EVERETT, Wash.–(BUSINESS WIRE)–May 16, 2006–Zumiez Inc. (NASDAQ: ZUMZ) and Fast Forward announced today that they have signed a definitive agreement whereby Zumiez will acquire Fast Forward, a leading action sports retailer with 19 stores and a web store. Of the 19 stores, 16 are in Texas, with one store in California and two stores in Oklahoma. Zumiez will fund the acquisition from cash on hand.
The transaction has been approved by the Zumiez board of directors and the owners of Fast Forward, and closing, which is subject to customary conditions including regulatory approvals, is expected in the 2nd quarter of fiscal 2006. Over the course of the 18 months after closing, the Fast Forward stores will be converted to the Zumiez nameplate. These additional stores will be incremental to the planned 42 stores in 2006. The company expects the acquisition to add $0.01 to $0.02 to earnings per share in 2006 and to be accretive to earnings per share by approximately $0.08 to $0.09 in fiscal 2007.
Rick Brooks, President and Chief Executive Officer of Zumiez Inc., stated, “We are excited about this transaction as Zumiez and Fast Forward are uniquely aligned in the rapidly expanding action sports retail landscape. Fast Forward gives us instant access to consumers in Texas, where we currently have just three stores, only two which overlap with Fast Forward. Additionally, Fast Forward’s culture and product offerings mesh extremely well with ours. We believe that this acquisition will help further our strengthening position in the youth market.”
About Zumiez Inc.
Zumiez is a leading specialty retailer of action sports related apparel, footwear, equipment and accessories. Our stores cater to young men and women between ages 12-24, focusing on skateboarding, surfing, snowboarding, motocross and BMX. As of May 15, 2006 we operate 180 stores, which are primarily located in shopping malls and our web site address is www.zumiez.com.
Safe Harbor Statement
Certain statements in this press release and oral statements relating thereto made from time to time by representatives of the company may constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, predictions and guidance relating to the company’s future financial performance, integration of acquired businesses, growing customer demand for our products and new store openings. In some cases, you can identify forward-looking statements by terminology such as, “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology. These forward-looking statements are based on management’s current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation, those described under the heading Risk Factors in the company’s annual report on Form 10-K for the year ended January 28, 2006 as filed with the Securities and Exchange Commission and available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.