The Buckle, Inc. Reports First Quarter Financial Results
The Buckle, Inc. (NYSE: BKE) announced today a net loss for the fiscal quarter ended May 2, 2020 of $11.8 million, or $0.24 per share ($0.24 per share on a diluted basis).
Net sales for the 13-week fiscal quarter ended May 2, 2020 decreased 42.7 percent to $115.4 million from net sales of $201.3 million for the prior year 13-week fiscal quarter ended May 4, 2019. Online sales for the quarter increased 31.5 percent to $32.1 million for the 13-week period ended May 2, 2020, compared to net sales of $24.4 million for the 13-week period ended May 4, 2019.
As previously announced, Buckle closed all brick and mortar stores due to the COVID-19 pandemic for an indefinite period beginning March 18, 2020. The Company began the process of reopening certain stores the week of April 26, 2020, following state and local reopening guidelines. As of May 2, 2020, 37 stores had reopened. The Company has continued to reopen stores each week in May, with 331 total stores currently reopened. The Company’s online store has remained open without interruption. As a result of the store closures, the Company plans to only report total net sales and does not plan to separately report comparable store sales during this time.
As a result of the store closures, Buckle reported a net loss for the first quarter of fiscal 2020 of $11.8 million, or $0.24 per share ($0.24 per share on a diluted basis), compared with net income of $15.1 million, or $0.31 per share ($0.31 per share on a diluted basis) for the first quarter of fiscal 2019.
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 (877) 336-4441 for domestic calls or (409) 207-6985 for international calls and reference the conference code 7167680. A replay of the call will be available for a two-week period beginning today at 2:00 p.m. EDT by calling (866) 207-1041 for domestic calls or (402) 970-0847 for international calls and entering the conference code 8302590.
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 first 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.
Financial Tables to Follow
THE BUCKLE, INC.
CONSOLIDATED STATEMENTS OF INCOME(Amounts in Thousands Except Per Share Amounts)
(Unaudited)
Thirteen Weeks Ended
May 2,
2020
May 4,
2019
SALES, Net of returns and allowances
$
115,413
$
201,313
COST OF SALES (Including buying, distribution, and occupancy costs)
88,588
124,660
Gross profit
26,825
76,653
OPERATING EXPENSES:
Selling
33,504
46,609
General and administrative
9,503
11,310
43,007
57,919
INCOME (LOSS) FROM OPERATIONS
(16,182
)
18,734
OTHER INCOME, Net
574
1,255
INCOME (LOSS) BEFORE INCOME TAXES
(15,608
)
19,989
INCOME TAX EXPENSE (BENEFIT)
(3,824
)
4,897
NET INCOME (LOSS)
$
(11,784
)
$
15,092
EARNINGS (LOSS) PER SHARE:
Basic
$
(0.24
)
$
0.31
Diluted
$
(0.24
)
$
0.31
Basic weighted average shares
48,725
48,552
Diluted weighted average shares
48,922
48,734
THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
ASSETS
May 2,
2020
February 1,
2020 (1)
May 4,
2019
CURRENT ASSETS:
Cash and cash equivalents
$
185,037
$
220,969
$
183,939
Short-term investments
17,661
12,532
53,659
Receivables
1,774
3,136
5,780
Inventory
121,671
121,258
120,814
Prepaid expenses and other assets
13,438
20,935
20,406
Total current assets
339,581
378,830
384,598
PROPERTY AND EQUIPMENT
451,142
452,205
453,578
Less accumulated depreciation and amortization
(341,073
)
(338,357
)
(326,705
)
110,069
113,848
126,873
OPERATING LEASE RIGHT-OF-USE ASSETS
326,587
350,088
345,473
LONG-TERM INVESTMENTS
15,922
15,863
15,667
OTHER ASSETS
9,491
9,261
7,754
Total assets
$
801,650
$
867,890
$
880,365
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
19,212
$
26,491
$
36,533
Accrued employee compensation
5,310
22,929
11,636
Accrued store operating expenses
15,927
17,837
22,124
Gift certificates redeemable
13,513
15,319
14,262
Current portion of operating lease liabilities
84,410
87,314
72,857
Income taxes payable
72
2,751
9,651
Total current liabilities
138,444
172,641
167,063
DEFERRED COMPENSATION
15,204
15,863
14,914
NON-CURRENT OPERATING LEASE LIABILITIES
270,053
290,238
300,430
Total liabilities
423,701
478,742
482,407
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,408,181 shares at May 2, 2020, 49,205,681 shares at February 1, 2020, and 49,231,625 shares at May 4, 2019
494
492
492
Additional paid-in capital
152,841
152,258
149,860
Retained earnings
224,614
236,398
247,606
Total stockholders’ equity
377,949
389,148
397,958
Total liabilities and stockholders’ equity
$
801,650
$
867,890
$
880,365
(1) Derived from audited financial statements.
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