The Buckle, Inc. Reports Fourth Quarter and Fiscal Year 2018 Net Income

The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended February 2, 2019 was $41.1 million, or $0.85 per share ($0.84 per share on a diluted basis). Net income for the fiscal year ended February 2, 2019 was $95.6 million, or $1.97 per share ($1.97 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended February 2, 2019 decreased 6.0 percent to $264.4 million from net sales of $281.2 million for the prior year 14-week fiscal quarter ended February 3, 2018. Comparable store net sales for the 13-week period ended February 2, 2019 decreased 0.6 percent from comparable store net sales for the prior year 13-week period ended February 3, 2018. Online sales increased 1.3 percent to $33.9 million for the 13-week period ended February 2, 2019, compared to net sales of $33.5 million for the 14-week period ended February 3, 2018.

Net sales for the 52-week fiscal year ended February 2, 2019 decreased 3.1 percent to $885.5 million from net sales of $913.4 million for the 53-week fiscal year ended February 3, 2018. Comparable store net sales for the 52-week period ended February 2, 2019 decreased 0.9 percent from comparable store net sales for the prior year 52-week period ended February 3, 2018. Online sales increased 5.6 percent to $103.7 million for the 52-week period ended February 2, 2019, compared to net sales of $98.2 million for the 53-week period ended February 3, 2018.

Net income for the fourth quarter of fiscal 2018 was $41.1 million, or $0.85 per share ($0.84 per share on a diluted basis), compared with $42.0 million, or $0.87 per share ($0.87 per share on a diluted basis) for the fourth quarter of fiscal 2017.

Net income for the fiscal year ended February 2, 2019 was $95.6 million, or $1.97 per share ($1.97 per share on a diluted basis), compared with $89.7 million, or $1.86 per share ($1.85 per share on a diluted basis) for the fiscal year ended February 3, 2018.

Management will hold a conference call at 10:00 a.m. EDT today to discuss fourth quarter results. To participate in the call, please call [phone] for domestic calls or [phone] for international calls and reference the conference code 465115. A replay of the call will be available for a two-week period beginning March 15, 2019 at 12:00 p.m. EDT by calling [phone] for domestic calls or [phone] for international calls and entering the conference code 465115.

About Buckle

Offering a unique mix of high-quality, on-trend apparel, accessories, and footwear, Buckle caters to fashion-conscious young men and women. Known as a denim destination, each store carries a wide selection of fits, styles, and finishes from leading denim brands, including the Company’s exclusive brand, BKE. Headquartered in Kearney, Nebraska, Buckle currently operates 450 retail stores in 42 states. As of the end of the fiscal year, it operated 450 stores in 42 states compared with 457 stores in 44 states at the end of fiscal 2017.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors which may be beyond the Company’s control. Accordingly, the Company’s future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

Note: News releases and other information on The Buckle, Inc. can be accessed at www.buckle.com on the Internet.

THE BUCKLE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands Except Per Share Amounts)
(Unaudited)
		13-Weeks Ended			14-Weeks Ended			52-Weeks Ended			53-Weeks Ended
		February 2, 2019			February 3, 2018			February 2, 2019			February 3, 2018 (1)
SALES, Net of returns and allowances		$	264,412		$	281,172		$	885,496		$	913,380
COST OF SALES (Including buying, distribution, and occupancy costs)		143,118			147,933			519,423			533,357
Gross profit		121,294			133,239			366,073			380,023
OPERATING EXPENSES:
Selling		57,671			61,787			202,032			206,068
General and administrative		12,417			10,764			43,113			39,877
		70,088			72,551			245,145			245,945
INCOME FROM OPERATIONS		51,206			60,688			120,928			134,078
OTHER INCOME, Net		1,925			2,765			5,716			5,407
INCOME BEFORE INCOME TAXES		53,131			63,453			126,644			139,485
PROVISION FOR INCOME TAXES		11,996			21,418			31,036			49,778
NET INCOME		$	41,135		$	42,035		$	95,608		$	89,707
EARNINGS PER SHARE
Basic		$	0.85		$	0.87		$	1.97		$	1.86
Diluted		$	0.84		$	0.87		$	1.97		$	1.85
Basic weighted average shares		48,514			48,346			48,413			48,250
Diluted weighted average shares		48,703			48,498			48,614			48,373
(1) Derived from audited financial statements

THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
		February 2,				February 3,
ASSETS		2019				2018 (1)
CURRENT ASSETS:
Cash and cash equivalents		$	168,471			$	165,086
Short-term investments		51,546				50,833
Receivables		7,089				8,588
Inventory		125,190				118,007
Prepaid expenses and other assets		18,136				18,070
Total current assets		370,432				360,584
PROPERTY AND EQUIPMENT		452,187				459,043
Less accumulated depreciation and amortization		(321,505		)		(309,497		)
		130,682				149,546
LONG-TERM INVESTMENTS		18,745				21,453
OTHER ASSETS		7,443				6,533
Total assets		$	527,302			$	538,116
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	29,008			$	29,387
Accrued employee compensation		21,452				22,307
Accrued store operating expenses		17,982				15,646
Gift certificates redeemable		16,634				18,202
Income taxes payable		5,142				12,364
Total current liabilities		90,218				97,906
DEFERRED COMPENSATION		13,978				15,154
DEFERRED RENT LIABILITY		29,229				33,808
Total liabilities		133,425				146,868
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; 49,017,395 and 48,816,170 shares issued and outstanding at February 2, 2019 and February 3, 2018, respectively		490				488
Additional paid-in capital		148,564				144,279
Retained earnings		244,823				246,570
Accumulated other comprehensive loss		—				(89		)
Total stockholders’ equity		393,877				391,248
Total liabilities and stockholders’ equity		$	527,302			$	538,116
(1) Derived from audited financial statements

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