Zumiez Inc. · NASDAQ:ZUMZ
Zumiez — Investor Presentation (January 2006)
21 slides from Zumiez's investor presentation, Jan 12, 2006
Slide 1: Zumiez
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Slide 2: Safe Harbor Statement
Bete Harbor statement Under the Private Securities Litigation Reform Act of 1995 Tal Pern pe nll bari ie may include, forward-looking about the Aas ene ccoatgene te ental inpenron te eo plgee Oa in the: ee ‘These risks without Fal el inn poe ed oven coke
Slide 3: Specialty retailer of action sports apparel, footwear, equipment and accessories
Specialty retailer of action sports apparel, footwear, equipment and accessories Cater to young men and women between the ages of 12 and 24 Focus on action sports lifestyles including skateboarding, surfing, snowboarding, BMX and motocross Offer a broad and relevant selection of popular brands and s
Slide 4: Open New Stores / Drive Comp Store Sales
Open New Stores: Drive Comp. Store Sales: Expand brand awareness through geographic expansion and marketing: Deliver to Bottom Line: 4 On track to open 42 stores in 2006 2 2005 mbes 3 2005 =e November s B88 December * 202 % Year-to-Date + 13.7% Expanded presence in Southern California, New York, Tex
Slide 5: Video
Slide 6: Highly Differentiated Retail Concept - Bringing The Independent Store To The Mall
Highly Differentiated Retail Concept - Bringing The Independent Store To The Mall
Slide 7: Bringing the independent specialty store to the mall
Bringing the independent specialty store to the mall — Interactive store environment - Industrial look with concrete floors and open ceilings — Store design reflects an “organized chaos” — Action sports imagery and relevant music * Store associates identify with the action sports lifestyle and offer
Slide 8: Differentiated Merchandising Strategy
Differentiated Merchandising Strategy Extensive selection of current and relevant action sports brands * Mix of softgoods and hardgoods affirms credibility with customers * Identify evolving fashion trends and quickly respond with a relevant merchandise assortment * Strategic use of private label me
Slide 9: High Impact, Integrated Marketing Approach
High Impact, Integrated Marketing Approach * Grassroots marketing efforts reach customers in their environment - Local sporting and music event promotions — Advertising in popular action sports magazines — Interactive contests * Events create strong identity with our brand and culture * Zumiez Couch
Slide 10: Deep Rooted Culture That Drives Performance
Deep Rooted Culture That Drives Performance
Slide 11: Deep-rooted passion for action sports lifestyle
Deep-rooted passion for action sports lifestyle © Attract and retain high quality employees who are enthusiastic and knowledgeable about the products we sell * Zumiez University: Intense focus on employee and manager training * Empower our store managers to make business decisions and reward success
Slide 12: Emphasis on training and employee development
Emphasis on training and employee development (through Zumiez University) improves retention and store level execution * Sales driven incentive structure creates competitive, yet fun, environment consistent with action sports lifestyle * Annual 100K Event: -— Training and reward for top sales associ
Slide 13: Managing growth
Managing growth = People = Logistics = Technology Disciplined merchandising and purchasing strategy Analyze sales trends, gather customer feedback, shop key markets and solicit vendor input Rigorous new store selection process Centralized focus on store-level execution — Stores are customized to ind
Slide 14: Substantial Growth Opportunities
Substantial Growth Opportunities
Slide 15: Consistent execution of growth strategy demonstrated through rapid growth
* Consistent execution of growth strategy demonstrated through rapid growth in store count and sales * 26 of 27 years with positive comp store sales SEEEEEEE 8.5% 13.7% Comp Store Sales 18.5% 20.2% (1.1% 43% 9.6%
Slide 16: Early phase of store expansion with potential to grow to over 800 stores
* Zumiez is in the early phase of store expansion with the potential to grow to over 800 stores (American Eagle ___\ 58) el PacSun _\ 38) ~——_ (( Aeropostale ) ——\, 659) Hot Topic —— (( Abercrombie )y— (466) Urban Out. (e4) ened! OF STOLE: As of latest 10-Q
Slide 17: Opened stores in fiscal 2005, planned for fiscal 2006
Opened 35 stores in fiscal 2005, 42 planned for fiscal 2006 * Increase average store size over time from 2,700 square feet today — Accommodate expanded merchandise mix — Maintain unique in-store experience and culture * Drive store-level productivity * Leverage existing infrastructure and increase o
Slide 18: Strong Financial Track Record
Strong Financial Track Record
Slide 19: Fiscal Year Ended / Nine Months Ended
Fiscal Year Ended Nine Months Ended January 31, January 29, October 30, October 29, 2004 2005 2004 2005 Net sales $117,857 $153,583 $100,582 $130,188 Gross margin 36,537 50,431 31,417 —44,035 Operating profit 7.481 12,009 5169 9,505 Earnings before income taxes 7,176 11,767 4956 9,776 Net income $44
Slide 20: Focus On The Large And Growing Action Sports Segment
* Focus On The Large And Growing Action Sports Segment * Highly Differentiated Retail Concept — Bringing The Independent Store To The Mall * Deep Rooted Culture That Drives Performance * High Impact, Integrated Marketing Approach * Substantial Growth Opportunities * Disciplined Operating Philosophy
Slide 21: Searchable text section of graphics shown above
Searchable text section of graphics shown above [LOGO] [GRAPHIC] [LOGO] Zu miez Inc. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 Our presentation includes, and our response to various questions may include, forward-looking statements about the Company’s revenues