Company Ended First Quarter with $217 Million in Cash and Marketable Securities and No Debt 
Company Provides COVID-19 Business UpdateLYNNWOOD, Wash., June 04, 2020 (GLOBE NEWSWIRE) — Zumiez Inc. (NASDAQ: ZUMZ) a leading specialty retailer of apparel, footwear, equipment and accessories for young men and women, today reported results for the first quarter ended May 2, 2020.Total net sales for the first quarter ended May 2, 2020 (13 weeks) decreased 35.3% to $137.8 million from $212.9 million in the first quarter ended May 4, 2019 (13 weeks).  Net loss in the first quarter of fiscal 2020 was $21.1 million, or $(0.84) per diluted share, compared to net income of $0.8 million, or $0.03 per diluted share, in the first quarter of the prior fiscal year. Included in this amount is $1.5 million or $0.5 cents associated with the impairment of our right of use assets and fixed assets.At May 2, 2020, cash and current marketable securities increased $49.2 million or 29.3% to $217.2 million, compared to cash and current marketable securities of $168.0 million at May 4, 2019. The increase in cash and current marketable securities was driven by cash generated through operations throughout 2019 partially offset by capital expenditures and $13.4 million of share repurchases through the company’s stock buyback program prior to our stores closing due to COVID-19. We ended the quarter with no debt. “We came into fiscal 2020 in a strong financial position and the new year was off to a good start with first quarter sales and earnings tracking ahead of expectations through early-March,” commented Rick Brooks, Chief Executive Officer of Zumiez Inc. “Following the outbreak of COVID-19 we closed all of our stores in accordance with state and local guidelines to protect the health and safety of our customers, employees and the communities in which we operate.  We immediately shifted our focus to increasing financial flexibility and directing resources towards continuing to engage and service our customers through our digital platforms. We took many difficult actions, but remained committed to our full time employees across the organization who have helped us create the strong culture and brand that has driven our success.  We have made this investment throughout the closures and we believe we are already seeing a return on our investment in our ability to connect with our communities during closure and open stores quickly and safely as government guidelines allow. With a history of managing the capital of the organization and quickly adapting to changing environments, we are confident in Zumiez’s ability to weather this crisis and emerge well positioned to further expand our market share and resume our long track record of creating value for our shareholders.”Actions Taken In Response to COVID-19
As part of the COVID-19 response, the Company has taken the following actions to preserve financial liquidity and financial flexibility:Suspended hiring, laid off virtually all part-time staff, eliminated substantially all planned fiscal 2020 bonuses and delayed majority of merit raises,Lowered operating costs, including travel, marketing and other non-essential items,Reduced capital spend by delaying or cancelling select projects,Reduced planned inventory receipts by cancelling or delaying orders,Suspended rent payments while negotiating rent relief with landlords and delayed or canceled planned new store openings,Extended payment terms for both merchandise and non-merchandise vendor invoices, andPaused share repurchases.Store Re-Opening Update
Late in the first quarter the Company began reopening some stores with most at reduced hours in accordance with governmental regulations.  The company ended the first quarter with 65 or 9% of our 719 stores open. We ended the period ending May 30, 2020 with 493 open stores consisting of 432 Zumiez stores in North America, 49 Blue Tomato stores in Europe and 12 Fast Times stores in Australia, representing 69% of our total stores. All stores are operating under enhanced measures to ensure the health and safety of employees and customers, includingrequiring our employees to wear masks,providing hand sanitizer in multiple locations throughout the store,implementing enhanced cleaning and sanitation protocols,reconfiguring sales floors to promote physical distancing, andmodifying employee and customer interactions to limit contact.May 2020 Sales
The Company’s total net sales decreased 8.6% for the four-week period ended May 30, 2020 compared to an increase of 2.6% for the four-week period ended June 1, 2019 primarily based on closures continuing into May with some areas not expected to open until June, offset by better than expected results in stores open and our e-commerce demand.  Comparable store sales for locations opened in May as well as our e-commerce traffic increased 79.6%.  By channel, our open store comparable sales were 38.5% and our e-commerce sales were 181.6% in May. Outlook
Due to the fast-moving nature of this situation and the uncertainty of impacts on revenue and costs, the Company previously withdrew its full year fiscal 2020 guidance. The Company is not providing an updated outlook at this time for the second quarter or the year.A conference call will be held today to discuss first quarter fiscal 2020 results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (570) 990-9934 followed by the conference identification code of 7543829.About Zumiez Inc.Zumiez is a leading specialty retailer of apparel, footwear, accessories and hardgoods for young men and women who want to express their individuality through the fashion, music, art and culture of action sports, streetwear, and other unique lifestyles. As of May 30, 2020, we operated 719 stores, including 606 in the United States, 52 in Canada, 49 in Europe and 12 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at zumiez.com, zumiez.ca, blue-tomato.com and fasttimes.com.au.Safe Harbor StatementCertain statements in this press release and oral statements relating thereto made from time to time by representatives of the Company may constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, predictions and guidance relating to the Company’s future financial performance, brand and product category diversity, ability to adjust product mix, integration of acquired businesses, growing customer demand for our products and new store openings. In some cases, you can identify forward-looking statements by terminology such as, “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology. These forward-looking statements are based on management’s current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation, those described in the Company’s annual report on Form 10-K for the fiscal year ended February 2, 2019 as filed with the Securities and Exchange Commission and available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
ZUMIEZ INC.
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(Unaudited)Company Contact:
Darin White
Director of Finance &
Investor Relations
Zumiez Inc.
(425) 551-1500, ext. 1337Investor Contact:
ICR
Brendon Frey
(203) 682-8200

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