Aug 17, 2017   SOURCE: BusinessWire

The Buckle, Inc. Reports Second Quarter Net Income

The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended July 29, 2017 was $11.5 million, or $0.24 per share ($0.24 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended July 29, 2017 decreased 7.8 percent to $195.7 million from net sales of $212.2 million for the prior year 13-week fiscal quarter ended July 30, 2016. Comparable store net sales for the 13-week period ended July 29, 2017 decreased 7.7 percent from comparable store net sales for the prior year 13-week period ended July 30, 2016. Online sales decreased 4.5 percent to $19.5 million for the 13-week period ended July 29, 2017, compared to net sales of $20.4 million for the 13-week period ended July 30, 2016.

Net sales for the 26-week fiscal period ended July 29, 2017 decreased 10.5 percent to $407.9 million from net sales of $455.7 million for the prior year 26-week fiscal period ended July 30, 2016. Comparable store net sales for the 26-week period ended July 29, 2017 decreased 10.3 percent from comparable store net sales for the prior year 26-week period ended July 30, 2016. Online sales decreased 6.0 percent to $41.3 million for the 26-week period ended July 29, 2017, compared to net sales of $43.9 million for the 26-week period ended July 30, 2016.

Net income for the second quarter of fiscal 2017 was $11.5 million, or $0.24 per share ($0.24 per share on a diluted basis), compared with $15.5 million, or $0.32 per share ($0.32 per share on a diluted basis) for the second quarter of fiscal 2016.

Net income for the 26-week fiscal period ended July 29, 2017 was $27.8 million, or $0.58 per share ($0.57 per share on a diluted basis), compared with $38.6 million, or $0.80 per share ($0.80 per share on a diluted basis) for the 26-week period ended July 30, 2016.

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 (800) 230-1059 for domestic calls or (612) 234-9959 for international calls and reference the conference code 428167. A replay of the call will be available for a two-week period beginning today at 12:00 p.m. EDT by calling (800) 475-6701 for domestic calls or (320) 365-3844 for international calls and entering the conference code 428167.

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 463 retail stores in 44 states. As of the end of the fiscal quarter, it operated 463 stores in 44 states compared with 470 stores in 44 states at the end of the second quarter of fiscal 2016.

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 Twenty-Six Weeks Ended
July 29,     July 30, July 29,     July 30,
2017 2016 2017 2016
 
SALES, Net of returns and allowances $ 195,650 $ 212,157 $ 407,901 $ 455,700
 
COST OF SALES (Including buying, distribution, and occupancy costs)   121,511   132,275   252,045   281,089
 
Gross profit   74,139   79,882   155,856   174,611
 
OPERATING EXPENSES:
Selling 46,679 46,065 93,597 93,628
General and administrative   10,045   9,735   19,806   20,471
  56,724   55,800   113,403   114,099
 
INCOME FROM OPERATIONS 17,415 24,082 42,453 60,512
 
OTHER INCOME, Net   899   595   1,834   1,003
 
INCOME BEFORE INCOME TAXES 18,314 24,677 44,287 61,515
 
PROVISION FOR INCOME TAXES   6,831   9,205   16,519   22,946
 
NET INCOME $ 11,483 $ 15,472 $ 27,768 $ 38,569
 
 
EARNINGS PER SHARE:
Basic $ 0.24 $ 0.32 $ 0.58 $ 0.80
 
Diluted $ 0.24 $ 0.32 $ 0.57 $ 0.80
 
Basic weighted average shares 48,218 48,107 48,218 48,107
Diluted weighted average shares 48,310 48,227 48,327 48,215
 
 
THE BUCKLE, INC.
 
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
 
                 

   July 29,   

January 28,

   July 30,   

ASSETS 2017 2017 (1) 2016
 
CURRENT ASSETS:
Cash and cash equivalents $ 195,614 $ 196,536 $ 168,173
Short-term investments 48,237 49,994 38,612
Receivables 14,732 8,210 16,954
Inventory 121,671 125,694 144,267
Prepaid expenses and other assets   7,750     6,023     5,864  
Total current assets   388,004     386,457     373,870  
 
PROPERTY AND EQUIPMENT 460,250 459,359 459,228
Less accumulated depreciation and amortization   (300,419 )   (290,364 )   (285,701 )
  159,831     168,995     173,527  
 
LONG-TERM INVESTMENTS 18,294 18,092 28,080
OTHER ASSETS   7,433     6,303     4,490  
 
Total assets $ 573,562   $ 579,847   $ 579,967  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
CURRENT LIABILITIES:
Accounts payable $ 39,890 $ 25,079 $ 48,764
Accrued employee compensation 14,130 26,906 15,289
Accrued store operating expenses 16,328 14,695 14,294
Gift certificates redeemable 15,698 21,199 16,883
Income taxes payable   —     10,737     —  
Total current liabilities   86,046     98,616     95,230  
 
DEFERRED COMPENSATION 14,167 13,092 14,186
DEFERRED RENT LIABILITY   36,236     37,600     39,825  
Total liabilities   136,449     149,308     149,241  
 
COMMITMENTS
 
STOCKHOLDERS’ EQUITY:

Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 48,844,700 shares at July 29, 2017, 48,622,780 shares at January 28, 2017, and 48,623,080 shares at July 30, 2016

488 486 486
Additional paid-in capital 142,622 139,398 138,535
Retained earnings 294,082 290,737 291,883
Accumulated other comprehensive loss   (79 )   (82 )   (178 )
Total stockholders’ equity   437,113     430,539     430,726  
 
Total liabilities and stockholders’ equity $ 573,562   $ 579,847   $ 579,967  
 
(1) Derived from audited financial statements.