The Buckle, Inc. Reports Second Quarter Net Income

The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended August 3, 2019 was $16.4 million, or $0.34 per share ($0.34 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended August 3, 2019 increased 1.4 percent to $203.8 million from net sales of $201.1 million for the prior year 13-week fiscal quarter ended August 4, 2018. Comparable store net sales for the 13-week period ended August 3, 2019 increased 1.8 percent from comparable store net sales for the prior year 13-week period ended August 4, 2018. Online sales increased 9.2 percent to $23.1 million for the 13-week period ended August 3, 2019, compared to net sales of $21.2 million for the 13-week period ended August 4, 2018.

Net sales for the 26-week fiscal period ended August 3, 2019 decreased 0.2 percent to $405.1 million from net sales of $406.0 million for the prior year 26-week fiscal period ended August 4, 2018. Comparable store net sales for the 26-week period ended August 3, 2019 increased 0.3 percent from comparable store net sales for the prior year 26-week period ended August 4, 2018. Online sales increased 7.3 percent to $47.5 million for the 26-week period ended August 3, 2019, compared to net sales of $44.3 million for the 26-week period ended August 4, 2018.

Net income for the second quarter of fiscal 2019 was $16.4 million, or $0.34 per share ($0.34 per share on a diluted basis), compared with $15.7 million, or $0.32 per share ($0.32 per share on a diluted basis) for the second quarter of fiscal 2018.

Net income for the 26-week fiscal period ended August 3, 2019 was $31.5 million, or $0.65 per share ($0.65 per share on a diluted basis), compared with $34.0 million, or $0.70 per share ($0.70 per share on a diluted basis) for the 26-week period ended August 4, 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 470702. 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 470702.

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 455 stores in 43 states at the end of the second 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.

Financial Tables to Follow

THE BUCKLE, INC. CONSOLIDATED STATEMENTS OF INCOME (Amounts in Thousands Except Per Share Amounts) (Unaudited)
		Thirteen Weeks Ended						Twenty-Six Weeks Ended
		August 3, 2019			August 4, 2018			August 3, 2019			August 4, 2018
SALES, Net of returns and allowances		$	203,817		$	201,080		$	405,130		$	405,977
COST OF SALES (Including buying, distribution, and occupancy costs)			125,120			122,149			249,780			247,355
Gross profit			78,697			78,931			155,350			158,622
OPERATING EXPENSES:
Selling			48,535			47,896			95,144			93,749
General and administrative			10,560			10,874			21,870			21,452
			59,095			58,770			117,014			115,201
INCOME FROM OPERATIONS			19,602			20,161			38,336			43,421
OTHER INCOME, Net			2,086			972			3,341			2,459
INCOME BEFORE INCOME TAXES			21,688			21,133			41,677			45,880
PROVISION FOR INCOME TAXES			5,314			5,474			10,211			11,883
NET INCOME		$	16,374		$	15,659		$	31,466		$	33,997
EARNINGS PER SHARE:
Basic		$	0.34		$	0.32		$	0.65		$	0.70
Diluted		$	0.34		$	0.32		$	0.65		$	0.70
Basic weighted average shares			48,550			48,379			48,551			48,379
Diluted weighted average shares			48,760			48,592			48,747			48,571

THE BUCKLE, INC. CONSOLIDATED BALANCE SHEETS (Amounts in Thousands Except Share and Per Share Amounts) (Unaudited)
ASSETS		August 3, 2019				February 2, 2019 (1)				August 4, 2018
CURRENT ASSETS:
Cash and cash equivalents		$	178,041			$	168,471			$	168,949
Short-term investments			52,051				51,546				51,600
Receivables			11,206				7,089				12,105
Inventory			129,068				125,190				127,899
Prepaid expenses and other assets			21,059				18,136				18,855
Total current assets			391,425				370,432				379,408
PROPERTY AND EQUIPMENT			453,416				452,187				460,367
Less accumulated depreciation and amortization			(331,285	)			(321,505	)			(319,141	)
			122,131				130,682				141,226
OPERATING LEASE RIGHT-OF-USE ASSETS			335,448			—				—
LONG-TERM INVESTMENTS			15,477				18,745				17,300
OTHER ASSETS			7,952				7,443				7,158
Total assets		$	872,433			$	527,302			$	545,092
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	42,531			$	29,008			$	46,217
Accrued employee compensation			11,512				21,452				11,852
Accrued store operating expenses			23,268				17,982				21,289
Gift certificates redeemable			13,305				16,634				14,103
Current portion of operating lease liabilities			75,992			—				—
Income taxes payable		—					5,142			—
Total current liabilities			166,608				90,218				93,461
DEFERRED COMPENSATION			14,984				13,978				15,784
NON-CURRENT OPERATING LEASE LIABILITIES			287,648			—				—
DEFERRED RENT LIABILITY		—					29,229				31,740
Total liabilities			469,240				133,425				140,985
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,223,811 shares at August 3, 2019, 49,017,395 shares at February 2, 2019, and 49,018,195 shares at August 4, 2018			492				490				490
Additional paid-in capital			151,027				148,564				147,173
Retained earnings			251,674				244,823				256,444
Total stockholders’ equity			403,193				393,877				404,107
Total liabilities and stockholders’ equity		$	872,433			$	527,302			$	545,092
(1) Derived from audited financial statements.

 

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