The Buckle, Inc. Reports Second Quarter Net Income
KEARNEY, Neb.--(BUSINESS WIRE)-- The Buckle, Inc. (NYSE: 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) |
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Thirteen Weeks Ended |
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Twenty-Six Weeks Ended |
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August 3,
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August 4,
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August 3,
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August 4,
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SALES, Net of returns and allowances |
$ |
203,817 |
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$ |
201,080 |
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$ |
405,130 |
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$ |
405,977 |
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COST OF SALES (Including buying, distribution, and occupancy costs) |
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125,120 |
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122,149 |
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249,780 |
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247,355 |
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Gross profit |
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78,697 |
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78,931 |
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155,350 |
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158,622 |
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OPERATING EXPENSES: |
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Selling |
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48,535 |
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47,896 |
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95,144 |
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93,749 |
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General and administrative |
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10,560 |
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10,874 |
|
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21,870 |
|
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21,452 |
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|
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59,095 |
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58,770 |
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117,014 |
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115,201 |
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INCOME FROM OPERATIONS |
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19,602 |
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20,161 |
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38,336 |
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43,421 |
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OTHER INCOME, Net |
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2,086 |
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|
972 |
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3,341 |
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|
2,459 |
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INCOME BEFORE INCOME TAXES |
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21,688 |
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21,133 |
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41,677 |
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45,880 |
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PROVISION FOR INCOME TAXES |
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5,314 |
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5,474 |
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10,211 |
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11,883 |
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NET INCOME |
$ |
16,374 |
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$ |
15,659 |
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$ |
31,466 |
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$ |
33,997 |
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EARNINGS PER SHARE: |
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Basic |
$ |
0.34 |
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$ |
0.32 |
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$ |
0.65 |
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$ |
0.70 |
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Diluted |
$ |
0.34 |
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$ |
0.32 |
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$ |
0.65 |
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$ |
0.70 |
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Basic weighted average shares |
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48,550 |
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48,379 |
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48,551 |
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48,379 |
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Diluted weighted average shares |
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48,760 |
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48,592 |
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48,747 |
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48,571 |
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THE BUCKLE, INC. CONSOLIDATED BALANCE SHEETS (Amounts in Thousands Except Share and Per Share Amounts) (Unaudited) |
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ASSETS |
August 3,
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February 2,
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August 4,
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CURRENT ASSETS: |
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Cash and cash equivalents |
$ |
178,041 |
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$ |
168,471 |
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$ |
168,949 |
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Short-term investments |
|
52,051 |
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51,546 |
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51,600 |
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Receivables |
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11,206 |
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7,089 |
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12,105 |
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Inventory |
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129,068 |
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125,190 |
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127,899 |
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Prepaid expenses and other assets |
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21,059 |
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18,136 |
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18,855 |
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Total current assets |
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391,425 |
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370,432 |
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379,408 |
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PROPERTY AND EQUIPMENT |
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453,416 |
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452,187 |
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460,367 |
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Less accumulated depreciation and amortization |
|
(331,285 |
) |
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(321,505 |
) |
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|
(319,141 |
) |
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|
|
122,131 |
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130,682 |
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141,226 |
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OPERATING LEASE RIGHT-OF-USE ASSETS |
|
335,448 |
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— |
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— |
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LONG-TERM INVESTMENTS |
|
15,477 |
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18,745 |
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|
|
17,300 |
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OTHER ASSETS |
|
7,952 |
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|
7,443 |
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7,158 |
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Total assets |
$ |
872,433 |
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$ |
527,302 |
|
|
$ |
545,092 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
$ |
42,531 |
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$ |
29,008 |
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$ |
46,217 |
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Accrued employee compensation |
|
11,512 |
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|
|
21,452 |
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|
|
11,852 |
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Accrued store operating expenses |
|
23,268 |
|
|
|
17,982 |
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|
|
21,289 |
|
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Gift certificates redeemable |
|
13,305 |
|
|
|
16,634 |
|
|
|
14,103 |
|
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Current portion of operating lease liabilities |
|
75,992 |
|
|
— |
|
— |
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Income taxes payable |
— |
|
|
5,142 |
|
|
— |
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Total current liabilities |
|
166,608 |
|
|
|
90,218 |
|
|
|
93,461 |
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DEFERRED COMPENSATION |
|
14,984 |
|
|
|
13,978 |
|
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|
15,784 |
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NON-CURRENT OPERATING LEASE LIABILITIES |
|
287,648 |
|
|
— |
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— |
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DEFERRED RENT LIABILITY |
— |
|
|
29,229 |
|
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|
31,740 |
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Total liabilities |
|
469,240 |
|
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|
133,425 |
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|
|
140,985 |
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COMMITMENTS |
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STOCKHOLDERS’ EQUITY: |
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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 |
|
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Additional paid-in capital |
|
151,027 |
|
|
|
148,564 |
|
|
|
147,173 |
|
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Retained earnings |
|
251,674 |
|
|
|
244,823 |
|
|
|
256,444 |
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Total stockholders’ equity |
|
403,193 |
|
|
|
393,877 |
|
|
|
404,107 |
|
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Total liabilities and stockholders’ equity |
$ |
872,433 |
|
|
$ |
527,302 |
|
|
$ |
545,092 |
|
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(1) Derived from audited financial statements. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20190823005015/en/
Thomas B. Heacock, Chief Financial Officer
The Buckle, Inc.
(308) 236-8491
Source: The Buckle, Inc.