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 1, 2020 was $34.7 million, or $0.71 per share ($0.71 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended August 1, 2020 increased 6.0 percent to $216.0 million from net sales of $203.8 million for the prior year 13-week fiscal quarter ended August 3, 2019. Online sales increased 99.0 percent to $46.0 million for the 13-week period ended August 1, 2020, compared to net sales of $23.1 million for the 13-week period ended August 3, 2019.

Net sales for the 26-week fiscal period ended August 1, 2020 decreased 18.2 percent to $331.4 million from net sales of $405.1 million for the prior year 26-week fiscal period ended August 3, 2019. Online sales increased 64.3 percent to $78.1 million for the 26-week period ended August 1, 2020, compared to net sales of $47.5 million for the 26-week period ended August 3, 2019.

Net income for the second quarter of fiscal 2020 was $34.7 million, or $0.71 per share ($0.71 per share on a diluted basis), compared with $16.4 million, or $0.34 per share ($0.34 per share on a diluted basis) for the second quarter of fiscal 2019.

Net income for the 26-week fiscal period ended August 1, 2020 was $22.9 million, or $0.47 per share ($0.47 per share on a diluted basis), compared with $31.5 million, or $0.65 per share ($0.65 per share on a diluted basis) for the 26-week period ended August 3, 2019.

As previously announced, Buckle temporarily closed all brick and mortar stores due to the COVID-19 pandemic beginning March 18, 2020. The Company began the process of reopening certain stores the week of April 26, 2020, following state and local reopening guidelines. As of August 1, 2020, 431 of Buckle's 446 stores were open. Of the 15 stores which were closed, 2 have not yet reopened due to damage sustained during the closure period. The remaining 13 stores are located in California and had previously reopened but were subsequently closed again during July in accordance with state guidelines. The Company's online store has remained open without interruption.

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 (877) 226-8216 for domestic calls or (409) 207-6983 for international calls and reference the conference code 9361957. A replay of the call will be available for a two-week period beginning today at 1:00 p.m. EDT by calling (866) 207-1041 for domestic calls or (402) 970-0847 for international calls and entering the conference code 2314297.

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 446 retail stores in 42 states. As of the end of the fiscal quarter, it operated 446 stores in 42 states compared with 449 stores in 42 states at the end of the second quarter of fiscal 2019.

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 1,

2020

 

August 3,

2019

 

August 1,

2020

 

August 3,

2019

 

 

 

 

 

 

 

 

SALES, Net of returns and allowances

$

216,025

 

$

203,817

 

$

331,438

 

$

405,130

 

 

 

 

 

 

 

 

COST OF SALES (Including buying, distribution, and occupancy costs)

122,643

 

125,120

 

211,231

 

249,780

 

 

 

 

 

 

 

 

Gross profit

93,382

 

78,697

 

120,207

 

155,350

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

Selling

38,257

 

48,535

 

71,761

 

95,144

General and administrative

9,593

 

10,560

 

19,096

 

21,870

 

47,850

 

59,095

 

90,857

 

117,014

 

 

 

 

 

 

 

 

INCOME FROM OPERATIONS

45,532

 

19,602

 

29,350

 

38,336

 

 

 

 

 

 

 

 

OTHER INCOME, Net

404

 

2,086

 

978

 

3,341

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

45,936

 

21,688

 

30,328

 

41,677

 

 

 

 

 

 

 

 

INCOME TAX EXPENSE

11,254

 

5,314

 

7,430

 

10,211

 

 

 

 

 

 

 

 

NET INCOME

$

34,682

 

$

16,374

 

$

22,898

 

$

31,466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE:

 

 

 

 

 

 

 

Basic

$

0.71

 

$

0.34

 

$

0.47

 

$

0.65

 

 

 

 

 

 

 

 

Diluted

$

0.71

 

$

0.34

 

$

0.47

 

$

0.65

 

 

 

 

 

 

 

 

Basic weighted average shares

48,714

 

48,550

 

48,719

 

48,551

Diluted weighted average shares

48,913

 

48,760

 

48,918

 

48,747

 

THE BUCKLE, INC.

 

CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands Except Share and Per Share Amounts)

(Unaudited)

 

 

 

 

 

 

ASSETS

August 1,

2020

 

February 1,

2020 (1)

 

August 3,

2019

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

$

265,714

 

 

$

220,969

 

 

$

178,041

 

Short-term investments

12,637

 

 

12,532

 

 

52,051

 

Receivables

2,394

 

 

3,136

 

 

11,206

 

Inventory

116,479

 

 

121,258

 

 

129,068

 

Prepaid expenses and other assets

20,388

 

 

20,935

 

 

21,059

 

Total current assets

417,612

 

 

378,830

 

 

391,425

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT

451,899

 

 

452,205

 

 

453,416

 

Less accumulated depreciation and amortization

(345,820

)

 

(338,357

)

 

(331,285

)

 

106,079

 

 

113,848

 

 

122,131

 

 

 

 

 

 

 

OPERATING LEASE RIGHT-OF-USE ASSETS

305,814

 

 

350,088

 

 

335,448

 

LONG-TERM INVESTMENTS

16,536

 

 

15,863

 

 

15,477

 

OTHER ASSETS

9,782

 

 

9,261

 

 

7,952

 

 

 

 

 

 

 

Total assets

$

855,823

 

 

$

867,890

 

 

$

872,433

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Accounts payable

$

48,142

 

 

$

26,491

 

 

$

42,531

 

Accrued employee compensation

9,391

 

 

22,929

 

 

11,512

 

Accrued store operating expenses

21,579

 

 

17,837

 

 

23,268

 

Gift certificates redeemable

12,611

 

 

15,319

 

 

13,305

 

Current portion of operating lease liabilities

81,427

 

 

87,314

 

 

75,992

 

Income taxes payable

 

 

2,751

 

 

 

Total current liabilities

173,150

 

 

172,641

 

 

166,608

 

 

 

 

 

 

 

DEFERRED COMPENSATION

16,536

 

 

15,863

 

 

14,984

 

NON-CURRENT OPERATING LEASE LIABILITIES

251,830

 

 

290,238

 

 

287,648

 

Total liabilities

441,516

 

 

478,742

 

 

469,240

 

 

 

 

 

 

 

COMMITMENTS

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,407,731 shares at August 1, 2020, 49,205,681 shares at February 1, 2020, and 49,223,811 shares at August 3, 2019

494

 

 

492

 

 

492

 

Additional paid-in capital

154,517

 

 

152,258

 

 

151,027

 

Retained earnings

259,296

 

 

236,398

 

 

251,674

 

Total stockholders' equity

414,307

 

 

389,148

 

 

403,193

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

855,823

 

 

$

867,890

 

 

$

872,433

 

 

 

 

 

 

 

(1) Derived from audited financial statements.

 

 

 

 

 

 

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