Stock Quote

The Buckle, Inc. Reports Second Quarter Net Income

The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended August 1, 2020 was $34.7 million, or $0.71 per share ($0.71 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended August 1, 2020 increased 6.0 percent to $216.0 million from net sales of $203.8 million for the prior year 13-week fiscal quarter ended August 3, 2019. Online sales increased 99.0 percent to $46.0 million for the 13-week period ended August 1, 2020, compared to net sales of $23.1 million for the 13-week period ended August 3, 2019.

Net sales for the 26-week fiscal period ended August 1, 2020 decreased 18.2 percent to $331.4 million from net sales of $405.1 million for the prior year 26-week fiscal period ended August 3, 2019. Online sales increased 64.3 percent to $78.1 million for the 26-week period ended August 1, 2020, compared to net sales of $47.5 million for the 26-week period ended August 3, 2019.

Net income for the second quarter of fiscal 2020 was $34.7 million, or $0.71 per share ($0.71 per share on a diluted basis), compared with $16.4 million, or $0.34 per share ($0.34 per share on a diluted basis) for the second quarter of fiscal 2019.

Net income for the 26-week fiscal period ended August 1, 2020 was $22.9 million, or $0.47 per share ($0.47 per share on a diluted basis), compared with $31.5 million, or $0.65 per share ($0.65 per share on a diluted basis) for the 26-week period ended August 3, 2019.

As previously announced, Buckle temporarily closed all brick and mortar stores due to the COVID-19 pandemic 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 August 1, 2020, 431 of Buckle’s 446 stores were open. Of the 15 stores which were closed, 2 have not yet reopened due to damage sustained during the closure period. The remaining 13 stores are located in California and had previously reopened but were subsequently closed again during July in accordance with state guidelines. The Company’s online store has remained open without interruption.

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) 226-8216 for domestic calls or (409) 207-6983 for international calls and reference the conference code 9361957. A replay of the call will be available for a two-week period beginning today at 1:00 p.m. EDT by calling (866) 207-1041 for domestic calls or (402) 970-0847 for international calls and entering the conference code 2314297.

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 second 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

Twenty-Six Weeks Ended

August 1,
2020

August 3,
2019

August 1,
2020

August 3,
2019

SALES, Net of returns and allowances

$

216,025

$

203,817

$

331,438

$

405,130

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

122,643

125,120

211,231

249,780

Gross profit

93,382

78,697

120,207

155,350

OPERATING EXPENSES:

Selling

38,257

48,535

71,761

95,144

General and administrative

9,593

10,560

19,096

21,870

47,850

59,095

90,857

117,014

INCOME FROM OPERATIONS

45,532

19,602

29,350

38,336

OTHER INCOME, Net

404

2,086

978

3,341

INCOME BEFORE INCOME TAXES

45,936

21,688

30,328

41,677

INCOME TAX EXPENSE

11,254

5,314

7,430

10,211

NET INCOME

$

34,682

$

16,374

$

22,898

$

31,466

EARNINGS PER SHARE:

Basic

$

0.71

$

0.34

$

0.47

$

0.65

Diluted

$

0.71

$

0.34

$

0.47

$

0.65

Basic weighted average shares

48,714

48,550

48,719

48,551

Diluted weighted average shares

48,913

48,760

48,918

48,747

THE BUCKLE, INC.

 

CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands Except Share and Per Share Amounts)

(Unaudited)

ASSETS

August 1,
2020

February 1,
2020 (1)

August 3,
2019

CURRENT ASSETS:

Cash and cash equivalents

$

265,714

$

220,969

$

178,041

Short-term investments

12,637

12,532

52,051

Receivables

2,394

3,136

11,206

Inventory

116,479

121,258

129,068

Prepaid expenses and other assets

20,388

20,935

21,059

Total current assets

417,612

378,830

391,425

PROPERTY AND EQUIPMENT

451,899

452,205

453,416

Less accumulated depreciation and amortization

(345,820

)

(338,357

)

(331,285

)

106,079

113,848

122,131

OPERATING LEASE RIGHT-OF-USE ASSETS

305,814

350,088

335,448

LONG-TERM INVESTMENTS

16,536

15,863

15,477

OTHER ASSETS

9,782

9,261

7,952

Total assets

$

855,823

$

867,890

$

872,433

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

48,142

$

26,491

$

42,531

Accrued employee compensation

9,391

22,929

11,512

Accrued store operating expenses

21,579

17,837

23,268

Gift certificates redeemable

12,611

15,319

13,305

Current portion of operating lease liabilities

81,427

87,314

75,992

Income taxes payable

2,751

Total current liabilities

173,150

172,641

166,608

DEFERRED COMPENSATION

16,536

15,863

14,984

NON-CURRENT OPERATING LEASE LIABILITIES

251,830

290,238

287,648

Total liabilities

441,516

478,742

469,240

COMMITMENTS

STOCKHOLDERS’ EQUITY:

Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,407,731 shares at August 1, 2020, 49,205,681 shares at February 1, 2020, and 49,223,811 shares at August 3, 2019

494

492

492

Additional paid-in capital

154,517

152,258

151,027

Retained earnings

259,296

236,398

251,674

Total stockholders’ equity

414,307

389,148

403,193

Total liabilities and stockholders’ equity

$

855,823

$

867,890

$

872,433

(1) Derived from audited financial statements.

Contacts:

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

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