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Zumiez

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Zumiez, Inc.
Company typePublic (Nasdaq: ZUMZ)
IndustryApparel Stores
Founded1978
HeadquartersEverett, Washington, U.S.
Key people
Thomas D. Campion, Founder & Chairman and Richard M. Brooks, President & CEO
ProductsAction sports apparel
RevenueIncrease $153.6 Million USD (2008)
Increase $7.3 Million USD (2008)
Number of employees
2,273 (2005)
Websitewww.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,"[1] 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.[2]

Stores

There are currently over 400 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 things of that nature).

Brands

Zumiez currently offers:

Image

Zumiez stores are designed with an "organized chaos" theme that "that is consistent with many teenagers' lifestyles."[3] 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.[2] 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. Also Zumiez in Carousel Center in Syracuse, NY does not have a couch or video games as well even though they are what is considered, a high volume store.

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, but does not encourage placing stickers on anything. [citation needed]

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.[citation needed]

The company purchased the apparel company Fast Forward in 2006.[4]

Controversies

A Zumiez shareholder has filed a class-action lawsuit against the company, claiming management misled investors about the retailer's potential earnings this year and violated federal securities laws. The 21-page complaint charges that company officials between March and November issued "materially false and misleading statements" that misrepresented and failed to disclose that the company wouldn't meet sales and earning expectations this fall. The suit seeks to recover compensatory damages amounting to the plaintiffs' losses in the stock for 2007.

Two lawsuits brought against Zumiez by shareholders have been dismissed according to a story in the Puget Sound Business Journal. The Everett retailer of youth clothing (NASDAQ: ZUMZ) said one suit was dismissed with prejudice by the U.S. District Court for the Western District of Washington. The suit claimed that Zumiez and its officials made materially false or misleading statements during March 14, 2007, to Jan. 4, 2008, and engaged in insider trading. . . Zumiez added that a related shareholder action that was filed in Snohomish County was also voluntarily dismissed. But that wasn’t enough to keep UBS from downgrading the company from neutral to sell.

A former employee has 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, 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 recently filed a first amended complaint which adds 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 is investigating this matter and preparing to respond to the allegations of the first amended complaint. No trial date has been set. At this early stage of the case, it is not possible to estimate the amount or range of potential loss with any degree of certainty.

Subsequent Event—Pending Litigation A putative class action, 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 case has not yet been served on the Company.


Notes and references

  1. ^ Westfield - Capital
  2. ^ a b Zumiez Investor Relations - Company Profile
  3. ^ SEC Form 424B4
  4. ^ Puget Sound Business Journal

1. HeraldNet newspaper- Everett Washington 2. Boardistan.com 3. Zumiez Inc. Form 10-Q 4. Zumiez Inc. 10k 2009

External links

Retrieved from "https://en.wikipedia.org/w/index.php?title=Zumiez&oldid=288442668"