BKE Buckle Inc

The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended July 30, 2016 was $15.5 million, or $0.32 per share ($0.32 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended July 30, 2016 decreased 10.1 percent to $212.2 million from net sales of $236.1 million for the prior year 13-week fiscal quarter ended August 1, 2015. Comparable store net sales for the 13-week period ended July 30, 2016 decreased 10.8 percent from comparable store net sales for the prior year 13-week period ended August 1, 2015. Online sales increased 1.4 percent to $20.4 million for the 13-week period ended July 30, 2016, compared to net sales of $20.1 million for the 13-week period ended August 1, 2015.

Net sales for the 26-week fiscal period ended July 30, 2016 decreased 10.2 percent to $455.7 million from net sales of $507.4 million for the prior year 26-week fiscal period ended August 1, 2015. Comparable store net sales for the 26-week period ended July 30, 2016 decreased 10.9 percent from comparable store net sales for the prior year 26-week period ended August 1, 2015. Online sales decreased 0.9 percent to $43.9 million for the 26-week period ended July 30, 2016, compared to net sales of $44.3 million for the 26-week period ended August 1, 2015.

Net income for the second quarter of fiscal 2016 was $15.5 million, or $0.32 per share ($0.32 per share on a diluted basis), compared with $23.5 million, or $0.49 per share ($0.49 per share on a diluted basis) for the second quarter of fiscal 2015.

Net income for the 26-week fiscal period ended July 30, 2016 was $38.6 million, or $0.80 per share ($0.80 per share on a diluted basis), compared with $57.1 million, or $1.19 per share ($1.18 per share on a diluted basis) for the 26-week period ended August 1, 2015.

Please note that net sales for the 13-week and 26-week periods ended July 30, 2016 are reported net of the impact of both reward redemptions and accruals for estimated future rewards related to the Company’s new Guest Loyalty program, which launched during the fiscal quarter ended April 30, 2016.

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) 234-9959 for international calls and reference the conference code 399570. 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 399570.

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 470 retail stores in 44 states. As of the end of the fiscal quarter, it operated 470 stores in 44 states compared with 464 stores in 44 states at the end of the second quarter of fiscal 2015.

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.

 

THE BUCKLE, INC.

  CONSOLIDATED STATEMENTS OF INCOME (Amounts in Thousands Except Per Share Amounts) (Unaudited)                         Thirteen Weeks Ended Twenty-Six Weeks Ended

July 30,

    August 1, July 30,     August 1, 2016 2015 2016 2015   SALES, Net of returns and allowances $ 212,157 $ 236,053 $ 455,700 $ 507,398   COST OF SALES (Including buying, distribution, and occupancy costs)   132,275   141,458   281,089   299,206   Gross profit   79,882   94,595   174,611   208,192   OPERATING EXPENSES: Selling 46,065 46,358 93,628 95,512 General and administrative   9,735   11,060   20,471   22,698   55,800   57,418   114,099   118,210   INCOME FROM OPERATIONS 24,082 37,177 60,512 89,982   OTHER INCOME, Net   595   272   1,003   1,008   INCOME BEFORE INCOME TAXES 24,677 37,449 61,515 90,990   PROVISION FOR INCOME TAXES   9,205   13,968   22,946   33,939   NET INCOME $ 15,472 $ 23,481 $ 38,569 $ 57,051     EARNINGS PER SHARE: Basic $ 0.32 $ 0.49 $ 0.80 $ 1.19   Diluted $ 0.32 $ 0.49 $ 0.80 $ 1.18   Basic weighted average shares 48,107 48,074 48,107 48,074 Diluted weighted average shares 48,227 48,202 48,215 48,195     THE BUCKLE, INC.   CONSOLIDATED BALANCE SHEETS (Amounts in Thousands Except Share and Per Share Amounts) (Unaudited)                   July 30, January 31, August 1, ASSETS 2016 2016 (1) 2015   CURRENT ASSETS: Cash and cash equivalents $ 168,173 $ 161,185 $ 122,458 Short-term investments 38,612 36,465 19,838 Receivables 16,954 9,651 16,037 Inventory 144,267 149,566 150,789 Prepaid expenses and other assets   5,864     6,030     27,707   Total current assets   373,870     362,897     336,829     PROPERTY AND EQUIPMENT 459,228 450,762 442,954 Less accumulated depreciation and amortization   (285,701 )   (277,981 )   (265,296 )   173,527     172,781     177,658     LONG-TERM INVESTMENTS 28,080 33,826 48,455 OTHER ASSETS   4,490     3,269     1,978     Total assets $ 579,967   $ 572,773   $ 564,920     LIABILITIES AND STOCKHOLDERS’ EQUITY   CURRENT LIABILITIES: Accounts payable $ 48,764 $ 33,862 $ 59,212 Accrued employee compensation 15,289 33,126 18,884 Accrued store operating expenses 14,294 6,639 10,495 Gift certificates redeemable 16,883 22,858 17,662 Income taxes payable   -     11,141     -   Total current liabilities   95,230     107,626     106,253     DEFERRED COMPENSATION 14,186 12,849 13,576 DEFERRED RENT LIABILITY 39,825 39,655 40,804 OTHER LIABILITIES   -     -     9,769   Total liabilities   149,241     160,130     170,402     COMMITMENTS   STOCKHOLDERS’ EQUITY:

Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 48,623,080 shares at July 30, 2016, 48,428,110 shares at January 30, 2016, and 48,531,973 shares at August 1, 2015

486 484 485 Additional paid-in capital 138,535 134,864 135,621 Retained earnings 291,883 277,626 258,837 Accumulated other comprehensive loss   (178 )   (331 )   (425 ) Total stockholders’ equity   430,726     412,643     394,518     Total liabiliites and stockholders’ equity $ 579,967   $ 572,773   $ 564,920     (1) Derived from audited financial statements.  

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The Buckle, Inc.Karen B. Rhoads, 308-236-8491Chief Financial Officer