 | 1,341 |
Inventory | 1,111 | 1,148 |
Other | 1,151 | 1,130 |
Total deferred tax assets | 88,796 | 28,186 |
Deferred tax liabilities: | ||
Property and equipment | (7,315) | (8,328) |
Right of Use Asset | (58,068) | |
Goodwill and other intangibles | (9,352) | (8,706) |
Other | (930) | (708) |
Total deferred tax liabilities | (75,665) | (17,742) |
Net valuation allowances | (6,828) | (5,185) |
Net deferred tax assets | $ 6,303 | $ 5,259 |
Earnings per Share, Basic and_3
Earnings per Share, Basic and Diluted - Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Earnings Per Share [Abstract] | |||
Net income | $ 66,881 | $ 45,205 | $ 26,802 |
Weighted average common shares for basic earnings per share | 25,200 | 24,936 | 24,679 |
Dilutive effect of stock options and restricted stock | 335 | 276 | 199 |
Weighted average common shares for diluted earnings per share | 25,535 | 25,212 | 24,878 |
Basic earnings per share | $ 2.65 | $ 1.81 | $ 1.09 |
Diluted earnings per share | $ 2.62 | $ 1.79 | $ 1.08 |
Earnings per Share, Basic and_4
Earnings per Share, Basic and Diluted - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total anti-dilutive common shares related to stock-based awards not included in the calculation of diluted earnings per share | 0.1 | 0.3 | |
Maximum [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total anti-dilutive common shares related to stock-based awards not included in the calculation of diluted earnings per share | 0.1 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Zumiez Foundation [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Related Party Transaction [Line Items] | |||
Related party expenses | $ 1.3 | $ 0.9 | $ 0.8 |
Payable to related party | $ 1.2 | $ 0.8 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Feb. 01, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Segment Reporting - Summary of
Segment Reporting - Summary of Product Categories as a Percentage of Merchandise Sales (Detail) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Revenue from External Customer [Line Items] | |||
Product categories as a percentage of merchandise sales | 100.00% | 100.00% | 100.00% |
Men's Apparel [Member] | |||
Revenue from External Customer [Line Items] | |||
Product categories as a percentage of merchandise sales | 39.00% | 41.00% | 41.00% |
Footwear [Member] | |||
Revenue from External Customer [Line Items] | |||
Product categories as a percentage of merchandise sales | 18.00% | 17.00% | 16.00% |
Accessories [Member] | |||
Revenue from External Customer [Line Items] | |||
Product categories as a percentage of merchandise sales | 17.00% | 17.00% | 18.00% |
Women's Apparel [Member] | |||
Revenue from External Customer [Line Items] | |||
Product categories as a percentage of merchandise sales | 13.00% | 14.00% | 14.00% |
Hardgoods [Member] | |||
Revenue from External Customer [Line Items] | |||
Product categories as a percentage of merchandise sales | 13.00% | 11.00% | 11.00% |
Segment Reporting - Summary o_2
Segment Reporting - Summary of Net Sales by Geographical Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Net sales : | |||
Total net sales | $ 1,034,129 | $ 978,617 | $ 927,401 |
United States [Member] | |||
Net sales : | |||
Total net sales | 855,906 | 814,153 | 774,193 |
Foreign [Member] | |||
Net sales : | |||
Total net sales | $ 178,223 | $ 164,464 | $ 153,208 |
Segment Reporting - Summary o_3
Segment Reporting - Summary of Long-lived Assets by Geographical Area (Detail) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Long-lived assets: | ||
Total long-lived assets | $ 121,920 | $ 127,683 |
United States [Member] | ||
Long-lived assets: | ||
Total long-lived assets | 91,574 | 100,509 |
Foreign [Member] | ||
Long-lived assets: | ||
Total long-lived assets | $ 30,346 | $ 27,174 |