The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended October 29, 2016 was $23.4 million, or $0.49 per share ($0.48 per share on a diluted basis).
Net sales for the 13-week fiscal quarter ended October 29, 2016 decreased 14.6 percent to $239.2 million from net sales of $280.2 million for the prior year 13-week fiscal quarter ended October 31, 2015. Comparable store net sales for the 13-week period ended October 29, 2016 decreased 15.3 percent from comparable store net sales for the prior year 13-week period ended October 31, 2015. Online sales decreased 8.5 percent to $23.7 million for the 13-week period ended October 29, 2016, compared to net sales of $25.9 million for the 13-week period ended October 31, 2015.
Net sales for the 39-week fiscal period ended October 29, 2016 decreased 11.8 percent to $694.9 million from net sales of $787.6 million for the prior year 39-week fiscal period ended October 31, 2015. Comparable store net sales for the 39-week period ended October 29, 2016 decreased 12.5 percent from comparable store net sales for the prior year 39-week period ended October 31, 2015. Online sales decreased 3.7 percent to $67.6 million for the 39-week period ended October 29, 2016, compared to net sales of $70.2 million for the 39-week period ended October 31, 2015.
Net income for the third quarter of fiscal 2016 was $23.4 million, or $0.49 per share ($0.48 per share on a diluted basis), compared with $35.9 million, or $0.75 per share ($0.74 per share on a diluted basis) for the third quarter of fiscal 2015.
Net income for the 39-week fiscal period ended October 29, 2016 was $62.0 million, or $1.29 per share ($1.28 per share on a diluted basis), compared with $92.9 million, or $1.93 per share ($1.93 per share on a diluted basis) for the 39-week period ended October 31, 2015.
Please note that net sales for the 13-week and 39-week periods ended October 29, 2016 are reported net of the impact of both reward redemptions and accruals for estimated future rewards related to the Company’s new Guest Loyalty program, which launched during the fiscal quarter ended April 30, 2016.
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 (888) 428-4476 for domestic calls or (651) 291-0561 for international calls and reference the conference code 405754. A replay of the call will be available for a two-week period beginning today at 12:00 p.m. EST by calling (800) 475-6701 for domestic calls or (320) 365-3844 for international calls and entering the conference code 405754.
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 471 retail stores in 44 states. As of the end of the fiscal quarter, it operated 470 stores in 44 states compared with 468 stores in 44 states at the end of the third quarter of fiscal 2015.
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 29, | October 31, | October 29, | October 31, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| SALES, Net of returns and allowances | $ | 239,213 | $ | 280,187 | $ | 694,913 | $ | 787,585 | |||||||||
| COST OF SALES (Including buying, distribution, and occupancy costs) | 142,339 | 162,923 | 423,428 | 462,129 | |||||||||||||
| Gross profit | 96,874 | 117,264 | 271,485 | 325,456 | |||||||||||||
| OPERATING EXPENSES: | |||||||||||||||||
| Selling | 50,820 | 52,268 | 144,448 | 147,780 | |||||||||||||
| General and administrative | 9,234 | 8,701 | 29,705 | 31,399 | |||||||||||||
| 60,054 | 60,969 | 174,153 | 179,179 | ||||||||||||||
| INCOME FROM OPERATIONS | 36,820 | 56,295 | 97,332 | 146,277 | |||||||||||||
| OTHER INCOME, Net | 497 | 951 | 1,500 | 1,959 | |||||||||||||
| INCOME BEFORE INCOME TAXES | 37,317 | 57,246 | 98,832 | 148,236 | |||||||||||||
| PROVISION FOR INCOME TAXES | 13,920 | 21,353 | 36,866 | 55,292 | |||||||||||||
| NET INCOME | $ | 23,397 | $ | 35,893 | $ | 61,966 | $ | 92,944 | |||||||||
| EARNINGS PER SHARE: | |||||||||||||||||
| Basic | $ | 0.49 | $ | 0.75 | $ | 1.29 | $ | 1.93 | |||||||||
| Diluted | $ | 0.48 | $ | 0.74 | $ | 1.28 | $ | 1.93 | |||||||||
| Basic weighted average shares | 48,107 | 48,073 | 48,107 | 48,074 | |||||||||||||
| Diluted weighted average shares | 48,259 | 48,219 | 48,230 | 48,203 | |||||||||||||
| THE BUCKLE, INC. | |||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||
| (Amounts in Thousands Except Share and Per Share Amounts) | |||||||||||||
| (Unaudited) | |||||||||||||
| October 29, | January 30, | October 31, | |||||||||||
| ASSETS | 2016 | 2016 (1) | 2015 | ||||||||||
| CURRENT ASSETS: | |||||||||||||
| Cash and cash equivalents | $ | 163,006 | $ | 161,185 | $ | 121,430 | |||||||
| Short-term investments | 49,987 | 36,465 | 28,181 | ||||||||||
| Receivables | 13,427 | 9,651 | 12,855 | ||||||||||
| Inventory | 148,193 | 149,566 | 175,852 | ||||||||||
| Prepaid expenses and other assets | 7,320 | 6,030 | 28,917 | ||||||||||
| Total current assets | 381,933 | 362,897 | 367,235 | ||||||||||
| PROPERTY AND EQUIPMENT | 464,507 | 450,762 | 450,185 | ||||||||||
| Less accumulated depreciation and amortization | (289,547 | ) | (277,981 | ) | (271,813 | ) | |||||||
| 174,960 | 172,781 | 178,372 | |||||||||||
| LONG-TERM INVESTMENTS | 19,828 | 33,826 | 42,372 | ||||||||||
| OTHER ASSETS | 4,850 | 3,269 | 1,914 | ||||||||||
| Total assets | $ | 581,571 | $ | 572,773 | $ | 589,893 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
| CURRENT LIABILITIES: | |||||||||||||
| Accounts payable | $ | 36,314 | $ | 33,862 | $ | 52,537 | |||||||
| Accrued employee compensation | 15,651 | 33,126 | 21,382 | ||||||||||
| Accrued store operating expenses | 16,440 | 6,639 | 11,410 | ||||||||||
| Gift certificates redeemable | 16,088 | 22,858 | 16,738 | ||||||||||
| Income taxes payable | 2,751 | 11,141 | 6,420 | ||||||||||
| Total current liabilities | 87,244 | 107,626 | 108,487 | ||||||||||
| DEFERRED COMPENSATION | 12,571 | 12,849 | 13,358 | ||||||||||
| DEFERRED RENT LIABILITY | 38,602 | 39,655 | 39,623 | ||||||||||
| OTHER LIABILITIES | — | — | 9,821 | ||||||||||
| Total liabilities | 138,417 | 160,130 | 171,289 | ||||||||||
| COMMITMENTS | |||||||||||||
| STOCKHOLDERS’ EQUITY: | |||||||||||||
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 48,622,780 shares at October 29, 2016, 48,428,110 shares at January 30, 2016, and 48,511,876 shares at October 31, 2015 | 486 | 484 | 485 | ||||||||||
| Additional paid-in capital | 139,670 | 134,864 | 134,886 | ||||||||||
| Retained earnings | 303,176 | 277,626 | 283,658 | ||||||||||
| Accumulated other comprehensive loss | (178 | ) | (331 | ) | (425 | ) | |||||||
| Total stockholders’ equity | 443,154 | 412,643 | 418,604 | ||||||||||
| Total liabilities and stockholders’ equity | $ | 581,571 | $ | 572,773 | $ | 589,893 | |||||||
| (1) Derived from audited financial statements. | |||||||||||||
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Contacts:
Karen B. Rhoads, 308-236-8491
Chief
Financial Officer
