Zumiez to lay off 170 in warehouse shift

Everett-based retailer Zumiez will lay off 170 local employees in two months as it relocates its distribution center to Southern California. The chain's headquarters and e-commerce operation will remain in Everett.

The company said in a statement Monday the majority of its vendors are in California, and the move will cut transportation costs and improve efficiency.

Zumiez, which sells skateboard- and snowboard-style apparel, shoes and accessories, will leave the smaller of two buildings it leases on Merrill Creek Parkway in Everett and buy a new 168,450-square-foot building in Corona, Calif. It expects to hire 180 to 200 people there.

Founded in 1978 by Chairman Thomas Campion, Zumiez had 377 stores in the U.S. as of Jan. 30, including 23 in Washington. About 20 percent of its stores are in California, "our largest state by far," said Chief Financial Officer Trevor Lang.

The company's decision to move its distribution operations "is about getting products to our stores faster," he said. "Secondarily, it's about saving some costs, and thirdly, it's about expanding our capacity."

The Everett distribution center, at 60,000 square feet, is much smaller than the new location.

Zumiez plans to wind down its local distribution operations by the end of April. As a result, it expects cash expenses of up to $3.2 million and estimates a per-share charge of 3 cents in the first and second quarters.

Its stock fell 33 cents to $14.25 Monday. Shares have traded between $5.70 and $17.43 in the past year.

As with many retailers, Zumiez has been hit hard by a widespread pullback in consumer spending. Last fall, it posted a 25 percent drop in its third-quarter profit to $5.1 million.

But the company's outlook has since improved, with sales at stores open at least a year up slightly in December and January.

Zumiez releases fourth-quarter financial results March 11.

Amy Martinez: 206-464-2923 or amartinez@seattletimes.com.