{"id":22491,"date":"2011-03-30T08:47:31","date_gmt":"2011-03-30T15:47:31","guid":{"rendered":"http:\/\/www.boardistan.com\/?p=22491"},"modified":"2011-03-30T16:15:11","modified_gmt":"2011-03-30T23:15:11","slug":"zumiez-uses-accounting-tricks-to-get-boost","status":"publish","type":"post","link":"http:\/\/www.boardistan.com\/?p=22491","title":{"rendered":"Zumiez Uses Accounting Tricks To Get Boost"},"content":{"rendered":"<p><a href=\"http:\/\/www.boardistan.com\/wp-content\/uploads\/2009\/04\/zumiez-notagline.jpg\" onclick=\"window.open('http:\/\/www.boardistan.com\/wp-content\/uploads\/2009\/04\/zumiez-notagline.jpg','popup','width=483,height=97,scrollbars=no,resizable=yes,toolbar=no,directories=no,location=no,menubar=no,status=yes,left=0,top=0');return false\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.boardistan.com\/wp-content\/uploads\/2011\/03\/zumiez-notagline-tm1.jpg\" height=\"40\" width=\"200\" border=\"1\" align=\"right\" hspace=\"4\" vspace=\"4\" alt=\"Zumiez-Notagline\" \/><\/a>Core action mall retailer<strong> Zumiez<\/strong> management seemed very happy about their <strong><a href=\"http:\/\/www.fibre2fashion.com\/news\/company-news\/zumiez-inc\/newsdetails.aspx?news_id=96701\" target=\"_blank\">reported $0.79 per share net income in 2010<\/a><\/strong>, but the earning didn&#8217;t come from any increase in business, but rather from some &#8220;fishy&#8221; accounting tricks, according to a story on <strong><a href=\"http:\/\/blogs.forbes.com\/greatspeculations\/2011\/03\/29\/accounting-smells-a-little-fishy-down-at-the-zumiez-surf-shop\/\" target=\"_blank\">Forbes.com<\/a><\/strong>.<\/p>\n<blockquote><p>Zumiez (ZUMZ), a retailer of cool action apparel turned to an old account ing trick to boost its 2010 earnings by 13%. Digging through the foot notes of its 10-K filing, we found that ZUMZ increased the useful life estimate of its lease hold improvements. . . This change in accounting estimates reduces the company\u2019s depreciation expense by $2.7 million after-tax and increases GAAP earnings by 13%.<\/p><\/blockquote>\n<p>But that&#8217;s apparently not the only trick in Zumiez accounting bag, according to writer <strong>David Trainer<\/strong>.<\/p>\n<blockquote><p>Increasing useful-life estimates is not the only accounting trick in ZUMZ\u2019s bag. Further analysis of the financial footnotes also reveals that the com pany carries over $310 million (nearly 50% of its market cap and over 120% of reported net assets) in off-balance sheet debt. This large, hidden liability means the valuation of the stock is much higher and riskier than it appears.<\/p><\/blockquote>\n<p>Apparently, Zumiez is shifting over to the &#8220;whatever it takes&#8221; program.<\/p>\n<p><strong>[Link: <\/strong><strong><a href=\"http:\/\/blogs.forbes.com\/greatspeculations\/2011\/03\/29\/accounting-smells-a-little-fishy-down-at-the-zumiez-surf-shop\/\" target=\"_blank\">Forbes<\/a><\/strong><strong>]<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Core action mall retailer Zumiez management seemed very happy about their reported $0.79 per share net income in 2010, but the earning didn&#8217;t come from any increase in business, but rather from some &#8220;fishy&#8221; accounting tricks, according to a story on Forbes.com. Zumiez (ZUMZ), a retailer of cool action apparel turned to an old account [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[10,16,12],"tags":[],"_links":{"self":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/22491"}],"collection":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22491"}],"version-history":[{"count":4,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/22491\/revisions"}],"predecessor-version":[{"id":22495,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/22491\/revisions\/22495"}],"wp:attachment":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22491"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}