Zumiez

Zumiez, Inc.

Company type	Public (Nasdaq: ZUMZ)
Industry	Apparel Stores
Founded	1978
Headquarters	Everett, Washington, U.S.
Key people	Thomas D. Campion, Founder & Chairman and Richard M. Brooks, President & CEO
Products	Action sports apparel
Revenue	$153.6 Million USD (2008)
Net income	$7.3 Million USD (2008)
Number of employees	2,273 (2005)
Website	www.zumiez.com

Zumiez (NASDAQ:ZUMZ) is a mall-based, specialty apparel store founded by Tom Campion in 1978, and publicly traded since 2005. Zumiez currently caters to teenagers and young adults. "Offering gear and clothing for the skater, snowboarder, and surfer," Zumiez sells action-sports related clothing and has created an image based around action sports like skateboarding, snowboarding, and motocross. Zumiez is based in Everett, Washington. The current president and CEO is Rick Brooks.

Stores

There are currently over 350 Zumiez stores in 25 states across the country. The clothing they sell is typically "skater" brand name clothing. Along with clothing, they also sell watches, wallets, sunglasses, and trinkets and toys (such as Switchblade Combs, "Grow Jesus", "Dashboard Jesus", incense sticks and other items of that nature).

Brands

Zumiez currently offers:

• Adidas
• Adio
• A-Lab
• Alien Workshop
• Almost Skateboards
• Alpinestars
• Analog
• ATM
• Atticus Clothing
• Billabong
• Brown Sound
• Burton
• Chocolate Skateboards
• Circa (C1rca)
• Casual Industrees
• Coal headwear
• DC Shoes
• DGK
• Diamond Supply Co.
• DVS Shoe Company
• Element
• Emerica
• Empyre
• Enjoi
• Etnies
• Ezekiel
• Fallen
• Famous Stars and Straps
• Flip Skateboards
• Forum
• Foursqure
• Fox
• FreeWorld
• Fyäsko
• Girl
• Globe
• Grenade
• Green Apple Tree
• Heavy Rotation
• Hurley
• Independent Truck Company
• KR3W
• LAKAI
• LibTech
• Limelight
• Loyalty Skateboards
• LRG
• Luxirie
• Matix
• Neff
• Nike 6.0
• Nixon
• NorCal
• Obey
• Osiris
• Plan B Skateboarding
• Quiksilver
• Roxy
• Royal Trucks
• RVCA
• RZST
• Sector Nine
• Sessions
• Skin
• Spacecraft
• Special Blend
• SRH
• Tensor Trucks
• The Seventh Letter
• Upper Playground
• World Industries
• Vans, Inc.
• Volcom
• Zero
• Zoo York

Image

Zumiez stores are designed with an "organized chaos" theme that "that is consistent with many teenagers' lifestyles." Zumiez stores are stocked with couches and video games to encourage customers "to shop for longer periods of time and to interact with each other and the store associates." Each store is approx. 2,900 sq. feet. The stores generally feature the sales floor, a couch with video games and television, changing rooms, and a 'skate shop.' However, this plan may be modified based on space restrictions.

The Zumiez in Massapequa, NY at the Sunrise Westfield Mall and the Zumiez in Miami, FL at Sunset Place does not have a couch or videogames due to their small space.

Every summer, Zumiez holds their annual "Couch Tour" in which a several skateboarding team travels the country (mall to mall) and holds an outdoor free demo where they show off their best skateboarding skills. Other key parts of the Couch Tour include free live music provided by popular bands, product giveaways, games, and of course - a couch and TV set up with the Tony Hawk skateboarding video game.

Urban Myths

It is not true that Zumiez stores will give a free skate deck to customers that bring in a picture of a Zumiez sticker on a police car. Zumiez happily gives customers free logo stickers as part of their marketing strategy, and encourages placing stickers on anything.

Financial

Zumiez reported $306.8 million in Net Sales and a Net Income of $20.1 million for the 2007 fiscal year. Zumiez expects to grow 40% in the next 5 years.

The company purchased the apparel company Fast Forward in 2006.

Controversies

Litigation

On December 10, 2007, a putative class action complaint was filed in the U.S. District Court for the Western District of Washington against the Company and certain of its current and former directors and officers. The action was purported to be brought on behalf of a class of purchasers of the Company’s stock during the period March 14, 2007 to January 4, 2008 and alleged that the defendants violated the federal securities laws during this period of time by, among other things, having made materially false or misleading statements and that the defendants engaged in insider trading. The defendants moved to dismiss all claims in October 2008. On March 30, 2009, the U.S. District Court for the Western District of Washington issued its ruling without oral argument, dismissing the case with prejudice.

In addition, on December 20, 2007, a shareholder derivative action was filed in the Superior Court of the State of Washington (Snohomish County), allegedly on behalf of and for the benefit of the Company, against certain of the Company’s current directors and current and former officers. Following the March 30, 2009 ruling by the U.S District Court on the putative class action complaint, the related shareholder derivative action was voluntarily dismissed.

On March 5, 2008, a former employee commenced an action against the Company in California state court ( Evan Johnson v. Zumiez, Inc., et al., Case No. RG08374968, Alameda County Superior Court, filed March 5, 2008) alleging that the Company failed to pay all overtime wages owing to him and other employees in California, failed to provide meal breaks as required by California law, failed to provide employees with proper itemized wage statements (pay stubs) as required by California law, and failed to pay terminated employees waiting time penalties under California Labor Code section 203. Plaintiff then filed a first amended complaint which added an additional claim that employees under age 18 worked more hours than permitted by the Labor Code; the first amended complaint also seeks to recover penalties under the Private Attorney General Act for alleged violation of various Labor Code sections. The suit was filed as a putative class action, but no motion requesting certification of the case as a class action has been filed. The Company has filed an answer to the first amended complaint and discovery is being conducted. No trial date has been set.

A class action suit, Chandra Berg v. Zumiez Inc. , was filed against the Company in the Los Angeles Superior Court under case number BC408410 on February 25, 2009. The action alleges causes of action for failure to pay overtime wages to present and former store managers in California, failure to provide meal periods and rest breaks to store managers, failure to reimburse retail employees for clothing required by the Company’s dress code, failure to reimburse retail employees for business expenses, failure to provide store managers with accurate itemized wage statements, failure to pay terminated store managers all wages due at the time of termination, unfair business practices and declaratory relief. The Company has filed an answer to the Complaint and discovery is being conducted. No motion requesting certification of the case as a class action has been filed, and no trial date has been set.

Notes and references

HeraldNet newspaper- Everett Washington Boardistan.com Zumiez Inc. Form 10-Q

External links

• Zumiez Official Website
• Zumiez Investor Relations Website