The Buckle, Inc. Reports First Quarter Financial Results

The Buckle, Inc. (NYSE: BKE) announced today a net loss for the fiscal quarter ended May 2, 2020 of $11.8 million, or $0.24 per share ($0.24 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended May 2, 2020 decreased 42.7 percent to $115.4 million from net sales of $201.3 million for the prior year 13-week fiscal quarter ended May 4, 2019. Online sales for the quarter increased 31.5 percent to $32.1 million for the 13-week period ended May 2, 2020, compared to net sales of $24.4 million for the 13-week period ended May 4, 2019.

As previously announced, Buckle closed all brick and mortar stores due to the COVID-19 pandemic for an indefinite period beginning March 18, 2020. The Company began the process of reopening certain stores the week of April 26, 2020, following state and local reopening guidelines. As of May 2, 2020, 37 stores had reopened. The Company has continued to reopen stores each week in May, with 331 total stores currently reopened. The Company’s online store has remained open without interruption. As a result of the store closures, the Company plans to only report total net sales and does not plan to separately report comparable store sales during this time.

As a result of the store closures, Buckle reported a net loss for the first quarter of fiscal 2020 of $11.8 million, or $0.24 per share ($0.24 per share on a diluted basis), compared with net income of $15.1 million, or $0.31 per share ($0.31 per share on a diluted basis) for the first quarter of fiscal 2019.

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 7167680. A replay of the call will be available for a two-week period beginning today at 2:00 p.m. EDT by calling [phone] for domestic calls or [phone] for international calls and entering the conference code 8302590.

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 446 retail stores in 42 states. As of the end of the fiscal quarter, it operated 446 stores in 42 states compared with 449 stores in 42 states at the end of the first quarter of fiscal 2019.

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
		May 2, 2020				May 4, 2019
SALES, Net of returns and allowances		$	115,413			$	201,313
COST OF SALES (Including buying, distribution, and occupancy costs)		88,588				124,660
Gross profit		26,825				76,653
OPERATING EXPENSES:
Selling		33,504				46,609
General and administrative		9,503				11,310
		43,007				57,919
INCOME (LOSS) FROM OPERATIONS		(16,182		)		18,734
OTHER INCOME, Net		574				1,255
INCOME (LOSS) BEFORE INCOME TAXES		(15,608		)		19,989
INCOME TAX EXPENSE (BENEFIT)		(3,824		)		4,897
NET INCOME (LOSS)		$	(11,784	)		$	15,092
EARNINGS (LOSS) PER SHARE:
Basic		$	(0.24	)		$	0.31
Diluted		$	(0.24	)		$	0.31
Basic weighted average shares		48,725				48,552
Diluted weighted average shares		48,922				48,734

THE BUCKLE, INC.

CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
ASSETS		May 2, 2020				February 1, 2020 (1)				May 4, 2019
CURRENT ASSETS:
Cash and cash equivalents		$	185,037			$	220,969			$	183,939
Short-term investments		17,661				12,532				53,659
Receivables		1,774				3,136				5,780
Inventory		121,671				121,258				120,814
Prepaid expenses and other assets		13,438				20,935				20,406
Total current assets		339,581				378,830				384,598
PROPERTY AND EQUIPMENT		451,142				452,205				453,578
Less accumulated depreciation and amortization		(341,073		)		(338,357		)		(326,705		)
		110,069				113,848				126,873
OPERATING LEASE RIGHT-OF-USE ASSETS		326,587				350,088				345,473
LONG-TERM INVESTMENTS		15,922				15,863				15,667
OTHER ASSETS		9,491				9,261				7,754
Total assets		$	801,650			$	867,890			$	880,365
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	19,212			$	26,491			$	36,533
Accrued employee compensation		5,310				22,929				11,636
Accrued store operating expenses		15,927				17,837				22,124
Gift certificates redeemable		13,513				15,319				14,262
Current portion of operating lease liabilities		84,410				87,314				72,857
Income taxes payable		72				2,751				9,651
Total current liabilities		138,444				172,641				167,063
DEFERRED COMPENSATION		15,204				15,863				14,914
NON-CURRENT OPERATING LEASE LIABILITIES		270,053				290,238				300,430
Total liabilities		423,701				478,742				482,407
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,408,181 shares at May 2, 2020, 49,205,681 shares at February 1, 2020, and 49,231,625 shares at May 4, 2019		494				492				492
Additional paid-in capital		152,841				152,258				149,860
Retained earnings		224,614				236,398				247,606
Total stockholders’ equity		377,949				389,148				397,958
Total liabilities and stockholders’ equity		$	801,650			$	867,890			$	880,365
(1) Derived from audited financial statements.

 

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