The Buckle, Inc. Reports Third Quarter Net Income

The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended November 2, 2013 was $40.6 million, or $0.85 per share ($0.85 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended November 2, 2013 increased 0.9 percent to $286.8 million from net sales of $284.1 million for the prior year 13-week fiscal quarter ended October 27, 2012. Comparable store net sales for the 13-week period ended November 2, 2013 decreased 0.5 percent from comparable store net sales for the prior year 13-week period ended November 3, 2012. Online sales (which are not included in comparable store sales) increased 11.9 percent to $22.0 million for the 13-week period ended November 2, 2013, compared to net sales of $19.6 million for the 13-week period ended October 27, 2012.

Net sales for the 39-week fiscal period ended November 2, 2013 increased 3.4 percent to $789.0 million from net sales of $763.4 million for the prior year 39-week fiscal period ended October 27, 2012. Comparable store net sales year-to-date for the 39-week period ended November 2, 2013 increased 1.2 percent from comparable store net sales for the prior year 39-week period ended November 3, 2012. Online sales (which are not included in comparable store sales) increased 7.9 percent to $59.7 million for the 39-week period ended November 2, 2013, compared to net sales of $55.4 million for the 39-week period ended October 27, 2012.

Due to the 53 rd week in fiscal 2012, comparable store net sales for the quarter and year-to-date periods are compared to the 13-week and 39-week periods ended November 3, 2012.

Net income for the third quarter of fiscal 2013 was $40.6 million, or $0.85 per share ($0.85 per share on a diluted basis), compared with $41.9 million, or $0.89 per share ($0.88 per share on a diluted basis) for the third quarter of fiscal 2012.

Net income for the 39-week fiscal period ended November 2, 2013 was $103.3 million, or $2.17 per share ($2.15 per share on a diluted basis), compared with $102.9 million, or $2.18 per share ($2.16 per share on a diluted basis) for the 39-week fiscal period ended October 27, 2012.

Management will hold a conference call at 9:30 a.m. EST today to discuss results for the quarter. To participate in the call, please call (800) 230-1951 and reference the conference code 307978. A replay of the call will be available for a two–week period beginning November 21, 2013 at 11:30 a.m. EST by calling (800) 475–6701 and entering the conference code 307978.

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 452 retail stores in 43 states. As of the end of the fiscal quarter, it operated 452 stores in 43 states compared with 440 stores in 43 states at the end of the third quarter of fiscal 2012 .

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
November 2, October 27, November 2, October 27,
2013 2012 2013 2012
 
SALES, Net of returns and allowances $ 286,761 $ 284,147 $ 789,002 $ 763,392
 
COST OF SALES (Including buying,
distribution, and occupancy costs)   160,536   158,732   451,283   437,279
 
Gross profit   126,225   125,415   337,719   326,113
 
OPERATING EXPENSES:
Selling 51,991 49,257 144,225 137,018
General and administrative   10,176   9,995   30,776   28,520
  62,167   59,252   175,001   165,538
 
INCOME FROM OPERATIONS 64,058 66,163 162,718 160,575
 
OTHER INCOME, Net   361   172   1,218   2,345
 
INCOME BEFORE INCOME TAXES 64,419 66,335 163,936 162,920
 
PROVISION FOR INCOME TAXES   23,835   24,418   60,656   59,971
 
NET INCOME $ 40,584 $ 41,917 $ 103,280 $ 102,949
 
 
EARNINGS PER SHARE:
Basic $ 0.85 $ 0.89 $ 2.17 $ 2.18
 
Diluted $ 0.85 $ 0.88 $ 2.15 $ 2.16
 
Basic weighted average shares 47,707 47,358 47,703 47,307
Diluted weighted average shares 47,984 47,689 47,959 47,650
 
 

THE BUCKLE, INC.
 
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
           
 
November 2, February 2, October 27,
ASSETS 2013 2013 (1) 2012
 
CURRENT ASSETS:
Cash and cash equivalents $ 130,841 $ 117,608 $ 213,036
Short-term investments 25,455 26,414 31,705
Receivables 7,866 3,470 7,906
Inventory 146,290 103,853 134,507
Prepaid expenses and other assets   29,017     25,528     18,079  
Total current assets   339,469     276,873     405,233  
 
PROPERTY AND EQUIPMENT 395,272 373,286 376,527
Less accumulated depreciation and amortization   (230,386 )   (210,183 )   (205,965 )
  164,886     163,103     170,562  
 
LONG-TERM INVESTMENTS 39,307 35,735 33,847
OTHER ASSETS   2,121     2,263     2,254  
 
$ 545,783  

 
$ 477,974   $ 611,896  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
CURRENT LIABILITIES:
Accounts payable $ 49,079 $ 34,124 $ 38,249
Accrued employee compensation 25,781 42,183 28,126
Accrued store operating expenses 12,738 10,121 11,625
Gift certificates redeemable 15,152 22,221 13,381
Income taxes payable   10,623     20,307     12,521  
Total current liabilities 113,373 128,956 103,902
 
DEFERRED COMPENSATION 12,626 10,600 10,065
DEFERRED RENT LIABILITY 37,488 36,947 37,093
OTHER LIABILITIES   10,432     11,822     12,351  
Total liabilities   173,919     188,325     163,411  
 
COMMITMENTS
 
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value;
issued and outstanding; 48,329,282 shares at November 2, 2013, 48,059,269
shares at February 2, 2013, and 47,941,952 shares at October 27, 2012 483 481 479
Additional paid-in capital 125,158 117,391 111,398
Retained earnings 246,995 172,711 337,232
Accumulated other comprehensive loss   (772 )   (934 )   (624 )
Total stockholders’ equity   371,864     289,649     448,485  
 
$ 545,783   $ 477,974   $ 611,896  
 
(1) Derived from audited financial statements.
 

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