The Buckle, Inc. Reports Second Quarter Net Income

KEARNEY, Neb.--()--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 (800) 230-1059 for domestic calls or (612) 332-0107 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 (800) 475-6701 for domestic calls or (320) 365-3844 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.

 

Contacts

Thomas B. Heacock, Chief Financial Officer
The Buckle, Inc.
(308) 236-8491

Release Summary

THE BUCKLE, INC. REPORTS SECOND QUARTER NET INCOME

Contacts

Thomas B. Heacock, Chief Financial Officer
The Buckle, Inc.
(308) 236-8491