The Buckle, Inc. Reports Third Quarter Net Income

Rhea-AI Summary

The Buckle, Inc. (BKE) reported a net income of $41.6 million, or $0.85 per share, for the fiscal quarter ending October 31, 2020, marking a significant increase from $26.0 million in the same prior year period. Net sales surged 12.0% to $251.0 million, with comparable store sales up 12.4%. Online sales saw an impressive growth of 72.5% to $46.4 million. However, for the 39-week period, net sales declined by 7.4% to $582.4 million, along with a 7.1% decrease in comparable store sales. Overall, net income for the 39-week period rose to $64.5 million, compared to $57.5 million last year.

Positive

• Net income for Q3 2020 increased to $41.6 million from $26.0 million in Q3 2019.
• Net sales for Q3 2020 increased by 12.0% to $251.0 million.
• Comparable store sales increased by 12.4% in Q3 2020.
• Online sales surged 72.5% to $46.4 million in Q3 2020.
• Net income for the 39-week period rose to $64.5 million from $57.5 million a year prior.

Negative

• Net sales for the 39-week period decreased by 7.4% compared to the prior year.
• Comparable store sales for the 39-week period fell 7.1% year-over-year.

KEARNEY, Neb.--(BUSINESS WIRE)--The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended October 31, 2020 was $41.6 million, or $0.85 per share ($0.85 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended October 31, 2020 increased 12.0 percent to $251.0 million from net sales of $224.1 million for the prior year 13-week fiscal quarter ended November 2, 2019. Comparable store net sales for the 13-week period ended October 31, 2020 increased 12.4 percent from comparable store net sales for the prior year 13-week period ended November 2, 2019. Online sales increased 72.5 percent to $46.4 million for the 13-week period ended October 31, 2020, compared to net sales of $26.9 million for the 13-week period ended November 2, 2019.

Net sales for the 39-week fiscal period ended October 31, 2020 decreased 7.4 percent to $582.4 million from net sales of $629.3 million for the prior year 39-week fiscal period ended November 2, 2019. Comparable store net sales for the 39-week period ended October 31, 2020 decreased 7.1 percent from comparable store net sales for the prior year 39-week period ended November 2, 2019. Online sales increased 67.3 percent to $124.4 million for the 39-week period ended October 31, 2020, compared to net sales of $74.4 million for the 39-week period ended November 2, 2019.

Net income for the third quarter of fiscal 2020 was $41.6 million, or $0.85 per share ($0.85 per share on a diluted basis), compared with $26.0 million, or $0.54 per share ($0.53 per share on a diluted basis) for the third quarter of fiscal 2019.

Net income for the 39-week fiscal period ended October 31, 2020 was $64.5 million, or $1.32 per share ($1.32 per share on a diluted basis), compared with $57.5 million, or $1.18 per share ($1.18 per share on a diluted basis) for the 39-week period ended November 2, 2019.

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 (844) 291-6362 for domestic calls or (234) 720-6995 for international calls and reference the conference code 9346005. A replay of the call will be available for a two-week period beginning today at 1:00 p.m. EST by calling (866) 207-1041 for domestic calls or (402) 970-0847 for international calls and entering the conference code 8449047.

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 446 retail stores in 42 states. As of the end of the fiscal quarter, it operated 446 stores in 42 states compared with 449 stores in 42 states at the end of the third quarter of fiscal 2019.

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								Thirty-Nine Weeks Ended
		October 31, 2020				November 2, 2019				October 31, 2020				November 2, 2019
SALES, Net of returns and allowances		$	251,005			$	224,121			$	582,443			$	629,251
COST OF SALES (Including buying, distribution, and occupancy costs)		134,055				130,587				345,286				380,367
Gross profit		116,950				93,534				237,157				248,884
OPERATING EXPENSES:
Selling		52,894				51,282				124,655				146,426
General and administrative		9,930				8,942				29,026				30,812
		62,824				60,224				153,681				177,238
INCOME FROM OPERATIONS		54,126				33,310				83,476				71,646
OTHER INCOME, Net		1,020				1,105				1,998				4,446
INCOME BEFORE INCOME TAXES		55,146				34,415				85,474				76,092
INCOME TAX EXPENSE		13,511				8,431				20,941				18,642
NET INCOME		$	41,635			$	25,984			$	64,533			$	57,450
EARNINGS PER SHARE:
Basic		$	0.85			$	0.54			$	1.32			$	1.18
Diluted		$	0.85			$	0.53			$	1.32			$	1.18
Basic weighted average shares		48,714				48,549				48,718				48,550
Diluted weighted average shares		48,987				48,809				48,941				48,768

THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
ASSETS		October 31, 2020				February 1, 2020 (1)				November 2, 2019
CURRENT ASSETS:
Cash and cash equivalents		$	331,923			$	220,969			$	213,836
Short-term investments		7,410				12,532				31,946
Receivables		1,763				3,136				9,432
Inventory		118,707				121,258				138,879
Prepaid expenses and other assets		21,749				20,935				22,195
Total current assets		481,552				378,830				416,288
PROPERTY AND EQUIPMENT		451,708				452,205				453,859
Less accumulated depreciation and amortization		(349,411		)		(338,357		)		(336,098		)
		102,297				113,848				117,761
OPERATING LEASE RIGHT-OF-USE ASSETS		287,197				350,088				340,417
LONG-TERM INVESTMENTS		16,729				15,863				15,710
OTHER ASSETS		10,104				9,261				7,939
Total assets		$	897,879			$	867,890			$	898,115
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	57,629			$	26,491			$	44,771
Accrued employee compensation		23,611				22,929				18,122
Accrued store operating expenses		23,096				17,837				21,539
Gift certificates redeemable		12,093				15,319				12,688
Current portion of operating lease liabilities		78,860				87,314				81,541
Income taxes payable		7,994				2,751				—
Total current liabilities		203,283				172,641				178,661
DEFERRED COMPENSATION		16,729				15,863				15,410
NON-CURRENT OPERATING LEASE LIABILITIES		235,463				290,238				286,706
Total liabilities		455,475				478,742				480,777
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,407,731 shares at October 31, 2020, 49,205,681 shares at February 1, 2020, and 49,223,811 shares at November 2, 2019		494				492				492
Additional paid-in capital		155,778				152,258				151,383
Retained earnings		286,132				236,398				265,463
Total stockholders’ equity		442,404				389,148				417,338
Total liabilities and stockholders’ equity		$	897,879			$	867,890			$	898,115
(1) Derived from audited financial statements.