The Buckle, Inc. Reports Fourth Quarter and Fiscal Year 2019 Net Income

KEARNEY, Neb.--(BUSINESS WIRE)--The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended February 1, 2020 was $47.0 million, or $0.96 per share ($0.96 per share on a diluted basis). Net income for the fiscal year ended February 1, 2020 was $104.4 million, or $2.15 per share ($2.14 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended February 1, 2020 increased 2.5 percent to $271.0 million from net sales of $264.4 million for the prior year 13-week fiscal quarter ended February 2, 2019. Comparable store net sales for the 13-week period ended February 1, 2020 increased 3.3 percent from comparable store net sales for the prior year 13-week period ended February 2, 2019. Online sales increased 7.5 percent to $36.4 million for the 13-week period ended February 1, 2020, compared to net sales of $33.9 million for the 13-week period ended February 2, 2019.

Net sales for the 52-week fiscal year ended February 1, 2020 increased 1.7 percent to $900.3 million from net sales of $885.5 million for the 52-week fiscal year ended February 2, 2019. Comparable store net sales for the 52-week period ended February 1, 2020 increased 2.2 percent from comparable store net sales for the prior year 52-week period ended February 2, 2019. Online sales increased 6.9 percent to $110.8 million for the 52-week period ended February 1, 2020, compared to net sales of $103.7 million for the 52-week period ended February 2, 2019.

Net income for the fourth quarter of fiscal 2019 was $47.0 million, or $0.96 per share ($0.96 per share on a diluted basis), compared with $41.1 million, or $0.85 per share ($0.84 per share on a diluted basis) for the fourth quarter of fiscal 2018.

Net income for the fiscal year ended February 1, 2020 was $104.4 million, or $2.15 per share ($2.14 per share on a diluted basis), compared with $95.6 million, or $1.97 per share ($1.97 per share on a diluted basis) for the fiscal year ended February 2, 2019.

Management will hold a conference call at 10:00 a.m. EDT today to discuss fourth quarter results. To participate in the call, please call [phone] for domestic calls or [phone] for international calls and reference the conference code 1508602. A replay of the call will be available for a two-week period beginning March 13, 2020 at 2:00 p.m. EDT by calling [phone] for domestic calls or [phone] for international calls and entering the conference code 4253986.

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 year, it operated 448 stores in 42 states compared with 450 stores in 42 states at the end 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)
	13-Weeks Ended				52-Weeks Ended
	February 1, 2020		February 2, 2019		February 1, 2020		February 2, 2019 (1)
SALES, Net of returns and allowances	$	271,003	$	264,412	$	900,254	$	885,496
COST OF SALES (Including buying, distribution, and occupancy costs)	142,413		143,118		522,780		519,423
Gross profit	128,590		121,294		377,474		366,073
OPERATING EXPENSES:
Selling	58,054		57,671		204,480		202,032
General and administrative	10,685		12,417		41,497		43,113
	68,739		70,088		245,977		245,145
INCOME FROM OPERATIONS	59,851		51,206		131,497		120,928
OTHER INCOME, Net	1,764		1,925		6,210		5,716
INCOME BEFORE INCOME TAXES	61,615		53,131		137,707		126,644
PROVISION FOR INCOME TAXES	14,636		11,996		33,278		31,036
NET INCOME	$	46,979	$	41,135	$	104,429	$	95,608
EARNINGS PER SHARE
Basic	$	0.96	$	0.85	$	2.15	$	1.97
Diluted	$	0.96	$	0.84	$	2.14	$	1.97
Basic weighted average shares	48,698		48,514		48,587		48,413
Diluted weighted average shares	48,948		48,703		48,813		48,614
(1) Derived from audited financial statements

THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
ASSETS	February 1,			February 2,
	2020			2019 (1)
CURRENT ASSETS:
Cash and cash equivalents	$	220,969		$	168,471
Short-term investments	12,532			51,546
Receivables	3,136			7,089
Inventory	121,258			125,190
Prepaid expenses and other assets	20,935			18,136
Total current assets	378,830			370,432
PROPERTY AND EQUIPMENT	452,205			452,187
Less accumulated depreciation and amortization	(338,357		)	(321,505		)
	113,848			130,682
OPERATING LEASE RIGHT-OF-USE ASSETS	350,088			—
LONG-TERM INVESTMENTS	15,863			18,745
OTHER ASSETS	9,261			7,443
Total assets	$	867,890		$	527,302
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	26,491		$	29,008
Accrued employee compensation	22,929			21,452
Accrued store operating expenses	17,837			17,982
Gift certificates redeemable	15,319			16,634
Current portion of operating lease liabilities	87,314			—
Income taxes payable	2,751			5,142
Total current liabilities	172,641			90,218
DEFERRED COMPENSATION	15,863			13,978
NON-CURRENT OPERATING LEASE LIABILITIES	290,238			—
DEFERRED RENT LIABILITY	—			29,229
Total liabilities	478,742			133,425
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; 49,205,681 and 49,017,395 shares issued and outstanding at February 1, 2020 and February 2, 2019, respectively	492			490
Additional paid-in capital	152,258			148,564
Retained earnings	236,398			244,823
Total stockholders’ equity	389,148			393,877
Total liabilities and stockholders’ equity	$	867,890		$	527,302
(1) Derived from audited financial statements