The Buckle, Inc. Reports Third Quarter Net Income
The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended October 28, 2023 was $51.8 million, or $1.05 per share ($1.04 per share on a diluted basis).
Net sales for the 13-week fiscal quarter ended October 28, 2023 decreased 8.7 percent to $303.5 million from net sales of $332.3 million for the prior year 13-week fiscal quarter ended October 29, 2022. Comparable store net sales for the 13-week period ended October 28, 2023 decreased 9.2 percent from comparable store net sales for the prior year 13-week period ended October 29, 2022. Online sales decreased 16.2 percent to $46.1 million for the 13-week period ended October 28, 2023, compared to net sales of $55.0 million for the 13-week period ended October 29, 2022.
Net sales for the 39-week fiscal period ended October 28, 2023 decreased 6.9 percent to $878.7 million from net sales of $943.4 million for the prior year 39-week fiscal period ended October 29, 2022. Comparable store net sales for the 39-week period ended October 28, 2023 decreased 7.3 percent from comparable store net sales for the prior year 39-week period ended October 29, 2022. Online sales decreased 9.4 percent to $141.0 million for the 39-week period ended October 28, 2023, compared to net sales of $155.6 million for the 39-week period ended October 29, 2022.
Net income for the third quarter of fiscal 2023 was $51.8 million, or $1.05 per share ($1.04 per share on a diluted basis), compared with net income of $61.4 million, or $1.25 per share ($1.24 per share on a diluted basis) for the third quarter of fiscal 2022.
Net income for the 39-week fiscal period ended October 28, 2023 was $140.3 million, or $2.83 per share ($2.81 per share on a diluted basis), compared with net income of $166.8 million, or $3.39 per share ($3.37 per share on a diluted basis) for the 39-week period ended October 29, 2022.
Management will hold a live audio webcast at 10:00 a.m. EST today to discuss results for the quarter. To register for the live event, please visit https://buckle.zoom.us/webinar/register/WN_A5_s0zUvQ1yhslHLlO71Ww. A replay of the event can be accessed through Buckle’s investor relations website within twenty-four hours after the conclusion of the live event (https://corporate.buckle.com/investors/earnings-webcasts).
About Buckle
Buckle is a specialty retailer focused on delivering exceptional service and style through unforgettable experiences. Offering a curated mix of high-quality, on-trend apparel, accessories, and footwear, Buckle is for those living the styled life. 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 445 retail stores in 42 states, which includes the opening of two new stores during fiscal November located in Park City, Utah and Bristol, Tennessee. As of the end of the fiscal quarter, it operated 443 stores in 42 states compared with 441 stores in 42 states at the end of the third quarter of fiscal 2022.
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.
THE BUCKLE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands Except Per Share Amounts)
(Unaudited)
Thirteen Weeks Ended
Thirty-Nine Weeks Ended
October 28,
2023
October 29,
2022
October 28,
2023
October 29,
2022
SALES, Net of returns and allowances
$
303,457
$
332,341
$
878,719
$
943,381
COST OF SALES (Including buying, distribution, and occupancy costs)
156,242
166,940
459,835
480,451
Gross profit
147,215
165,401
418,884
462,930
OPERATING EXPENSES:
Selling
70,242
74,148
205,081
209,376
General and administrative
12,908
11,830
39,247
35,359
83,150
85,978
244,328
244,735
INCOME FROM OPERATIONS
64,065
79,423
174,556
218,195
OTHER INCOME, Net
4,490
1,883
11,322
2,711
68,555
81,306
185,878
220,906
INCOME TAX EXPENSE
16,793
19,920
45,540
54,122
NET INCOME
$
51,762
$
61,386
$
140,338
$
166,784
EARNINGS PER SHARE:
Basic
$
1.05
$
1.25
$
2.83
$
3.39
Diluted
$
1.04
$
1.24
$
2.81
$
3.37
Basic weighted average shares
49,513
49,214
49,513
49,214
Diluted weighted average shares
49,937
49,604
49,891
49,556
THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
ASSETS
October 28,
2023
January 28,
2023 (1)
October 29,
2022
CURRENT ASSETS:
Cash and cash equivalents
$
311,657
$
252,077
$
302,180
Short-term investments
23,446
20,997
22,902
Receivables
10,341
12,648
16,074
Inventory
152,289
125,134
152,335
Prepaid expenses and other assets
11,206
12,480
12,370
Total current assets
508,939
423,336
505,861
PROPERTY AND EQUIPMENT
483,435
466,321
465,694
Less accumulated depreciation and amortization
(359,367
)
(353,919
)
(356,081
)
124,068
112,402
109,613
OPERATING LEASE RIGHT-OF-USE ASSETS
253,418
271,421
236,147
LONG-TERM INVESTMENTS
22,508
20,624
19,579
OTHER ASSETS
12,274
9,796
12,947
Total assets
$
921,207
$
837,579
$
884,147
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
63,320
$
44,835
$
74,028
Accrued employee compensation
34,784
55,490
44,183
Accrued store operating expenses
26,335
19,754
31,262
Gift certificates redeemable
12,305
16,777
11,782
Current portion of operating lease liabilities
78,884
89,187
78,850
Income taxes payable
536
—
—
Total current liabilities
216,164
226,043
240,105
DEFERRED COMPENSATION
22,508
20,624
19,579
NON-CURRENT OPERATING LEASE LIABILITIES
208,517
214,598
188,856
Total liabilities
447,189
461,265
448,540
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 50,445,386 shares at October 28, 2023, 50,092,616 shares at January 28, 2023, and 50,091,866 shares at October 29, 2022
504
501
501
Additional paid-in capital
189,297
178,964
175,821
Retained earnings
284,217
196,849
259,285
Total stockholders’ equity
474,018
376,314
435,607
Total liabilities and stockholders’ equity
$
921,207
$
837,579
$
884,147
(1) Derived from audited financial statements.
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