The Buckle, Inc. Reports First Quarter Net Income

Rhea-AI Summary

The Buckle (NYSE: BKE) reported its Q1 fiscal 2024 results, showing a net income of $34.8 million, or $0.70 per share ($0.69 diluted). This is a decrease from $42.9 million, or $0.87 per share ($0.86 diluted), in Q1 fiscal 2023. Net sales for the quarter fell 7.2% to $262.5 million, down from $282.8 million in the same period last year. Comparable store net sales decreased by 9%, and online sales dropped 13.4% to $44.4 million. The company will host a live audio webcast to discuss the results at 10:00 a.m. EDT. A replay will be available on Buckle's investor relations website.

Positive

• Net income for Q1 fiscal 2024 was $34.8 million, or $0.70 per share.
• The company continues to provide earnings updates and engages with investors via webcasts.

Negative

• Net sales for the 13-week fiscal quarter decreased by 7.2% to $262.5 million.
• Comparable store net sales fell by 9.0% for the quarter.
• Online sales fell significantly by 13.4% to $44.4 million.
• Net income decreased by $8.1 million, or 18.9%, compared to Q1 fiscal 2023.
• Earnings per share dropped to $0.70 from $0.87 year-over-year.

Insights

Financial Analyst

The Buckle, Inc. reported a 7.2% drop in net sales for its first fiscal quarter ending May 4, 2024, compared to the same period last year. This decline in sales is coupled with a significant 9% decrease in comparable store sales and a 13.4% decline in online sales. The company also saw a notable drop in net income from $42.9 million to $34.8 million. This decrease in profitability, along with lower sales figures, suggests challenges faced by the company in maintaining its customer base and growing its revenue streams. The issues impacting sales are likely multifaceted, possibly linked to broader industry trends, consumer behavior shifts, or operational inefficiencies.

Investors should be cautious and look for management’s strategic plan for reversing these trends. Specifically, any measures to enhance their online presence and improve in-store experiences will be key to future performance. The management's webcast might provide further insights into their recovery strategy. Notably, the inclusion of a 53rd week in fiscal 2023 could also have skewed year-over-year comparisons.

Market Research Analyst

The report highlights a concerning trend for The Buckle, Inc., especially in the context of a retail market that has seen varied performance post-pandemic. The decline in both store and online sales indicates potential issues with the company's product offerings, marketing strategies, or competitive positioning. With a 13.4% decrease in online sales, it's clear that the company is struggling to capture and retain digital consumers. Given the increasing importance of e-commerce in retail, this is a significant red flag.

Retail investors should consider how The Buckle, Inc. plans to address these challenges. Any future guidance or strategies aimed at digital transformation and competitive differentiation will be crucial. It's also important to watch for industry-wide trends that could impact The Buckle's market, such as changes in consumer spending habits or shifts in fashion preferences.

KEARNEY, Neb.--(BUSINESS WIRE)-- The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended May 4, 2024 was $34.8 million, or $0.70 per share ($0.69 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended May 4, 2024 decreased 7.2 percent to $262.5 million from net sales of $282.8 million for the prior year 13-week fiscal quarter ended April 29, 2023. Comparable store net sales for the 13-week fiscal quarter ended May 4, 2024 decreased 9.0 percent from comparable store net sales for the prior year 13-week period ended May 6, 2023. Online sales decreased 13.4 percent to $44.4 million for the 13-week fiscal quarter ended May 4, 2024, compared to net sales of $51.3 million for the 13-week fiscal quarter ended April 29, 2023.

Due to the 53rd week in fiscal 2023, comparable store net sales for the quarter are compared to the 13-week period ended May 6, 2023.

Net income for the first quarter of fiscal 2024 was $34.8 million, or $0.70 per share ($0.69 per share on a diluted basis), compared with net income of $42.9 million, or $0.87 per share ($0.86 per share on a diluted basis) for the first quarter of fiscal 2023.

Management will hold a live audio webcast at 10:00 a.m. EDT today to discuss results for the quarter. To register for the live event, please visit https://buckle.zoom.us/webinar/register/WN_zp-00jfFTbC_Ilct3roVWQ. A replay of the event can be accessed through Buckle’s investor relations website within twenty-four hours after the conclusion of the live event (https://corporate.buckle.com/investors/earnings-webcasts).

About Buckle

Buckle is a specialty retailer focused on delivering exceptional service and style through unforgettable experiences. Offering a curated mix of high-quality, on-trend apparel, accessories, and footwear, Buckle is for those living the styled life. 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 440 retail stores in 42 states. As of the end of the fiscal quarter, it operated 440 stores in 42 states compared with 440 stores in 42 states at the end of the first quarter of fiscal 2023.

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.
Financial Tables to Follow

THE BUCKLE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands Except Per Share Amounts)
(Unaudited)
	Thirteen Weeks Ended
	May 4, 2024			April 29, 2023
SALES, Net of returns and allowances	$	262,480		$	282,834
COST OF SALES (Including buying, distribution, and occupancy costs)		141,783			149,577
Gross profit		120,697			133,257
OPERATING EXPENSES:
Selling		63,726			66,102
General and administrative		14,575			13,425
		78,301			79,527
INCOME FROM OPERATIONS		42,396			53,730
OTHER INCOME, Net		3,754			3,139
INCOME BEFORE INCOME TAXES		46,150			56,869
INCOME TAX EXPENSE		11,307			13,933
NET INCOME	$	34,843		$	42,936
EARNINGS PER SHARE:
Basic	$	0.70		$	0.87
Diluted	$	0.69		$	0.86
Basic weighted average shares		49,854			49,513
Diluted weighted average shares		50,172			49,861

THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
ASSETS	May 4, 2024				February 3, 2024 (1)				April 29, 2023
CURRENT ASSETS:
Cash and cash equivalents	$	267,427			$	268,213			$	254,433
Short-term investments		23,052				22,210				23,066
Receivables		6,139				8,697				6,356
Inventory		130,661				126,290				137,735
Prepaid expenses and other assets		19,550				18,846				12,325
Total current assets		446,829				444,256				433,915
PROPERTY AND EQUIPMENT		493,025				489,037				471,152
Less accumulated depreciation and amortization		(360,950	)			(360,200	)			(355,091	)
		132,075				128,837				116,061
OPERATING LEASE RIGHT-OF-USE ASSETS		288,646				280,813				265,716
LONG-TERM INVESTMENTS		26,763				24,993				22,512
OTHER ASSETS		11,757				10,911				10,656
Total assets	$	906,070			$	889,810			$	848,860
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	54,811			$	45,958			$	57,774
Accrued employee compensation		13,767				49,827				17,942
Accrued store operating expenses		23,477				19,067				23,627
Gift certificates redeemable		14,370				16,667				14,325
Current portion of operating lease liabilities		83,645				85,265				84,619
Income taxes payable		15,210				4,672				8,517
Total current liabilities		205,280				221,456				206,804
DEFERRED COMPENSATION		26,763				24,993				22,512
NON-CURRENT OPERATING LEASE LIABILITIES		240,212				230,141				214,370
Total liabilities		472,255				476,590				443,686
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 50,778,536 shares at May 4, 2024, 50,445,186 shares at February 3, 2024, and 50,456,196 shares at April 29, 2023		508				504				505
Additional paid-in capital		196,208				192,686				182,544
Retained earnings		237,099				220,030				222,125
Total stockholders’ equity		433,815				413,220				405,174
Total liabilities and stockholders’ equity	$	906,070			$	889,810			$	848,860
(1) Derived from audited financial statements.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240524914236/en/

Thomas B. Heacock, Chief Financial Officer

The Buckle, Inc.

(308) 236-8491

Source: The Buckle, Inc.

FAQ

What was The Buckle's net income for Q1 fiscal 2024?

The net income for Q1 fiscal 2024 was $34.8 million, or $0.70 per share ($0.69 diluted).

How did The Buckle's net sales perform in Q1 fiscal 2024?

Net sales decreased by 7.2% to $262.5 million for Q1 fiscal 2024.

What was the percentage decrease in The Buckle's comparable store net sales for Q1 fiscal 2024?

Comparable store net sales decreased by 9.0% for Q1 fiscal 2024.

How much did The Buckle's online sales decrease in Q1 fiscal 2024?

Online sales decreased by 13.4% to $44.4 million in Q1 fiscal 2024.

When is The Buckle's live audio webcast to discuss Q1 fiscal 2024 results?

The live audio webcast will be held at 10:00 a.m. EDT today.