The Buckle, Inc. Reports Second Quarter Net Income
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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