Market Overview

The Buckle, Inc. Reports Fourth Quarter and Fiscal Year 2017 Net Income

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The Buckle, Inc. (NYSE:BKE) announced today that net income for the
fiscal quarter ended February 3, 2018 was $42.0 million, or $0.87 per
share ($0.87 per share on a diluted basis). Net income for the fiscal
year ended February 3, 2018 was $89.7 million, or $1.86 per share ($1.85
per share on a diluted basis).

Net sales for the 14-week fiscal quarter ended February 3, 2018
increased 0.4 percent to $281.2 million from net sales of $280.0 million
for the prior year 13-week fiscal quarter ended January 28, 2017.
Comparable store net sales for the 14-week period ended February 3, 2018
decreased 3.2 percent from comparable store net sales for the prior year
14-week period ended February 4, 2017. Online sales increased 4.0
percent to $33.5 million for the 14-week period ended February 3, 2018,
compared to net sales of $32.2 million for the 13-week period ended
January 28, 2017.

Net sales for the 53-week fiscal year ended February 3, 2018 decreased
6.3 percent to $913.4 million from net sales of $974.9 million for the
52-week fiscal year ended January 28, 2017. Comparable store net sales
for the 53-week period ended February 3, 2018 decreased 7.2 percent from
comparable store net sales for the prior year 53-week period ended
February 4, 2017. Online sales decreased 1.6 percent to $98.2 million
for the 53-week period ended February 3, 2018, compared to net sales of
$99.8 million for the 52-week period ended January 28, 2017.

Net income for the fourth quarter of fiscal 2017 was $42.0 million, or
$0.87 per share ($0.87 per share on a diluted basis), compared with
$36.0 million, or $0.75 per share ($0.74 per share on a diluted basis)
for the fourth quarter of fiscal 2016.

Net income for the fiscal year ended February 3, 2018 was $89.7 million,
or $1.86 per share ($1.85 per share on a diluted basis), compared with
$98.0 million, or $2.04 per share ($2.03 per share on a diluted basis)
for the fiscal year ended January 28, 2017.

Management will hold a conference call at 10:00 a.m. EDT today to
discuss fourth quarter results. To participate in the call, please call
(800) 288-9626 for domestic calls or (612) 332-0637 for international
calls and reference the conference code 445869. A replay of the call
will be available for a two-week period beginning March 16, 2018 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 445869.

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 43 states. As of the end
of the fiscal year, it operated 457 stores in 44 states compared with
467 stores in 44 states at the end 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)
                       
14-Weeks Ended 13-Weeks Ended 53-Weeks Ended 52-Weeks Ended
 
February 3, 2018 January 28, 2017 February 3, 2018 January 28, 2017 (1)
 
SALES, Net of returns and allowances $ 281,172 $ 279,960 $ 913,380 $ 974,873
 
COST OF SALES (Including buying, distribution, and occupancy costs)   147,933   154,277   533,357   577,705
 
Gross profit   133,239   125,683   380,023   397,168
 
OPERATING EXPENSES:
Selling 61,787 61,485 206,068 205,933
General and administrative   10,764   8,770   39,877   38,475
  72,551   70,255   245,945   244,408
 
INCOME FROM OPERATIONS 60,688 55,428 134,078 152,760
 
OTHER INCOME, Net   2,765   2,011   5,407   3,511
 
INCOME BEFORE INCOME TAXES 63,453 57,439 139,485 156,271
 
PROVISION FOR INCOME TAXES   21,418   21,444   49,778   58,310
 
NET INCOME $ 42,035 $ 35,995 $ 89,707 $ 97,961
 
 
EARNINGS PER SHARE
Basic $ 0.87 $ 0.75 $ 1.86 $ 2.04
 
Diluted $ 0.87 $ 0.74 $ 1.85 $ 2.03
 
Basic weighted average shares 48,346 48,177 48,250 48,125
Diluted weighted average shares 48,498 48,335 48,373 48,256
 

(1) Derived from audited financial statements

 
 
THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
           
ASSETS February 3,
2018
January 28,
2017 (1)
 
CURRENT ASSETS:
Cash and cash equivalents $ 165,086 $ 196,536
Short-term investments 50,833 49,994
Receivables 8,588 8,210
Inventory 118,007 125,694
Prepaid expenses and other assets   18,070     6,023  
Total current assets   360,584     386,457  
 
PROPERTY AND EQUIPMENT 459,043 459,359
Less accumulated depreciation and amortization   (309,497 )   (290,364 )
  149,546     168,995  
 
LONG-TERM INVESTMENTS 21,453 18,092
OTHER ASSETS   6,533     6,303  
 
Total assets $ 538,116   $ 579,847  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
CURRENT LIABILITIES:
Accounts payable $ 29,387 $ 25,079
Accrued employee compensation 22,307 26,906
Accrued store operating expenses 15,646 14,695
Gift certificates redeemable 18,202 21,199
Income taxes payable   12,364     10,737  
Total current liabilities   97,906     98,616  
 
DEFERRED COMPENSATION 15,154 13,092
DEFERRED RENT LIABILITY   33,808     37,600  
Total liabilities   146,868     149,308  
 
COMMITMENTS
 
STOCKHOLDERS' EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value;
48,816,170 and 48,622,780 shares issued and outstanding at February
3, 2018 and January 28, 2017, respectively
488 486
Additional paid-in capital 144,279 139,398
Retained earnings 246,570 290,737
Accumulated other comprehensive loss   (89 )   (82 )
Total stockholders' equity   391,248     430,539  
 
Total liabilities and stockholders' equity $ 538,116   $ 579,847  
 

(1) Derived from audited financial statements

 

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