The Buckle, Inc. Reports Fourth Quarter and Fiscal Year 2023 Net Income

Rhea-AI Summary

The Buckle, Inc. (NYSE: BKE) reported a net income of $79.6 million for the fiscal quarter ended February 3, 2024, and $219.9 million for the fiscal year. However, net sales decreased for both the quarter and the year compared to the previous periods. Comparable store net sales and online sales also saw declines.

Positive

• None.

Negative

• Net sales decreased for the 14-week fiscal quarter and the 53-week fiscal year compared to the previous periods.
• Comparable store net sales decreased for both the 14-week and 53-week periods compared to the prior years.
• Online sales also decreased for both the 14-week and 53-week periods compared to the previous years.
• Net income for the fiscal year ended February 3, 2024, decreased compared to the fiscal year ended January 28, 2023.

Insights

Financial Analyst

The Buckle, Inc.'s reported decrease in net sales and net income for both the fiscal quarter and year ending February 3, 2024, highlights a contraction in revenue and profitability. A 4.8 percent decrease in quarterly net sales and a 6.3 percent annual sales decline, coupled with a reduction in net income from $254.6 million to $219.9 million year-over-year, suggests a challenging retail environment or shifts in consumer preferences. The reported 9.6 percent and 8.0 percent decrease in comparable store sales for the quarter and fiscal year, respectively, further indicates that same-store performance is weakening, which is a critical measure of retail health.

Moreover, the notable 12.4 percent and 10.3 percent decline in online sales for the quarter and fiscal year points to potential challenges in the company's e-commerce strategy. It is essential to assess whether these trends are specific to The Buckle or reflective of broader sectoral headwinds. Investors should consider the company's cost management strategies and potential for market share capture to mitigate sales declines. Additionally, the impact on share price will likely depend on future guidance provided by management and the company's ability to adapt to changing market dynamics.

Market Research Analyst

An analysis of The Buckle's performance must take into account the broader apparel retail market trends. The decline in sales, both in-store and online, may reflect an industry-wide slump, perhaps due to economic pressures such as inflation or shifting consumer spending towards non-discretionary items. The reported decrease in comparable store net sales is particularly telling, as it removes the effect of new store openings and thus provides a more accurate picture of customer traffic and spending patterns.

Investigating the competitive landscape, including the promotional strategies of competitors and the introduction of new products or services, is crucial. The Buckle's ability to differentiate itself and retain customer loyalty in the face of increased competition will be key to its long-term success. Investors should also monitor the company's inventory management and digital transformation initiatives, as these areas can significantly influence operational efficiency and customer experience in the retail sector.

Retail Industry Expert

The fiscal results of The Buckle reflect a downturn that may be symptomatic of larger issues within the retail clothing sector. The decrease in comparable store sales suggests that the company is not only selling less but also struggling to grow its customer base or increase the average transaction value. This could be due to a variety of factors, such as out-of-sync fashion cycles, inadequate response to consumer trends, or an ineffective omnichannel strategy.

Given the reported decline in online sales, it is imperative to evaluate The Buckle's digital presence and marketing efforts. The company's digital footprint and how it engages with consumers online could be pivotal in reversing the negative sales trend. With the increasing importance of an integrated retail experience, the company's strategies to enhance online-to-offline capabilities warrant close scrutiny. Investors should watch for strategic shifts that may include store remodels, technology investments and loyalty programs aimed at improving customer retention and increasing spend.

KEARNEY, Neb.--(BUSINESS WIRE)-- The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended February 3, 2024 was $79.6 million, or $1.60 per share ($1.59 per share on a diluted basis). Net income for the fiscal year ended February 3, 2024 was $219.9 million, or $4.44 per share ($4.40 per share on a diluted basis).

Net sales for the 14-week fiscal quarter ended February 3, 2024 decreased 4.8 percent to $382.4 million from net sales of $401.8 million for the prior year 13-week fiscal quarter ended January 28, 2023. Comparable store net sales for the 14-week period ended February 3, 2024 decreased 9.6 percent from comparable store net sales for the prior year 14-week period ended February 4, 2023. Online sales decreased 12.4 percent to $65.5 million for the 14-week period ended February 3, 2024, compared to net sales of $74.8 million for the 13-week period ended January 28, 2023.

Net sales for the 53-week fiscal year ended February 3, 2024 decreased 6.3 percent to $1.261 billion from net sales of $1.345 billion for the 52-week fiscal year ended January 28, 2023. Comparable store net sales for the 53-week period ended February 3, 2024 decreased 8.0 percent from comparable store net sales for the prior year 53-week period ended February 4, 2023. Online sales decreased 10.3 percent to $206.5 million for the 53-week period ended February 3, 2024, compared to net sales of $230.4 million for the 52-week period ended January 28, 2023.

Net income for the fourth quarter of fiscal 2023 was $79.6 million, or $1.60 per share ($1.59 per share on a diluted basis), compared with $87.8 million, or $1.78 per share ($1.76 per share on a diluted basis) for the fourth quarter of fiscal 2022.

Net income for the fiscal year ended February 3, 2024 was $219.9 million, or $4.44 per share ($4.40 per share on a diluted basis), compared with $254.6 million, or $5.17 per share ($5.13 per share on a diluted basis) for the fiscal year ended January 28, 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_CBup_6qlSkqkYS6A6HUQIw. 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 442 retail stores in 42 states. As of the end of the fiscal year, it operated 444 stores in 42 states compared with 441 stores in 42 states at the end of fiscal 2022.

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)
	14-Weeks Ended			13-Weeks Ended			53-Weeks Ended			52-Weeks Ended
	February 3, 2024			January 28, 2023			February 3, 2024			January 28, 2023 (1)
SALES, Net of returns and allowances	$	382,383		$	401,806		$	1,261,102		$	1,345,187
COST OF SALES (Including buying, distribution, and occupancy costs)		182,202			188,733			642,037			669,184
Gross profit		200,181			213,073			619,065			676,003
OPERATING EXPENSES:
Selling		85,937			84,515			291,018			293,891
General and administrative		17,741			18,621			56,988			53,980
		103,678			103,136			348,006			347,871
INCOME FROM OPERATIONS		96,503			109,937			271,059			328,132
OTHER INCOME, Net		6,834			4,213			18,156			6,924
INCOME BEFORE INCOME TAXES		103,337			114,150			289,215			335,056
INCOME TAX EXPENSE		23,756			26,308			69,296			80,430
NET INCOME	$	79,581		$	87,842		$	219,919		$	254,626
EARNINGS PER SHARE
Basic	$	1.60		$	1.78		$	4.44		$	5.17
Diluted	$	1.59		$	1.76		$	4.40		$	5.13
Basic weighted average shares		49,791			49,435			49,582			49,269
Diluted weighted average shares		50,148			49,856			49,955			49,631

(1) Derived from audited financial statements

THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS (Amounts in Thousands Except Share and Per Share Amounts) (Unaudited)
ASSETS	February 3, 2024				January 28, 2023 (1)
CURRENT ASSETS:
Cash and cash equivalents	$	268,213			$	252,077
Short-term investments		22,210				20,997
Receivables		8,697				12,648
Inventory		126,290				125,134
Prepaid expenses and other assets		18,846				12,480
Total current assets		444,256				423,336
PROPERTY AND EQUIPMENT		489,037				466,321
Less accumulated depreciation and amortization		(360,200	)			(353,919	)
		128,837				112,402
OPERATING LEASE RIGHT-OF-USE ASSETS		280,813				271,421
LONG-TERM INVESTMENTS		24,993				20,624
OTHER ASSETS		10,911				9,796
Total assets	$	889,810			$	837,579
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	45,958			$	44,835
Accrued employee compensation		49,827				55,490
Accrued store operating expenses		19,067				19,754
Gift certificates redeemable		16,667				16,777
Current portion of operating lease liabilities		85,265				89,187
Income taxes payable		4,672				—
Total current liabilities		221,456				226,043
DEFERRED COMPENSATION		24,993				20,624
NON-CURRENT OPERATING LEASE LIABILITIES		230,141				214,598
Total liabilities		476,590				461,265
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; 50,445,186 and 50,092,616 shares issued and outstanding at February 3, 2024 and January 28, 2023, respectively		504				501
Additional paid-in capital		192,686				178,964
Retained earnings		220,030				196,849
Total stockholders’ equity		413,220				376,314
Total liabilities and stockholders’ equity	$	889,810			$	837,579

(1) Derived from audited financial statements

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240315498839/en/

Thomas B. Heacock, Chief Financial Officer

The Buckle, Inc.

(308) 236-8491

Source: The Buckle, Inc.

FAQ

What was the net income for The Buckle, Inc. for the fiscal quarter ended February 3, 2024?

The net income for The Buckle, Inc. for the fiscal quarter ended February 3, 2024, was $79.6 million.

What was the net income for The Buckle, Inc. for the fiscal year ended February 3, 2024?

The net income for The Buckle, Inc. for the fiscal year ended February 3, 2024, was $219.9 million.

How did net sales perform for The Buckle, Inc. for the 14-week fiscal quarter ended February 3, 2024?

Net sales for the 14-week fiscal quarter ended February 3, 2024, decreased by 4.8 percent compared to the previous year.

What happened to comparable store net sales for The Buckle, Inc. for the 14-week period ended February 3, 2024?

Comparable store net sales for the 14-week period ended February 3, 2024, decreased by 9.6 percent compared to the prior year.

How did online sales perform for The Buckle, Inc. for the 14-week period ended February 3, 2024?

Online sales for the 14-week period ended February 3, 2024, decreased by 12.4 percent compared to the previous year.