Business Wire | Aug 21, 2020 06:50AM EDT

The Buckle, Inc. Reports Second Quarter Net Income

Aug. 21, 2020

KEARNEY, Neb.--(BUSINESS WIRE)--Aug. 21, 2020--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, August 3, August 1, August 3, 2020 2019 2020 2019



SALES, Net of returns and $ 216,025 $ 203,817 $ 331,438 $ 405,130allowances



COST OF SALES (Including buying,distribution, and occupancy 122,643 125,120 211,231 249,780costs)



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, February 1, August 3, 2020 2020 (1) 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 (345,820 ) (338,357 ) (331,285 )amortization

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 81,427 87,314 75,992 liabilities

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 100,000,000shares of $.01 par value; issued andoutstanding; 49,407,731 shares at 494 492 492 August 1, 2020, 49,205,681 shares atFebruary 1, 2020, and 49,223,811 sharesat August 3, 2019

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' $ 855,823 $ 867,890 $ 872,433 equity



(1) Derived from audited financial statements.

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CONTACT: Thomas B. Heacock, Chief Financial Officer The Buckle, Inc. (308) 236-8491