News Press Releases

The Buckle, Inc. Reports Second Quarter Net Income

BKE | August 17, 2017

The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended July 29, 2017 was $11.5 million, or $0.24 per share ($0.24 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended July 29, 2017 decreased 7.8 percent to $195.7 million from net sales of $212.2 million for the prior year 13-week fiscal quarter ended July 30, 2016. Comparable store net sales for the 13-week period ended July 29, 2017 decreased 7.7 percent from comparable store net sales for the prior year 13-week period ended July 30, 2016. Online sales decreased 4.5 percent to $19.5 million for the 13-week period ended July 29, 2017, compared to net sales of $20.4 million for the 13-week period ended July 30, 2016.

Net sales for the 26-week fiscal period ended July 29, 2017 decreased 10.5 percent to $407.9 million from net sales of $455.7 million for the prior year 26-week fiscal period ended July 30, 2016. Comparable store net sales for the 26-week period ended July 29, 2017 decreased 10.3 percent from comparable store net sales for the prior year 26-week period ended July 30, 2016. Online sales decreased 6.0 percent to $41.3 million for the 26-week period ended July 29, 2017, compared to net sales of $43.9 million for the 26-week period ended July 30, 2016.

Net income for the second quarter of fiscal 2017 was $11.5 million, or $0.24 per share ($0.24 per share on a diluted basis), compared with $15.5 million, or $0.32 per share ($0.32 per share on a diluted basis) for the second quarter of fiscal 2016.

Net income for the 26-week fiscal period ended July 29, 2017 was $27.8 million, or $0.58 per share ($0.57 per share on a diluted basis), compared with $38.6 million, or $0.80 per share ($0.80 per share on a diluted basis) for the 26-week period ended July 30, 2016.

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 (800) 230-1059 for domestic calls or (612) 234-9959 for international calls and reference the conference code 428167. A replay of the call will be available for a two-week period beginning today at 12:00 p.m. EDT by calling (800) 475-6701 for domestic calls or (320) 365-3844 for international calls and entering the conference code 428167.

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 463 retail stores in 44 states. As of the end of the fiscal quarter, it operated 463 stores in 44 states compared with 470 stores in 44 states at the end of the second quarter of fiscal 2016.

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				Twenty-Six Weeks Ended
	July 29,		July 30,		July 29,		July 30,
	2017		2016		2017		2016

SALES, Net of returns and allowances	$	195,650	$	212,157	$	407,901	$	455,700

COST OF SALES (Including buying, distribution, and occupancy costs)		121,511		132,275		252,045		281,089

Gross profit		74,139		79,882		155,856		174,611

OPERATING EXPENSES:
Selling		46,679		46,065		93,597		93,628
General and administrative		10,045		9,735		19,806		20,471
		56,724		55,800		113,403		114,099

INCOME FROM OPERATIONS		17,415		24,082		42,453		60,512

OTHER INCOME, Net		899		595		1,834		1,003

INCOME BEFORE INCOME TAXES		18,314		24,677		44,287		61,515

PROVISION FOR INCOME TAXES		6,831		9,205		16,519		22,946

NET INCOME	$	11,483	$	15,472	$	27,768	$	38,569


EARNINGS PER SHARE:
Basic	$	0.24	$	0.32	$	0.58	$	0.80

Diluted	$	0.24	$	0.32	$	0.57	$	0.80

Basic weighted average shares		48,218		48,107		48,218		48,107
Diluted weighted average shares		48,310		48,227		48,327		48,215


THE BUCKLE, INC.

CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)


	July 29,			January 28,			July 30,
ASSETS	2017			2017 (1)			2016

CURRENT ASSETS:
Cash and cash equivalents	$	195,614		$	196,536		$	168,173
Short-term investments		48,237			49,994			38,612
Receivables		14,732			8,210			16,954
Inventory		121,671			125,694			144,267
Prepaid expenses and other assets		7,750			6,023			5,864
Total current assets		388,004			386,457			373,870

PROPERTY AND EQUIPMENT		460,250			459,359			459,228
Less accumulated depreciation and amortization		(300,419	)		(290,364	)		(285,701	)
		159,831			168,995			173,527

LONG-TERM INVESTMENTS		18,294			18,092			28,080
OTHER ASSETS		7,433			6,303			4,490

Total assets	$	573,562		$	579,847		$	579,967

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:
Accounts payable	$	39,890		$	25,079		$	48,764
Accrued employee compensation		14,130			26,906			15,289
Accrued store operating expenses		16,328			14,695			14,294
Gift certificates redeemable		15,698			21,199			16,883
Income taxes payable		—			10,737			—
Total current liabilities		86,046			98,616			95,230

DEFERRED COMPENSATION		14,167			13,092			14,186
DEFERRED RENT LIABILITY		36,236			37,600			39,825
Total liabilities		136,449			149,308			149,241

COMMITMENTS

STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 48,844,700 shares at July 29, 2017, 48,622,780 shares at January 28, 2017, and 48,623,080 shares at July 30, 2016		488			486			486
Additional paid-in capital		142,622			139,398			138,535
Retained earnings		294,082			290,737			291,883
Accumulated other comprehensive loss		(79	)		(82	)		(178	)
Total stockholders’ equity		437,113			430,539			430,726

Total liabilities and stockholders’ equity	$	573,562		$	579,847		$	579,967

(1) Derived from audited financial statements.