Market Overview

The Buckle, Inc. Reports Second Quarter Net Income

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The Buckle, Inc. (NYSE:BKE) announced today that net income for the
fiscal quarter ended August 4, 2018 was $15.7 million, or $0.32 per
share ($0.32 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended August 4, 2018 increased
2.8 percent to $201.1 million from net sales of $195.7 million for the
prior year 13-week fiscal quarter ended July 29, 2017. Comparable store
net sales for the 13-week period ended August 4, 2018 increased 1.4
percent from comparable store net sales for the prior year 13-week
period ended August 5, 2017. Online sales increased 8.6 percent to $21.2
million for the 13-week period ended August 4, 2018, compared to net
sales of $19.5 million for the 13-week period ended July 29, 2017.

Net sales for the 26-week fiscal period ended August 4, 2018 decreased
0.5 percent to $406.0 million from net sales of $407.9 million for the
prior year 26-week fiscal period ended July 29, 2017. Comparable store
net sales for the 26-week period ended August 4, 2018 decreased 0.9
percent from comparable store net sales for the prior year 26-week
period ended August 5, 2017. Online sales increased 7.3 percent to $44.3
million for the 26-week period ended August 4, 2018, compared to net
sales of $41.3 million for the 26-week period ended July 29, 2017.

Due to the 53rd week in fiscal 2017, comparable store net
sales for the quarter and year-to-date periods are compared to the
13-week and 26-week periods ended August 5, 2017.

Net income for the second quarter of fiscal 2018 was $15.7 million, or
$0.32 per share ($0.32 per share on a diluted basis), compared with
$11.5 million, or $0.24 per share ($0.24 per share on a diluted basis)
for the second quarter of fiscal 2017.

Net income for the 26-week fiscal period ended August 4, 2018 was $34.0
million, or $0.70 per share ($0.70 per share on a diluted basis),
compared with $27.8 million, or $0.58 per share ($0.57 per share on a
diluted basis) for the 26-week period ended July 29, 2017.

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 453068. 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 453068.

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 455 retail stores in 43 states. As of the end
of the fiscal quarter, it operated 455 stores in 43 states compared with
463 stores in 44 states at the end of the second quarter of fiscal 2017.

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 4, July 29, August 4, July 29,
2018 2017 2018 2017
 
SALES, Net of returns and allowances $ 201,080 $ 195,650 $ 405,977 $ 407,901
 
COST OF SALES (Including buying, distribution, and occupancy costs) 122,149 121,511 247,355 252,045
 
Gross profit 78,931 74,139 158,622 155,856
 
OPERATING EXPENSES:
Selling 47,896 46,679 93,749 93,597
General and administrative 10,874 10,045 21,452 19,806
58,770 56,724 115,201 113,403
 
INCOME FROM OPERATIONS 20,161 17,415 43,421 42,453
 
OTHER INCOME, Net 972 899 2,459 1,834
 
INCOME BEFORE INCOME TAXES 21,133 18,314 45,880 44,287
 
PROVISION FOR INCOME TAXES 5,474 6,831 11,883 16,519
 
NET INCOME $ 15,659 $ 11,483 $ 33,997 $ 27,768
 
 
EARNINGS PER SHARE:
Basic $ 0.32 $ 0.24 $ 0.70 $ 0.58
 
Diluted $ 0.32 $ 0.24 $ 0.70 $ 0.57
 
Basic weighted average shares 48,379 48,218 48,379 48,218
Diluted weighted average shares 48,592 48,310 48,571 48,327
 

THE BUCKLE, INC.

     
 

CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands Except Share and Per Share Amounts)

(Unaudited)

           
     
August 4, February 3, July 29,
ASSETS 2018 2018 (1) 2017
 
CURRENT ASSETS:
Cash and cash equivalents $ 168,949 $ 165,086 $ 195,614
Short-term investments 51,600 50,833 48,237
Receivables 12,105 8,588 14,732
Inventory 127,899 118,007 121,671
Prepaid expenses and other assets 18,855   18,070   7,750  
Total current assets 379,408   360,584   388,004  
 
PROPERTY AND EQUIPMENT 460,367 459,043 460,250
Less accumulated depreciation and amortization (319,141 ) (309,497 ) (300,419 )
141,226   149,546   159,831  
 
LONG-TERM INVESTMENTS 17,300 21,453 18,294
OTHER ASSETS 7,158   6,533   7,433  
 
Total assets $ 545,092   $ 538,116   $ 573,562  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
CURRENT LIABILITIES:
Accounts payable $ 46,217 $ 29,387 $ 39,890
Accrued employee compensation 11,852 22,307 14,130
Accrued store operating expenses 21,289 15,646 16,328
Gift certificates redeemable 14,103 18,202 15,698
Income taxes payable   12,364    
Total current liabilities 93,461   97,906   86,046  
 
DEFERRED COMPENSATION 15,784 15,154 14,167
DEFERRED RENT LIABILITY 31,740   33,808   36,236  
Total liabilities 140,985   146,868   136,449  
 
COMMITMENTS
 
STOCKHOLDERS' EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value;
issued and outstanding; 49,018,195 shares at August 4, 2018,
48,816,170 shares at February 3, 2018, and 48,844,700 shares at July
29, 2017
490 488 488
Additional paid-in capital 147,173 144,279 142,622
Retained earnings 256,444 246,570 294,082
Accumulated other comprehensive loss   (89 ) (79 )
Total stockholders' equity 404,107   391,248   437,113  
 
Total liabilities and stockholders' equity $ 545,092   $ 538,116   $ 573,562  
 
(1) Derived from audited financial statements.

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