The Buckle, Inc. Reports Second Quarter Net Income

KEARNEY, Neb.--(BUSINESS WIRE)--The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended July 29, 2023 was $45.6 million, or $0.92 per share ($0.92 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended July 29, 2023 decreased 3.2 percent to $292.4 million from net sales of $302.0 million for the prior year 13-week fiscal quarter ended July 30, 2022. Comparable store net sales for the 13-week period ended July 29, 2023 decreased 3.3 percent from comparable store net sales for the prior year 13-week period ended July 30, 2022. Online sales decreased 5.6 percent to $43.6 million for the 13-week period ended July 29, 2023, compared to net sales of $46.2 million for the 13-week period ended July 30, 2022.

Net sales for the 26-week fiscal period ended July 29, 2023 decreased 5.9 percent to $575.3 million from net sales of $611.0 million for the prior year 26-week fiscal period ended July 30, 2022. Comparable store net sales for the 26-week period ended July 29, 2023 decreased 6.3 percent from comparable store net sales for the prior year 26-week period ended July 30, 2022. Online sales decreased 5.6 percent to $94.9 million for the 26-week period ended July 29, 2023, compared to net sales of $100.6 million for the 26-week period ended July 30, 2022.

Net income for the second quarter of fiscal 2023 was $45.6 million, or $0.92 per share ($0.92 per share on a diluted basis), compared with net income of $50.1 million, or $1.02 per share ($1.01 per share on a diluted basis) for the second quarter of fiscal 2022.

Net income for the 26-week fiscal period ended July 29, 2023 was $88.6 million, or $1.79 per share ($1.78 per share on a diluted basis), compared with net income of $105.4 million, or $2.14 per share ($2.13 per share on a diluted basis) for the 26-week period ended July 30, 2022.

Management will hold a live audio webcast at 10:00 a.m. EDT today to discuss results for the quarter. To register for the live event, please visit https://buckle.zoom.us/webinar/register/WN_YFkU-QZnRgqRIIMBN2YIOg. A replay of the event can be accessed through Buckle’s investor relations website within twenty-four hours after the conclusion of the live event (https://corporate.buckle.com/investors/earnings-webcasts).

About Buckle

Buckle is a specialty retailer focused on delivering exceptional service and style through unforgettable experiences. Offering a curated mix of high-quality, on-trend apparel, accessories, and footwear, Buckle is for those living the styled life. 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 440 stores in 42 states compared with 441 stores in 42 states at the end of the second quarter of fiscal 2022.

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.

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
	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
SALES, Net of returns and allowances	$	292,428	$	301,976	$	575,262	$	611,040
COST OF SALES (Including buying, distribution, and occupancy costs)		154,016		156,607		303,593		313,511
Gross profit		138,412		145,369		271,669		297,529
OPERATING EXPENSES:
Selling		68,737		67,982		134,839		135,228
General and administrative		12,914		11,674		26,339		23,529
		81,651		79,656		161,178		158,757
INCOME FROM OPERATIONS		56,761		65,713		110,491		138,772
OTHER INCOME, Net		3,693		703		6,832		828
INCOME BEFORE INCOME TAXES		60,454		66,416		117,323		139,600
INCOME TAX EXPENSE		14,814		16,272		28,747		34,202
NET INCOME	$	45,640	$	50,144	$	88,576	$	105,398
EARNINGS PER SHARE:
Basic	$	0.92	$	1.02	$	1.79	$	2.14
Diluted	$	0.92	$	1.01	$	1.78	$	2.13
Basic weighted average shares		49,513		49,214		49,513		49,214
Diluted weighted average shares		49,875		49,535		49,868		49,531

THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
ASSETS	July 29, 2023			January 28, 2023 (1)			July 30, 2022
CURRENT ASSETS:
Cash and cash equivalents	$	275,583		$	252,077		$	266,731
Short-term investments		23,714			20,997			17,387
Receivables		9,675			12,648			13,015
Inventory		136,074			125,134			128,498
Prepaid expenses and other assets		10,181			12,480			9,445
Total current assets		455,227			423,336			435,076
PROPERTY AND EQUIPMENT		475,997			466,321			460,362
Less accumulated depreciation and amortization		(356,737	)		(353,919	)		(353,929	)
		119,260			112,402			106,433
OPERATING LEASE RIGHT-OF-USE ASSETS		251,978			271,421			234,634
LONG-TERM INVESTMENTS		23,616			20,624			20,640
OTHER ASSETS		11,466			9,796			12,281
Total assets	$	861,547		$	837,579		$	809,064
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	54,261		$	44,835		$	63,036
Accrued employee compensation		22,357			55,490			29,509
Accrued store operating expenses		26,533			19,754			30,497
Gift certificates redeemable		12,960			16,777			12,411
Current portion of operating lease liabilities		80,664			89,187			80,827
Total current liabilities		196,775			226,043			216,280
DEFERRED COMPENSATION		23,616			20,624			20,163
NON-CURRENT OPERATING LEASE LIABILITIES		204,620			214,598			183,643
Total liabilities		425,011			461,265			420,086
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 50,445,926 shares at July 29, 2023, 50,092,616 shares at January 28, 2023, and 50,094,751 shares at July 30, 2022		504			501			501
Additional paid-in capital		185,921			178,964			173,046
Retained earnings		250,111			196,849			215,431
Total stockholders’ equity		436,536			376,314			388,978
Total liabilities and stockholders’ equity	$	861,547		$	837,579		$	809,064
(1) Derived from audited financial statements.