The Buckle, Inc. Reports Third Quarter Net Income

KEARNEY, Neb.--(BUSINESS WIRE)--The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended November 3, 2018 was $20.5 million, or $0.42 per share ($0.42 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended November 3, 2018 decreased 4.1 percent to $215.1 million from net sales of $224.3 million for the prior year 13-week fiscal quarter ended October 28, 2017. Comparable store net sales for the 13-week period ended November 3, 2018 decreased 1.4 percent from comparable store net sales for the prior year 13-week period ended November 4, 2017. Online sales increased 8.8 percent to $25.5 million for the 13-week period ended November 3, 2018, compared to net sales of $23.4 million for the 13-week period ended October 28, 2017.

Net sales for the 39-week fiscal period ended November 3, 2018 decreased 1.8 percent to $621.1 million from net sales of $632.2 million for the prior year 39-week fiscal period ended October 28, 2017. Comparable store net sales for the 39-week period ended November 3, 2018 decreased 1.1 percent from comparable store net sales for the prior year 39-week period ended November 4, 2017. Online sales increased 7.8 percent to $69.8 million for the 39-week period ended November 3, 2018, compared to net sales of $64.7 million for the 39-week period ended October 28, 2017.

Due to the 53^rd week in fiscal 2017, comparable store net sales for the quarter and year-to-date periods are compared to the 13-week and 39-week periods ended November 4, 2017.

Net income for the third quarter of fiscal 2018 was $20.5 million, or $0.42 per share ($0.42 per share on a diluted basis), compared with $19.9 million, or $0.41 per share ($0.41 per share on a diluted basis) for the third quarter of fiscal 2017.

Net income for the 39-week fiscal period ended November 3, 2018 was $54.5 million, or $1.13 per share ($1.12 per share on a diluted basis), compared with $47.7 million, or $0.99 per share ($0.99 per share on a diluted basis) for the 39-week period ended October 28, 2017.

Management will hold a conference call at 5:00 p.m. EST 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 456802. A replay of the call will be available for a two-week period beginning today at 7:00 p.m. EST by calling [phone] for domestic calls or [phone] for international calls and entering the conference code 456802.

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 453 retail stores in 43 states. As of the end of the fiscal quarter, it operated 453 stores in 43 states compared with 461 stores in 44 states at the end of the third quarter 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)
	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	November 3, 2018		October 28, 2017		November 3, 2018		October 28, 2017
SALES, Net of returns and allowances	$	215,107	$	224,307	$	621,084	$	632,208
COST OF SALES (Including buying, distribution, and occupancy costs)		128,950		133,379		376,305		385,424
Gross profit		86,157		90,928		244,779		246,784
OPERATING EXPENSES:
Selling		50,612		50,684		144,361		144,281
General and administrative		9,244		9,307		30,696		29,113
		59,856		59,991		175,057		173,394
INCOME FROM OPERATIONS		26,301		30,937		69,722		73,390
OTHER INCOME, Net		1,332		808		3,791		2,642
INCOME BEFORE INCOME TAXES		27,633		31,745		73,513		76,032
PROVISION FOR INCOME TAXES		7,157		11,841		19,040		28,360
NET INCOME	$	20,476	$	19,904	$	54,473	$	47,672
EARNINGS PER SHARE:
Basic	$	0.42	$	0.41	$	1.13	$	0.99
Diluted	$	0.42	$	0.41	$	1.12	$	0.99
Basic weighted average shares		48,379		48,218		48,379		48,218
Diluted weighted average shares		48,611		48,339		48,584		48,331

THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
ASSETS	November 3, 2018			February 3, 2018 (1)			October 28, 2017
CURRENT ASSETS:
Cash and cash equivalents	$	177,918		$	165,086		$	205,247
Short-term investments		45,605			50,833			52,202
Receivables		8,266			8,588			11,247
Inventory		145,473			118,007			128,821
Prepaid expenses and other assets		19,862			18,070			8,317
Total current assets		397,124			360,584			405,834
PROPERTY AND EQUIPMENT		460,523			459,043			462,798
Less accumulated depreciation and amortization		(324,044	)		(309,497	)		(306,655	)
		136,479			149,546			156,143
LONG-TERM INVESTMENTS		18,322			21,453			18,386
OTHER ASSETS		7,170			6,533			7,760
Total assets	$	559,095		$	538,116		$	588,123
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	48,400		$	29,387		$	41,294
Accrued employee compensation		17,996			22,307			14,899
Accrued store operating expenses		21,851			15,646			17,044
Gift certificates redeemable		13,907			18,202			14,853
Income taxes payable		—			12,364			4,087
Total current liabilities		102,154			97,906			92,177
DEFERRED COMPENSATION		13,804			15,154			14,581
DEFERRED RENT LIABILITY		30,287			33,808			35,452
Total liabilities		146,245			146,868			142,210
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,017,975 shares at November 3, 2018, 48,816,170 shares at February 3, 2018, and 48,841,280 shares at October 28, 2017		490			488			488
Additional paid-in capital		147,584			144,279			143,670
Retained earnings		264,776			246,570			301,834
Accumulated other comprehensive loss		—			(89	)		(79	)
Total stockholders’ equity		412,850			391,248			445,913
Total liabilities and stockholders’ equity	$	559,095		$	538,116		$	588,123
(1) Derived from audited financial statements.