The Buckle, Inc. Reports Third Quarter Net Income

KEARNEY, Neb.--()--The Buckle, Inc. (NYSE:BKE) announced today that net income for the fiscal quarter ended October 31, 2015 was $35.9 million, or $0.75 per share ($0.74 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended October 31, 2015 decreased 4.1 percent to $280.2 million from net sales of $292.2 million for the prior year 13-week fiscal quarter ended November 1, 2014. Comparable store net sales for the 13-week period ended October 31, 2015 decreased 5.2 percent from comparable store net sales for the prior year 13-week period ended November 1, 2014. Online sales increased 13.6 percent to $25.9 million for the 13-week period ended October 31, 2015, compared to net sales of $22.8 million for the 13-week period ended November 1, 2014.

Net sales for the 39-week fiscal period ended October 31, 2015 decreased 1.5 percent to $787.6 million from net sales of $799.6 million for the prior year 39-week fiscal period ended November 1, 2014. Comparable store net sales for the 39-week period ended October 31, 2015 decreased 3.1 percent from comparable store net sales for the prior year 39-week period ended November 1, 2014. Online sales increased 14.4 percent to $70.2 million for the 39-week period ended October 31, 2015, compared to net sales of $61.4 million for the 39-week period ended November 1, 2014.

Net income for the third quarter of fiscal 2015 was $35.9 million, or $0.75 per share ($0.74 per share on a diluted basis), compared with $40.6 million, or $0.85 per share ($0.84 per share on a diluted basis) for the third quarter of fiscal 2014.

Net income for the 39-week fiscal period ended October 31, 2015 was $92.9 million, or $1.93 per share ($1.93 per share on a diluted basis), compared with $102.4 million, or $2.14 per share ($2.13 per share on a diluted basis) for the 39-week period ended November 1, 2014.

Management will hold a conference call at 10:30 a.m. EST today to discuss results for the quarter. To participate in the call, please call (800) 230-1074 and reference the conference code 373105. A replay of the call will be available for a two-week period beginning today at 12:30 p.m. EST by calling (800) 475-6701 and entering the conference code 373105.

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 469 retail stores in 44 states. As of the end of the fiscal quarter, it operated 468 stores in 44 states compared with 461 stores in 44 states at the end of the third quarter of fiscal 2014.

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,     November 1, October 31,     November 1,
2015 2014 2015 2014
 
SALES, Net of returns and allowances $ 280,187 $ 292,201 $ 787,585 $ 799,601
 
COST OF SALES (Including buying, distribution, and occupancy costs)   162,923   164,409   462,129   459,684
 
Gross profit   117,264   127,792   325,456   339,917
 
OPERATING EXPENSES:
Selling 52,268 52,950 147,780 147,055
General and administrative   8,701   10,289   31,399   30,326
  60,969   63,239   179,179   177,381
 
INCOME FROM OPERATIONS 56,295 64,553 146,277 162,536
 
OTHER INCOME, Net   951   226   1,959   831
 
INCOME BEFORE INCOME TAXES 57,246 64,779 148,236 163,367
 
PROVISION FOR INCOME TAXES   21,353   24,163   55,292   60,936
 
NET INCOME $ 35,893 $ 40,616 $ 92,944 $ 102,431
 
 
EARNINGS PER SHARE:
Basic $ 0.75 $ 0.85 $ 1.93 $ 2.14
 
Diluted $ 0.74 $ 0.84 $ 1.93 $ 2.13
 
Basic weighted average shares 48,073 47,891 48,074 47,890
Diluted weighted average shares 48,219 48,079 48,203 48,064
 
 
THE BUCKLE, INC.
 
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
                 
October 31, January 31, November 1,
ASSETS 2015 2015 (1) 2014
 
CURRENT ASSETS:
Cash and cash equivalents $ 121,430 $ 133,708 $ 182,267
Short-term investments 28,181 25,857 25,811
Receivables 12,855 8,567 13,052
Inventory 175,852 129,921 147,221
Prepaid expenses and other assets   28,917     26,536     31,667  
Total current assets   367,235     324,589     400,018  
 
PROPERTY AND EQUIPMENT 450,185 427,915 420,868
Less accumulated depreciation and amortization   (271,813 )   (255,252 )   (249,556 )
  178,372     172,663     171,312  
 
LONG-TERM INVESTMENTS 42,372 43,698 44,310
OTHER ASSETS   1,914     2,043     2,013  
 
$ 589,893   $ 542,993   $ 617,653  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
CURRENT LIABILITIES:
Accounts payable $ 52,537 $ 35,714 $ 53,501
Accrued employee compensation 21,382 36,920 24,484
Accrued store operating expenses 11,410 9,984 13,018
Gift certificates redeemable 16,738 23,992 15,943
Income taxes payable   6,420     15,661     7,978  
Total current liabilities 108,487 122,271 114,924
 
DEFERRED COMPENSATION 13,358 14,261 14,248
DEFERRED RENT LIABILITY 39,623 40,566 40,212
OTHER LIABILITIES   9,821     10,617     9,618  
Total liabilities   171,289     187,715     179,002  
 
COMMITMENTS
 
STOCKHOLDERS’ EQUITY:

Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 48,511,876 shares at October 31, 2015, 48,379,613 shares at January 31, 2015, and 48,374,622 shares at November 1, 2014

485 484 484
Additional paid-in capital 134,886 131,112 130,266
Retained earnings 283,658 224,111 308,654
Accumulated other comprehensive loss   (425 )   (429 )   (753 )
Total stockholders’ equity   418,604     355,278     438,651  
 
$ 589,893   $ 542,993   $ 617,653  
 
(1) Derived from audited financial statements.
 

Contacts

The Buckle, Inc.
Karen B. Rhoads, 308-236-8491
Chief Financial Officer

Release Summary

THE BUCKLE, INC. REPORTS THIRD QUARTER NET INCOME

Contacts

The Buckle, Inc.
Karen B. Rhoads, 308-236-8491
Chief Financial Officer