The Buckle, Inc. Reports First Quarter Net Income

The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended May 4, 2019 was $15.1 million, or $0.31 per share ($0.31 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended May 4, 2019 decreased 1.7 percent to $201.3 million from net sales of $204.9 million for the prior year 13-week fiscal quarter ended May 5, 2018. Comparable store net sales for the 13-week period ended May 4, 2019 decreased 1.3 percent from comparable store net sales for the prior year 13-week period ended May 5, 2018. Online sales increased 5.6 percent to $24.4 million for the 13-week period ended May 4, 2019, compared to net sales of $23.1 million for the 13-week period ended May 5, 2018.

Net income for the first quarter of fiscal 2019 was $15.1 million, or $0.31 per share ($0.31 per share on a diluted basis), compared with $18.3 million, or $0.38 per share ($0.38 per share on a diluted basis) for the first quarter of fiscal 2018.

Management will hold a conference call at 10:00 a.m. EDT today to discuss results for the quarter. To participate in the call, please call [phone] for domestic calls or [phone] for international calls and reference the conference code 467603. A replay of the call will be available for a two-week period beginning today at 12:00 p.m. EDT by calling [phone] for domestic calls or [phone] for international calls and entering the conference code 467603.

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 449 retail stores in 42 states. As of the end of the fiscal quarter, it operated 449 stores in 42 states compared with 456 stores in 43 states at the end of the first quarter of fiscal 2018.

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)
		Thirteen Weeks Ended
		May 4, 2019				May 5, 2018
SALES, Net of returns and allowances		$	201,313			$	204,897
COST OF SALES (Including buying, distribution, and occupancy costs)			124,660				125,206
Gross profit			76,653				79,691
OPERATING EXPENSES:
Selling			46,609				45,853
General and administrative			11,310				10,578
			57,919				56,431
INCOME FROM OPERATIONS			18,734				23,260
OTHER INCOME, Net			1,255				1,487
INCOME BEFORE INCOME TAXES			19,989				24,747
PROVISION FOR INCOME TAXES			4,897				6,409
NET INCOME		$	15,092			$	18,338
EARNINGS PER SHARE:
Basic		$	0.31			$	0.38
Diluted		$	0.31			$	0.38
Basic weighted average shares			48,552				48,379
Diluted weighted average shares			48,734				48,550

THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS (Amounts in Thousands Except Share and Per Share Amounts) (Unaudited)
ASSETS		May 4, 2019				February 2, 2019 (1)				May 5, 2018
CURRENT ASSETS:
Cash and cash equivalents		$	183,939			$	168,471			$	168,387
Short-term investments			53,659				51,546				54,700
Receivables			5,780				7,089				7,061
Inventory			120,814				125,190				118,181
Prepaid expenses and other assets			20,406				18,136				19,182
Total current assets			384,598				370,432				367,511
PROPERTY AND EQUIPMENT			453,578				452,187				460,869
Less accumulated depreciation and amortization			(326,705	)			(321,505	)			(315,018	)
			126,873				130,682				145,851
OPERATING LEASE RIGHT-OF-USE ASSETS			345,473				—				—
LONG-TERM INVESTMENTS			15,667				18,745				17,876
OTHER ASSETS			7,754				7,443				6,918
Total assets		$	880,365			$	527,302			$	538,156
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	36,533			$	29,008			$	25,818
Accrued employee compensation			11,636				21,452				11,893
Accrued store operating expenses			22,124				17,982				19,699
Gift certificates redeemable			14,262				16,634				15,305
Current portion of operating lease liabilities			72,857				—				—
Income taxes payable			9,651				5,142				17,945
Total current liabilities			167,063				90,218				90,660
DEFERRED COMPENSATION			14,914				13,978				15,337
NON-CURRENT OPERATING LEASE LIABILITIES			300,430				—				—
DEFERRED RENT LIABILITY			—				29,229				32,961
Total liabilities			482,407				133,425				138,958
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,231,625 shares at May 4, 2019, 49,017,395 shares at February 2, 2019, and 49,044,895 shares at May 5, 2018			492				490				490
Additional paid-in capital			149,860				148,564				145,761
Retained earnings			247,606				244,823				253,036
Accumulated other comprehensive loss			—				—				(89	)
Total stockholders’ equity			397,958				393,877				399,198
Total liabilities and stockholders’ equity		$	880,365			$	527,302			$	538,156
(1) Derived from audited financial statements.

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