10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED NOVEMBER 2, 2019

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 000-51300

ZUMIEZ INC.

(Exact name of registrant as specified in its charter)

Washington	91-1040022
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

4001 204^th Street SW, Lynnwood, WA 98036

(Address of principal executive offices)  (Zip Code)

Registrant’s telephone number, including area code: (425) 551-1500

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ☒   No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ☒   No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  ☐ Yes   ☒  No

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	ZUMZ	Nasdaq Global Select

At December 9, 2019, there were 25,802,906 shares outstanding of common stock.

ZUMIEZ INC.

FORM 10-Q

TABLE OF CONTENTS

Part I.	Financial Information
	Item 1.	Condensed Consolidated Financial Statements
		Condensed Consolidated Balance Sheets at November 2, 2019 (unaudited) and February 2, 2019	3
		Unaudited Condensed Consolidated Statements of Income for the three and nine months ended November 2, 2019 and November 3, 2018	4
		Unaudited Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended November 2, 2019 and November 3, 2018	5
		Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and nine months ended November 2, 2019 and November 3, 2018	6
		Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended November 2, 2019 and November 3, 2018	7
		Notes to Condensed Consolidated Financial Statements	8
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
	Item 4.	Controls and Procedures	30
Part II.	Other Information
	Item 1.	Legal Proceedings	31
	Item 1A.	Risk Factors	31
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
	Item 3.	Defaults Upon Senior Securities	31
	Item 4.	Mine Safety Disclosures	31
	Item 5.	Other Information	31
	Item 6.	Exhibits	32
Signature			33

2

ZUMIEZ INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	November 2, 2019			February 2, 2019
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	31,929		$	52,422
Marketable securities		146,718			112,912
Receivables		16,790			17,776
Inventories		183,381			129,268
Prepaid expenses and other current assets		10,757			14,797
Total current assets		389,575			327,175
Fixed assets, net		115,170			120,503
Operating lease right-of-use assets		301,736			—
Goodwill		57,580			58,813
Intangible assets, net		14,772			15,260
Deferred tax assets, net		7,424			5,259
Other long-term assets		8,773			7,180
Total long-term assets		505,455			207,015
Total assets	$	895,030		$	534,190
Liabilities and Shareholders’ Equity
Current liabilities
Trade accounts payable	$	73,418		$	35,293
Accrued payroll and payroll taxes		21,929			21,015
Income taxes payable		3,430			5,817
Deferred rent and tenant allowances		—			7,489
Operating lease liabilities		59,742			—
Other liabilities		18,815			23,494
Total current liabilities		177,334			93,108
Long-term deferred rent and tenant allowances	—				37,076
Long-term operating lease liabilities		287,400			—
Other long-term liabilities		3,457			3,550
Total long-term liabilities		290,857			40,626
Total liabilities		468,191			133,734
Commitments and contingencies (Note 5)
Shareholders’ equity
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding		—			—
Common stock, no par value, 50,000 shares authorized;25,805 shares issued and outstanding at November 2, 2019 and 25,521 shares issued and outstanding at February 2, 2019		159,251			153,066
Accumulated other comprehensive loss		(11,747	)		(9,224	)
Retained earnings		279,335			256,614
Total shareholders’ equity		426,839			400,456
Total liabilities and shareholders’ equity	$	895,030		$	534,190

See accompanying notes to condensed consolidated financial statements

3

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended						Nine Months Ended
	November 2, 2019			November 3, 2018			November 2, 2019		November 3, 2018
Net sales	$	264,022	$		248,795		$	705,376		674,052
Cost of goods sold		169,446			161,922			467,140		452,057
Gross profit		94,576			86,873			238,236		221,995
Selling, general and administrative expenses		70,266			68,479			201,285		198,613
Operating profit		24,310			18,394			36,951		23,382
Interest income, net		1,002			493			2,652		1,015
Other income (expense), net		275			(74	)		987		(308	)
Earnings before income taxes		25,587			18,813			40,590		24,089
Provision for income taxes		6,408			4,990			11,593		8,496
Net income	$	19,179	$		13,823		$	28,997		15,593
Basic earnings per share	$	0.76	$		0.55		$	1.15		0.63
Diluted earnings per share	$	0.75	$		0.55		$	1.14		0.62
Weighted average shares used in computation of earnings per share:
Basic		25,231			24,974			25,173		24,920
Diluted		25,560			25,261			25,480		25,220

See accompanying notes to condensed consolidated financial statements

4

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended					Nine Months Ended
	November 2, 2019		November 3, 2018			November 2, 2019			November 3, 2018
Net income	$	19,179	$	13,823		$	28,997		$	15,593
Other comprehensive income (loss), net of tax and reclassification adjustments:
Foreign currency translation		817		(1,672	)		(2,881	)		(9,840	)
Net change in unrealized gain (loss) on available-for-sale debt securities		10		(115	)		358			(83	)
Other comprehensive income (loss), net		827		(1,787	)		(2,523	)		(9,923	)
Comprehensive income	$	20,006	$	12,036		$	26,474		$	5,670

See accompanying notes to condensed consolidated financial statements

5

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In thousands)

(Unaudited)

	Common Stock				Accumulated Other Comprehensive			Retained
	Shares		Amount		Loss			Earnings			Total
Balance at August 3, 2019		25,770	$	156,625	$	(12,574	)	$	260,156		$	404,207
Net income									19,179			19,179
Other comprehensive income, net						827						827
Issuance and exercise of stock-based awards		35		1,021								1,021
Stock-based compensation expense				1,605								1,605
Balance at November 2, 2019		25,805	$	159,251	$	(11,747	)	$	279,335		$	426,839
	Common Stock				Accumulated Other Comprehensive			Retained
	Shares		Amount		Loss			Earnings			Total
Balance at August 4, 2018		25,520	$	149,961	$	(8,101	)	$	213,179		$	355,039
Net income				—		—			13,823			13,823
Other comprehensive loss, net				—		(1,787	)					(1,787	)
Issuance and exercise of stock-based awards		12		279								279
Stock-based compensation expense				1,418								1,418
Balance at November 3, 2018		25,532	$	151,658	$	(9,888	)	$	227,002		$	368,772
	Common Stock				Accumulated Other Comprehensive			Retained
	Shares		Amount		Loss			Earnings			Total
Balance at February 2, 2019		25,521	$	153,066	$	(9,224	)	$	256,614		$	400,456
Net income									28,997			28,997
Other comprehensive loss, net						(2,523	)					(2,523	)
Issuance and exercise of stock-based awards		284		1,366								1,366
Stock-based compensation expense				4,819								4,819
Cumulative effect of accounting change under ASC 842 (Note 1)									(6,276	)		(6,276	)
Balance at November 2, 2019		25,805	$	159,251	$	(11,747	)	$	279,335		$	426,839

	Common Stock				Accumulated Other Comprehensive			Retained
	Shares		Amount		Income (Loss)			Earnings		Total
Balance at February 3, 2018		25,249	$	146,523	$	35		$	209,357	$	355,915
Net income		—		—		—			15,593		15,593
Other comprehensive loss, net		—		—		(9,923	)		—		(9,923	)
Issuance and exercise of stock-based awards		283		704		—			—		704
Stock-based compensation expense		—		4,431		—			—		4,431
Cumulative effect of accounting change under ASC 606		—		—		—			2,052		2,052
Balance at November 3, 2018		25,532	$	151,658	$	(9,888	)	$	227,002	$	368,772

See accompanying notes to condensed consolidated financial statements

6

ZUMIEZ INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Nine Months Ended
	November 2, 2019			November 3, 2018
Cash flows from operating activities:
Net income	$	28,997		$	15,593
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion		18,776			21,249
Noncash lease expense		42,960			—
Deferred taxes		29			(919	)
Stock-based compensation expense		4,819			4,431
Other		(439	)		482
Changes in operating assets and liabilities:
Receivables		3,190			(1,680	)
Inventories		(54,687	)		(63,892	)
Prepaid expenses and other assets		(934	)		(1,904	)
Trade accounts payable		38,186			53,037
Accrued payroll and payroll taxes		971			1,342
Income taxes payable		(2,586	)		(2,206	)
Deferred rent and tenant allowances		—			(1,564	)
Operating lease liabilities		(45,512	)		—
Other liabilities		(4,316	)		(6,820	)
Net cash provided by operating activities		29,454			17,149
Cash flows from investing activities:
Additions to fixed assets		(13,871	)		(15,683	)
Purchases of marketable securities and other investments		(165,912	)		(116,430	)
Sales and maturities of marketable securities and other investments		132,974			115,536
Net cash used in investing activities		(46,809	)		(16,577	)
Cash flows from financing activities:
Proceeds from revolving credit facilities		—			32,776
Payments on revolving credit facilities		—			(27,651	)
Proceeds from issuance and exercise of stock-based awards		1,604			899
Payments for tax withholdings on equity awards		(238	)		(195	)
Net cash provided by financing activities		1,366			5,829
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(242	)		(777	)
Net (decrease) increase in cash, cash equivalents, and restricted cash		(16,231	)		5,624
Cash, cash equivalents, and restricted cash, beginning of period		54,271			25,803
Cash, cash equivalents, and restricted cash, end of period	$	38,040		$	31,427
Supplemental disclosure on cash flow information:
Cash paid during the period for income taxes	$	14,024		$	11,893
Accrual for purchases of fixed assets		1,412			1,477

See accompanying notes to condensed consolidated financial statements

7

ZUMIEZ INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Nature of Business and Basis of Presentation

Nature of Business—Zumiez Inc., including its wholly owned subsidiaries, (the “Company,” “we,” “us,” “its” and “our”) 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.  At November 2, 2019, we operated 718 stores; 608 in the United States (“U.S.”), 52 in Canada, 47 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 three months ended November 2, 2019 and November 3, 2018 were 13-week periods. The nine months ended November 2, 2019 and November 3, 2018 were 39-week periods.

Basis of Presentation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting.  Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  The unaudited condensed consolidated financial statements include the accounts of Zumiez Inc. and its wholly-owned subsidiaries.  All significant intercompany transactions and balances are eliminated in consolidation.

In our opinion, the unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the condensed consolidated balance sheets, operating results and cash flows for the periods presented.

The financial data at February 2, 2019 is derived from audited consolidated financial statements, which are included in our Annual Report on Form 10-K for the year ended February 2, 2019, and should be read in conjunction with the audited consolidated financial statements and notes thereto.  Interim results are not necessarily indicative of results for the full fiscal year due to seasonality and other factors.

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 condensed 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.

Reclassification—Certain prior period amounts have been reclassified to be consistent with current year presentation within our condensed consolidated statement of cash flows.

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 condensed consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows (in thousands):

	February 2, 2019		February 3, 2018
Cash and cash equivalents	$	52,422	$	24,041
Restricted cash included in other long-term assets		1,849		1,762
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	54,271	$	25,803
	November 2, 2019		November 3, 2018
Cash and cash equivalents	$	31,929	$	29,640
Restricted cash included in other long-term assets		6,111		1,787
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	38,040	$	31,427

8

Restricted cash included in other long-term assets represents amounts held as insurance collateral and collateral for bank guarantees on certain store operating leases.

Significant Accounting Policies—Our significant accounting policies are detailed in Note 2, “Summary of Significant Accounting Policies” within Part IV Item 15 of the Annual Report on Form 10-K for the year ended February 2, 2019.  There have been no significant changes in accounting policies, with exception of the adoption of Accounting Standards Codification Topic 842, Leases (“ASC 842”).  Our significant accounting policies impacted by the adoption of ASC 842 are discussed below.

Leases – We determine at inception if a contract is or contains a lease. Upon modification of a contract, we reassess if a contract is or contains a lease.  For a contract that contains fixed payments for both lease and non-lease components, we allocate the consideration to 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 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. 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 lease payments are discounted using the rate implicit in the lease, if available, or our incremental borrowing rate. Our incremental borrowing rate is based on information available at commencement date. The right-of-use asset is measured at the present value of lease payments not yet made with adjustments for initial direct costs, lease prepayments and lease incentives. 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.

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.

Recent Accounting Standards— In August 2018, the Financial Accounting Standards Board (“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 condensed 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 expect this standard to have a material impact on our condensed consolidated financial statements.

In February 2016, the FASB issued a comprehensive standard related to lease accounting to increase transparency and comparability among organizations.  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.  

The adoption of this standard resulted in a material change to our condensed consolidated balance sheet, primarily related to the (1) recognition of $297.3 million of operating lease right-of-use assets and $342.7 million of operating lease liabilities, (2) de-recognition of $44.6 million of deferred rent and tenant allowances, and (3) a cumulative adjustment to retained earnings of $6.3 million related to impairment of operating lease right-of-use assets that were impaired upon adoption of this standard. This standard did not have a material impact on our condensed consolidated statement of income or cash flows. See Note 4, “Leases” for additional information regarding leases.

9

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

2. Revenue

The following table disaggregates net sales by geographic region (in thousands):

	Three Months Ended				Nine Months Ended
	November 2, 2019		November 3, 2018		November 2, 2019		November 3, 2018
United States	$	221,800	$	210,690	$	592,556	$	569,878
Canada		16,657		15,828		40,817		38,999
Europe		23,199		20,631		65,360		59,876
Australia		2,366		1,646		6,643		5,299
Net sales	$	264,022	$	248,795	$	705,376	$	674,052

Net sales for the three months ended November 2, 2019 included a $1.4 million decrease due to the change in foreign exchange rates, which consisted of $0.3 million in Canada, $1.0 million in Europe and $0.1 million in Australia. Net sales for the nine months ended November 2, 2019 included a $5.3 million decrease due to the change in foreign exchange rates, which consisted of $0.9 million in Canada, $3.9 million in Europe and $0.5 million in Australia.  

Our contract liabilities include deferred revenue related to our customer loyalty program and gift cards. The current liability for gift cards was $2.5 million at November 2, 2019 and $4.3 million at February 2, 2019, respectively. Deferred revenue related to our STASH loyalty program was $2.6 million at November 2, 2019 and $2.1 million at February 2, 2019, respectively.

10

3. 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)

	November 2, 2019
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Cash and cash equivalents:
Cash	$	11,940	$	—	$	—		$	11,940
Money market funds		9,152		—		—			9,152
U.S. treasury and government agency securities		1,250		—		—			1,250
Corporate debt securities		9,587		—		—			9,587
Total cash and cash equivalents		31,929		—		—			31,929
Marketable securities:
U.S. treasury and government agency securities		10,876		15		(4	)		10,887
Corporate debt securities		107,166		474		(39	)		107,601
State and local government securities		27,198		108		(16	)		27,290
Variable-rate demand notes		940		—		—			940
Total marketable securities	$	146,180	$	597	$	(59	)	$	146,718

	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 marketable 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):

	November 2, 2019
	Less Than 12 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		4,232		(4	)	$	—	$	—	$	4,232	$	(4	)
Corporate debt securities	$	27,989	$	(39	)		—		—	$	27,989	$	(39	)
State and local government securities	$	4,476	$	(16	)		—		—	$	4,476	$	(16	)
Total marketable securities	$	36,697	$	(59	)	$	—	$	—	$	36,697	$	(59	)

11

	February 2, 2019
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Marketable 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 three and nine months ended November 2, 2019 or November 3, 2018.

4. Leases

At November 2, 2019, 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 November 2, 2019, the weighted-average of the remaining lease term was 6.0 years and the weighted-average discount rate was 3.4%.

The following table presents components of lease expense (in thousands):

	Three Months Ended		Nine Months Ended
	November 2, 2019		November 2, 2019
Operating lease expense	$	17,573	$	52,232
Variable lease expense		1,433		3,672
Total lease expense	$	19,006	$	55,904

Supplemental cash flow information related to leases is as follows (in thousands):

	November 2, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(45,512	)
Right-of-use assets obtained in exchange for new operating lease liabilities		49,263

At November 2, 2019, the maturities of our operating leases liabilities are as follows (in thousands):

Fiscal 2019	$	13,986
Fiscal 2020		75,207
Fiscal 2021		69,719
Fiscal 2022		61,049
Fiscal 2023		51,003
Thereafter		113,382
Total minimum lease payments		384,346
Less: interest		(37,204	)
Present value of lease obligations		347,142
Less: current portion		(59,742	)
Long-term lease obligations	$	287,400

At November 2, 2019, we have excluded from the table above $1.1 million of operating leases that were contractually executed, but have not yet commenced. These operating leases are expected to commence in fiscal 2019 and 2020.

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5. Commitments and Contingencies

Purchase Commitments—At November 2, 2019, we had outstanding purchase orders to acquire merchandise from vendors of $183.2 million.  We have an option to cancel these commitments with no notice prior to shipment, except for certain private label 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 condensed 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., was filed against us in the Eastern District Count of California, Sacramento Division under case number 2:16-cv-01802-SB in August 2016.  Alexandra Bernal filed the initial complaint and then in October 2016 added Alexia Herrera as a named plaintiff and Alexandra Bernal left the case.  The putative class action lawsuit against us alleges, among other things, various violations of California’s wage and hour laws, including alleged violations of failure to pay reporting time.  In May 2017 we moved for judgment on the pleadings in that plaintiff’s cause of action for reporting-time pay should fail as a matter of law as the plaintiff and the other putative class members did not “report for work” with respect to certain shifts on which the plaintiff’s claims are based.  In August 2017, the court denied the motion.  However, in October 2017 the district court certified the order denying the motion for judgment on the pleadings for immediate interlocutory review by the United States Court of Appeals for the Ninth Circuit.  We then filed a petition for permission to appeal the order denying the motion for judgment on the pleadings with the United States Court of Appeals for the Ninth Circuit, which petition was then granted in January 2018.  Our opening appellate brief was filed on June 6, 2018 and the plaintiff’s answering appellate brief was filed August 6, 2018.  Our reply brief to the Plaintiff’s answering appellate brief was filed on September 26, 2018 and oral arguments were completed on February 4, 2019.  On May 20, 2019, the United States Court of Appeals for the Ninth Circuit granted our motion for leave to file a supplemental brief addressing new authority. On June 10, 2019, the plaintiff’s supplemental answering brief was filed with the United States Court of Appeals for the Ninth Circuit.  We then filed our supplemental reply brief to the plaintiff’s supplemental answering brief with the United States Court of Appeals for the Ninth Circuit on June 24, 2019.  Given the current status of this case, we are unable to express a view regarding the ultimate outcome or, if the outcome is adverse, to estimate an amount, or range, of reasonably possible loss. We have defended this case vigorously and will continue to do so. 

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 historical claims experience and actuarial and other assumptions.  The self-insurance reserve at November 2, 2019 and February 2, 2019 was $2.9 million and $2.1 million.

6. 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 replaced 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.  The credit facility will mature on December 7, 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. 

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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 November 2, 2019 and February 2, 2019. We had no open commercial letters of credit outstanding under our secured revolving credit facility at November 2, 2019 and February 2, 2019.

7. 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):

	November 2, 2019
	Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	9,152	$	—	$	—
Treasury and agency securities		—		1,250		—
Corporate debt securities		—		9,587		—
Marketable securities:
U.S. treasury and government agency securities		—		10,887		—
Corporate debt securities		—		107,601		—
State and local government securities		—		27,290		—
Variable-rate demand notes		—		940		—
Other long-term assets:
Money market funds		6,111		—		—
Total	$	15,263	$	157,555	$	—

	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		—
Other long-term assets:
Money market funds		1,404		—		—
Total	$	5,093	$	135,309	$	—

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The Level 2 marketable securities 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.

There were no material assets measured at fair value on a nonrecurring basis for the three and nine months ended November 2, 2019 and November 3, 2018.

8. Stockholders’ Equity

Share Repurchase—In December 2018, our Board of Directors authorized us to repurchase up to $75.0 million of our common stock. This program is expected to continue through February 1, 2020, unless the time period is extended or shortened by the Board of Directors. There was no share repurchase activity during the three and nine months ended November 2, 2019.

Accumulated Other Comprehensive Loss—The components of accumulated other comprehensive loss and the adjustments to other comprehensive loss for amounts reclassified from accumulated other comprehensive loss into net income are as follows (in thousands):

	Foreigncurrency translation adjustments			Net unrealized gains (losses) on available-for- sale debt securities			Accumulated other comprehensive loss
Three months ended November 2, 2019:
Balance at August 3, 2019	$	(12,968	)	$	394		$	(12,574	)
Other comprehensive loss, net (1)		817			10			827
Balance at November 2, 2019	$	(12,151	)	$	404		$	(11,747	)
Three months ended November 3, 2018:
Balance at August 4, 2018	$	(8,059	)	$	(42	)	$	(8,101	)
Other comprehensive loss, net (1)		(1,672	)		(115	)		(1,787	)
Balance at November 3, 2018	$	(9,731	)	$	(157	)	$	(9,888	)

	Foreign currency translation adjustments			Net unrealized gains (losses) on available-for- sale investments			Accumulated other comprehensive (loss) income
Nine months ended November 2, 2019:
Balance at February 2, 2019	$	(9,270	)	$	46		$	(9,224	)
Other comprehensive loss, net (1)		(2,881	)		358			(2,523	)
Balance at November 2, 2019	$	(12,151	)	$	404		$	(11,747	)
Nine months ended November 3, 2018:
Balance at February 3, 2018	$	109		$	(74	)	$	35
Other comprehensive loss, net (1)		(9,840	)		(83	)		(9,923	)
Balance at November 3, 2018	$	(9,731	)	$	(157	)	$	(9,888	)

(1) Other comprehensive loss is net of immaterial taxes for the three and nine months ended November 2, 2019 and November 3, 2018 for net unrealized gains (losses) on available-for-sale investments.  Foreign currency translation adjustments are not adjusted for income taxes as they relate to permanent investments in our international subsidiaries.

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9. Equity Awards

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.

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 to earnings using a 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.

Total stock-based compensation expense is recognized on our condensed consolidated income statements as follows (in thousands):

	Three Months Ended				Nine Months Ended
	November 2, 2019		November 3, 2018		November 2, 2019		November 3, 2018
Cost of goods sold	$	306	$	274	$	952	$	851
Selling, general and administrative expenses		1,299		1,144		3,867		3,580
Total stock-based compensation expense	$	1,605	$	1,418	$	4,819	$	4,431

At November 2, 2019, there was $9.6 million of total unrecognized compensation cost related to unvested stock options, restricted stock awards and restricted stock units.  This cost has a weighted-average remaining recognition period of 1.2 years.

The following table summarizes restricted stock awards and restricted stock units activity (in thousands, except grant date weighted-average fair value):

	Restricted Stock Awards/Units			Grant Date Weighted- Average Fair Value		Intrinsic Value
Outstanding at February 2, 2019		544		$	21.63
Granted		245		$	24.80
Vested		(207	)	$	22.22
Forfeited		(24	)	$	22.23
Outstanding at November 2, 2019		558		$	22.78	$	17,810

We had 0.4 million stock options outstanding at November 2, 2019 with a weighted average exercise price of $23.42 and 0.3 million stock options outstanding at February 2, 2019 with a weighted average exercise price of $23.06.

10. 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):

	Three Months Ended				Nine Months Ended
	November 2, 2019		November 3, 2018		November 2, 2019		November 3, 2018
Net income	$	19,179	$	13,823	$	28,997	$	15,593
Weighted average common shares for basic earnings per share:		25,231		24,974		25,173		24,920
Dilutive effect of stock options and restricted stock		329		287		307		300
Weighted average common shares for diluted earnings per share:		25,560		25,261		25,480		25,220
Basic earnings per share	$	0.76	$	0.55	$	1.15	$	0.63
Diluted earnings per share	$	0.75	$	0.55	$	1.14	$	0.62

There were no anti-dilutive common shares related to stock-based awards for the three and nine months ended November 2, 2019 and 0.1 million for the three and nine months ended November 3, 2018.

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11. Subsequent Events

On December 4, 2019, our Board of Directors approved the repurchase of up to an aggregate of $100 million of common stock. The repurchases will 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.

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Item 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes included elsewhere in this document.  This discussion contains forward-looking statements that involve risks and uncertainties.  Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those discussed in “Item 1A Risk Factors” in our Form 10-K filed with the SEC on March 18, 2019 and in this Form 10-Q.

Forward-looking statements relate to our expectations for future events and future financial performance.  Generally, the words “anticipates,” “expects,” “intends,” “may,” “should,” “plans,” “believes,” “predicts,” “potential,” “continue” and similar expressions identify forward-looking statements.  Forward-looking statements involve risks and uncertainties, and future events and circumstances could differ significantly from those anticipated in the forward-looking statements. These statements are only predictions.  Actual events or results may differ materially.  Factors which could affect our financial results are described below under the heading “Risk Factors” and in “Item 1A Risk Factors” of our Form 10-K referred to in the preceding paragraph.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.  Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  Moreover, neither we nor any other person assume responsibility for the accuracy and completeness of the forward-looking statements.  We undertake no duty to update any of the forward-looking statements after the date of this report to conform such statements to actual results or to changes in our expectations.

Fiscal 2019 is the 52-week period ending February 1, 2020. Fiscal 2018 was the 52-week period ending February 2, 2019. The first nine months of fiscal 2019 was the 39-week period ended November 2, 2019. The first nine months of fiscal 2018 was the 39-week period ended November 3, 2018.

“Zumiez,” the “Company,” “we,” “us,” “its,” “our” and similar references refer to Zumiez Inc. and its wholly-owned subsidiaries.

General

Net sales constitute gross sales (net of actual and estimated returns and deductions for promotions) and shipping revenue.  Net sales include our store sales and our ecommerce sales.  We record the sale of gift cards as a current liability and recognize revenue when a customer redeems a gift card.  Additionally, the portion of gift cards that will not be redeemed (“gift card breakage”) is recognized based on our historical redemption rate in proportion to the pattern of rights exercised by the customer.

We report “comparable sales” based on net sales beginning on the first anniversary of the first day of operation of a new store or ecommerce business.  We operate a sales strategy that integrates our stores with our ecommerce platform.  There is significant interaction between our store sales and our ecommerce sales channels and we believe that they are utilized in tandem to serve our customers.  Therefore, our comparable sales also include our ecommerce sales.  Changes in our comparable sales between two periods are based on net sales of store or ecommerce businesses which were in operation during both of the two periods being compared and, if a store or ecommerce business is included in the calculation of comparable sales for only a portion of one of the two periods being compared, then that store or ecommerce business is included in the calculation for only the comparable portion of the other period.  Any increase or decrease less than 25% in square footage of an existing comparable store, including remodels and relocations within the same mall, or temporary closures less than seven days does not eliminate that store from inclusion in the calculation of comparable sales.  Any store or ecommerce business that we acquire will be included in the calculation of comparable sales after the first anniversary of the acquisition date.  Current year foreign exchange rates are applied to both current year and prior year comparable sales to achieve a consistent basis for comparison.  There may be variations in the way in which some of our competitors and other apparel retailers calculate comparable sales.  As a result, data herein regarding our comparable sales may not be comparable to similar data made available by our competitors or other retailers.

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, distribution and warehousing costs (including associated depreciation) and freight costs for store merchandise transfers.  This may not be comparable to the way in which our competitors or other retailers compute their cost of goods sold.  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.

With respect to the freight component of our ecommerce sales, amounts billed to our customers are included in net sales and the related freight cost is charged to cost of goods sold.

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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 our home office and stores, facility expenses, training expenses and advertising and marketing costs.  Credit card fees, insurance, public company expenses, legal expenses, incentive compensation, stock-based compensation and other miscellaneous operating costs are also included in selling, general and administrative expenses.  This may not be comparable to the way in which our competitors or other retailers compute their selling, general and administrative expenses.

Key Performance Indicators

Our management evaluates the following items, which we consider key performance indicators, in assessing our performance:

Net sales.  Net sales constitute gross sales, net of sales returns and deductions for promotions, and shipping revenue.  Net sales includes comparable sales and new store sales for all our store and ecommerce businesses.  We consider net sales to be an important indicator of our current performance.  Net sales results are important to achieve leveraging of our costs, including store payroll and store occupancy.  Net sales also have a direct impact on our operating profit, cash and working capital.

Gross profit.  Gross profit measures whether we are optimizing the price and inventory levels of our merchandise.  Gross profit is the difference between net sales and cost of goods sold.  Any inability to obtain acceptable levels of initial markups or any significant increase in our use of markdowns could have an adverse effect on our gross profit and results of operations.

Operating profit.  We view operating profit as a key indicator of our success.  Operating profit is the difference between gross profit and selling, general and administrative expenses.  The key drivers of operating profit are net sales, gross profit, our ability to control selling, general and administrative expenses and our level of capital expenditures affecting depreciation expense.

Diluted earnings per share. Diluted earnings per share is based on the weighted average number of common shares and common share equivalents outstanding during the period.  We view diluted earnings per share as a key indicator of our success in increasing shareholder value.

Results of Operations

The following table presents selected items on the condensed consolidated statements of income as a percent of net sales:

	Three Months Ended						Nine Months Ended
	November 2, 2019			November 3, 2018			November 2, 2019			November 3, 2018
Net sales		100.0	%		100.0	%		100.0	%		100.0	%
Cost of goods sold		64.2			65.1			66.2			67.1
Gross profit		35.8			34.9			33.8			32.9
Selling, general and administrative expenses		26.6			27.5			28.6			29.4
Operating profit		9.2			7.4			5.2			3.5
Interest and other income, net		0.5			0.2			0.6			0.1
Earnings before income taxes		9.7			7.6			5.8			3.6
Provision for income taxes		2.4			2.0			1.7			1.3
Net income		7.3	%		5.6	%		4.1	%		2.3	%

Three Months (13 weeks) Ended November 2, 2019 Compared With Three Months (13 weeks) Ended November 3, 2018

Net Sales

Net sales were $264.0 million for the three months ended November 2, 2019 compared to $248.8 million for the three months ended November 3, 2018, an increase of $15.2 million or 6.1%.  The increase primarily reflected an increase in comparable sales of $13.5 million and the net addition of 15 stores (made up of 6 new stores in North America, 10 new stores in Europe and 4 new stores in Australia partially offset by 5 store closures in North America) subsequent to November 3, 2018 partially offset by a decrease of $1.4 million due to changes in foreign currency rates. By region, North America sales increased $11.9 million or 5.3% and other international sales (which consists of Europe and Australia sales) increased $3.3 million or 14.8% for the three months ended November 2, 2019 compared to the three months ended November 3, 2018. Excluding the impact of changes in foreign exchange rates, North America sales increased $12.2 million or 5.4% and other international sales increased $4.4 million or 19.8% for the three months ended November 2, 2019 compared to the three months ended November 3, 2018.

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Comparable sales increased 5.5% primarily driven by an increase in comparable transactions and dollars per transaction.  Dollars per transaction increased due to an increase in units per transaction partially offset by a decrease in average unit retail.  Comparable sales were primarily driven by an increase in hardgoods followed by footwear, accessories and men’s clothing. These increases were partially offset by decreases in comparable sales in women’s clothing.  For information as to how we define comparable sales, see “General” above.

Gross Profit

Gross profit was $94.6 million for the three months ended November 2, 2019 compared to $86.9 million for the three months ended November 3, 2018, an increase of $7.7 million, or 8.9%.  As a percent of net sales, gross profit increased 90 basis points for the three months ended November 2, 2019 to 35.8%.  The increase was primarily driven by 40 basis points of leverage in our store occupancy costs, a 30 basis point decrease in web fulfillment, distribution and shipping costs, and a 20 basis point decrease in the write-off of excess or slow moving inventory.  

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses were $70.3 million for the three months ended November 2, 2019 compared to $68.5 million for the three months ended November 3, 2018, an increase of $1.8 million, or 2.6%.  SG&A expenses as a percent of net sales decreased 90 basis points for the three months ended November 2, 2019 to 26.6%. The decrease was primarily driven by 100 basis points of leverage in our store costs, including 30 basis points of depreciation.

Net Income

Net income for the three months ended November 2, 2019 was $19.2 million, or $0.75 earnings per diluted share, compared with net income of $13.8 million, or $0.55 earnings per diluted share, for the three months ended November 3, 2018.  Our effective income tax rate for the three months ended November 2, 2019 was a 25.0% provision for income taxes compared to a 26.5% provision for income taxes for the three months ended November 3, 2018.  The decrease was primarily due to a reduction in net losses in certain jurisdictions which are excluded from our estimated annual effective tax rate due to the uncertainty of the realization of deferred tax assets and the proportion of earnings or loss before income taxes across jurisdictions.

Nine Months (39 weeks) Ended November 2, 2019 Compared With Nine Months (39 weeks) Ended November 3, 2018

Net Sales

Net sales were $705.4 million for the nine months ended November 2, 2019 compared to $674.1 million for the nine months ended November 3, 2018, an increase of $31.3 million or 4.6%.  The increase primarily reflected an increase in comparable sales of $27.9 million and the net addition of 15 stores (made up of 6 new stores in North America, 10 new stores in Europe and 4 new stores in Australia partially offset by 5 store closures in North America) subsequent to November 3, 2018 partially offset by a decrease of $5.3 million due to changes in foreign currency rates. By region, North America sales increased $24.5 million or 4.0% and other international sales (which consists of Europe and Australia sales) increased $6.8 million or 10.5% for the nine months ended November 2, 2019 compared to the nine months ended November 3, 2018. Excluding the impact of changes in foreign exchange rates, North America sales increased $25.5 million or 4.2% and other international sales increased $11.2 million or 17.2% for the nine months ended November 2, 2019 compared to the nine months ended November 3, 2018.

Comparable sales increased 4.2% primarily driven by an increase in comparable transactions and dollars per transaction.  Dollars per transaction increased due to an increase in average unit retail and units per transaction. Comparable sales were primarily driven by an increase in hardgoods followed by footwear and accessories. These increases were partially offset by decreases in comparable sales in women’s clothing followed by men’s clothing.  For information as to how we define comparable sales, see “General” above.

Gross Profit

Gross profit was $238.2 million for the nine months ended November 2, 2019 compared to $222.0 million for the nine months ended November 3, 2018, an increase of $16.2 million, or 7.3%.  As a percent of net sales, gross profit increased 90 basis points for the nine months ended November 2, 2019 to 33.8%.  The increase was primarily driven by 40 basis points of leverage in our store occupancy costs, a 30 basis point decrease in web fulfillment, distribution and shipping costs, and a 20 basis point decrease in the write-off of excess or slow moving inventory.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses were $201.3 million for the nine months ended November 2, 2019 compared to $198.6 million for the nine months ended November 3, 2018, an increase of $2.7 million, or 1.3%.  SG&A expenses as a percent of net sales decreased 80 basis points for the nine months ended November 2, 2019 to 28.6%.  The decrease was primarily driven by 90 basis points of leverage in our store costs, including 30 basis points of depreciation.

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Net Income

Net income for the nine months ended November 2, 2019 was $29.0 million, or $1.14 earnings per diluted share, compared with net income of $15.6 million, or $0.62 earnings per diluted share, for the nine months ended November 3, 2018.  Our effective income tax rate for the nine months ended November 2, 2019 was a 28.6% provision for income taxes compared to a 35.3% provision for income taxes for the nine months ended November 3, 2018.  The decrease was primarily due to a reduction in net losses in certain jurisdictions which are excluded from our estimated annual effective tax rate due to the uncertainty of the realization of deferred tax assets and the proportion of earnings or loss before income taxes across jurisdictions.

Liquidity and Capital Resources

Our primary uses of cash are for operational expenditures, inventory purchases and capital investments, including new stores, store remodels, store relocations, store fixtures and ongoing infrastructure improvements.  Additionally, we may use cash for the repurchase of our common stock.  Historically, our main source of liquidity has been cash flows from operations.

The significant components of our working capital are inventories and liquid assets such as cash, cash equivalents, current marketable securities and receivables, reduced by accounts payable, accrued payroll and accrued expenses.  Our working capital position benefits from the fact that we generally collect cash from sales to customers the same day or within several days of the related sale, while we typically have longer payment terms with our vendors.

Our capital requirements include construction and fixture costs related to the opening of new stores and remodel and relocation expenditures for existing stores.  Future capital requirements will depend on many factors, including the pace of new store openings, the availability of suitable locations for new stores and the nature of arrangements negotiated with landlords.  Our net investment to open a new store has varied significantly in the past due to a number of factors, including the geographic location and size of the new store, and is likely to vary significantly in the future.

During fiscal 2019, we expect to spend approximately $19 million to $21 million on capital expenditures, a majority of which will relate to leasehold improvements and fixtures for the approximately 15 new stores we remain on track to open in fiscal 2019 and remodels or relocations of existing stores.  There can be no assurance that the number of stores that we actually open in fiscal 2019 will not be different from the number of stores we plan to open, or that actual fiscal 2019 capital expenditures will not differ from our expectations.

Operating Activities

Net cash from operating activities increased by $12.4 million to $29.5 million provided by operating activities for the nine months ended November 2, 2019 from $17.1 million provided by operating activities for the nine months ended November 3, 2018. Our operating cash flows result primarily from cash received from our customers, offset by cash payments we make for inventory, employee compensation, store occupancy expenses and other operational expenditures.  Cash received from our customers generally corresponds to our net sales. Because our customers primarily use credit cards or cash to buy from us, our receivables from customers settle quickly.  Historically, changes to our operating cash flows have been driven primarily by changes in operating income, which is impacted by changes to non-cash items such as depreciation, amortization and accretion, deferred taxes, and changes to the components of working capital.

Investing Activities

Net cash used in investing activities was $46.8 million for the nine months ended November 2, 2019 related to $32.9 million in net purchases of marketable securities in addition to $13.9 million of capital expenditures primarily for new store openings and existing store remodels or relocations.  Net cash used in investing activities was $16.6 million for the nine months ended November 3, 2018, related to $15.7 million of capital expenditures primarily for new store openings and existing store remodels or relocations and $0.9 million in net purchases of marketable securities.

Financing Activities

Net cash provided by financing activities for the nine months ended November 2, 2019 was $1.4 million, related to $1.6 million proceeds from the issuance and exercise of stock-based awards partially offset by $0.2 million in payments for tax withholding obligations upon vesting of restricted stock. Net cash provided by financing activities for the nine months ended November 3, 2018 was $5.8 million, primarily related to $5.1 million in net proceeds from revolving credit facilities and $0.9 million proceeds from the

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issuance and exercise of stock-based awards partially offset by $0.2 million in payments for tax withholding obligations upon vesting of restricted stock.

Sources of Liquidity

Our most significant sources of liquidity continue to be funds generated by operating activities and available cash, cash equivalents and current marketable securities.  We expect these sources of liquidity and available borrowings under our revolving credit facility will be sufficient to meet our foreseeable cash requirements for operations and planned capital expenditures for at least the next twelve months.  Beyond this time frame, if cash flows from operations are not sufficient to meet our capital requirements, then we will be required to obtain additional equity or debt financing in the future.  However, there can be no assurance that equity or debt financing will be available to us when we need it or, if available, that the terms will be satisfactory to us and not dilutive to our then-current shareholders.

We maintain 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 credit facility is available for working capital and other general corporate purposes. The 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 credit facility will mature on December 7, 2021.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. There were no borrowings or open commercial letters of credit outstanding under the secured credit facility at November 2, 2019 and February 2, 2019.

Critical Accounting Estimates

Our condensed consolidated financial statements are prepared in accordance with U.S. GAAP.  In connection with the preparation of our condensed consolidated financial statements, we are required to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets, liabilities, revenue, expenses and the related disclosures.  We base our assumptions, estimates and judgments on historical experience, current trends and other factors that we believe to be relevant at the time our condensed consolidated financial statements are prepared.  On a regular basis, we review the accounting policies, assumptions, estimates and judgments to ensure that our condensed consolidated financial statements are presented fairly and in accordance with U.S. GAAP.  However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material.

There have been no significant changes to our critical accounting estimates as discussed in our Annual Report on Form 10-K for the fiscal year ended February 2, 2019.

Contractual Obligations and Commercial Commitments

There were no material changes outside the ordinary course of business in our contractual obligations during the nine months ended November 2, 2019.  The following table summarizes the total amount of future payments due under our contractual obligations at November 2, 2019 (in thousands):

	Total		Fiscal 2019		Fiscal 2020 and Fiscal 2021		Fiscal 2022 and Fiscal 2023		Thereafter
Operating lease liabilities, including imputed interest (1)	$	384,346	$	13,986	$	144,926	$	112,052	$	113,382
Purchase obligations (2)	$	183,234		181,513		1,721
Total	$	567,580	$	195,499	$	146,647	$	112,052	$	113,382

(1) This amount represent the minimum lease payments, included imputed interest, under non-cancelable operating leases. See Note 4, “Leases,” in the Notes to Condensed Consolidated Financial Statements found in Item 1 of this Form 10-Q, for additional information related to our operating leases.

(2) 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.

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Off-Balance Sheet Arrangements

At November 2, 2019, we did not have any off-balance sheet arrangements.

Impact of Inflation/Deflation

We do not believe that inflation has had a material impact on our net sales or operating results for the past three fiscal years.  However, substantial increases in costs, including the price of raw materials, labor, energy and other inputs used in the production of our merchandise, could have a significant impact on our business and the industry in the future.  Additionally, while deflation could positively impact our merchandise costs, it could have an adverse effect on our average unit retail price, resulting in lower sales and operating results.

Risk Factors

Investing in our securities involves a high degree of risk. The following risk factors, issues and uncertainties should be considered in evaluating our future prospects.  In particular, keep these risk factors in mind when you read “forward-looking” statements elsewhere in this report.  Forward-looking statements relate to our expectations for future events and time periods.  Generally, the words “anticipates,” “expects,” “intends,” “may,” “should,” “plans,” “believes,” “predicts,” “potential,” “continue” and similar expressions identify forward-looking statements.  Forward-looking statements involve risks and uncertainties, and future events and circumstances could differ significantly from those anticipated in the forward-looking statements.  Any of the following risks could harm our business, operating results or financial condition and could result in a complete loss of your investment.  Additional risks and uncertainties that are not yet identified or that we currently think are immaterial may also harm our business and financial condition in the future.

Failure to anticipate, identify and respond to changing fashion trends, customer preferences and other fashion-related factors could have a material adverse effect on us.

Customer tastes and fashion trends in our market are volatile and tend to change rapidly.  Our success depends on our ability to effectively anticipate, identify and respond to changing fashion tastes and consumer preferences, and to translate market trends into appropriate, saleable product offerings in a timely manner.  If we are unable to successfully anticipate, identify or respond to changing styles or trends and misjudge the market for our products or any new product lines, including adequately anticipating the correct mix and trends of our private label merchandise, our sales may be lower than predicted and we may be faced with a substantial amount of unsold inventory or missed opportunities.  In response to such a situation, we may be forced to rely on markdowns or promotional sales to dispose of excess or slow-moving inventory, which could have a material adverse effect on our results of operations.

We may be unable to compete favorably in the highly competitive retail industry, and if we lose customers to our competitors, our sales could decrease.

The teenage and young adult retail apparel, footwear, accessories and hardgoods industry is highly competitive.  We compete with other retailers for vendors, teenage and young adult customers, suitable store locations, qualified store associates, management personnel, online marketing content, social media engagement and ecommerce traffic.  Some of our competitors are larger than we are and have substantially greater financial and marketing resources, including advanced ecommerce market capabilities.  Additionally, some of our competitors may offer more options for free and/or expedited shipping for ecommerce sales.  Direct competition with these and other retailers may increase significantly in the future, which could require us, among other things, to lower our prices and could result in the loss of our customers.  Current and increased competition could have a material adverse effect on our business, results of operations and financial condition.

U.S. and global economic and political uncertainty, coupled with cyclical economic trends in retailing, could have a material adverse effect on our results of operations.

Our retail market historically has been subject to substantial cyclicality.  As the U.S. and global economic and political conditions change, the trends in discretionary consumer spending become unpredictable and discretionary consumer spending could be reduced due to uncertainties about the future.  When disposable income decreases or discretionary consumer spending is reduced due to a decline in consumer confidence, purchases of apparel and related products may decline.  Uncertainty in the U.S. and global economies and political environment could have a material adverse impact on our results of operations and financial position.

In response to a decline in disposable income and consumer confidence, we believe the “value” message has become more important to consumers.  As a retailer that sells approximately 85% branded merchandise, this trend may negatively affect our business, as we generally will have to charge more than vertically integrated private label retailers or we may be forced to rely on promotional sales to compete in our market which could have a material adverse effect on our financial position.

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Most of our merchandise is produced by foreign manufacturers; therefore, the availability, quality and costs of our merchandise may be negatively affected by risks associated with international trade and other international conditions.

Most of our merchandise is produced by manufacturers around the world.  Some of these facilities are located in regions that may be affected by natural disasters, political instability or other conditions that could cause a disruption in trade.  Trade restrictions such as increased tariffs or quotas, or both, could also increase the cost and reduce the supply of merchandise available to us.  Any reduction in merchandise available to us or any increase in its cost due to tariffs, quotas or local issues that disrupt trade could have a material adverse effect on our results of operations.  This includes costs to comply with regulatory developments regarding the use of “conflict minerals,” certain minerals originating from the Democratic Republic of Congo and adjoining countries, which may affect the sourcing and availability of raw materials used by manufacturers and subject us to increased costs associated with our products, processes or sources of our inputs.  Our business could be adversely affected by disruptions in the supply chain, such as strikes, work stoppages, or port closures.  

A decrease in consumer traffic could cause our sales to be less than expected.

We depend heavily on generating customer traffic to our stores and websites.  This includes locating many of our stores in prominent locations within successful shopping malls.  Sales at these stores are derived, in part, from the volume of traffic in those malls.  Our stores benefit from the ability of a mall’s “anchor” tenants, generally large department stores and other area attractions, to generate consumer traffic in the vicinity of our stores and the continuing popularity of malls as shopping destinations.  In addition, some malls that were in prominent locations when we opened our stores may cease to be viewed as prominent. If this trend continues or if the popularity of mall shopping continues to decline generally among our customers, our sales may decline, which would impact our results of operations. Additionally, we may experience other risks associated with operating leases, such as lease termination or impairment of operating lease right-of-use assets. These risks may include circumstances that are not within our control, such as changes in fair market rent. Furthermore, we depend on generating increased traffic to our ecommerce business and converting that traffic into sales. This requires us to achieve expected results from our marketing and social media campaigns, accuracy of data analytics, reliability of our website, network, and transaction processing and a high-quality online customer experience. Our sales volume and customer traffic in our stores and on our websites generally could be adversely affected by, among other things, economic downturns, competition from other ecommerce retailers, non-mall retailers and other malls, increases in gasoline prices, fluctuations in exchange rates in border or tourism-oriented locations and the closing or decline in popularity of other stores in the malls in which we are located.  An uncertain economic outlook could curtail new shopping mall development, decrease shopping mall and ecommerce traffic, reduce the number of hours that shopping mall operators keep their shopping malls open or force them to cease operations entirely.  A reduction in consumer traffic to our stores or websites could have a material adverse effect on our business, results of operations and financial condition.

Our growth strategy depends on our ability to grow customer engagement in our current markets and expand into new markets, which could strain our resources and cause the performance of our existing business to suffer.

Our growth largely depends on our ability to optimize our customer engagement in our current trade areas and operate successfully in new geographic markets.  However, our ability to open stores in new geographic markets, including international locations, is subject to a variety of risks and uncertainties, and we may be unable to open new stores as planned or have access to desirable lease space, and any failure to successfully open and operate in new markets could have a material adverse effect on our results of operations.  We intend to continue to open new stores in future years, while remodeling a portion of our existing store base such that we have the optimum number of stores in any given trade area.  The expansion into new markets may present competitive, merchandising, hiring and distribution challenges that are different from those currently encountered in our existing markets.  In addition, our proposed expansion will place increased demands on our operational, managerial and administrative resources.  These increased demands could cause us to operate our business less effectively, which in turn could cause deterioration in the financial performance of our individual stores and our overall business.  In addition, successful execution of our growth strategy may require that we obtain additional financing, and we may not be able to obtain that financing on acceptable terms or at all.

Failure to successfully integrate any businesses that we acquire could have an adverse impact on our results of operations and financial performance.

We may, from time to time, acquire businesses, such as our acquisition of Blue Tomato and Fast Times.  We may experience difficulties in integrating any businesses we may acquire, including their stores, websites, facilities, personnel, financial systems, distribution, operations and general operating procedures, and any such acquisitions may also result in the diversion of our capital and our management’s attention from other business issues and opportunities.  If we experience difficulties in integrating acquisitions or if such acquisitions do not provide the benefits that we expect to receive, we could experience increased costs and other operating inefficiencies, which could have an adverse effect on our results of operations and overall financial performance.

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Our plans for international expansion include risks that could have a negative impact on our results of operations.

We plan to continue to open new stores in the Canadian, European, and Australian markets. We may continue to expand internationally into other markets, either organically, or through additional acquisitions.  International markets may have different competitive conditions, consumer tastes and discretionary spending patterns than our existing U.S. market.  As a result, operations in international markets may be less successful than our operations in the U.S.  Additionally, consumers in international markets may not be familiar with us or the brands we sell, and we may need to build brand awareness in the markets.  Furthermore, we have limited experience with the legal and regulatory environments and market practices in new international markets and cannot guarantee that we will be able to penetrate or successfully operate in these new international markets.  We also expect to incur additional costs in complying with applicable foreign laws and regulations as they pertain to both our products and our operations.  Accordingly, for the reasons noted above, our plans for international expansion include risks that could have a negative impact on our results of operations.

Our sales and inventory levels fluctuate on a seasonal basis.  Accordingly, our quarterly results of operations are volatile and may fluctuate significantly.

Our quarterly results of operations have fluctuated significantly in the past and can be expected to continue to fluctuate significantly in the future.  Our sales and profitability are typically disproportionately higher in the third and fourth fiscal quarters of each fiscal year due to increased sales during the back-to-school and winter holiday shopping seasons.  Sales during these periods cannot be used as an accurate indicator of annual results.  As a result of this seasonality, any factors negatively affecting us during the last half of the year, including unfavorable economic conditions, adverse weather or our ability to acquire seasonal merchandise inventory, could have a material adverse effect on our financial condition and results of operations for the entire year. In addition, in order to prepare for the back-to-school and winter holiday shopping seasons, we must order and keep in stock significantly more merchandise than we carry during other times of the year.  Any unanticipated decrease in demand for our products during these peak shopping seasons could require us to sell excess inventory at a substantial markdown, which could have a material adverse effect on our business, results of operations and financial condition.

Our quarterly results of operations are affected by a variety of other factors, including:

• the timing of new store openings and the relative proportion of our new stores to mature stores;

• whether we are able to successfully integrate any new stores that we acquire and the presence of any unanticipated liabilities in connection therewith;        

• fashion trends and changes in consumer preferences;

• calendar shifts of holiday or seasonal periods;

• changes in our merchandise mix;

• timing of promotional events;

• general economic conditions and, in particular, the retail sales environment;

• actions by competitors or mall anchor tenants;

• weather conditions;

• the level of pre-opening expenses associated with our new stores; and

• inventory shrinkage beyond our historical average rates.

If our information systems hardware or software fails to function effectively or does not scale to keep pace with our planned growth, our operations could be disrupted and our financial results could be harmed.

If our information systems, including software, do not work effectively, this could adversely impact the promptness and accuracy of our transaction processing, financial accounting and reporting and our ability to manage our business and properly forecast operating results and cash requirements.  Additionally, we rely on third-party service providers for certain information systems functions.  If a service provider fails to provide the data quality, communications capacity or services we require, the failure could interrupt our services and could have a material adverse effect on our business, financial condition and results of operations.  To manage the anticipated growth of our operations and personnel, we may need to continue to improve our operational and financial systems, transaction processing, procedures and controls, and in doing so could incur substantial additional expenses that could impact our financial results.

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If the security of our data is breached we may be subjected to adverse publicity, litigation and significant expenses.

Information systems are susceptible to an increasing threat of continually evolving cybersecurity risks. We maintain security systems, devices and activity monitoring to prevent unauthorized access to our network, systems and databases containing confidential, proprietary, and personally identifiable information.  Nevertheless, if unauthorized parties gain access to our networks, systems or databases, they may be able to steal, publish, delete or modify confidential information.  In such circumstances, we could be held liable to our customers or other parties or be subject to regulatory or other actions for breaching privacy rules and we may be exposed to reputation damage and loss of customers’ trust and business.  This could result in costly investigations and litigation, civil or criminal penalties and adverse publicity that could adversely affect our financial condition, results of operations and reputation.  Actual or anticipated attacks may cause us to incur increasing costs, including costs to deploy additional resources, train employees, and engage third-parties. Further, the regulatory environment surrounding information security, cybersecurity and privacy is increasingly demanding. If we are unable to comply with the new and changing security standards, we may be subject to fines, restrictions and financial exposure, which could adversely affect our retail operations.

Significant fluctuations and volatility in the cost of raw materials, global labor, shipping and other costs related to the production of our merchandise may have a material adverse effect on our business, results of operations and financial conditions.

Increases in the cost of raw materials, global labor costs, freight costs and other shipping costs in the production and transportation of our merchandise can result in higher costs for this merchandise.  The costs for these products are affected by weather, consumer demand, government regulation, speculation on the commodities market and other factors that are generally unpredictable and beyond our control.  Our gross profit and results of operations could be adversely affected to the extent that the selling prices of our products do not increase proportionately with the increases in the costs of raw materials.  Increasing labor costs and oil-related product costs, such as manufacturing and transportation costs, could also adversely impact gross profit.  Additionally, significant changes in the relationship between carrier capacity and shipper demand could increase transportation costs, which could also adversely impact gross profit.  

Fluctuations in foreign currency exchange rates could impact our financial condition and results of operations.

We are exposed to foreign currency exchange rate risk with respect to our sales, profits, assets and liabilities denominated in currencies other than the U.S. dollar. As a result, the fluctuation in the value of the U.S. dollar against other currencies could have a material adverse effect on our results of operations, financial condition and cash flows. Upon translation, operating results may differ materially from expectations.  As we continue to expand our international operations, our exposure to exchange rate fluctuations will increase.  Tourism spending may be affected by changes in currency exchange rates, and as a result, sales at stores with higher tourism traffic may be adversely impacted by fluctuations in currency exchange rates. Further, although the prices charged by vendors for the merchandise we purchase are primarily denominated in U.S. dollars, a decline in the relative value of the U.S. dollar to foreign currencies could lead to increased merchandise costs, which could negatively affect our competitive position and our results of operations.  

Our business could be adversely affected by increased labor costs, including costs related to an increase in minimum wage and health care.

Labor is one of the primary components in the cost of operating our business.  Increased labor costs, whether due to competition, unionization, increased minimum wage, state unemployment rates, health care, or other employee benefits costs may adversely impact our operating profit.  A considerable amount of our store team members are paid at rates related to the federal or state minimum wage and any changes to the minimum wage rate may increase our operating expenses.  Furthermore, inconsistent increases in state and or city minimum wage requirements limit our ability to increase prices across all markets and channels.  Additionally, we are self-insured with respect to our health care coverage in the U.S. and do not purchase third party insurance for the health insurance benefits provided to employees with the exception of pre-defined stop loss coverage, which helps limit the cost of large claims.  There is no assurance that future health care legislation will not adversely impact our results or operations.

Our business could suffer if a manufacturer fails to use acceptable labor and environmental practices.

We do not control our vendors or the manufacturers that produce the products we buy from them, nor do we control the labor and environmental practices of our vendors and these manufacturers.  The violation of labor, safety, environmental and/or other laws and standards by any of our vendors or these manufacturers, or the divergence of the labor and environmental practices followed by any of our vendors or these manufacturers from those generally accepted as ethical in the U.S., could interrupt, or otherwise disrupt, the shipment of finished products to us or damage our reputation.  Any of these, in turn, could have a material adverse effect on our reputation, financial condition and results of operations.  In that regard, most of the products we sell are manufactured overseas, primarily in Asia, Mexico and Central America, which may increase the risk that the labor and environmental practices followed by the manufacturers of these products may differ from those considered acceptable in the U.S.

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Additionally, our products are subject to regulation of and regulatory standards set by various governmental authorities with respect to quality and safety.  These regulations and standards may change from time to time.  Our inability to comply on a timely basis with regulatory requirements could result in significant fines or penalties, which could adversely affect our reputation and sales.  Issues with the quality and safety of merchandise we sell, regardless of our culpability, or customer concerns about such issues, could result in damage to our reputation, lost sales, uninsured product liability claims or losses, merchandise recalls and increased costs.

If we fail to develop and maintain good relationships with vendors or if a vendor is otherwise unable or unwilling to supply us with adequate quantities of their products at acceptable prices, our business and financial performance could suffer.

Our business is dependent on developing and maintaining good relationships with a large number of vendors to provide our customers with an extensive selection of current and relevant brands.  In addition to maintaining our large number of current vendor relationships, each year we are identifying, attracting and launching new vendors to provide a diverse and unique product assortment. We believe that we generally are able to obtain attractive pricing and terms from vendors because we are perceived as a desirable customer, and deterioration in our relationship with our vendors could have a material adverse effect on our business.  

However, there can be no assurance that our current vendors or new vendors will provide us with an adequate supply or quality of products or acceptable pricing.  Our vendors could discontinue selling to us, raise the prices they charge, sell through direct channels or allow their merchandise to be discounted by other retailers.  There can be no assurance that we will be able to acquire desired merchandise in sufficient quantities on terms acceptable to us in the future.  In addition, certain vendors sell their products directly to the retail market and therefore compete with us directly and other vendors may decide to do so in the future.  There can be no assurance that such vendors will not decide to discontinue supplying their products to us, supply us only less popular or lower quality items, raise the prices they charge us or focus on selling their products directly.  

In addition, a number of our vendors are smaller, less capitalized companies and are more likely to be impacted by unfavorable general economic and market conditions than larger and better capitalized companies.  These smaller vendors may not have sufficient liquidity during economic downturns to properly fund their businesses and their ability to supply their products to us could be negatively impacted. Any inability to acquire suitable merchandise at acceptable prices, or the loss of one or more key vendors, could have a material adverse effect on our business, results of operations and financial condition.

Our business is susceptible to weather conditions that are out of our control, including the potential risks of unpredictable weather patterns and any weather patterns associated with naturally occurring global climate change, and the resultant unseasonable weather could have a negative impact on our results of operations.

Our business is susceptible to unseasonable weather conditions.  For example, extended periods of unseasonably warm temperatures during the winter season or cool weather during the summer season (including any weather patterns associated with global warming and cooling) could render a portion of our inventory incompatible with those unseasonable conditions.  These prolonged unseasonable weather conditions could have a material adverse effect on our business and results of operations.

Our omni-channel strategy may not have the return we anticipate, which could have an adverse effect on our results of operations.

We are executing an omni-channel strategy to enable our customers to shop wherever, whenever and however they choose to engage with us.  Our omni-channel strategy may not deliver the results we anticipate or may not adequately anticipate changing consumer trends, preferences and expectations.  We will continue to develop additional ways to execute our superior omni-channel experience and interact with our customers, which requires significant investments in IT systems and changes in operational strategy, including localization, online and in-store point of sale systems, order management system, and transportation management system.  If we fail to effectively integrate our store and ecommerce shopping experiences, effectively scale our IT structure or we do not realize the return on our investments that we anticipate our operating results could be adversely affected.  Our competitors are also investing in omni-channel initiatives.  If our competitors are able to be more effective in their strategy, it could have an adverse effect on our results of operations.  If we our omni-channel strategy fails to meet customer expectations related to functionality, timely delivery, or customer experience, our business and results of operations may be adversely affected. Additionally, to manage the anticipated growth of our operations and personnel, we will need to continue to improve our operational and financial systems, transaction processing, procedures and controls, and in doing so could incur substantial additional expenses that could impact our financial results.  

If we lose key executives or are unable to attract and retain the talent required for our business, our financial performance could suffer.

Our performance depends largely on the efforts and abilities of our key executives.  If we lose the services of one or more of our key executives, we may not be able to successfully manage our business or achieve our growth objectives.  Furthermore, as our business grows, we will need to attract and retain additional qualified personnel in a timely manner and we may not be able to do so.

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Failure to meet our staffing needs could adversely affect our ability to implement our growth strategy and could have a material impact on our results of operations.

Our success depends in part upon our ability to attract, motivate and retain a sufficient number of qualified employees who understand and appreciate our culture and brand and are able to adequately represent this culture.  Qualified individuals of the requisite caliber, skills and number needed to fill these positions may be in short supply in some areas and the employee turnover rate in the retail industry is high. Our business depends on the ability to hire and retain qualified technical and support roles for procurement, distribution, ecommerce and back office functions. Competition for qualified employees in these areas could require us to pay higher wages to attract a sufficient number of suitable employees.  

If we are unable to hire and retain store managers and store associates capable of consistently providing a high level of customer service, as demonstrated by their enthusiasm for our culture and knowledge of our merchandise, our ability to open new stores may be impaired and the performance of our existing and new stores could be materially adversely affected.  We are also dependent upon temporary personnel to adequately staff our operations particularly during busy periods such as the back-to-school and winter holiday seasons.  There can be no assurance that we will receive adequate assistance from our temporary personnel, or that there will be sufficient sources of temporary personnel. If we are unable to hire qualified temporary personnel, our results of operations could be adversely impacted.  

Although none of our employees are currently covered by collective bargaining agreements, we cannot guarantee that our employees will not elect to be represented by labor unions in the future, which could increase our labor costs and could subject us to the risk of work stoppages and strikes.  Any such failure to meet our staffing needs, any material increases in employee turnover rates, any increases in labor costs or any work stoppages, interruptions or strikes could have a material adverse effect on our business or results of operations.

A decline in cash flows from operations could have a material adverse effect on our business and growth plans.

We depend on cash flow from operations to fund our current operations and our growth strategy, including the payment of our operating leases, wages, store operation costs and other cash needs.  If our business does not generate sufficient cash flow from operating activities, and sufficient funds are not otherwise available to us from borrowings under our credit facility or from other sources, we may not be able to pay our operating lease expenses, grow our business, respond to competitive challenges or fund our other liquidity and capital needs, which could have a material adverse effect on our business.

The terms of our secured credit agreement impose certain restrictions on us that may impair our ability to respond to changing business and economic conditions, which could have a significant adverse impact on our business.  Additionally, our business could suffer if our ability to acquire financing is reduced or eliminated.

We maintain 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 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 us 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.  These restrictions could (1) limit our ability to plan for or react to market conditions or meet capital needs or otherwise restrict our activities or business plans; and (2) adversely affect our ability to finance our operations, strategic acquisitions, investments or other capital needs or to engage in other business activities that would be in our interest.

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. Additionally, we cannot be assured that our borrowing relationship with our lenders will continue or that our lenders will remain able to support their commitments to us in the future.  If our lenders fail to do so, then we may not be able to secure alternative financing on commercially reasonable terms, or at all.

28

Our business could suffer with the closure or disruption of our home office or our distribution centers.

In the U.S., we rely on a single distribution center located in Corona, California to receive, store and distribute the vast majority of our merchandise to our domestic stores.  Internationally, we operate a combined distribution and ecommerce fulfillment center located in Graz, Austria that supports our Blue Tomato ecommerce and store operations in Europe. We operate a distribution center located in Delta, British Columbia, Canada to distribute our merchandise to our Canadian stores. We operate a distribution and fulfillment center located in Melbourne, Australia to distribute our merchandise to our Australian stores. Additionally, we are headquartered in Lynnwood, Washington.  As a result, a natural disaster or other catastrophic event that affects one of the regions where we operate these centers or our home office could significantly disrupt our operations and have a material adverse effect on our business, results of operations and financial condition.

The effects of war, acts of terrorism, threat of terrorism, or other types of mall violence, could adversely affect our business.

Most of our stores are located in shopping malls.  Any threat of terrorist attacks or actual terrorist events, or other types of mall violence, such as shootings in malls, particularly in public areas, could lead to lower consumer traffic in shopping malls.  In addition, local authorities or mall management could close shopping malls in response to security concerns.  Mall closures, as well as lower consumer traffic due to security concerns, could result in decreased sales.  Additionally, the threat, escalation or commencement of war or other armed conflict elsewhere, could significantly diminish consumer spending, and result in decreased sales.  Decreased sales could have a material adverse effect on our business, financial condition and results of operations.

Our inability or failure to protect our intellectual property or our infringement of other’s intellectual property could have a negative impact on our operating results.

We believe that our trademarks and domain names are valuable assets that are critical to our success.  The unauthorized use or other misappropriation of our trademarks or domain names could diminish the value of the Zumiez, Blue Tomato, or Fast Times brands, our store concepts, our private label brands or our goodwill and cause a decline in our net sales.  Although we have secured or are in the process of securing protection for our trademarks and domain names in a number of countries outside of the U.S., there are certain countries where we do not currently have or where we do not currently intend to apply for protection for certain trademarks.  Also, the efforts we have taken to protect our trademarks may not be sufficient or effective.  Therefore, we may not be able to prevent other persons from using our trademarks or domain names outside of the U.S., which also could adversely affect our business.  We are also subject to the risk that we may infringe on the intellectual property rights of third parties.  Any infringement or other intellectual property claim made against us, whether or not it has merit, could be time-consuming, result in costly litigation, cause product delays or require us to pay royalties or license fees.  As a result, any such claim could have a material adverse effect on our operating results.

Our operations expose us to the risk of litigation, which could lead to significant potential liability and costs that could harm our business, financial condition or results of operations.  

We employ a substantial number of full-time and part-time employees, a majority of whom are employed at our store locations.  As a result, we are subject to a large number of federal, state and foreign laws and regulations relating to employment.  This creates a risk of potential claims that we have violated laws related to discrimination and harassment, health and safety, wage and hour laws, criminal activity, personal injury and other claims.  We are also subject to other types of claims in the ordinary course of our business.  Some or all of these claims may give rise to litigation, which could be time-consuming for our management team, costly and harmful to our business.

In addition, we are exposed to the risk of class action litigation.  The costs of defense and the risk of loss in connection with class action suits are greater than in single-party litigation claims.  Due to the costs of defending against such litigation, the size of judgments that may be awarded against us, and the loss of significant management time devoted to such litigation, we cannot provide assurance that such litigation will not disrupt our business or impact our financial results.

We are involved, from time to time, in litigation incidental to our business including complaints filed by investors.  This litigation could result in substantial costs, and could divert management's attention and resources, which could harm our business.  Risks associated with legal liability are often difficult to assess or quantify, and their existence and magnitude can remain unknown for significant periods of time.  

29

Failure to comply with federal, state, local or foreign laws and regulations, or changes in these laws and regulations, could have an adverse impact on our results of operations and financial performance.

Our business is subject to a wide array of laws and regulations including those related to employment, trade, consumer protection, transportation, occupancy laws, health care, wage laws, employee health and safety, taxes, privacy, health information privacy, identify theft, customs, truth-in-advertising, securities laws, unsolicited commercial communication and environmental issues.  Our policies, procedures and internal controls are designed to comply with foreign and domestic laws and regulations, such as those required by the Sarbanes-Oxley Act of 2002 and the U.S. Foreign Corrupt Practices Act. Although we have policies and procedures aimed at ensuring legal and regulatory compliance, our employees or vendors could take actions that violate these laws and regulations. Any violations of such laws or regulations could have an adverse effect on our reputation, results of operations, financial condition and cash flows. Furthermore, changes in the regulations, the imposition of additional regulations, or the enactment of any new legislation, particularly in the U.S. and Europe, could adversely affect our results of operations or financial condition.

Fluctuations in our tax obligations and effective tax rate may result in volatility in our operating results.

We are subject to income taxes in many domestic and foreign jurisdictions. In addition, our products are subject to import and excise duties and/or sales, consumption or value-added taxes in many jurisdictions. We record tax expense based on our estimates of future payments, which include reserves for estimates of probable settlements of domestic and foreign tax audits. At any one time, many tax years are subject to audit by various taxing jurisdictions. There can be no assurance as to the outcome of these audits which may have an adverse effect to our business. In addition, our effective tax rate may be materially impacted by changes in tax rates and duties, the mix and level of earnings or losses by taxing jurisdictions, or by changes to existing accounting rules or regulations. Changes to foreign or domestic tax laws could have a material impact on our financial condition, results of operations or cash flows.

We may fail to meet analyst expectations, which could cause the price of our stock to decline.

Our common stock is traded publicly and various securities analysts follow our financial results and issue reports on us.  These reports include information about our historical financial results as well as the analysts' estimates of our future performance.  The analysts' estimates are based upon their own independent opinions and can be different from our estimates or expectations.  If our operating results are below the estimates or expectations of public market analysts and investors, our stock price could decline.  

The reduction of total outstanding shares through the execution of a share repurchase program of common stock may increase the risk that a group of shareholders could form a group to become a controlling shareholder.  

A share repurchase program may be conducted from time to time under authorization made by our Board of Directors.  We do not have a controlling shareholder, nor are we aware of any shareholders that have formed a “group” (defined as when two or more persons agree to act together for the purposes of acquiring, holding, voting or otherwise disposing of the equity securities of an issuer).  The reduction of total outstanding shares through the execution of a share repurchase program of common stock may increase the risk that a group of shareholders could form a group to become a controlling shareholder.  

A controlling shareholder would have significant influence over, and may have the ability to control, matters requiring approval by our shareholders, including the election of directors and approval of mergers, consolidations, sales of assets, recapitalizations and amendments to our articles of incorporation.  Furthermore, a controlling shareholder may take actions with which other shareholders do not agree, including actions that delay, defer or prevent a change of control of the company and that could cause the price that investors are willing to pay for the company’s stock to decline.

Item 3: Quantitative and Qualitative Disclosures About Market Risk

Our market risk profile at November 2, 2019 has not significantly changed since February 2, 2019. Our market risk profile at February 2, 2019 is disclosed in our Annual Report on Form 10-K.

Item 4: Controls and Procedures

Evaluation of Disclosure Controls and Procedures.  We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Securities Exchange Act Rule 13a-15(e)). Based on this evaluation, our CEO and CFO concluded that, as of November 2, 2019, our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting. There has been no change in our internal control over financial reporting (as defined in Securities Exchange Act Rule 13a-15(f)) during the three months ended November 2, 2019 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

30

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We are involved from time to time in litigation incidental to our business.  We are unable to predict the outcome of litigated cases.  A court determination in any of litigation actions against us could result in significant liability and could have a material adverse effect on our business, results of operations or financial condition.

See Note 5 to the Notes to Condensed Consolidated Financial Statements found in Part I Item 1 of this Form 10-Q (listed under “Litigation” under Commitments and Contingencies).

Item 1A. Risk Factors

Please refer to the Risk Factors set forth in Item 2 of Part I of this Form 10-Q as well as the risk factors previously disclosed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended February 2, 2019.  There have been no material changes in the risk factors set forth in our Annual Report on Form 10-K for the year ended February 2, 2019.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

There were no issuer purchases of common stock during the thirteen weeks ended November 2, 2019.

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

None

31

Item 6. Exhibits

Exhibit No.	Description of Exhibits
31.1	Certification of the Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications of the Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.
101	The following materials from Zumiez Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended November 2, 2019, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at November 2, 2019 (unaudited) and February 2, 2019; (ii) Unaudited Condensed Consolidated Statements of Income for the three and nine months ended November 2, 2019 and November 3, 2018; (iii) Unaudited Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended November 2, 2019 and November 3, 2018; (iv) Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and nine months ended November 2, 2019 and November 3, 2018; (v) Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended November 2, 2019 and November 3, 2018; and (vi) Notes to Condensed Consolidated Financial Statements.

32

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ZUMIEZ INC.
Dated:  December 9, 2019	By:	/s/ Christopher C. Work
		Christopher C. Work
		Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

33

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULE 13a-14(a), AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Richard M. Brooks, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Zumiez Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Richard M. Brooks	Dated: December 9, 2019
Richard M. Brooks
Chief Executive Officer and Director
(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULE 13a-14(a), AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Christopher C. Work, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Zumiez Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Christopher C. Work	Dated: December 9, 2019
Christopher C. Work
Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the Quarterly Report of Zumiez Inc., a Washington corporation (the “Company”), on Form 10-Q for the three months ended November 2, 2019 as filed with the Securities and Exchange Commission (the “Report”), I, Richard M. Brooks, Principal Executive Officer of the Company and Christopher C. Work, Principal Financial Officer of the Company, certify, pursuant to § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350), that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Richard M. Brooks	/s/ Christopher C. Work
Richard M. Brooks	Christopher C. Work
Chief Executive Officer and Director (Principal Executive Officer) December 9, 2019	Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
	December 9, 2019

XML

Cash, Cash Equivalents and Marketable Securities - Summary of Estimated Fair Value of Cash, Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands	Nov. 02, 2019	Feb. 02, 2019	Nov. 03, 2018	Feb. 03, 2018
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Cash and cash equivalents	$ 31,929	$ 52,422	$ 29,640	$ 24,041
Estimated Fair Value, Cash and cash equivalents	31,929	52,422
Amortized Cost, Marketable securities	146,180	112,850
Gross Unrealized Holding Gains, Marketable securities	597	113
Gross Unrealized Holding Losses, Marketable securities	(59)	(51)
Estimated Fair Value, Marketable securities	146,718	112,912
Cash [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Cash and cash equivalents	11,940	26,336
Estimated Fair Value, Cash and cash equivalents	11,940	26,336
Money Market Funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Cash and cash equivalents	9,152	3,689
Estimated Fair Value, Cash and cash equivalents	9,152	3,689
U.S. Treasury and Government Agency Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Cash and cash equivalents	1,250
Estimated Fair Value, Cash and cash equivalents	1,250
Amortized Cost, Marketable securities	10,876	4,326
Gross Unrealized Holding Gains, Marketable securities	15	2
Gross Unrealized Holding Losses, Marketable securities	(4)
Estimated Fair Value, Marketable securities	10,887	4,328
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Cash and cash equivalents	9,587	22,397
Estimated Fair Value, Cash and cash equivalents	9,587	22,397
Amortized Cost, Marketable securities	107,166	55,122
Gross Unrealized Holding Gains, Marketable securities	474	98
Gross Unrealized Holding Losses, Marketable securities	(39)	(8)
Estimated Fair Value, Marketable securities	107,601	55,212
State and Local Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Marketable securities	27,198	51,462
Gross Unrealized Holding Gains, Marketable securities	108	13
Gross Unrealized Holding Losses, Marketable securities	(16)	(43)
Estimated Fair Value, Marketable securities	27,290	51,432
Variable-rate Demand Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Marketable securities	940	1,940
Estimated Fair Value, Marketable securities	$ 940	$ 1,940

XML

Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Nov. 02, 2019	Nov. 02, 2019
Lease Cost [Abstract]
Operating lease expense	$ 17,573	$ 52,232
Variable lease expense	1,433	3,672
Total lease expense	$ 19,006	$ 55,904

XML

Fair Value Measurements

9 Months Ended

Nov. 02, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

7. 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):

	November 2, 2019
	Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	9,152	$	—	$	—
Treasury and agency securities		—		1,250		—
Corporate debt securities		—		9,587		—
Marketable securities:
U.S. treasury and government agency securities		—		10,887		—
Corporate debt securities		—		107,601		—
State and local government securities		—		27,290		—
Variable-rate demand notes		—		940		—
Other long-term assets:
Money market funds		6,111		—		—
Total	$	15,263	$	157,555	$	—

	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		—
Other long-term assets:
Money market funds		1,404		—		—
Total	$	5,093	$	135,309	$	—

The Level 2 marketable securities 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.

There were no material assets measured at fair value on a nonrecurring basis for the three and nine months ended November 2, 2019 and November 3, 2018.

XML

Revenue

9 Months Ended

Nov. 02, 2019

Revenue From Contract With Customer [Abstract]

Revenue

2. Revenue

The following table disaggregates net sales by geographic region (in thousands):

	Three Months Ended				Nine Months Ended
	November 2, 2019		November 3, 2018		November 2, 2019		November 3, 2018
United States	$	221,800	$	210,690	$	592,556	$	569,878
Canada		16,657		15,828		40,817		38,999
Europe		23,199		20,631		65,360		59,876
Australia		2,366		1,646		6,643		5,299
Net sales	$	264,022	$	248,795	$	705,376	$	674,052

Net sales for the three months ended November 2, 2019 included a $1.4 million decrease due to the change in foreign exchange rates, which consisted of $0.3 million in Canada, $1.0 million in Europe and $0.1 million in Australia. Net sales for the nine months ended November 2, 2019 included a $5.3 million decrease due to the change in foreign exchange rates, which consisted of $0.9 million in Canada, $3.9 million in Europe and $0.5 million in Australia.  

Our contract liabilities include deferred revenue related to our customer loyalty program and gift cards. The current liability for gift cards was $2.5 million at November 2, 2019 and $4.3 million at February 2, 2019, respectively. Deferred revenue related to our STASH loyalty program was $2.6 million at November 2, 2019 and $2.1 million at February 2, 2019, respectively.

XML

Cash, Cash Equivalents and Marketable Securities

9 Months Ended

Nov. 02, 2019

Cash And Cash Equivalents [Abstract]

Cash, Cash Equivalents and Marketable Securities

3. 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)

	November 2, 2019
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Cash and cash equivalents:
Cash	$	11,940	$	—	$	—		$	11,940
Money market funds		9,152		—		—			9,152
U.S. treasury and government agency securities		1,250		—		—			1,250
Corporate debt securities		9,587		—		—			9,587
Total cash and cash equivalents		31,929		—		—			31,929
Marketable securities:
U.S. treasury and government agency securities		10,876		15		(4	)		10,887
Corporate debt securities		107,166		474		(39	)		107,601
State and local government securities		27,198		108		(16	)		27,290
Variable-rate demand notes		940		—		—			940
Total marketable securities	$	146,180	$	597	$	(59	)	$	146,718

	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 marketable 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):

	November 2, 2019
	Less Than 12 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		4,232		(4	)	$	—	$	—	$	4,232	$	(4	)
Corporate debt securities	$	27,989	$	(39	)		—		—	$	27,989	$	(39	)
State and local government securities	$	4,476	$	(16	)		—		—	$	4,476	$	(16	)
Total marketable securities	$	36,697	$	(59	)	$	—	$	—	$	36,697	$	(59	)

	February 2, 2019
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Marketable 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 three and nine months ended November 2, 2019 or November 3, 2018.

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 19,179	$ 13,823	$ 28,997	$ 15,593
Other comprehensive income (loss), net of tax and reclassification adjustments:
Foreign currency translation	817	(1,672)	(2,881)	(9,840)
Net change in unrealized gain (loss) on available-for-sale debt securities	10	(115)	358	(83)
Other comprehensive income (loss), net	827	(1,787)	(2,523)	(9,923)
Comprehensive income	$ 20,006	$ 12,036	$ 26,474	$ 5,670

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Subsequent Events

9 Months Ended

Nov. 02, 2019

Subsequent Events [Abstract]

Subsequent Events

11. Subsequent Events

On December 4, 2019, our Board of Directors approved the repurchase of up to an aggregate of $100 million of common stock. The repurchases will 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.

XML

Document and Entity Information - shares	9 Months Ended
	Nov. 02, 2019	Dec. 09, 2019
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 02, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Trading Symbol	ZUMZ
Entity Registrant Name	Zumiez Inc
Entity Central Index Key	0001318008
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--02-01
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		25,802,906
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock
Security Exchange Name	NASDAQ
Entity File Number	000-51300
Entity Tax Identification Number	91-1040022
Entity Incorporation, State or Country Code	WA
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 Quarterly Report	true
Document Transition Report	false

XML

Stockholders' Equity - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended
	Nov. 02, 2019	Nov. 02, 2019	Dec. 31, 2018
Equity Class Of Treasury Stock [Line Items]
Shares repurchased during period	0	0
Maximum [Member]
Equity Class Of Treasury Stock [Line Items]
Shares authorized to purchase under stock repurchase program, value			$ 75,000,000

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Equity Awards - Summary of Restricted Stock Awards and Restricted Stock Units Activity (Detail) - Restricted Stock Awards and Restricted Stock Units [Member] $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Nov. 02, 2019 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Awards/Units, Beginning Balance | shares	544
Restricted Stock Awards/Units, Granted | shares	245
Restricted Stock Awards/Units, Vested | shares	(207)
Restricted Stock Awards/Units, Forfeited | shares	(24)
Restricted Stock Awards/Units, Ending Balance | shares	558
Grant Date Weighted-Average Fair Value, Beginning Balance | $ / shares	$ 21.63
Grant Date Weighted-Average Fair Value, Granted | $ / shares	24.80
Grant Date Weighted-Average Fair Value, Vested | $ / shares	22.22
Grant Date Weighted-Average Fair Value, Forfeited | $ / shares	22.23
Grant Date Weighted-Average Fair Value, Ending Balance | $ / shares	$ 22.78
Intrinsic Value, Ending Balance | $	$ 17,810

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Equity Awards (Tables)

9 Months Ended

Nov. 02, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Total Stock-Based Compensation Expense

Total stock-based compensation expense is recognized on our condensed consolidated income statements as follows (in thousands):

	Three Months Ended				Nine Months Ended
	November 2, 2019		November 3, 2018		November 2, 2019		November 3, 2018
Cost of goods sold	$	306	$	274	$	952	$	851
Selling, general and administrative expenses		1,299		1,144		3,867		3,580
Total stock-based compensation expense	$	1,605	$	1,418	$	4,819	$	4,431

Summary of Restricted Stock Awards and Restricted Stock Units Activity

The following table summarizes restricted stock awards and restricted stock units activity (in thousands, except grant date weighted-average fair value):

	Restricted Stock Awards/Units			Grant Date Weighted- Average Fair Value		Intrinsic Value
Outstanding at February 2, 2019		544		$	21.63
Granted		245		$	24.80
Vested		(207	)	$	22.22
Forfeited		(24	)	$	22.23
Outstanding at November 2, 2019		558		$	22.78	$	17,810

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Cash, Cash Equivalents and Marketable Securities (Tables)

9 Months Ended

Nov. 02, 2019

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)

	November 2, 2019
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Cash and cash equivalents:
Cash	$	11,940	$	—	$	—		$	11,940
Money market funds		9,152		—		—			9,152
U.S. treasury and government agency securities		1,250		—		—			1,250
Corporate debt securities		9,587		—		—			9,587
Total cash and cash equivalents		31,929		—		—			31,929
Marketable securities:
U.S. treasury and government agency securities		10,876		15		(4	)		10,887
Corporate debt securities		107,166		474		(39	)		107,601
State and local government securities		27,198		108		(16	)		27,290
Variable-rate demand notes		940		—		—			940
Total marketable securities	$	146,180	$	597	$	(59	)	$	146,718

	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):

	November 2, 2019
	Less Than 12 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		4,232		(4	)	$	—	$	—	$	4,232	$	(4	)
Corporate debt securities	$	27,989	$	(39	)		—		—	$	27,989	$	(39	)
State and local government securities	$	4,476	$	(16	)		—		—	$	4,476	$	(16	)
Total marketable securities	$	36,697	$	(59	)	$	—	$	—	$	36,697	$	(59	)

	February 2, 2019
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Marketable 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	)

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Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Nov. 02, 2019	Feb. 03, 2019	Feb. 02, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 146,718		$ 112,912
Other long-term assets	8,773	$ 5,086	7,180
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	15,263		5,093
Level 1 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	9,152		3,689
Other long-term assets	6,111		1,404
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	157,555		135,309
Level 2 [Member] | Treasury and Agency Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	1,250
Marketable securities			4,328
Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	9,587		22,397
Marketable securities	107,601		55,212
Level 2 [Member] | U.S. Treasury and Government Agency Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	10,887
Level 2 [Member] | State and Local Government Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	27,290		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	$ 940		$ 1,940

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Equity Awards - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	9 Months Ended
	Nov. 02, 2019	Feb. 02, 2019
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	$ 9.6
Weighted-average remaining recognition period related to unvested stock options, restricted stock awards and restricted stock units	1 year 2 months 12 days
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding	0.4	0.3
Weighted average exercise price	$ 23.42	$ 23.06

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Earnings per Share, Basic and Diluted (Tables)

9 Months Ended

Nov. 02, 2019

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):

	Three Months Ended				Nine Months Ended
	November 2, 2019		November 3, 2018		November 2, 2019		November 3, 2018
Net income	$	19,179	$	13,823	$	28,997	$	15,593
Weighted average common shares for basic earnings per share:		25,231		24,974		25,173		24,920
Dilutive effect of stock options and restricted stock		329		287		307		300
Weighted average common shares for diluted earnings per share:		25,560		25,261		25,480		25,220
Basic earnings per share	$	0.76	$	0.55	$	1.15	$	0.63
Diluted earnings per share	$	0.75	$	0.55	$	1.14	$	0.62

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Leases (Tables)

9 Months Ended

Nov. 02, 2019

Leases [Abstract]

Components of Lease Expense

The following table presents components of lease expense (in thousands):

	Three Months Ended		Nine Months Ended
	November 2, 2019		November 2, 2019
Operating lease expense	$	17,573	$	52,232
Variable lease expense		1,433		3,672
Total lease expense	$	19,006	$	55,904

Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases is as follows (in thousands):

	November 2, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(45,512	)
Right-of-use assets obtained in exchange for new operating lease liabilities		49,263

Schedule of Maturities of Operating Leases Liabilities

At November 2, 2019, the maturities of our operating leases liabilities are as follows (in thousands):

Fiscal 2019	$	13,986
Fiscal 2020		75,207
Fiscal 2021		69,719
Fiscal 2022		61,049
Fiscal 2023		51,003
Thereafter		113,382
Total minimum lease payments		384,346
Less: interest		(37,204	)
Present value of lease obligations		347,142
Less: current portion		(59,742	)
Long-term lease obligations	$	287,400

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Revenue - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Nov. 02, 2019	Nov. 02, 2019	Feb. 02, 2019
Disaggregation Of Revenue [Line Items]
Decrease in net sales due to change in foreign exchange rates	$ 1.4	$ 5.3
Gift Cards [Member]
Disaggregation Of Revenue [Line Items]
Current liability for gift cards	2.5	2.5	$ 4.3
STASH Loyalty Program [Member]
Disaggregation Of Revenue [Line Items]
Current liability for gift cards	2.6	2.6	$ 2.1
Canada [Member]
Disaggregation Of Revenue [Line Items]
Decrease in net sales due to change in foreign exchange rates	0.3	0.9
Europe [Member]
Disaggregation Of Revenue [Line Items]
Decrease in net sales due to change in foreign exchange rates	1.0	3.9
Australia [Member]
Disaggregation Of Revenue [Line Items]
Decrease in net sales due to change in foreign exchange rates	$ 0.1	$ 0.5

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Leases - Additional Information (Detail) $ in Millions	9 Months Ended
	Nov. 02, 2019 USD ($)
Lessee Lease Description [Line Items]
Weighted-average remaining lease term	6 years
Weighted-average discount rate	3.40%
Operating leases contractually executed but not yet commenced	$ 1.1
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

XML

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Income Statement [Abstract]
Net sales	$ 264,022	$ 248,795	$ 705,376	$ 674,052
Cost of goods sold	169,446	161,922	467,140	452,057
Gross profit	94,576	86,873	238,236	221,995
Selling, general and administrative expenses	70,266	68,479	201,285	198,613
Operating profit	24,310	18,394	36,951	23,382
Interest income, net	1,002	493	2,652	1,015
Other income (expense), net	275	(74)	987	(308)
Earnings before income taxes	25,587	18,813	40,590	24,089
Provision for income taxes	6,408	4,990	11,593	8,496
Net income	$ 19,179	$ 13,823	$ 28,997	$ 15,593
Basic earnings per share	$ 0.76	$ 0.55	$ 1.15	$ 0.63
Diluted earnings per share	$ 0.75	$ 0.55	$ 1.14	$ 0.62
Weighted average shares used in computation of earnings per share:
Basic	25,231	24,974	25,173	24,920
Diluted	25,560	25,261	25,480	25,220

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Nature of Business and Basis of Presentation (Policies)

9 Months Ended

Nov. 02, 2019

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 three months ended November 2, 2019 and November 3, 2018 were 13-week periods. The nine months ended November 2, 2019 and November 3, 2018 were 39-week periods.

Basis of Presentation

Basis of Presentation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting.  Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  The unaudited condensed consolidated financial statements include the accounts of Zumiez Inc. and its wholly-owned subsidiaries.  All significant intercompany transactions and balances are eliminated in consolidation.

In our opinion, the unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the condensed consolidated balance sheets, operating results and cash flows for the periods presented.

The financial data at February 2, 2019 is derived from audited consolidated financial statements, which are included in our Annual Report on Form 10-K for the year ended February 2, 2019, and should be read in conjunction with the audited consolidated financial statements and notes thereto.  Interim results are not necessarily indicative of results for the full fiscal year due to seasonality and other factors.

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 condensed 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.

Reclassification

Reclassification—Certain prior period amounts have been reclassified to be consistent with current year presentation within our condensed consolidated statement of cash flows.

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 condensed consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows (in thousands):

	February 2, 2019		February 3, 2018
Cash and cash equivalents	$	52,422	$	24,041
Restricted cash included in other long-term assets		1,849		1,762
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	54,271	$	25,803
	November 2, 2019		November 3, 2018
Cash and cash equivalents	$	31,929	$	29,640
Restricted cash included in other long-term assets		6,111		1,787
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	38,040	$	31,427

Restricted cash included in other long-term assets represents amounts held as insurance collateral and collateral for bank guarantees on certain store operating leases.

Significant Accounting Policies

Significant Accounting Policies—Our significant accounting policies are detailed in Note 2, “Summary of Significant Accounting Policies” within Part IV Item 15 of the Annual Report on Form 10-K for the year ended February 2, 2019.  There have been no significant changes in accounting policies, with exception of the adoption of Accounting Standards Codification Topic 842, Leases (“ASC 842”).  Our significant accounting policies impacted by the adoption of ASC 842 are discussed below.

Leases

Leases – We determine at inception if a contract is or contains a lease. Upon modification of a contract, we reassess if a contract is or contains a lease.  For a contract that contains fixed payments for both lease and non-lease components, we allocate the consideration to 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 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. 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 lease payments are discounted using the rate implicit in the lease, if available, or our incremental borrowing rate. Our incremental borrowing rate is based on information available at commencement date. The right-of-use asset is measured at the present value of lease payments not yet made with adjustments for initial direct costs, lease prepayments and lease incentives. 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.

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.

Recent Accounting Standards

Recent Accounting Standards— In August 2018, the Financial Accounting Standards Board (“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 condensed 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 expect this standard to have a material impact on our condensed consolidated financial statements.

In February 2016, the FASB issued a comprehensive standard related to lease accounting to increase transparency and comparability among organizations.  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.  

The adoption of this standard resulted in a material change to our condensed consolidated balance sheet, primarily related to the (1) recognition of $297.3 million of operating lease right-of-use assets and $342.7 million of operating lease liabilities, (2) de-recognition of $44.6 million of deferred rent and tenant allowances, and (3) a cumulative adjustment to retained earnings of $6.3 million related to impairment of operating lease right-of-use assets that were impaired upon adoption of this standard. This standard did not have a material impact on our condensed consolidated statement of income or cash flows. See Note 4, “Leases” for additional information regarding leases.

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

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Stockholders' Equity

9 Months Ended

Nov. 02, 2019

Equity [Abstract]

Stockholders' Equity

8. Stockholders’ Equity

Share Repurchase—In December 2018, our Board of Directors authorized us to repurchase up to $75.0 million of our common stock. This program is expected to continue through February 1, 2020, unless the time period is extended or shortened by the Board of Directors. There was no share repurchase activity during the three and nine months ended November 2, 2019.

Accumulated Other Comprehensive Loss—The components of accumulated other comprehensive loss and the adjustments to other comprehensive loss for amounts reclassified from accumulated other comprehensive loss into net income are as follows (in thousands):

	Foreigncurrency translation adjustments			Net unrealized gains (losses) on available-for- sale debt securities			Accumulated other comprehensive loss
Three months ended November 2, 2019:
Balance at August 3, 2019	$	(12,968	)	$	394		$	(12,574	)
Other comprehensive loss, net (1)		817			10			827
Balance at November 2, 2019	$	(12,151	)	$	404		$	(11,747	)
Three months ended November 3, 2018:
Balance at August 4, 2018	$	(8,059	)	$	(42	)	$	(8,101	)
Other comprehensive loss, net (1)		(1,672	)		(115	)		(1,787	)
Balance at November 3, 2018	$	(9,731	)	$	(157	)	$	(9,888	)

	Foreign currency translation adjustments			Net unrealized gains (losses) on available-for- sale investments			Accumulated other comprehensive (loss) income
Nine months ended November 2, 2019:
Balance at February 2, 2019	$	(9,270	)	$	46		$	(9,224	)
Other comprehensive loss, net (1)		(2,881	)		358			(2,523	)
Balance at November 2, 2019	$	(12,151	)	$	404		$	(11,747	)
Nine months ended November 3, 2018:
Balance at February 3, 2018	$	109		$	(74	)	$	35
Other comprehensive loss, net (1)		(9,840	)		(83	)		(9,923	)
Balance at November 3, 2018	$	(9,731	)	$	(157	)	$	(9,888	)

(1) Other comprehensive loss is net of immaterial taxes for the three and nine months ended November 2, 2019 and November 3, 2018 for net unrealized gains (losses) on available-for-sale investments.  Foreign currency translation adjustments are not adjusted for income taxes as they relate to permanent investments in our international subsidiaries.

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Nature of Business and Basis of Presentation

9 Months Ended

Nov. 02, 2019

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, (the “Company,” “we,” “us,” “its” and “our”) 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.  At November 2, 2019, we operated 718 stores; 608 in the United States (“U.S.”), 52 in Canada, 47 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 three months ended November 2, 2019 and November 3, 2018 were 13-week periods. The nine months ended November 2, 2019 and November 3, 2018 were 39-week periods.

Basis of Presentation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting.  Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  The unaudited condensed consolidated financial statements include the accounts of Zumiez Inc. and its wholly-owned subsidiaries.  All significant intercompany transactions and balances are eliminated in consolidation.

In our opinion, the unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the condensed consolidated balance sheets, operating results and cash flows for the periods presented.

The financial data at February 2, 2019 is derived from audited consolidated financial statements, which are included in our Annual Report on Form 10-K for the year ended February 2, 2019, and should be read in conjunction with the audited consolidated financial statements and notes thereto.  Interim results are not necessarily indicative of results for the full fiscal year due to seasonality and other factors.

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 condensed 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.

Reclassification—Certain prior period amounts have been reclassified to be consistent with current year presentation within our condensed consolidated statement of cash flows.

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 condensed consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows (in thousands):

	February 2, 2019		February 3, 2018
Cash and cash equivalents	$	52,422	$	24,041
Restricted cash included in other long-term assets		1,849		1,762
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	54,271	$	25,803
	November 2, 2019		November 3, 2018
Cash and cash equivalents	$	31,929	$	29,640
Restricted cash included in other long-term assets		6,111		1,787
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	38,040	$	31,427

Restricted cash included in other long-term assets represents amounts held as insurance collateral and collateral for bank guarantees on certain store operating leases.

Significant Accounting Policies—Our significant accounting policies are detailed in Note 2, “Summary of Significant Accounting Policies” within Part IV Item 15 of the Annual Report on Form 10-K for the year ended February 2, 2019.  There have been no significant changes in accounting policies, with exception of the adoption of Accounting Standards Codification Topic 842, Leases (“ASC 842”).  Our significant accounting policies impacted by the adoption of ASC 842 are discussed below.

Leases – We determine at inception if a contract is or contains a lease. Upon modification of a contract, we reassess if a contract is or contains a lease.  For a contract that contains fixed payments for both lease and non-lease components, we allocate the consideration to 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 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. 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 lease payments are discounted using the rate implicit in the lease, if available, or our incremental borrowing rate. Our incremental borrowing rate is based on information available at commencement date. The right-of-use asset is measured at the present value of lease payments not yet made with adjustments for initial direct costs, lease prepayments and lease incentives. 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.

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.

Recent Accounting Standards— In August 2018, the Financial Accounting Standards Board (“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 condensed 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 expect this standard to have a material impact on our condensed consolidated financial statements.

In February 2016, the FASB issued a comprehensive standard related to lease accounting to increase transparency and comparability among organizations.  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.  

The adoption of this standard resulted in a material change to our condensed consolidated balance sheet, primarily related to the (1) recognition of $297.3 million of operating lease right-of-use assets and $342.7 million of operating lease liabilities, (2) de-recognition of $44.6 million of deferred rent and tenant allowances, and (3) a cumulative adjustment to retained earnings of $6.3 million related to impairment of operating lease right-of-use assets that were impaired upon adoption of this standard. This standard did not have a material impact on our condensed consolidated statement of income or cash flows. See Note 4, “Leases” for additional information regarding leases.

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

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Leases

9 Months Ended

Nov. 02, 2019

Leases [Abstract]

Leases

4. Leases

At November 2, 2019, 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 November 2, 2019, the weighted-average of the remaining lease term was 6.0 years and the weighted-average discount rate was 3.4%.

The following table presents components of lease expense (in thousands):

	Three Months Ended		Nine Months Ended
	November 2, 2019		November 2, 2019
Operating lease expense	$	17,573	$	52,232
Variable lease expense		1,433		3,672
Total lease expense	$	19,006	$	55,904

Supplemental cash flow information related to leases is as follows (in thousands):

	November 2, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(45,512	)
Right-of-use assets obtained in exchange for new operating lease liabilities		49,263

At November 2, 2019, the maturities of our operating leases liabilities are as follows (in thousands):

Fiscal 2019	$	13,986
Fiscal 2020		75,207
Fiscal 2021		69,719
Fiscal 2022		61,049
Fiscal 2023		51,003
Thereafter		113,382
Total minimum lease payments		384,346
Less: interest		(37,204	)
Present value of lease obligations		347,142
Less: current portion		(59,742	)
Long-term lease obligations	$	287,400

At November 2, 2019, we have excluded from the table above $1.1 million of operating leases that were contractually executed, but have not yet commenced. These operating leases are expected to commence in fiscal 2019 and 2020.

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Earnings per Share, Basic and Diluted - Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Earnings Per Share [Abstract]
Net income	$ 19,179	$ 13,823	$ 28,997	$ 15,593
Weighted average common shares for basic earnings per share:	25,231	24,974	25,173	24,920
Dilutive effect of stock options and restricted stock	329	287	307	300
Weighted average common shares for diluted earnings per share:	25,560	25,261	25,480	25,220
Basic earnings per share	$ 0.76	$ 0.55	$ 1.15	$ 0.63
Diluted earnings per share	$ 0.75	$ 0.55	$ 1.14	$ 0.62

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Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	Nov. 02, 2019	Feb. 02, 2019
Commitments And Contingencies Disclosure [Abstract]
Outstanding purchase orders	$ 183.2
Self-insurance reserve	$ 2.9	$ 2.1

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Stockholders' Equity - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ (12,574)	$ (8,101)	$ (9,224)	$ 35
Other comprehensive loss, net	827	(1,787)	(2,523)	(9,923)
Ending Balance	(11,747)	(9,888)	(11,747)	(9,888)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(12,968)	(8,059)	(9,270)	109
Other comprehensive loss, net	817	(1,672)	(2,881)	(9,840)
Ending Balance	(12,151)	(9,731)	(12,151)	(9,731)
Net Unrealized Gains (Losses) on Available-for-Sale Debt Securities/Investments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	394	(42)	46	(74)
Other comprehensive loss, net	10	(115)	358	(83)
Ending Balance	$ 404	$ (157)	$ 404	$ (157)

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Stockholders' Equity (Tables)

9 Months Ended

Nov. 02, 2019

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss and the adjustments to other comprehensive loss for amounts reclassified from accumulated other comprehensive loss into net income are as follows (in thousands):

	Foreigncurrency translation adjustments			Net unrealized gains (losses) on available-for- sale debt securities			Accumulated other comprehensive loss
Three months ended November 2, 2019:
Balance at August 3, 2019	$	(12,968	)	$	394		$	(12,574	)
Other comprehensive loss, net (1)		817			10			827
Balance at November 2, 2019	$	(12,151	)	$	404		$	(11,747	)
Three months ended November 3, 2018:
Balance at August 4, 2018	$	(8,059	)	$	(42	)	$	(8,101	)
Other comprehensive loss, net (1)		(1,672	)		(115	)		(1,787	)
Balance at November 3, 2018	$	(9,731	)	$	(157	)	$	(9,888	)

	Foreign currency translation adjustments			Net unrealized gains (losses) on available-for- sale investments			Accumulated other comprehensive (loss) income
Nine months ended November 2, 2019:
Balance at February 2, 2019	$	(9,270	)	$	46		$	(9,224	)
Other comprehensive loss, net (1)		(2,881	)		358			(2,523	)
Balance at November 2, 2019	$	(12,151	)	$	404		$	(11,747	)
Nine months ended November 3, 2018:
Balance at February 3, 2018	$	109		$	(74	)	$	35
Other comprehensive loss, net (1)		(9,840	)		(83	)		(9,923	)
Balance at November 3, 2018	$	(9,731	)	$	(157	)	$	(9,888	)

(1) Other comprehensive loss is net of immaterial taxes for the three and nine months ended November 2, 2019 and November 3, 2018 for net unrealized gains (losses) on available-for-sale investments.  Foreign currency translation adjustments are not adjusted for income taxes as they relate to permanent investments in our international subsidiaries.

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Revenue (Tables)

9 Months Ended

Nov. 02, 2019

Revenue From Contract With Customer [Abstract]

Disaggregation of Net Sales by Geographic Region

The following table disaggregates net sales by geographic region (in thousands):

	Three Months Ended				Nine Months Ended
	November 2, 2019		November 3, 2018		November 2, 2019		November 3, 2018
United States	$	221,800	$	210,690	$	592,556	$	569,878
Canada		16,657		15,828		40,817		38,999
Europe		23,199		20,631		65,360		59,876
Australia		2,366		1,646		6,643		5,299
Net sales	$	264,022	$	248,795	$	705,376	$	674,052

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Nature of Business and Basis of Presentation - Summary of Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Detail) - USD ($) $ in Thousands	Nov. 02, 2019	Feb. 02, 2019	Nov. 03, 2018	Feb. 03, 2018
Restricted Cash And Cash Equivalents [Abstract]
Cash and cash equivalents	$ 31,929	$ 52,422	$ 29,640	$ 24,041
Restricted cash included in other long-term assets	6,111	1,849	1,787	1,762
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 38,040	$ 54,271	$ 31,427	$ 25,803

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Condensed 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 Feb. 03, 2018	$ 355,915	$ 146,523	$ 35	$ 209,357
Beginning Balance, shares at Feb. 03, 2018		25,249
Net income	15,593			15,593
Other comprehensive income (loss), net	(9,923)		(9,923)
Issuance and exercise of stock-based awards	704	$ 704
Issuance and exercise of stock-based awards, shares		283
Stock-based compensation expense	4,431	$ 4,431
Cumulative effect of accounting change | Accounting Standards Update 2014-09 [Member]	2,052			2,052
Ending Balance at Nov. 03, 2018	368,772	$ 151,658	(9,888)	227,002
Ending Balance, shares at Nov. 03, 2018		25,532
Beginning Balance at Aug. 04, 2018	355,039	$ 149,961	(8,101)	213,179
Beginning Balance, shares at Aug. 04, 2018		25,520
Net income	13,823			13,823
Other comprehensive income (loss), net	(1,787)		(1,787)
Issuance and exercise of stock-based awards	279	$ 279
Issuance and exercise of stock-based awards, shares		12
Stock-based compensation expense	1,418	$ 1,418
Ending Balance at Nov. 03, 2018	368,772	$ 151,658	(9,888)	227,002
Ending Balance, shares at Nov. 03, 2018		25,532
Beginning Balance at Feb. 02, 2019	$ 400,456	$ 153,066	(9,224)	256,614
Beginning Balance, shares at Feb. 02, 2019	25,521	25,521
Net income	$ 28,997			28,997
Other comprehensive income (loss), net	(2,523)		(2,523)
Issuance and exercise of stock-based awards	1,366	$ 1,366
Issuance and exercise of stock-based awards, shares		284
Stock-based compensation expense	4,819	$ 4,819
Cumulative effect of accounting change | Accounting Standards Update 2016-02 [Member]	(6,276)			(6,276)
Ending Balance at Nov. 02, 2019	$ 426,839	$ 159,251	(11,747)	279,335
Ending Balance, shares at Nov. 02, 2019	25,805	25,805
Beginning Balance at Aug. 03, 2019	$ 404,207	$ 156,625	(12,574)	260,156
Beginning Balance, shares at Aug. 03, 2019		25,770
Net income	19,179			19,179
Other comprehensive income (loss), net	827		827
Issuance and exercise of stock-based awards	1,021	$ 1,021
Issuance and exercise of stock-based awards, shares		35
Stock-based compensation expense	1,605	$ 1,605
Ending Balance at Nov. 02, 2019	$ 426,839	$ 159,251	$ (11,747)	$ 279,335
Ending Balance, shares at Nov. 02, 2019	25,805	25,805

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Nov. 02, 2019	Feb. 02, 2019
Current assets
Cash and cash equivalents	$ 31,929	$ 52,422
Marketable securities	146,718	112,912
Receivables	16,790	17,776
Inventories	183,381	129,268
Prepaid expenses and other current assets	10,757	14,797
Total current assets	389,575	327,175
Fixed assets, net	115,170	120,503
Operating lease right-of-use assets	301,736
Goodwill	57,580	58,813
Intangible assets, net	14,772	15,260
Deferred tax assets, net	7,424	5,259
Other long-term assets	8,773	7,180
Total long-term assets	505,455	207,015
Total assets	895,030	534,190
Current liabilities
Trade accounts payable	73,418	35,293
Accrued payroll and payroll taxes	21,929	21,015
Income taxes payable	3,430	5,817
Deferred rent and tenant allowances		7,489
Operating lease liabilities	59,742
Other liabilities	18,815	23,494
Total current liabilities	177,334	93,108
Long-term deferred rent and tenant allowances		37,076
Long-term operating lease liabilities	287,400
Other long-term liabilities	3,457	3,550
Total long-term liabilities	290,857	40,626
Total liabilities	468,191	133,734
Commitments and contingencies (Note 5)
Shareholders’ equity
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding
Common stock, no par value, 50,000 shares authorized; 25,805 shares issued and outstanding at November 2, 2019 and 25,521 shares issued and outstanding at February 2, 2019	159,251	153,066
Accumulated other comprehensive loss	(11,747)	(9,224)
Retained earnings	279,335	256,614
Total shareholders’ equity	426,839	400,456
Total liabilities and shareholders’ equity	$ 895,030	$ 534,190

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Earnings per Share, Basic and Diluted

9 Months Ended

Nov. 02, 2019

Earnings Per Share [Abstract]

Earnings per Share, Basic and Diluted

10. 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):

	Three Months Ended				Nine Months Ended
	November 2, 2019		November 3, 2018		November 2, 2019		November 3, 2018
Net income	$	19,179	$	13,823	$	28,997	$	15,593
Weighted average common shares for basic earnings per share:		25,231		24,974		25,173		24,920
Dilutive effect of stock options and restricted stock		329		287		307		300
Weighted average common shares for diluted earnings per share:		25,560		25,261		25,480		25,220
Basic earnings per share	$	0.76	$	0.55	$	1.15	$	0.63
Diluted earnings per share	$	0.75	$	0.55	$	1.14	$	0.62

There were no anti-dilutive common shares related to stock-based awards for the three and nine months ended November 2, 2019 and 0.1 million for the three and nine months ended November 3, 2018.

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Revolving Credit Facilities and Debt

9 Months Ended

Nov. 02, 2019

Debt Disclosure [Abstract]

Revolving Credit Facilities and Debt

6. 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 replaced 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.  The credit facility will mature on December 7, 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 November 2, 2019 and February 2, 2019. We had no open commercial letters of credit outstanding under our secured revolving credit facility at November 2, 2019 and February 2, 2019.

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Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands	9 Months Ended
	Nov. 02, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ (45,512)
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 49,263

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Nature of Business and Basis of Presentation - Summary of Changes Made to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Nov. 02, 2019	Feb. 03, 2019	Feb. 02, 2019
Assets
Prepaid expenses and other current assets	$ 10,757	$ 9,058	$ 14,797
Operating lease right-of-use assets	301,736	297,326
Deferred tax assets, net	7,424	7,604	5,259
Other long-term assets	8,773	5,086	7,180
Liabilities
Deferred rent and tenant allowances			7,489
Operating lease liabilities	59,742	52,958
Long-term deferred rent and tenant allowances			37,076
Long-term operating lease liabilities	287,400	289,721
Shareholders’ equity
Retained earnings	$ 279,335	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
Shareholders’ equity
Retained earnings		$ (6,276)

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Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Cash And Cash Equivalents [Abstract]
Effective maturity period			5 years
Realized loss for other-than-temporary impairments	$ 0	$ 0	$ 0	$ 0

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Equity Awards

9 Months Ended

Nov. 02, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity Awards

9. Equity Awards

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.

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 to earnings using a 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.

Total stock-based compensation expense is recognized on our condensed consolidated income statements as follows (in thousands):

	Three Months Ended				Nine Months Ended
	November 2, 2019		November 3, 2018		November 2, 2019		November 3, 2018
Cost of goods sold	$	306	$	274	$	952	$	851
Selling, general and administrative expenses		1,299		1,144		3,867		3,580
Total stock-based compensation expense	$	1,605	$	1,418	$	4,819	$	4,431

At November 2, 2019, there was $9.6 million of total unrecognized compensation cost related to unvested stock options, restricted stock awards and restricted stock units.  This cost has a weighted-average remaining recognition period of 1.2 years.

The following table summarizes restricted stock awards and restricted stock units activity (in thousands, except grant date weighted-average fair value):

	Restricted Stock Awards/Units			Grant Date Weighted- Average Fair Value		Intrinsic Value
Outstanding at February 2, 2019		544		$	21.63
Granted		245		$	24.80
Vested		(207	)	$	22.22
Forfeited		(24	)	$	22.23
Outstanding at November 2, 2019		558		$	22.78	$	17,810

We had 0.4 million stock options outstanding at November 2, 2019 with a weighted average exercise price of $23.42 and 0.3 million stock options outstanding at February 2, 2019 with a weighted average exercise price of $23.06.

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Commitments and Contingencies

9 Months Ended

Nov. 02, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

5. Commitments and Contingencies

Purchase Commitments—At November 2, 2019, we had outstanding purchase orders to acquire merchandise from vendors of $183.2 million.  We have an option to cancel these commitments with no notice prior to shipment, except for certain private label 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 condensed 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., was filed against us in the Eastern District Count of California, Sacramento Division under case number 2:16-cv-01802-SB in August 2016.  Alexandra Bernal filed the initial complaint and then in October 2016 added Alexia Herrera as a named plaintiff and Alexandra Bernal left the case.  The putative class action lawsuit against us alleges, among other things, various violations of California’s wage and hour laws, including alleged violations of failure to pay reporting time.  In May 2017 we moved for judgment on the pleadings in that plaintiff’s cause of action for reporting-time pay should fail as a matter of law as the plaintiff and the other putative class members did not “report for work” with respect to certain shifts on which the plaintiff’s claims are based.  In August 2017, the court denied the motion.  However, in October 2017 the district court certified the order denying the motion for judgment on the pleadings for immediate interlocutory review by the United States Court of Appeals for the Ninth Circuit.  We then filed a petition for permission to appeal the order denying the motion for judgment on the pleadings with the United States Court of Appeals for the Ninth Circuit, which petition was then granted in January 2018.  Our opening appellate brief was filed on June 6, 2018 and the plaintiff’s answering appellate brief was filed August 6, 2018.  Our reply brief to the Plaintiff’s answering appellate brief was filed on September 26, 2018 and oral arguments were completed on February 4, 2019.  On May 20, 2019, the United States Court of Appeals for the Ninth Circuit granted our motion for leave to file a supplemental brief addressing new authority. On June 10, 2019, the plaintiff’s supplemental answering brief was filed with the United States Court of Appeals for the Ninth Circuit.  We then filed our supplemental reply brief to the plaintiff’s supplemental answering brief with the United States Court of Appeals for the Ninth Circuit on June 24, 2019.  Given the current status of this case, we are unable to express a view regarding the ultimate outcome or, if the outcome is adverse, to estimate an amount, or range, of reasonably possible loss. We have defended this case vigorously and will continue to do so. 

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 historical claims experience and actuarial and other assumptions.  The self-insurance reserve at November 2, 2019 and February 2, 2019 was $2.9 million and $2.1 million.

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018
Cash flows from operating activities:
Net income	$ 28,997	$ 15,593
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	18,776	21,249
Noncash lease expense	42,960
Deferred taxes	29	(919)
Stock-based compensation expense	4,819	4,431
Other	(439)	482
Changes in operating assets and liabilities:
Receivables	3,190	(1,680)
Inventories	(54,687)	(63,892)
Prepaid expenses and other assets	(934)	(1,904)
Trade accounts payable	38,186	53,037
Accrued payroll and payroll taxes	971	1,342
Income taxes payable	(2,586)	(2,206)
Deferred rent and tenant allowances		(1,564)
Operating lease liabilities	(45,512)
Other liabilities	(4,316)	(6,820)
Net cash provided by operating activities	29,454	17,149
Cash flows from investing activities:
Additions to fixed assets	(13,871)	(15,683)
Purchases of marketable securities and other investments	(165,912)	(116,430)
Sales and maturities of marketable securities and other investments	132,974	115,536
Net cash used in investing activities	(46,809)	(16,577)
Cash flows from financing activities:
Proceeds from revolving credit facilities		32,776
Payments on revolving credit facilities		(27,651)
Proceeds from issuance and exercise of stock-based awards	1,604	899
Payments for tax withholdings on equity awards	(238)	(195)
Net cash provided by financing activities	1,366	5,829
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(242)	(777)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(16,231)	5,624
Cash, cash equivalents, and restricted cash, beginning of period	54,271	25,803
Cash, cash equivalents, and restricted cash, end of period	38,040	31,427
Supplemental disclosure on cash flow information:
Cash paid during the period for income taxes	14,024	11,893
Accrual for purchases of fixed assets	$ 1,412	$ 1,477

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Nov. 02, 2019	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	25,805,000	25,521,000
Common stock, shares outstanding	25,805,000	25,521,000

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Revenue - Disaggregation of Net Sales by Geographic Region (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Disaggregation Of Revenue [Line Items]
Net sales	$ 264,022	$ 248,795	$ 705,376	$ 674,052
United States [Member]
Disaggregation Of Revenue [Line Items]
Net sales	221,800	210,690	592,556	569,878
Canada [Member]
Disaggregation Of Revenue [Line Items]
Net sales	16,657	15,828	40,817	38,999
Europe [Member]
Disaggregation Of Revenue [Line Items]
Net sales	23,199	20,631	65,360	59,876
Australia [Member]
Disaggregation Of Revenue [Line Items]
Net sales	$ 2,366	$ 1,646	$ 6,643	$ 5,299

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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	Nov. 02, 2019	Feb. 02, 2019
Schedule of Available-for-sale Securities [Line Items]
Marketable securities, Fair Value, Less Than 12 Months	$ 36,697	$ 41,509
Marketable securities, Fair Value, 12 Months or Greater		9,548
Marketable securities, Fair Value, Total	36,697	51,057
Marketable securities, Unrealized Losses, Less Than 12 Months	(59)	(28)
Marketable securities, Unrealized Losses, 12 Months or Greater		(23)
Marketable securities, Unrealized Losses, Total	(59)	(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	4,232
Marketable securities, Fair Value, Total	4,232
Marketable securities, Unrealized Losses, Less Than 12 Months	(4)
Marketable securities, Unrealized Losses, Total	(4)
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable securities, Fair Value, Less Than 12 Months	27,989	14,523
Marketable securities, Fair Value, Total	27,989	14,523
Marketable securities, Unrealized Losses, Less Than 12 Months	(39)	(8)
Marketable securities, Unrealized Losses, Total	(39)	(8)
State and Local Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable securities, Fair Value, Less Than 12 Months	4,476	26,986
Marketable securities, Fair Value, 12 Months or Greater		9,548
Marketable securities, Fair Value, Total	4,476	36,534
Marketable securities, Unrealized Losses, Less Than 12 Months	(16)	(20)
Marketable securities, Unrealized Losses, 12 Months or Greater		(23)
Marketable securities, Unrealized Losses, Total	$ (16)	$ (43)

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Leases - Schedule of Maturities of Operating Leases Liabilities (Detail) - USD ($) $ in Thousands	Nov. 02, 2019	Feb. 03, 2019
Operating Lease Liabilities Payments Due [Abstract]
Fiscal 2019	$ 13,986
Fiscal 2020	75,207
Fiscal 2021	69,719
Fiscal 2022	61,049
Fiscal 2023	51,003
Thereafter	113,382
Total minimum lease payments	384,346
Less: interest	(37,204)
Present value of lease obligations	347,142
Less: current portion	(59,742)	$ (52,958)
Long-term lease obligations	$ 287,400	$ 289,721

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Subsequent Events - Additional Information (Detail) - Maximum [Member] - USD ($)	Dec. 04, 2019	Dec. 31, 2018
Subsequent Event [Line Items]
Shares authorized to purchase under stock repurchase program, value		$ 75,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Shares authorized to purchase under stock repurchase program, value	$ 100,000,000

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Revolving Credit Facility and Debt - Additional Information (Detail)			9 Months Ended
	Dec. 07, 2018 USD ($)	Feb. 05, 2016 USD ($)	Nov. 02, 2019 USD ($)	Feb. 02, 2019 USD ($)
Line of Credit Facility [Line Items]
Maturity date		Feb. 05, 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
Maturity date	Dec. 07, 2021
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

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Equity Awards - Summary of Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 1,605	$ 1,418	$ 4,819	$ 4,431
Cost of Goods Sold [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	306	274	952	851
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 1,299	$ 1,144	$ 3,867	$ 3,580

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Earnings per Share, Basic and Diluted - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Earnings Per Share [Abstract]
Anti-dilutive common shares related to stock-based awards	0	100,000	0	100,000

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Nature of Business and Basis of Presentation - Additional Information (Detail) $ in Thousands		9 Months Ended
	Feb. 03, 2019 USD ($)	Nov. 02, 2019 USD ($) Store
Nature Of Business And Basis Of Presentation [Line Items]
Operated stores | Store		718
Operating lease right-of-use assets	$ 297,326	$ 301,736
Operating lease liabilities		347,142
Accounting Standards Update 2016-02 [Member]
Nature Of Business And Basis Of Presentation [Line Items]
Operating lease right-of-use assets	297,326
Operating lease liabilities	342,700
Derecognized deferred rent and tenant allowance	44,600
Cumulative adjustment to retained earnings related to impairment of operating lease right-of-use assets	$ 6,300	$ (6,276)
United States [Member]
Nature Of Business And Basis Of Presentation [Line Items]
Operated stores | Store		608
Canada [Member]
Nature Of Business And Basis Of Presentation [Line Items]
Operated stores | Store		52
Europe [Member]
Nature Of Business And Basis Of Presentation [Line Items]
Operated stores | Store		47
Australia [Member]
Nature Of Business And Basis Of Presentation [Line Items]
Operated stores | Store		11

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Fair Value Measurements (Tables)

9 Months Ended

Nov. 02, 2019

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):

	November 2, 2019
	Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	9,152	$	—	$	—
Treasury and agency securities		—		1,250		—
Corporate debt securities		—		9,587		—
Marketable securities:
U.S. treasury and government agency securities		—		10,887		—
Corporate debt securities		—		107,601		—
State and local government securities		—		27,290		—
Variable-rate demand notes		—		940		—
Other long-term assets:
Money market funds		6,111		—		—
Total	$	15,263	$	157,555	$	—

	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		—
Other long-term assets:
Money market funds		1,404		—		—
Total	$	5,093	$	135,309	$	—

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Nature of Business and Basis of Presentation (Tables)

9 Months Ended

Nov. 02, 2019

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 condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows (in thousands):

	February 2, 2019		February 3, 2018
Cash and cash equivalents	$	52,422	$	24,041
Restricted cash included in other long-term assets		1,849		1,762
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	54,271	$	25,803
	November 2, 2019		November 3, 2018
Cash and cash equivalents	$	31,929	$	29,640
Restricted cash included in other long-term assets		6,111		1,787
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	38,040	$	31,427

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