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The Buckle, Inc. Reports First Quarter Financial Results

The Buckle, Inc. (NYSE: BKE) announced today a net loss for the fiscal quarter ended May 2, 2020 of $11.8 million, or $0.24 per share ($0.24 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended May 2, 2020 decreased 42.7 percent to $115.4 million from net sales of $201.3 million for the prior year 13-week fiscal quarter ended May 4, 2019. Online sales for the quarter increased 31.5 percent to $32.1 million for the 13-week period ended May 2, 2020, compared to net sales of $24.4 million for the 13-week period ended May 4, 2019.

As previously announced, Buckle closed all brick and mortar stores due to the COVID-19 pandemic for an indefinite period beginning March 18, 2020. The Company began the process of reopening certain stores the week of April 26, 2020, following state and local reopening guidelines. As of May 2, 2020, 37 stores had reopened. The Company has continued to reopen stores each week in May, with 331 total stores currently reopened. The Company’s online store has remained open without interruption. As a result of the store closures, the Company plans to only report total net sales and does not plan to separately report comparable store sales during this time.

As a result of the store closures, Buckle reported a net loss for the first quarter of fiscal 2020 of $11.8 million, or $0.24 per share ($0.24 per share on a diluted basis), compared with net income of $15.1 million, or $0.31 per share ($0.31 per share on a diluted basis) for the first quarter of fiscal 2019.

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 (877) 336-4441 for domestic calls or (409) 207-6985 for international calls and reference the conference code 7167680. A replay of the call will be available for a two-week period beginning today at 2:00 p.m. EDT by calling (866) 207-1041 for domestic calls or (402) 970-0847 for international calls and entering the conference code 8302590.

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 quarter, it operated 446 stores in 42 states compared with 449 stores in 42 states at the end of the first quarter of fiscal 2019.

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

May 2,
2020

May 4,
2019

SALES, Net of returns and allowances

$

115,413

$

201,313

COST OF SALES (Including buying, distribution, and occupancy costs)

88,588

124,660

Gross profit

26,825

76,653

OPERATING EXPENSES:

Selling

33,504

46,609

General and administrative

9,503

11,310

43,007

57,919

INCOME (LOSS) FROM OPERATIONS

(16,182

)

18,734

OTHER INCOME, Net

574

1,255

INCOME (LOSS) BEFORE INCOME TAXES

(15,608

)

19,989

INCOME TAX EXPENSE (BENEFIT)

(3,824

)

4,897

NET INCOME (LOSS)

$

(11,784

)

$

15,092

EARNINGS (LOSS) PER SHARE:

Basic

$

(0.24

)

$

0.31

Diluted

$

(0.24

)

$

0.31

Basic weighted average shares

48,725

48,552

Diluted weighted average shares

48,922

48,734

THE BUCKLE, INC.

CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands Except Share and Per Share Amounts)

(Unaudited)

ASSETS

May 2,
2020

February 1,
2020 (1)

May 4,
2019

CURRENT ASSETS:

Cash and cash equivalents

$

185,037

$

220,969

$

183,939

Short-term investments

17,661

12,532

53,659

Receivables

1,774

3,136

5,780

Inventory

121,671

121,258

120,814

Prepaid expenses and other assets

13,438

20,935

20,406

Total current assets

339,581

378,830

384,598

PROPERTY AND EQUIPMENT

451,142

452,205

453,578

Less accumulated depreciation and amortization

(341,073

)

(338,357

)

(326,705

)

110,069

113,848

126,873

OPERATING LEASE RIGHT-OF-USE ASSETS

326,587

350,088

345,473

LONG-TERM INVESTMENTS

15,922

15,863

15,667

OTHER ASSETS

9,491

9,261

7,754

Total assets

$

801,650

$

867,890

$

880,365

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

19,212

$

26,491

$

36,533

Accrued employee compensation

5,310

22,929

11,636

Accrued store operating expenses

15,927

17,837

22,124

Gift certificates redeemable

13,513

15,319

14,262

Current portion of operating lease liabilities

84,410

87,314

72,857

Income taxes payable

72

2,751

9,651

Total current liabilities

138,444

172,641

167,063

DEFERRED COMPENSATION

15,204

15,863

14,914

NON-CURRENT OPERATING LEASE LIABILITIES

270,053

290,238

300,430

Total liabilities

423,701

478,742

482,407

COMMITMENTS

STOCKHOLDERS’ EQUITY:

Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,408,181 shares at May 2, 2020, 49,205,681 shares at February 1, 2020, and 49,231,625 shares at May 4, 2019

494

492

492

Additional paid-in capital

152,841

152,258

149,860

Retained earnings

224,614

236,398

247,606

Total stockholders’ equity

377,949

389,148

397,958

Total liabilities and stockholders’ equity

$

801,650

$

867,890

$

880,365

(1) Derived from audited financial statements.

Contacts:

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

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