The Buckle, Inc. Reports Third Quarter Net Income
The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended November 2, 2019 was $26.0 million, or $0.54 per share ($0.53 per share on a diluted basis).
Net sales for the 13-week fiscal quarter ended November 2, 2019 increased 4.2 percent to $224.1 million from net sales of $215.1 million for the prior year 13-week fiscal quarter ended November 3, 2018. Comparable store net sales for the 13-week period ended November 2, 2019 increased 4.7 percent from comparable store net sales for the prior year 13-week period ended November 3, 2018. Online sales increased 5.4 percent to $26.9 million for the 13-week period ended November 2, 2019, compared to net sales of $25.5 million for the 13-week period ended November 3, 2018.
Net sales for the 39-week fiscal period ended November 2, 2019 increased 1.3 percent to $629.3 million from net sales of $621.1 million for the prior year 39-week fiscal period ended November 3, 2018. Comparable store net sales for the 39-week period ended November 2, 2019 increased 1.8 percent from comparable store net sales for the prior year 39-week period ended November 3, 2018. Online sales increased 6.6 percent to $74.4 million for the 39-week period ended November 2, 2019, compared to net sales of $69.8 million for the 39-week period ended November 3, 2018.
Net income for the third quarter of fiscal 2019 was $26.0 million, or $0.54 per share ($0.53 per share on a diluted basis), compared with $20.5 million, or $0.42 per share ($0.42 per share on a diluted basis) for the third quarter of fiscal 2018.
Net income for the 39-week fiscal period ended November 2, 2019 was $57.5 million, or $1.18 per share ($1.18 per share on a diluted basis), compared with $54.5 million, or $1.13 per share ($1.12 per share on a diluted basis) for the 39-week period ended November 3, 2018.
Management will hold a conference call at 10:00 a.m. EST 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 473856. A replay of the call will be available for a two-week period beginning today at 12:00 p.m. EST by calling (800) 475-6701 for domestic calls or (320) 365-3844 for international calls and entering the conference code 473856.
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 453 stores in 43 states at the end of the third 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)
Thirteen Weeks Ended
Thirty-Nine Weeks Ended
November 2,
November 3,
November 2,
November 3,
2019
2018
2019
2018
SALES, Net of returns and allowances
$
224,121
$
215,107
$
629,251
$
621,084
COST OF SALES (Including buying, distribution, and occupancy costs)
130,587
128,950
380,367
376,305
Gross profit
93,534
86,157
248,884
244,779
OPERATING EXPENSES:
Selling
51,282
50,612
146,426
144,361
General and administrative
8,942
9,244
30,812
30,696
60,224
59,856
177,238
175,057
INCOME FROM OPERATIONS
33,310
26,301
71,646
69,722
OTHER INCOME, Net
1,105
1,332
4,446
3,791
INCOME BEFORE INCOME TAXES
34,415
27,633
76,092
73,513
PROVISION FOR INCOME TAXES
8,431
7,157
18,642
19,040
NET INCOME
$
25,984
$
20,476
$
57,450
$
54,473
EARNINGS PER SHARE:
Basic
$
0.54
$
0.42
$
1.18
$
1.13
Diluted
$
0.53
$
0.42
$
1.18
$
1.12
Basic weighted average shares
48,549
48,379
48,550
48,379
Diluted weighted average shares
48,809
48,611
48,768
48,584
THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
ASSETS
November 2,
February 2,
November 3,
2019
2019 (1)
2018
CURRENT ASSETS:
Cash and cash equivalents
$
213,836
$
168,471
$
177,918
Short-term investments
31,946
51,546
45,605
Receivables
9,432
7,089
8,266
Inventory
138,879
125,190
145,473
Prepaid expenses and other assets
22,195
18,136
19,862
Total current assets
416,288
370,432
397,124
PROPERTY AND EQUIPMENT
453,859
452,187
460,523
Less accumulated depreciation and amortization
(336,098
)
(321,505
)
(324,044
)
117,761
130,682
136,479
OPERATING LEASE RIGHT-OF-USE ASSETS
340,417
—
—
LONG-TERM INVESTMENTS
15,710
18,745
18,322
OTHER ASSETS
7,939
7,443
7,170
Total assets
$
898,115
$
527,302
$
559,095
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
44,771
$
29,008
$
48,400
Accrued employee compensation
18,122
21,452
17,996
Accrued store operating expenses
21,539
17,982
21,851
Gift certificates redeemable
12,688
16,634
13,907
Current portion of operating lease liabilities
81,541
—
—
Income taxes payable
—
5,142
—
Total current liabilities
178,661
90,218
102,154
DEFERRED COMPENSATION
15,410
13,978
13,804
NON-CURRENT OPERATING LEASE LIABILITIES
286,706
—
—
DEFERRED RENT LIABILITY
—
29,229
30,287
Total liabilities
480,777
133,425
146,245
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,223,811 shares at November 2, 2019, 49,017,395 shares at February 2, 2019, and 49,017,975 shares at November 3, 2018
492
490
490
Additional paid-in capital
151,383
148,564
147,584
Retained earnings
265,463
244,823
264,776
Total stockholders’ equity
417,338
393,877
412,850
Total liabilities and stockholders’ equity
$
898,115
$
527,302
$
559,095
(1) Derived from audited financial statements.
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