Company Announcements

The Buckle, Inc. Reports Second Quarter Net Income

KEARNEY, Neb.--(BUSINESS WIRE)--Aug. 20, 2021-- The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended July 31, 2021 was $51.4 million, or $1.05 per share ($1.04 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended July 31, 2021 increased 36.6 percent to $295.1 million from net sales of $216.0 million for the prior year 13-week fiscal quarter ended August 1, 2020. Compared to the same 13-week period in fiscal 2019, net sales increased 44.8 percent from net sales of $203.8 million for the 13-week fiscal quarter ended August 3, 2019. Online sales decreased 5.5 percent to $43.4 million for the 13-week period ended July 31, 2021, compared to net sales of $46.0 million for the 13-week period ended August 1, 2020. Compared to the same 13-week period in fiscal 2019, online sales increased 88.1 percent from net sales of $23.1 million for the 13-week period ended August 3, 2019.

Net sales for the 26-week fiscal period ended July 31, 2021 increased 79.3 percent to $594.2 million from net sales of $331.4 million for the prior year 26-week fiscal period ended August 1, 2020. Compared to the same 26-week period in fiscal 2019, net sales increased 46.7 percent from net sales of $405.1 million for the 26-week fiscal period ended August 3, 2019. Online sales increased 24.5 percent to $97.2 million for the 26-week period ended July 31, 2021, compared to net sales of $78.1 million for the 26-week period ended August 1, 2020. Compared to the same 26-week period in fiscal 2019, online sales increased 104.5 percent from net sales of $47.5 million for the 26-week period ended August 3, 2019.

Net income for the second quarter of fiscal 2021 was $51.4 million, or $1.05 per share ($1.04 per share on a diluted basis), compared with net income of $34.7 million, or $0.71 per share ($0.71 per share on a diluted basis) for the second quarter of fiscal 2020.

Net income for the 26-week fiscal period ended July 31, 2021 was $108.7 million, or $2.22 per share ($2.20 per share on a diluted basis), compared with net income of $22.9 million, or $0.47 per share ($0.47 per share on a diluted basis) for the 26-week period ended August 1, 2020.

Results for fiscal 2020 were significantly impacted by the Company’s closure of all brick and mortar stores due to the COVID-19 pandemic beginning March 18, 2020. As a result of the impact of the store closures on prior year reported net sales, the Company will report total net sales compared to the past two years and does not plan to separately report comparable store sales for the periods most affected by the store closures.

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) 336-4440 for domestic calls or (409) 207-6984 for international calls and reference the conference code 8384984. A replay of the call will be available for a two-week period beginning today at 1:00 p.m. EDT by calling (866) 207-1041 for domestic calls or (402) 970-0847 for international calls and entering the conference code 1554929.

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 442 retail stores in 42 states. As of the end of the fiscal quarter, it operated 442 stores in 42 states compared with 446 stores in 42 states at the end of the second quarter of fiscal 2020.

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

 

Twenty-Six Weeks Ended

 

July 31,
2021

 

August 1,
2020

 

July 31,
2021

 

August 1,
2020

 

 

 

 

 

 

 

 

SALES, Net of returns and allowances

$

295,120

 

 

$

216,025

 

 

$

594,245

 

 

$

331,438

 

 

 

 

 

 

 

 

 

COST OF SALES (Including buying, distribution, and occupancy costs)

153,101

 

 

122,643

 

 

304,673

 

 

211,231

 

 

 

 

 

 

 

 

 

Gross profit

142,019

 

 

93,382

 

 

289,572

 

 

120,207

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

Selling

63,056

 

 

38,257

 

 

123,056

 

 

71,761

 

General and administrative

11,081

 

 

9,593

 

 

22,832

 

 

19,096

 

 

74,137

 

 

47,850

 

 

145,888

 

 

90,857

 

 

 

 

 

 

 

 

 

INCOME FROM OPERATIONS

67,882

 

 

45,532

 

 

143,684

 

 

29,350

 

 

 

 

 

 

 

 

 

OTHER INCOME, Net

222

 

 

404

 

 

273

 

 

978

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

68,104

 

 

45,936

 

 

143,957

 

 

30,328

 

 

 

 

 

 

 

 

 

INCOME TAX EXPENSE

16,685

 

 

11,254

 

 

35,269

 

 

7,430

 

 

 

 

 

 

 

 

 

NET INCOME

$

51,419

 

 

$

34,682

 

 

$

108,688

 

 

$

22,898

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE:

 

 

 

 

 

 

 

Basic

$

1.05

 

 

$

0.71

 

 

$

2.22

 

 

$

0.47

 

 

 

 

 

 

 

 

 

Diluted

$

1.04

 

 

$

0.71

 

 

$

2.20

 

 

$

0.47

 

 

 

 

 

 

 

 

 

Basic weighted average shares

48,946

 

 

48,714

 

 

48,946

 

 

48,719

 

Diluted weighted average shares

49,341

 

 

48,913

 

 

49,325

 

 

48,918

 

THE BUCKLE, INC.

CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands Except Share and Per Share Amounts)

(Unaudited)

 

 

 

 

 

 

ASSETS

July 31,
2021

 

January 30,
2021 (1)

 

August 1,
2020

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

$

406,714

 

 

 

$

318,789

 

 

 

$

265,714

 

 

Short-term investments

8,592

 

 

 

3,359

 

 

 

12,637

 

 

Receivables

6,667

 

 

 

2,823

 

 

 

2,394

 

 

Inventory

95,276

 

 

 

101,063

 

 

 

116,479

 

 

Prepaid expenses and other assets

20,294

 

 

 

11,190

 

 

 

20,388

 

 

Total current assets

537,543

 

 

 

437,224

 

 

 

417,612

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT

452,460

 

 

 

451,357

 

 

 

451,899

 

 

Less accumulated depreciation and amortization

(352,773

)

 

 

(350,942

)

 

 

(345,820

)

 

 

99,687

 

 

 

100,415

 

 

 

106,079

 

 

 

 

 

 

 

 

OPERATING LEASE RIGHT-OF-USE ASSETS

264,177

 

 

 

279,358

 

 

 

305,814

 

 

LONG-TERM INVESTMENTS

19,558

 

 

 

18,320

 

 

 

16,536

 

 

OTHER ASSETS

11,720

 

 

 

10,497

 

 

 

9,782

 

 

 

 

 

 

 

 

Total assets

$

932,685

 

 

 

$

845,814

 

 

 

$

855,823

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Accounts payable

$

67,812

 

 

 

$

43,399

 

 

 

$

48,142

 

 

Accrued employee compensation

33,878

 

 

 

35,865

 

 

 

9,391

 

 

Accrued store operating expenses

30,724

 

 

 

20,303

 

 

 

21,579

 

 

Gift certificates redeemable

11,434

 

 

 

14,279

 

 

 

12,611

 

 

Current portion of operating lease liabilities

82,255

 

 

 

81,762

 

 

 

81,427

 

 

Income taxes payable

 

 

 

10,751

 

 

 

 

 

Total current liabilities

226,103

 

 

 

206,359

 

 

 

173,150

 

 

 

 

 

 

 

 

DEFERRED COMPENSATION

19,558

 

 

 

18,320

 

 

 

16,536

 

 

NON-CURRENT OPERATING LEASE LIABILITIES

209,472

 

 

 

224,506

 

 

 

251,830

 

 

Total liabilities

455,133

 

 

 

449,185

 

 

 

441,516

 

 

 

 

 

 

 

 

COMMITMENTS

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

Common stock, authorized 100,000,000 shares of $.01 par value; issued
and outstanding; 49,783,381 shares at July 31, 2021, 49,407,731 shares
at January 30, 2021, and 49,407,731 shares at August 1, 2020

498

 

 

 

494

 

 

 

494

 

 

Additional paid-in capital

163,148

 

 

 

158,058

 

 

 

154,517

 

 

Retained earnings

313,906

 

 

 

238,077

 

 

 

259,296

 

 

Total stockholders’ equity

477,552

 

 

 

396,629

 

 

 

414,307

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

$

932,685

 

 

 

$

845,814

 

 

 

$

855,823

 

 

(1)

Derived from audited financial statements

 

Thomas B. Heacock, Chief Financial Officer
The Buckle, Inc.
(308) 236-8491

Source: The Buckle, Inc.