The Buckle, Inc. Reports Second Quarter Net Income

Rhea-AI Summary

The Buckle, Inc. (NYSE: BKE) reported a strong fiscal quarter ending July 31, 2021, with net income of $51.4 million, or $1.05 per share, up from $34.7 million a year prior. Net sales surged 36.6% to $295.1 million compared to $216.0 million in Q2 2020. Year-to-date, net sales increased 79.3% to $594.2 million from $331.4 million in the first half of 2020. While online sales dipped 5.5% for the quarter, they rose 24.5% for the half-year. The results reflect recovery from previous store closures due to COVID-19, which significantly affected 2020 sales.

Positive

• Net income for Q2 2021 increased 48.2% year-over-year to $51.4 million.
• Net sales for Q2 2021 rose 36.6% to $295.1 million.
• For the 26-week period, net sales surged 79.3% to $594.2 million.
• Online sales for the 26-week period grew 24.5% to $97.2 million.

Negative

• Online sales decreased 5.5% in Q2 2021 compared to the same period in 2020.

The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended July 31, 2021 was $51.4 million, or $1.05 per share ($1.04 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended July 31, 2021 increased 36.6 percent to $295.1 million from net sales of $216.0 million for the prior year 13-week fiscal quarter ended August 1, 2020. Compared to the same 13-week period in fiscal 2019, net sales increased 44.8 percent from net sales of $203.8 million for the 13-week fiscal quarter ended August 3, 2019. Online sales decreased 5.5 percent to $43.4 million for the 13-week period ended July 31, 2021, compared to net sales of $46.0 million for the 13-week period ended August 1, 2020. Compared to the same 13-week period in fiscal 2019, online sales increased 88.1 percent from net sales of $23.1 million for the 13-week period ended August 3, 2019.

Net sales for the 26-week fiscal period ended July 31, 2021 increased 79.3 percent to $594.2 million from net sales of $331.4 million for the prior year 26-week fiscal period ended August 1, 2020. Compared to the same 26-week period in fiscal 2019, net sales increased 46.7 percent from net sales of $405.1 million for the 26-week fiscal period ended August 3, 2019. Online sales increased 24.5 percent to $97.2 million for the 26-week period ended July 31, 2021, compared to net sales of $78.1 million for the 26-week period ended August 1, 2020. Compared to the same 26-week period in fiscal 2019, online sales increased 104.5 percent from net sales of $47.5 million for the 26-week period ended August 3, 2019.

Net income for the second quarter of fiscal 2021 was $51.4 million, or $1.05 per share ($1.04 per share on a diluted basis), compared with net income of $34.7 million, or $0.71 per share ($0.71 per share on a diluted basis) for the second quarter of fiscal 2020.

Net income for the 26-week fiscal period ended July 31, 2021 was $108.7 million, or $2.22 per share ($2.20 per share on a diluted basis), compared with net income of $22.9 million, or $0.47 per share ($0.47 per share on a diluted basis) for the 26-week period ended August 1, 2020.

Results for fiscal 2020 were significantly impacted by the Company’s closure of all brick and mortar stores due to the COVID-19 pandemic beginning March 18, 2020. As a result of the impact of the store closures on prior year reported net sales, the Company will report total net sales compared to the past two years and does not plan to separately report comparable store sales for the periods most affected by the store closures.

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) 336-4440 for domestic calls or (409) 207-6984 for international calls and reference the conference code 8384984. 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 1554929.

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 442 retail stores in 42 states. As of the end of the fiscal quarter, it operated 442 stores in 42 states compared with 446 stores in 42 states at the end of the second quarter of fiscal 2020.

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 31, 2021				August 1, 2020				July 31, 2021				August 1, 2020
SALES, Net of returns and allowances	$	295,120			$	216,025			$	594,245			$	331,438
COST OF SALES (Including buying, distribution, and occupancy costs)	153,101				122,643				304,673				211,231
Gross profit	142,019				93,382				289,572				120,207
OPERATING EXPENSES:
Selling	63,056				38,257				123,056				71,761
General and administrative	11,081				9,593				22,832				19,096
	74,137				47,850				145,888				90,857
INCOME FROM OPERATIONS	67,882				45,532				143,684				29,350
OTHER INCOME, Net	222				404				273				978
INCOME BEFORE INCOME TAXES	68,104				45,936				143,957				30,328
INCOME TAX EXPENSE	16,685				11,254				35,269				7,430
NET INCOME	$	51,419			$	34,682			$	108,688			$	22,898
EARNINGS PER SHARE:
Basic	$	1.05			$	0.71			$	2.22			$	0.47
Diluted	$	1.04			$	0.71			$	2.20			$	0.47
Basic weighted average shares	48,946				48,714				48,946				48,719
Diluted weighted average shares	49,341				48,913				49,325				48,918

THE BUCKLE, INC. CONSOLIDATED BALANCE SHEETS (Amounts in Thousands Except Share and Per Share Amounts) (Unaudited)
ASSETS	July 31, 2021					January 30, 2021 (1)					August 1, 2020
CURRENT ASSETS:
Cash and cash equivalents	$	406,714				$	318,789				$	265,714
Short-term investments	8,592					3,359					12,637
Receivables	6,667					2,823					2,394
Inventory	95,276					101,063					116,479
Prepaid expenses and other assets	20,294					11,190					20,388
Total current assets	537,543					437,224					417,612
PROPERTY AND EQUIPMENT	452,460					451,357					451,899
Less accumulated depreciation and amortization	(352,773		)			(350,942		)			(345,820		)
	99,687					100,415					106,079
OPERATING LEASE RIGHT-OF-USE ASSETS	264,177					279,358					305,814
LONG-TERM INVESTMENTS	19,558					18,320					16,536
OTHER ASSETS	11,720					10,497					9,782
Total assets	$	932,685				$	845,814				$	855,823
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	67,812				$	43,399				$	48,142
Accrued employee compensation	33,878					35,865					9,391
Accrued store operating expenses	30,724					20,303					21,579
Gift certificates redeemable	11,434					14,279					12,611
Current portion of operating lease liabilities	82,255					81,762					81,427
Income taxes payable	—					10,751					—
Total current liabilities	226,103					206,359					173,150
DEFERRED COMPENSATION	19,558					18,320					16,536
NON-CURRENT OPERATING LEASE LIABILITIES	209,472					224,506					251,830
Total liabilities	455,133					449,185					441,516
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,783,381 shares at July 31, 2021, 49,407,731 shares at January 30, 2021, and 49,407,731 shares at August 1, 2020	498					494					494
Additional paid-in capital	163,148					158,058					154,517
Retained earnings	313,906					238,077					259,296
Total stockholders’ equity	477,552					396,629					414,307
Total liabilities and stockholders’ equity	$	932,685				$	845,814				$	855,823

(1)	Derived from audited financial statements

 

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FAQ

What were the financial results for The Buckle, Inc. for the quarter ended July 31, 2021?

The Buckle reported net income of $51.4 million, or $1.05 per share, a 48.2% increase compared to the prior year.

How much did net sales increase for The Buckle for the fiscal quarter ended July 31, 2021?

Net sales increased 36.6% to $295.1 million for the quarter ended July 31, 2021.

What is the online sales trend for The Buckle for the fiscal quarter ended July 31, 2021?

Online sales decreased by 5.5% to $43.4 million in Q2 2021 compared to the same period in 2020.

What were the net sales figures for the first half of 2021 for The Buckle, Inc.?

Net sales for the 26-week period ended July 31, 2021 increased 79.3% to $594.2 million.

What factors influenced The Buckle's sales results for the year?

The results were significantly impacted by recovery from store closures due to the COVID-19 pandemic.