The Buckle, Inc. Reports First Quarter Net Income

KEARNEY, Neb.--(BUSINESS WIRE)--The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended May 1, 2021 was $57.3 million, or $1.17 per share ($1.16 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended May 1, 2021 increased 159.2 percent to $299.1 million from net sales of $115.4 million for the prior year 13-week fiscal quarter ended May 2, 2020. Compared to the same 13-week period in fiscal 2019, net sales increased 48.6 percent from net sales of $201.3 million for the 13-week fiscal quarter ended May 4, 2019. Online sales increased 67.3 percent to $53.7 million for the 13-week period ended May 1, 2021, compared to net sales of $32.1 million for the 13-week period ended May 2, 2020. Compared to the same 13-week period in fiscal 2019, online sales increased 120.0 percent from net sales of $24.4 million for the 13-week period ended May 4, 2019.

Net income for the first quarter of fiscal 2021 was $57.3 million, or $1.17 per share ($1.16 per share on a diluted basis), compared with a net loss of $11.8 million, or $0.24 per share ($0.24 per share on a diluted basis) for the first quarter of fiscal 2020.

Results for fiscal 2020 were significantly impacted by the Company’s closure of all brick and mortar stores due to the COVID-19 pandemic beginning March 18, 2020. As a result of the impact of the store closures on prior year reported net sales, the Company will report total net sales compared to the past two years and does not plan to separately report comparable store sales for the periods most affected by the store closures.

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 1433238. A replay of the call will be available for a two-week period beginning today at 1:00 p.m. EDT by calling [phone] for domestic calls or [phone] for international calls and entering the conference code 6096737.

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 442 retail stores in 42 states. As of the end of the fiscal quarter, it operated 442 stores in 42 states compared with 446 stores in 42 states at the end of the first quarter of fiscal 2020.

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
	May 1, 2021		May 2, 2020
SALES, Net of returns and allowances	$	299,125	$	115,413
COST OF SALES (Including buying, distribution, and occupancy costs)	151,572		88,588
Gross profit	147,553		26,825
OPERATING EXPENSES:
Selling	60,000		33,504
General and administrative	11,751		9,503
	71,751		43,007
INCOME (LOSS) FROM OPERATIONS	75,802		(16,182		)
OTHER INCOME, Net	51		574
INCOME (LOSS) BEFORE INCOME TAXES	75,853		(15,608		)
INCOME TAX EXPENSE (BENEFIT)	18,584		(3,824		)
NET INCOME (LOSS)	$	57,269	$	(11,784	)
EARNINGS (LOSS) PER SHARE:
Basic	$	1.17	$	(0.24	)
Diluted	$	1.16	$	(0.24	)
Basic weighted average shares	48,946		48,725
Diluted weighted average shares	49,309		48,922

THE BUCKLE, INC. CONSOLIDATED BALANCE SHEETS (Amounts in Thousands Except Share and Per Share Amounts) (Unaudited)
ASSETS	May 1, 2021			January 30, 2021 (1)			May 2, 2020
CURRENT ASSETS:
Cash and cash equivalents	$	393,153		$	318,789		$	185,037
Short-term investments	697			3,359			17,661
Receivables	1,670			2,823			1,774
Inventory	89,017			101,063			121,671
Prepaid expenses and other assets	20,615			11,190			13,438
Total current assets	505,152			437,224			339,581
PROPERTY AND EQUIPMENT	452,662			451,357			451,142
Less accumulated depreciation and amortization	(352,627		)	(350,942		)	(341,073		)
	100,035			100,415			110,069
OPERATING LEASE RIGHT-OF-USE ASSETS	280,805			279,358			326,587
LONG-TERM INVESTMENTS	19,087			18,320			15,922
OTHER ASSETS	11,128			10,497			9,491
Total assets	$	916,207		$	845,814		$	801,650
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	53,632		$	43,399		$	19,212
Accrued employee compensation	26,474			35,865			5,310
Accrued store operating expenses	27,355			20,303			15,927
Gift certificates redeemable	12,215			14,279			13,513
Current portion of operating lease liabilities	84,628			81,762			84,410
Income taxes payable	29,737			10,751			72
Total current liabilities	234,041			206,359			138,444
DEFERRED COMPENSATION	19,087			18,320			15,204
NON-CURRENT OPERATING LEASE LIABILITIES	222,981			224,506			270,053
Total liabilities	476,109			449,185			423,701
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,788,891 shares at May 1, 2021, 49,407,731 shares at January 30, 2021, and 49,408,181 shares at May 2, 2020	498			494			494
Additional paid-in capital	160,684			158,058			152,841
Retained earnings	278,916			238,077			224,614
Total stockholders’ equity	440,098			396,629			377,949
Total liabilities and stockholders’ equity	$	916,207		$	845,814		$	801,650
(1) Derived from audited financial statements.