What Zumiez Inc. told the SEC could break it.

Zumiez relies on a single U.S. distribution center in Corona, California to receive, store and distribute the vast majority of its merchandise to its domestic stores (with separate international DCs in Graz, Austria; Delta, Canada; and Melbourne, Australia); a closure or disruption of this single domestic DC or of its Lynnwood, WA home office — from natural disaster, fire, labor or systems failure — could interrupt its supply chain and store replenishment and materially adversely affect its business.

“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.”

Zumiez's sales are highly seasonal, with approximately 57% of fiscal 2025 net sales occurring in the combined third and fourth quarters (back-to-school and winter-holiday seasons); as a result, any factors negatively affecting the second half of the year — unfavorable economic conditions, reduced discretionary consumer spending, adverse weather, or an inability to acquire seasonal merchandise inventory — could disproportionately harm its annual results, concentrating its performance risk into a few peak periods.

Zumiez operates international subsidiaries (Canada, Europe/Blue Tomato, Australia) whose functional currencies differ from the U.S. dollar — including the Canadian Dollar, Australian Dollar, Euro, Norwegian Krone, Swedish Krona and Swiss Franc — so its consolidated results, assets and liabilities are exposed to foreign-currency translation; adverse movements in these currencies against the USD reduce reported international revenue and earnings.

“Our international subsidiaries operate with functional currencies other than the U.S. Dollar, including the Canadian Dollar, Australian Dollar, Euro, Norwegian Krone, Swedish Krona, and Swiss Franc.”

Most of Zumiez's merchandise is produced by manufacturers around the world, including China, so its availability, quality and cost are exposed to international-trade conditions: the U.S. administration has implemented tariffs and signaled additional or increased tariffs, trade restrictions or altered trade agreements with Canada, China, the EU and Mexico, which have the potential to significantly raise the cost of its merchandise, and there is no assurance it can shift manufacturing/supply agreements to non-impacted countries — so tariffs could cause margin erosion or force price increases that dampen demand.

“Tariffs have the potential to significantly raise the cost of our merchandise. In such a case, there can be no assurance that we will be able to shift manufacturing and supply agreements to non-impacted countries to reduce the effects of tariffs.”