The Buckle, Inc. Reports Second Quarter Net Income - Buckle (NYSE:BKE)

The Buckle, Inc. BKE announced today that net income for the fiscal quarter ended August 3, 2019 was $16.4 million, or $0.34 per share ($0.34 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended August 3, 2019 increased 1.4 percent to $203.8 million from net sales of $201.1 million for the prior year 13-week fiscal quarter ended August 4, 2018. Comparable store net sales for the 13-week period ended August 3, 2019 increased 1.8 percent from comparable store net sales for the prior year 13-week period ended August 4, 2018. Online sales increased 9.2 percent to $23.1 million for the 13-week period ended August 3, 2019, compared to net sales of $21.2 million for the 13-week period ended August 4, 2018.

Net sales for the 26-week fiscal period ended August 3, 2019 decreased 0.2 percent to $405.1 million from net sales of $406.0 million for the prior year 26-week fiscal period ended August 4, 2018. Comparable store net sales for the 26-week period ended August 3, 2019 increased 0.3 percent from comparable store net sales for the prior year 26-week period ended August 4, 2018. Online sales increased 7.3 percent to $47.5 million for the 26-week period ended August 3, 2019, compared to net sales of $44.3 million for the 26-week period ended August 4, 2018.

Net income for the second quarter of fiscal 2019 was $16.4 million, or $0.34 per share ($0.34 per share on a diluted basis), compared with $15.7 million, or $0.32 per share ($0.32 per share on a diluted basis) for the second quarter of fiscal 2018.

Net income for the 26-week fiscal period ended August 3, 2019 was $31.5 million, or $0.65 per share ($0.65 per share on a diluted basis), compared with $34.0 million, or $0.70 per share ($0.70 per share on a diluted basis) for the 26-week period ended August 4, 2018.

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) 332-0107 for international calls and reference the conference code 470702. 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 470702.

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 449 retail stores in 42 states. As of the end of the fiscal quarter, it operated 449 stores in 42 states compared with 455 stores in 43 states at the end of the second quarter of fiscal 2018.

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 3, 2019		August 4, 2018		August 3, 2019		August 4, 2018

SALES, Net of returns and allowances	$	203,817	$	201,080	$	405,130	$	405,977

COST OF SALES (Including buying, distribution, and occupancy costs)		125,120		122,149		249,780		247,355

Gross profit		78,697		78,931		155,350		158,622

OPERATING EXPENSES:
Selling		48,535		47,896		95,144		93,749
General and administrative		10,560		10,874		21,870		21,452
		59,095		58,770		117,014		115,201

INCOME FROM OPERATIONS		19,602		20,161		38,336		43,421

OTHER INCOME, Net		2,086		972		3,341		2,459

INCOME BEFORE INCOME TAXES		21,688		21,133		41,677		45,880

PROVISION FOR INCOME TAXES		5,314		5,474		10,211		11,883

NET INCOME	$	16,374	$	15,659	$	31,466	$	33,997


EARNINGS PER SHARE:
Basic	$	0.34	$	0.32	$	0.65	$	0.70

Diluted	$	0.34	$	0.32	$	0.65	$	0.70

Basic weighted average shares		48,550		48,379		48,551		48,379
Diluted weighted average shares		48,760		48,592		48,747		48,571

THE BUCKLE, INC. CONSOLIDATED BALANCE SHEETS (Amounts in Thousands Except Share and Per Share Amounts) (Unaudited)

ASSETS	August 3, 2019			February 2, 2019 (1)			August 4, 2018

CURRENT ASSETS:
Cash and cash equivalents	$	178,041		$	168,471		$	168,949
Short-term investments		52,051			51,546			51,600
Receivables		11,206			7,089			12,105
Inventory		129,068			125,190			127,899
Prepaid expenses and other assets		21,059			18,136			18,855
Total current assets		391,425			370,432			379,408

PROPERTY AND EQUIPMENT		453,416			452,187			460,367
Less accumulated depreciation and amortization		(331,285	)		(321,505	)		(319,141	)
		122,131			130,682			141,226

OPERATING LEASE RIGHT-OF-USE ASSETS		335,448		—			—
LONG-TERM INVESTMENTS		15,477			18,745			17,300
OTHER ASSETS		7,952			7,443			7,158

Total assets	$	872,433		$	527,302		$	545,092

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable	$	42,531		$	29,008		$	46,217
Accrued employee compensation		11,512			21,452			11,852
Accrued store operating expenses		23,268			17,982			21,289
Gift certificates redeemable		13,305			16,634			14,103
Current portion of operating lease liabilities		75,992		—			—
Income taxes payable	—				5,142		—
Total current liabilities		166,608			90,218			93,461

DEFERRED COMPENSATION		14,984			13,978			15,784
NON-CURRENT OPERATING LEASE LIABILITIES		287,648		—			—
DEFERRED RENT LIABILITY	—				29,229			31,740
Total liabilities		469,240			133,425			140,985

COMMITMENTS

STOCKHOLDERS' EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,223,811 shares at August 3, 2019, 49,017,395 shares at February 2, 2019, and 49,018,195 shares at August 4, 2018		492			490			490
Additional paid-in capital		151,027			148,564			147,173
Retained earnings		251,674			244,823			256,444
Total stockholders' equity		403,193			393,877			404,107

Total liabilities and stockholders' equity	$	872,433		$	527,302		$	545,092

(1) Derived from audited financial statements.

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