zumz -icr 2012 presentation

7/28/2019 Zumz -ICR 2012 Presentation

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Zumiez Inc. Safe Harbor StatementUnder the Private Securities Litigation Reform Act of 1995

Our presentation includes, and our response to various questions mayinclude, forward-looking statements about the Company’s revenues and

earnings and about our future plans and objectives. Any such

statements are subject to risks and uncertainties that could cause theactual results and the implementation of the Company’s plans andoperations to vary materially. These risks are discussed in the

Company’s filings with the S.E.C., including, without limitation, thecompany's latest annual and quarterly report on Form 10-K and 10-Q as

filed with the Securities and Exchange Commission and available at

www.sec.gov.



Zumiez - An Attractive & Unique Lifestyle Retailer• Growing specialty retailer of action sports apparel, footwear,

equipment and accessories

• Cater to young men and women between the ages of 12 and 24

• Focus on action sports lifestyles including skateboarding,snowboarding, surfing, BMX and motocross

• Distinctive, broad and relevant selection of popular brands andstyles

• Unique culture and integrated marketing based on a passion forthe action sports lifestyle

• 434 stores in 38 states and 10 stores in Canada; primarily mall-

based



Video



The Zumiez Competitive Advantage• CULTURE – Empowered employees passionate for

action sports lifestyle; supportive organization thatembraces competition and rewards success

• GROWTH – Provide opportunity; attract, retain andpromote high quality employees; all regional and

district managers began in stores

• PRODUCT – Numerous brands, ever changing, broad& unique selection; supports action sports lifestyle

• ZUMIEZ UNIVERSITY - Intense focus on employee andmanagement training; prioritized on sales andleadership



Differentiated Merchandising Strategy•Extensive selection of current

and relevant action sports brands

•Mix of softgoods and hardgoods

affirms credibility with customers

• Identify evolving fashion trends and quickly

respond with a relevant merchandise assortment

•Strategic use of private label merchandise

•Attract variety of customers through value

propositions and hard to find unique items



Distinctive merchandise mix led by

men’s apparel, footwear, and accessories

Hardgoods

11%

Junior's

Apparel 10%

Boy'sApparel 2%

Men's

Apparel 33%

Footwear

23%

Accessories

21%



Deep-rooted Culture and Distinctive

Store Experience• Attract employees who identify with the action sports

lifestyle

• Provide a unique customer experience through passion for

lifestyle and product expertise

• Comprehensive training with focus on sales and leadership

• Empower store leadership to make educated business

decisions

• Competitive; reward for success; promote from within



Substantial

GrowthOpportunities



Continued Expansion Opportunities

174

434

600 - 700

2005 Today Future

• Grow web business to approximately 10% of

Zumiez sales

• Multi-channel integration

• Opened first Canada stores in 2011



Financial

Results



Five Year Results

$381$409 $408

$479

$553Sales, in millions

2007 2008 2009 2010

Comp’s 9% (7%) (10%) 12% 8%

2011

Guidance *

$0.86

$0.58

$0.30

$0.79

$1.18EPS

EPS % Change 18% (33%) (48%) 163% 49%*2011 guidance based on high end of Q4 guidance



Fiscal 2011 YTD Results(in millions, except EPS)

*YTD 2010 diluted EPS excluding $2.4 of DC relocation expenses and $2.1 for legal settlement.

YTD % to YTD % to Variance ChangeOct. 29 2011 Sales Oct. 30, 2010 Sales $ % in margin

Comps 8.3% 11.3% (3.0%)

Sales $372.0 $322.7 $49.3 15.3%

Gross profit 130.9 35.2% 108.6 33.7% 22.3 20.5% 1.5%

SG&A 102.0 27.4% 95.2 29.6% (6.8) (7.1%) 2.2%

Operating profit 28.9 7.8% 13.4 4.1% 15.5 +100% 3.7%

Net income $18.6 5.0% $9.2 2.9% $9.4 +100%

Diluted EPS $0.60 $0.30 $0.30 100%

Diluted EPS excluding items * $0.60 $0.39 $0.21 53.8%

Cash andshort-term investments $137.1 $98.9 $38.2 38.6%



2011 Guidance *

4th quarter projections:

• Comparable store sales in high single digit range

• Total sales between $180 - $181 million

• Diluted EPS range of $0.57 to $0.58

• Incremental sales above projected amounts should

flow through to operating income at rate of 25% - 35%

*4th quarter 2011 guidance provided January 4, 2012 on December 2011 sales release.



Focus on 2012 and beyond… • Drive same store sales gains

• Add high return new stores at a pace of

approximately 8-10% per year domestically

• Further build-out of our ecommerce channel

• Continued strategic investments in talent and

infrastructure

• Focus on other growth initiatives such as our first

international expansion into Canada

• Obtain operating margins in the low teen range



Investment Highlights• Focused On The Large Action Sports Segment

• Highly Differentiated Retail Concept – Bringing TheIndependent Store To The Mall

• Deep Rooted Culture That Drives Performance

•

High Impact, Integrated Marketing Approach

• Substantial Future Growth Opportunities in BothSales and Operating Profit

• Disciplined Operating Philosophy and Proven

Management Team

• Strong Historical Financial Track Record

zumz -icr 2012 presentation

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