The Buckle, Inc. Reports Second Quarter Net Income

KEARNEY, Neb.--(BUSINESS WIRE)--

The Buckle, Inc. BKE announced today that net income for the fiscal quarter ended August 2, 2014 was $24.5 million, or $0.51 per share ($0.51 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended August 2, 2014 increased 1.4 percent to $235.7 million from net sales of $232.5 million for the prior year 13-week fiscal quarter ended August 3, 2013. Comparable store net sales for the 13-week period ended August 2, 2014 decreased 0.5 percent from comparable store net sales for the prior year 13-week period ended August 3, 2013. Online sales (which are not included in comparable store sales) increased 1.7 percent to $17.1 million for the 13-week period ended August 2, 2014, compared to net sales of $16.8 million for the 13-week period ended August 3, 2013.

Net sales for the 26-week fiscal period ended August 2, 2014 increased 1.0 percent to $507.4 million from net sales of $502.2 million for the prior year 26-week fiscal period ended August 3, 2013. Comparable store net sales for the 26-week period ended August 2, 2014 decreased 0.7 percent from comparable store net sales for the prior year 26-week period ended August 3, 2013. Online sales (which are not included in comparable store sales) increased 2.1 percent to $38.6 million for the 26-week period ended August 2, 2014, compared to net sales of $37.7 million for the 26-week period ended August 3, 2013.

Net income for the second quarter of fiscal 2014 was $24.5 million, or $0.51 per share ($0.51 per share on a diluted basis), compared with $25.1 million, or $0.53 per share ($0.52 per share on a diluted basis) for the second quarter of fiscal 2013.

Net income for the 26-week fiscal period ended August 2, 2014 was $61.8 million, or $1.29 per share ($1.29 per share on a diluted basis), compared with $62.7 million, or $1.31 per share ($1.31 per share on a diluted basis) for the 26-week period ended August 3, 2013.

Management will hold a conference call at 10:30 a.m. EDT today to discuss results for the quarter. To participate in the call, please call (800) 230-1059 and reference the conference code 333780. A replay of the call will be available for a two-week period beginning today at 12:30 p.m. EDT by calling (800) 475-6701 and entering the conference code 333780.

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 456 retail stores in 44 states. As of the end of the fiscal quarter, it operated 456 stores in 44 states compared with 452 stores in 43 states at the end of the second quarter of fiscal 2013.

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
			August 2,					August 3,					August 2,					August 3,
			2014					2013					2014					2013
SALES, Net of returns and allowances			$	235,725				$	232,529				$	507,400				$	502,241
COST OF SALES (Including buying, distribution, and occupancy costs)			140,800					138,042					295,275					290,747
Gross profit			94,925					94,487					212,125					211,494
OPERATING EXPENSES:
Selling			46,311					44,944					94,105					92,234
General and administrative			9,843					10,140					20,037					20,600
			56,154					55,084					114,142					112,834
INCOME FROM OPERATIONS			38,771					39,403					97,983					98,660
OTHER INCOME, Net			260					507					605					857
INCOME BEFORE INCOME TAXES			39,031					39,910					98,588					99,517
PROVISION FOR INCOME TAXES			14,558					14,766					36,773					36,821
NET INCOME			$	24,473				$	25,144				$	61,815				$	62,696
EARNINGS PER SHARE:
Basic			$	0.51				$	0.53				$	1.29				$	1.31
Diluted			$	0.51				$	0.52				$	1.29				$	1.31
Basic weighted average shares			47,891					47,705					47,889					47,701
Diluted weighted average shares			48,066					47,961					48,057					47,947

THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
			August 2,					February 1,					August 3,
ASSETS			2014					2014 (1)					2013
CURRENT ASSETS:
Cash and cash equivalents			$	169,460				$	164,868				$	103,054
Short-term investments			17,158					20,197					25,711
Receivables			12,355					4,318					6,885
Inventory			128,184					124,141					133,550
Prepaid expenses and other assets			30,761					28,613					27,623
Total current assets			357,918					342,137					296,823
PROPERTY AND EQUIPMENT			411,969					393,656					389,945
Less accumulated depreciation and amortization			(245,945		)			(235,087		)			(223,095		)
			166,024					158,569					166,850
LONG-TERM INVESTMENTS			43,903					43,436					39,501
OTHER ASSETS			2,082					2,151					2,194
			$	569,927				$	546,293				$	505,368
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable			$	51,631				$	37,147				$	56,522
Accrued employee compensation			20,082					36,933					20,688
Accrued store operating expenses			11,078					9,983					10,980
Gift certificates redeemable			16,910					23,131					15,968
Income taxes payable			—					16,187					1,433
Total current liabilities			99,701					123,381					105,591
DEFERRED COMPENSATION			13,916					12,797					12,303
DEFERRED RENT LIABILITY			39,597					37,564					38,096
OTHER LIABILITIES			9,969					10,621					10,926
Total liabilities			163,183					184,363					166,916
COMMITMENTS
STOCKHOLDERS' EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value;
issued and outstanding; 48,374,622 shares at August 2, 2014, 48,336,392
shares at February 1, 2014, and 48,326,124 shares at August 3, 2013			484					483					483
Additional paid-in capital			128,333					124,134					122,664
Retained earnings			278,680					238,151					216,077
Accumulated other comprehensive loss			(753		)			(838		)			(772		)
Total stockholders' equity			406,744					361,930					338,452
			$	569,927				$	546,293				$	505,368
(1) Derived from audited financial statements.