The Buckle, Inc. Reports Third Quarter Net Income
The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended October 31, 2020 was $41.6 million, or $0.85 per share ($0.85 per share on a diluted basis).
Net sales for the 13-week fiscal quarter ended October 31, 2020 increased 12.0 percent to $251.0 million from net sales of $224.1 million for the prior year 13-week fiscal quarter ended November 2, 2019. Comparable store net sales for the 13-week period ended October 31, 2020 increased 12.4 percent from comparable store net sales for the prior year 13-week period ended November 2, 2019. Online sales increased 72.5 percent to $46.4 million for the 13-week period ended October 31, 2020, compared to net sales of $26.9 million for the 13-week period ended November 2, 2019.
Net sales for the 39-week fiscal period ended October 31, 2020 decreased 7.4 percent to $582.4 million from net sales of $629.3 million for the prior year 39-week fiscal period ended November 2, 2019. Comparable store net sales for the 39-week period ended October 31, 2020 decreased 7.1 percent from comparable store net sales for the prior year 39-week period ended November 2, 2019. Online sales increased 67.3 percent to $124.4 million for the 39-week period ended October 31, 2020, compared to net sales of $74.4 million for the 39-week period ended November 2, 2019.
Net income for the third quarter of fiscal 2020 was $41.6 million, or $0.85 per share ($0.85 per share on a diluted basis), compared with $26.0 million, or $0.54 per share ($0.53 per share on a diluted basis) for the third quarter of fiscal 2019.
Net income for the 39-week fiscal period ended October 31, 2020 was $64.5 million, or $1.32 per share ($1.32 per share on a diluted basis), compared with $57.5 million, or $1.18 per share ($1.18 per share on a diluted basis) for the 39-week period ended November 2, 2019.
Management will hold a conference call at 10:00 a.m. EST today to discuss results for the quarter. To participate in the call, please call (844) 291-6362 for domestic calls or (234) 720-6995 for international calls and reference the conference code 9346005. A replay of the call will be available for a two-week period beginning today at 1:00 p.m. EST by calling (866) 207-1041 for domestic calls or (402) 970-0847 for international calls and entering the conference code 8449047.
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 third 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.
THE BUCKLE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands Except Per Share Amounts)
(Unaudited)
Thirteen Weeks Ended
Thirty-Nine Weeks Ended
October 31,
2020
November 2,
2019
October 31,
2020
November 2,
2019
SALES, Net of returns and allowances
$
251,005
$
224,121
$
582,443
$
629,251
COST OF SALES (Including buying, distribution, and occupancy costs)
134,055
130,587
345,286
380,367
Gross profit
116,950
93,534
237,157
248,884
OPERATING EXPENSES:
Selling
52,894
51,282
124,655
146,426
General and administrative
9,930
8,942
29,026
30,812
62,824
60,224
153,681
177,238
INCOME FROM OPERATIONS
54,126
33,310
83,476
71,646
OTHER INCOME, Net
1,020
1,105
1,998
4,446
INCOME BEFORE INCOME TAXES
55,146
34,415
85,474
76,092
INCOME TAX EXPENSE
13,511
8,431
20,941
18,642
NET INCOME
$
41,635
$
25,984
$
64,533
$
57,450
EARNINGS PER SHARE:
Basic
$
0.85
$
0.54
$
1.32
$
1.18
Diluted
$
0.85
$
0.53
$
1.32
$
1.18
Basic weighted average shares
48,714
48,549
48,718
48,550
Diluted weighted average shares
48,987
48,809
48,941
48,768
THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
ASSETS
October 31,
2020
February 1,
2020 (1)
November 2,
2019
CURRENT ASSETS:
Cash and cash equivalents
$
331,923
$
220,969
$
213,836
Short-term investments
7,410
12,532
31,946
Receivables
1,763
3,136
9,432
Inventory
118,707
121,258
138,879
Prepaid expenses and other assets
21,749
20,935
22,195
Total current assets
481,552
378,830
416,288
PROPERTY AND EQUIPMENT
451,708
452,205
453,859
Less accumulated depreciation and amortization
(349,411
)
(338,357
)
(336,098
)
102,297
113,848
117,761
OPERATING LEASE RIGHT-OF-USE ASSETS
287,197
350,088
340,417
LONG-TERM INVESTMENTS
16,729
15,863
15,710
OTHER ASSETS
10,104
9,261
7,939
Total assets
$
897,879
$
867,890
$
898,115
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
57,629
$
26,491
$
44,771
Accrued employee compensation
23,611
22,929
18,122
Accrued store operating expenses
23,096
17,837
21,539
Gift certificates redeemable
12,093
15,319
12,688
Current portion of operating lease liabilities
78,860
87,314
81,541
Income taxes payable
7,994
2,751
—
Total current liabilities
203,283
172,641
178,661
DEFERRED COMPENSATION
16,729
15,863
15,410
NON-CURRENT OPERATING LEASE LIABILITIES
235,463
290,238
286,706
Total liabilities
455,475
478,742
480,777
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,407,731 shares at October 31, 2020, 49,205,681 shares at February 1, 2020, and 49,223,811 shares at November 2, 2019
494
492
492
Additional paid-in capital
155,778
152,258
151,383
Retained earnings
286,132
236,398
265,463
Total stockholders’ equity
442,404
389,148
417,338
Total liabilities and stockholders’ equity
$
897,879
$
867,890
$
898,115
(1) Derived from audited financial statements.
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