The Buckle, Inc. Reports Second Quarter Net Income and Announces CFO to Remain with Company

KEARNEY, Neb.--(BUSINESS WIRE)--The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended July 30, 2011 was $23.6 million, or $0.50 per share ($0.50 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended July 30, 2011 increased 12.6 percent to $212.4 million from net sales of $188.6 million for the prior year 13-week fiscal quarter ended July 31, 2010. Comparable store net sales for the 13-week period ended July 30, 2011 increased 8.9 percent from comparable store net sales for the prior year 13-week period ended July 31, 2010. Online sales (which are not included in comparable store sales) increased 21.8 percent to $14.3 million for the 13-week period ended July 30, 2011, compared to net sales of $11.7 million for the 13-week period ended July 31, 2010.

Net sales for the 26-week fiscal period ended July 30, 2011 increased 12.2 percent to $452.5 million from net sales of $403.4 million for the prior year 26-week fiscal period ended July 31, 2010. Comparable store net sales year-to-date for the 26-week period ended July 30, 2011 increased 8.5 percent from comparable store net sales for the 26-week period ended July 31, 2010. Online sales (which are not included in comparable store sales) increased 20.1 percent to $31.4 million for the 26-week period ended July 30, 2011, compared to net sales of $26.2 million for the 26-week period ended July 31, 2010.

Net income for the second quarter of fiscal 2011 was $23.6 million, or $0.50 per share ($0.50 per share on a diluted basis), compared with $20.7 million, or $0.45 per share ($0.44 per share on a diluted basis) for the second quarter of fiscal 2010.

Net income for the 26-week fiscal period ended July 30, 2011 was $57.0 million, or $1.22 per share ($1.21 per share on a diluted basis), compared with $50.9 million, or $1.10 per share ($1.08 per share on a diluted basis) for the 26-week fiscal period ended July 31, 2010.

The Buckle, Inc. also announced that Karen B. Rhoads will not step down from her position with the Company effective February 1, 2012 and plans to remain with the Company as Vice President of Finance and Chief Financial Officer.

Management will hold a conference call at 9:00 a.m. EDT today to discuss results for the quarter. To participate in the call, please call [phone] and reference the conference code 212426. A replay of the call will be available for a two–week period beginning August 18, 2011 at 11:00 a.m. EDT by calling (800) 475–6701 and entering the conference code 212426.

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 428 retail stores in 42 states, which includes the opening of a new store in Providence, Rhode Island earlier this week (the Company’s first store in the state of Rhode Island). As of the end of the fiscal quarter, it operated 427 stores in 41 states compared with 419 stores in 41 states at the end of the second quarter of fiscal 2010.

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.

Financial Tables to Follow

THE BUCKLE, INC.
STATEMENTS OF INCOME
(Amounts in Thousands Except Per Share Amounts)
(Unaudited)
	Thirteen Weeks Ended				Twenty-six Weeks Ended
	July 30,		July 31,		July 30,		July 31,
	2011		2010		2011		2010
SALES, Net of returns and allowances	$	212,378	$	188,639	$	452,470	$	403,436
COST OF SALES (Including buying,
distribution, and occupancy costs)		125,233		113,251		262,381		234,597
Gross profit		87,145		75,388		190,089		168,839
OPERATING EXPENSES:
Selling		42,428		36,644		85,159		76,487
General and administrative		7,942		6,218		16,801		13,639
		50,370		42,862		101,960		90,126
INCOME FROM OPERATIONS		36,775		32,526		88,129		78,713
OTHER INCOME, Net		506		566		2,118		2,399
INCOME BEFORE INCOME TAXES		37,281		33,092		90,247		81,112
PROVISION FOR INCOME TAXES		13,723		12,345		33,220		30,255
NET INCOME	$	23,558	$	20,747	$	57,027	$	50,857
EARNINGS PER SHARE:
Basic	$	0.50	$	0.45	$	1.22	$	1.10
Diluted	$	0.50	$	0.44	$	1.21	$	1.08
Basic weighted average shares		46,824		46,165		46,786		46,109
Diluted weighted average shares		47,314		47,059		47,289		47,026

THE BUCKLE, INC.
BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
	July 30,			January 29,			July 31,
ASSETS	2011			2011 (1)			2010
CURRENT ASSETS:
Cash and cash equivalents	$	114,903		$	116,470		$	93,082
Short-term investments		24,628			22,892			30,380
Receivables		9,388			14,363			9,077
Inventory		126,842			88,593			108,680
Prepaid expenses and other assets		15,074			14,718			20,287
Total current assets		290,835			257,036			261,506
PROPERTY AND EQUIPMENT:		355,525			342,413			334,004
Less accumulated depreciation and amortization		(180,361	)		(173,179	)		(165,956	)
		175,164			169,234			168,048
LONG-TERM INVESTMENTS		58,563			66,162			73,798
OTHER ASSETS		2,416			2,412			5,825
	$	526,978		$	494,844		$	509,177
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	46,469		$	33,489		$	38,614
Accrued employee compensation		17,225			36,018			16,276
Accrued store operating expenses		9,346			9,653			8,338
Gift certificates redeemable		11,514			17,213			9,310
Income taxes payable		-			-			493
Total current liabilities		84,554			96,373			73,031
DEFERRED COMPENSATION		8,547			7,727			7,110
DEFERRED RENT LIABILITY		37,736			37,430			37,605
OTHER LIABILITIES		7,187			7,649			-
Total liabilities		138,024			149,179			117,746
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value;
issued and outstanding; 47,361,905 shares at July 30, 2011, 47,127,926
shares at January 29, 2011, and 46,790,821 shares at July 31, 2010		474			471			468
Additional paid-in capital		94,804			89,719			83,716
Retained earnings		294,235			256,146			307,914
Accumulated other comprehensive loss		(559	)		(671	)		(667	)
Total stockholders’ equity		388,954			345,665			391,431
	$	526,978		$	494,844		$	509,177
(1) Derived from audited financial statements.