Zumiez Inc. reported total net sales for the second quarter ended Aug.
1, 2015 (13 weeks) increased 1.8 percent to $179.8 million from $176.7
million in the quarter ended Aug. 2, 2014 (13 weeks).

This
comparison includes the negative impact of foreign currency translation
in the quarter of approximately $4.4 million. Comparable sales for the
thirteen weeks ended Aug. 1, 2015 decreased 4.5 percent compared to a
comparable sales increase of 3.4 percent for the thirteen weeks ended
Aug. 2, 2014.

Net income in the second quarter of fiscal 2015
decreased 56.9 percent to $3.2 million, or $0.11 per diluted share,
compared to net income of $7.5 million, or $0.26 per diluted share, in
the second quarter of the prior fiscal year. The results for fiscal 2015
include costs of approximately $0.4 million, or $0.01 per diluted
share, for charges associated with the acquisition of Blue Tomato, and
the results for fiscal 2014 include approximately $0.6 million, or $0.01
per diluted share, of Blue Tomato acquisition related costs.

Total
net sales for the six months (26 weeks) ended Aug. 1, 2015 increased
5.2 percent to $357.4 million from $339.6 million reported for the six
months (26 weeks) ended Aug. 2, 2014. This comparison includes the
negative impact of foreign currency translation for the 26 week period
of approximately $9.5 million. Comparable sales decreased 0.9 percent
for the twenty six weeks ended Aug. 1, 2015 compared to a comparable
sales increase of 2.6 percent for the twenty six weeks ended Aug. 2,
2014.

Net income in the first six months of fiscal 2015 decreased
39.9 percent to $6.0 million, or $0.21 per diluted share, compared to
net income for the first six months of the prior fiscal year of $10.0
million, or $0.34 per diluted share. Results for the first six months of
fiscal 2015 include approximately $1.5 million, or $0.04 per diluted
share, for charges associated with the acquisition of Blue Tomato.
Results for the first six months of fiscal 2014 include approximately
$1.3 million, or $0.03 per diluted share, of Blue Tomato acquisition
related costs.

At Aug. 1, 2015, the company had cash and current
marketable securities of $80.8 million compared to cash and current
marketable securities of $113.4 million at Aug. 2, 2014. The decrease in
cash and current marketable securities is a result of stock repurchases
and capital expenditures, partially offset by cash generated through
operations.

“We remain confident that our strategic course continues to
provide us with compelling opportunities to grow our business and return
greater value to our shareholders over the long-term,” said Zumiez CEO Rick Brooks. ” That said we are
disappointed in our recent performance which reflects a slowdown in
domestic sales. The response to our merchandise offering fell short of
expectations, requiring us to become more promotional than planned to
clear slow moving inventory ahead of the back-to-school selling season.
We are working hard to quickly address the lack of trend right fashion
in our U.S. channels. On a more positive note, the momentum in our
European business continues to be strong, reinforcing our confidence in
the long-term prospects of this market.”

Aug. 2015 Sales

Total
net sales for the four-week period ended Aug. 29, 2015 decreased 7.2
percent to $87.3 million, compared to $94.0 million for the four-week
period ended Aug. 30, 2014. The company's comparable sales decreased
10.7 percent for the four-week period ended Aug. 29, 2015 compared to a
comparable sales increase of 2.0 percent for the four-week period ended
Aug. 30, 2014.

Fiscal 2015 Third Quarter Outlook

The
company is introducing guidance for the three months ending October 31,
2015. Net sales are projected to be in the range of $202 to $206
million resulting in net income per diluted share of approximately $0.27
to $0.31. This guidance is based on an anticipated comparable sales
decrease in the 7 percent to 9 percent range for the third quarter of
fiscal 2015. The company currently intends to open approximately 57 new
stores in fiscal 2015, including up to 7 stores in Canada and 6 stores
in Europe.

As of Aug. 1, 2015 the company operated 640 stores,
included 578 in the United States, 40 in Canada, and 22 in Europe. It
operates under the name Zumiez and Blue Tomato.