The Buckle, Inc. Reports Fourth Quarter and Fiscal Year 2016 Net Income

KEARNEY, Neb.--()--The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended January 28, 2017 was $36.0 million, or $0.75 per share ($0.74 per share on a diluted basis). Net income for the fiscal year ended January 28, 2017 was $98.0 million, or $2.04 per share ($2.03 per share on a diluted basis).

Dennis Nelson, President and Chief Executive Officer, commented:

“Thank you to each of Buckle’s 8,000+ teammates for their dedication and efforts to managing our business in what has proven to be a challenging and evolving retail environment. While overall results for both the quarter and year were below expectations, we were able to maintain merchandise margins and finish the year with an operating margin of 15.7 percent. Our focus on running a profitable business also enabled us to maintain a strong balance sheet, ending the year with $264.6 million in cash and investments and no debt.”

Net sales for the 13-week fiscal quarter ended January 28, 2017 decreased 15.7 percent to $280.0 million from net sales of $332.0 million for the prior year 13-week fiscal quarter ended January 30, 2016. Comparable store net sales for the 13-week period ended January 28, 2017 decreased 16.1 percent from comparable store net sales for the prior year 13-week period ended January 30, 2016. Online sales decreased 8.8 percent to $32.2 million for the 13-week period ended January 28, 2017, compared to net sales of $35.3 million for the 13-week period ended January 30, 2016.

Net sales for the 52-week fiscal year ended January 28, 2017 decreased 12.9 percent to $974.9 million from net sales of $1.120 billion for the 52-week fiscal year ended January 30, 2016. Comparable store net sales for the 52-week period ended January 28, 2017 decreased 13.5 percent from comparable store net sales for the prior year 52-week period ended January 30, 2016. Online sales decreased 5.4 percent to $99.8 million for the 52-week period ended January 28, 2017, compared to net sales of $105.5 million for the 52-week period ended January 30, 2016.

Net income for the fourth quarter of fiscal 2016 was $36.0 million, or $0.75 per share ($0.74 per share on a diluted basis), compared with $54.3 million, or $1.13 per share ($1.13 per share on a diluted basis) for the fourth quarter of fiscal 2015.

Net income for the fiscal year ended January 28, 2017 was $98.0 million, or $2.04 per share ($2.03 per share on a diluted basis), compared with $147.3 million, or $3.06 per share ($3.06 per share on a diluted basis) for the fiscal year ended January 30, 2016.

Please note that net sales for the 13-week and 52-week periods ended January 28, 2017 are reported net of the impact of both reward redemptions and accruals for estimated future rewards related to the Company’s new Guest Loyalty program, which launched during the fiscal quarter ended April 30, 2016.

Management will hold a conference call at 9:00 a.m. EST today to discuss fourth quarter results. To participate in the call, please call (800) 230-1059 for domestic calls or (612) 234-9960 for international calls and reference the conference code 419676. A replay of the call will be available for a two-week period beginning March 10, 2017 at 11:00 a.m. EST by calling (800) 475-6701 for domestic calls or (320) 365-3844 for international calls and entering the conference code 419676.

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 465 retail stores in 44 states. As of the end of the fiscal year, it operated 467 stores in 44 states compared with 468 stores in 44 states at the end of fiscal 2015.

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 Fifty-Two Weeks Ended
January 28, January 30, January 28, January 30,
2017 2016 2017

2016 (1)

 
SALES, Net of returns and allowances $ 279,960 $ 332,031 $ 974,873 $ 1,119,616
 
COST OF SALES (Including buying, distribution, and occupancy costs) 154,277 176,086 577,705 638,215
 
Gross profit 125,683 155,945 397,168 481,401
 
OPERATING EXPENSES:
Selling 61,485 64,751 205,933 212,531
General and administrative 8,770 7,883 38,475 39,282
70,255 72,634 244,408 251,813
 
INCOME FROM OPERATIONS 55,428 83,311 152,760 229,588
 
OTHER INCOME, Net 2,011 3,277 3,511 5,236
 
INCOME BEFORE INCOME TAXES 57,439 86,588 156,271 234,824
 
PROVISION FOR INCOME TAXES 21,444 32,249 58,310 87,541
 
NET INCOME $ 35,995 $ 54,339 $ 97,961 $ 147,283
 
 
EARNINGS PER SHARE
Basic $ 0.75 $ 1.13 $ 2.04 $ 3.06
 
Diluted $ 0.74 $ 1.13 $ 2.03 $ 3.06
 
Basic weighted average shares 48,177 48,096 48,125 48,079
Diluted weighted average shares 48,335 48,209 48,256 48,204
 
(1) Derived from audited financial statements
 

THE BUCKLE, INC.

   
 

CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands Except Share and Per Share Amounts)

(Unaudited)

       
   
January 28, January 30,
ASSETS 2017 2016 (1)
 
CURRENT ASSETS:
Cash and cash equivalents

$

196,536 $ 161,185
Short-term investments 49,994 36,465
Receivables 8,210 9,651
Inventory 125,694 149,566
Prepaid expenses and other assets 6,023   6,030  
Total current assets 386,457   362,897  
 
PROPERTY AND EQUIPMENT 459,359 450,762
Less accumulated depreciation and amortization (290,364 ) (277,981 )
168,995   172,781  
 
LONG-TERM INVESTMENTS 18,092 33,826
OTHER ASSETS 6,303   3,269  
 
Total assets $ 579,847   $ 572,773  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
CURRENT LIABILITIES:
Accounts payable $ 25,079 $ 33,862
Accrued employee compensation 26,906 33,126
Accrued store operating expenses 14,695 6,639
Gift certificates redeemable 21,199 22,858
Income taxes payable 10,737   11,141  
Total current liabilities 98,616   107,626  
 
DEFERRED COMPENSATION 13,092 12,849
DEFERRED RENT LIABILITY 37,600   39,655  
Total liabilities 149,308   160,130  
 
COMMITMENTS
 
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; 48,622,780 and 48,428,110 shares issued and outstanding at January 28, 2017 and January 30, 2016, respectively 486 484
Additional paid-in capital 139,398 134,864
Retained earnings 290,737 277,626
Accumulated other comprehensive loss (82 ) (331 )
Total stockholders’ equity 430,539   412,643  
 
Total liabilities and stockholders’ equity $ 579,847   $ 572,773  
 
(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 Fourth Quarter and Fiscal Year 2016 Net Income

Contacts

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