MRO Magazine

The Buckle, Inc. Reports Second Quarter Net Income


August 20, 2015
By Business Wire News

KEARNEY, Neb.

The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended August 1, 2015 was $23.5 million, or $0.49 per share ($0.49 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended August 1, 2015 increased 0.1 percent to $236.1 million from net sales of $235.7 million for the prior year 13-week fiscal quarter ended August 2, 2014. Comparable store net sales for the 13-week period ended August 1, 2015 decreased 1.7 percent from comparable store net sales for the prior year 13-week period ended August 2, 2014. Online sales increased 17.4 percent to $20.1 million for the 13-week period ended August 1, 2015, compared to net sales of $17.1 million for the 13-week period ended August 2, 2014.

Net sales were $507.4 million for both the 26-week fiscal period ended August 1, 2015 and the 26-week fiscal period ended August 2, 2014. Comparable store net sales for the 26-week period ended August 1, 2015 decreased 2.0 percent from comparable store net sales for the prior year 26-week period ended August 2, 2014. Online sales increased 14.9 percent to $44.3 million for the 26-week period ended August 1, 2015, compared to net sales of $38.6 million for the 26-week period ended August 2, 2014.

Net income for the second quarter of fiscal 2015 was $23.5 million, or $0.49 per share ($0.49 per share on a diluted basis), compared with $24.5 million, or $0.51 per share ($0.51 per share on a diluted basis) for the second quarter of fiscal 2014.

Net income for the 26-week fiscal period ended August 1, 2015 was $57.1 million, or $1.19 per share ($1.18 per share on a diluted basis), compared with $61.8 million, or $1.29 per share ($1.29 per share on a diluted basis) for the 26-week period ended August 2, 2014.

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 (800) 230-1096 and reference the conference code 365745. A replay of the call will be available for a two-week period beginning today at 12:00 p.m. EDT by calling (800) 475-6701 and entering the conference code 365745.

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 464 retail stores in 44 states. As of the end of the fiscal quarter, it operated 464 stores in 44 states compared with 456 stores in 44 states at the end of the second 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 EndedTwenty-Six Weeks Ended
August 1,    August 2,August 1,    August 2,
2015201420152014
 
SALES, Net of returns and allowances $ 236,053 $ 235,725 $ 507,398 $ 507,400
 
COST OF SALES (Including buying, distribution, and occupancy costs) 141,458   140,800   299,206   295,275
 
Gross profit 94,595   94,925   208,192   212,125
 
OPERATING EXPENSES:
Selling 46,358 46,311 95,512 94,105
General and administrative 11,060   9,843   22,698   20,037
57,418   56,154   118,210   114,142
 
INCOME FROM OPERATIONS 37,177 38,771 89,982 97,983
 
OTHER INCOME, Net 272   260   1,008   605
 
INCOME BEFORE INCOME TAXES 37,449 39,031 90,990 98,588
 
PROVISION FOR INCOME TAXES 13,968   14,558   33,939   36,773
 
NET INCOME $ 23,481   $ 24,473   $ 57,051   $ 61,815
 
 
EARNINGS PER SHARE:
Basic $ 0.49   $ 0.51   $ 1.19   $ 1.29
 
Diluted $ 0.49   $ 0.51   $ 1.18   $ 1.29
 
Basic weighted average shares 48,074 47,891 48,074 47,889
Diluted weighted average shares 48,202 48,066 48,195 48,057
 
 
THE BUCKLE, INC.
 
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
                   
                 
August 1,January 31,August 2,
ASSETS20152015 (1)2014
 
CURRENT ASSETS:
Cash and cash equivalents $ 122,458 $ 133,708 $ 169,460
Short-term investments 19,838 25,857 17,158
Receivables 16,037 8,567 12,355
Inventory 150,789 129,921 128,184
Prepaid expenses and other assets 27,707   26,536   30,761  
Total current assets 336,829   324,589   357,918  
 
PROPERTY AND EQUIPMENT 442,954 427,915 411,969
Less accumulated depreciation and amortization (265,296 ) (255,252 ) (245,945 )
177,658   172,663   166,024  
 
LONG-TERM INVESTMENTS 48,455 43,698 43,903
OTHER ASSETS 1,978   2,043   2,082  
 
$ 564,920   $ 542,993   $ 569,927  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
CURRENT LIABILITIES:
Accounts payable $ 59,212 $ 35,714 $ 51,631
Accrued employee compensation 18,884 36,920 20,082
Accrued store operating expenses 10,495 9,984 11,078
Gift certificates redeemable 17,662 23,992 16,910
Income taxes payable   15,661    
Total current liabilities 106,253 122,271 99,701
 
DEFERRED COMPENSATION 13,576 14,261 13,916
DEFERRED RENT LIABILITY 40,804 40,566 39,597
OTHER LIABILITIES 9,769   10,617   9,969  
Total liabilities 170,402   187,715   163,183  
 
COMMITMENTS
 
STOCKHOLDERS’ EQUITY:

Common stock, authorized 100,000,000 shares of $.01 par value;
issued and outstanding; 48,531,973 shares at August 1, 2015, 48,379,613
shares at January 31, 2015, and 48,374,622 shares at August 2, 2014

485 484 484
Additional paid-in capital 135,621 131,112 128,333
Retained earnings 258,837 224,111 278,680
Accumulated other comprehensive loss (425 ) (429 ) (753 )
Total stockholders’ equity 394,518   355,278   406,744  
 
$ 564,920   $ 542,993   $ 569,927  
 
(1) Derived from audited financial statements.
 

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