(Former name, former address, and former fiscal year if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
Common Stock, $0.01 par value
BKE
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yesþ No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for a shorter period that the registrant was required to submit such files). Yesþ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerþ; Accelerated filer o;
Non-accelerated filer o; Smaller reporting company o;
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No þ
The number of shares outstanding of the Registrant's Common Stock, $0.01 par value, as of September 2, 2022, was 50,094,751.
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
ASSETS
July 30, 2022
January 29, 2022
CURRENT ASSETS:
Cash and cash equivalents
$
266,731
$
253,970
Short-term investments
17,387
12,926
Receivables
13,015
12,087
Inventory
128,498
102,095
Prepaid expenses and other assets
9,445
10,128
Total current assets
435,076
391,206
PROPERTY AND EQUIPMENT
460,362
453,228
Less accumulated depreciation and amortization
(353,929)
(352,724)
106,433
100,504
OPERATING LEASE RIGHT-OF-USE ASSETS
234,634
258,914
LONG-TERM INVESTMENTS
20,640
19,352
OTHER ASSETS
12,281
10,908
Total assets
$
809,064
$
780,884
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
63,036
$
59,950
Accrued employee compensation
29,509
62,055
Accrued store operating expenses
30,497
20,264
Gift certificates redeemable
12,411
16,470
Current portion of operating lease liabilities
80,827
88,273
Income taxes payable
—
1,529
Total current liabilities
216,280
248,541
DEFERRED COMPENSATION
20,163
19,352
NON-CURRENT OPERATING LEASE LIABILITIES
183,643
200,067
Total liabilities
420,086
467,960
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $0.01 par value; 50,094,751 and 49,728,651 shares issued and outstanding at July 30, 2022 and January 29, 2022 respectively
501
497
Additional paid-in capital
173,046
167,328
Retained earnings
215,431
145,099
Total stockholders’ equity
388,978
312,924
Total liabilities and stockholders’ equity
$
809,064
$
780,884
See notes to unaudited condensed consolidated financial statements.
3
THE BUCKLE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands Except Per Share Amounts)
(Unaudited)
Thirteen Weeks Ended
Twenty-Six Weeks Ended
July 30, 2022
July 31, 2021
July 30, 2022
July 31, 2021
SALES, Net of returns and allowances
$
301,976
$
295,120
$
611,040
$
594,245
COST OF SALES (Including buying, distribution, and occupancy costs)
156,607
153,101
313,511
304,673
Gross profit
145,369
142,019
297,529
289,572
OPERATING EXPENSES:
Selling
67,982
63,056
135,228
123,056
General and administrative
11,674
11,081
23,529
22,832
79,656
74,137
158,757
145,888
INCOME FROM OPERATIONS
65,713
67,882
138,772
143,684
OTHER INCOME, Net
703
222
828
273
INCOME BEFORE INCOME TAXES
66,416
68,104
139,600
143,957
INCOME TAX EXPENSE
16,272
16,685
34,202
35,269
NET INCOME
$
50,144
$
51,419
$
105,398
$
108,688
EARNINGS PER SHARE:
Basic
$
1.02
$
1.05
$
2.14
$
2.22
Diluted
$
1.01
$
1.04
$
2.13
$
2.20
Basic weighted average shares
49,214
48,946
49,214
48,946
Diluted weighted average shares
49,535
49,341
49,531
49,325
See notes to unaudited condensed consolidated financial statements.
4
THE BUCKLE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
Number of Shares
Common Stock
Additional Paid-in Capital
Retained Earnings
Total
FISCAL 2022
BALANCE, May 1, 2022
50,094,851
$
501
$
170,272
$
182,820
$
353,593
Net income
—
—
—
50,144
50,144
Dividends paid on common stock, ($0.35 per share)
—
—
—
(17,533)
(17,533)
Issuance of non-vested stock, net of forfeitures
(100)
—
—
—
—
Amortization of non-vested stock grants, net of forfeitures
—
—
2,774
—
2,774
BALANCE, July 30, 2022
50,094,751
$
501
$
173,046
$
215,431
$
388,978
BALANCE, January 30, 2022
49,728,651
$
497
$
167,328
$
145,099
$
312,924
Net income
—
—
—
105,398
105,398
Dividends paid on common stock, ($0.70 per share)
—
—
—
(35,066)
(35,066)
Issuance of non-vested stock, net of forfeitures
366,100
4
(4)
—
—
Amortization of non-vested stock grants, net of forfeitures
—
—
5,722
—
5,722
BALANCE, July 30, 2022
50,094,751
$
501
$
173,046
$
215,431
$
388,978
FISCAL 2021
BALANCE, May 2, 2021
49,788,891
$
498
$
160,684
$
278,916
$
440,098
Net income
—
—
—
51,419
51,419
Dividends paid on common stock, ($0.33 per share)
—
—
—
(16,429)
(16,429)
Issuance of non-vested stock, net of forfeitures
(5,510)
—
—
—
—
Amortization of non-vested stock grants, net of forfeitures
—
—
2,464
—
2,464
BALANCE, July 31, 2021
49,783,381
$
498
$
163,148
$
313,906
$
477,552
BALANCE, January 31, 2021
49,407,731
$
494
$
158,058
$
238,077
$
396,629
Net income
—
—
—
108,688
108,688
Dividends paid on common stock, ($0.66 per share)
—
—
—
(32,859)
(32,859)
Issuance of non-vested stock, net of forfeitures
375,650
4
(4)
—
—
Amortization of non-vested stock grants, net of forfeitures
—
—
5,094
—
5,094
BALANCE, July 31, 2021
49,783,381
$
498
$
163,148
$
313,906
$
477,552
See notes to unaudited condensed consolidated financial statements.
5
THE BUCKLE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Thousands)
(Unaudited)
Twenty-Six Weeks Ended
July 30, 2022
July 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
105,398
$
108,688
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization
9,181
9,700
Amortization of non-vested stock grants, net of forfeitures
5,722
5,094
Deferred income taxes
(1,373)
(1,223)
Other
274
229
Changes in operating assets and liabilities:
Receivables
1,638
286
Inventory
(26,403)
5,787
Prepaid expenses and other assets
683
(9,104)
Accounts payable
2,622
24,424
Accrued employee compensation
(32,546)
(1,987)
Accrued store operating expenses
10,260
11,005
Gift certificates redeemable
(4,059)
(2,845)
Income taxes payable
(4,095)
(14,881)
Other assets and liabilities
2,190
1,294
Net cash flows from operating activities
69,492
136,467
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(14,920)
(9,212)
Purchases of investments
(17,670)
(10,700)
Proceeds from sales/maturities of investments
10,925
4,229
Net cash flows from investing activities
(21,665)
(15,683)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends
(35,066)
(32,859)
Net cash flows from financing activities
(35,066)
(32,859)
NET INCREASE IN CASH AND CASH EQUIVALENTS
12,761
87,925
CASH AND CASH EQUIVALENTS, Beginning of period
253,970
318,789
CASH AND CASH EQUIVALENTS, End of period
$
266,731
$
406,714
See notes to unaudited condensed consolidated financial statements.
6
THE BUCKLE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
THIRTEEN AND TWENTY-SIX WEEKS ENDED JULY 30, 2022 AND JULY 31, 2021
(Dollar Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
1.Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments necessary for the fair presentation of the results of operations for the interim periods have been included. All such adjustments are of a normal recurring nature. Because of the seasonal nature of the business, results for interim periods are not necessarily indicative of a full year's operations. The accounting policies followed by the Company and additional footnotes are reflected in the consolidated financial statements for the fiscal year ended January 29, 2022, included in The Buckle, Inc.'s 2021 Form 10-K. The condensed consolidated balance sheet as of January 29, 2022 is derived from audited financial statements.
For purposes of this report, unless the context otherwise requires, all references herein to the “Company”, “Buckle”, “we”, “us”, or similar terms refer to The Buckle, Inc. and its subsidiary.
The Company follows generally accepted accounting principles (“GAAP”) established by the Financial Accounting Standards Board (“FASB”). References to GAAP in these notes are to the FASB Accounting Standards Codification (“ASC”).
7
2.Revenues
The Company is a retailer of medium to better priced casual apparel, footwear, and accessories for fashion conscious young men and women. The Company operates its business as one reportable segment. The Company sells its merchandise through its retail stores and e-Commerce platform. The Company had 441 stores located in 42 states throughout the United States as of July 30, 2022 and 442 stores in 42 states as of July 31, 2021. During the twenty-six week period ended July 30, 2022, the Company opened 2 new stores, substantially remodeled 13 stores, and closed 1 store, which includes 2 new stores, 7 substantially remodeled stores, and no closed stores for the second quarter. During the twenty-six week period ended July 31, 2021, the Company opened 1 new store, substantially remodeled 7 stores, and closed 2 stores, which includes 1 new store, 2 substantially remodeled stores, and 1 closed store for the second quarter.
For the thirteen week periods ended July 30, 2022 and July 31, 2021, online revenues accounted for 15.3% and 14.7%, respectively, of the Company's net sales. For the twenty-six week periods ended July 30, 2022 and July 31, 2021, online revenues accounted for 16.5% and 16.4%, respectively. No sales to an individual customer or country, other than the United States, accounted for more than 10% of net sales.
The following is information regarding the Company’s major product lines, stated as a percentage of the Company’s net sales:
Thirteen Weeks Ended
Twenty-Six Weeks Ended
Merchandise Group
July 30, 2022
July 31, 2021
July 30, 2022
July 31, 2021
Denims
31.9
%
33.6
%
36.0
%
37.9
%
Tops (including sweaters)
30.6
30.9
29.2
28.5
Sportswear/Fashions
13.9
13.8
10.6
11.3
Footwear
8.3
8.0
10.2
9.5
Accessories
11.0
10.3
9.9
9.4
Casual bottoms
0.9
0.8
0.9
0.8
Outerwear
0.3
0.3
0.5
0.5
Youth
3.1
2.3
2.7
2.1
Total
100.0
%
100.0
%
100.0
%
100.0
%
Effective July 1, 2022, the Company entered into a new five year agreement (the "Agreement") with Bread Financial and Comenity Bank (collectively the "Bank"), to provide guests with private label credit cards ("PLCC"). Each PLCC bears the Buckle brand logo and can only be used at the Company's retail locations and eCommerce platform. The Bank is the sole owner of the accounts issued under the PLCC program and bears full risk associated with guest non-payment.
As part of the Agreement, the Company receives a percentage of PLCC sales from the Bank, along with other incentive payments upon the achievement of certain performance targets. All amounts received from the Bank under the Agreement are recorded in net sales in the condensed consolidated statements of income.
8
3.Earnings Per Share
Basic earnings per share data are based on the weighted average outstanding common shares during the period. Diluted earnings per share data are based on the weighted average outstanding common shares and the effect of all dilutive potential common shares.
Thirteen Weeks Ended
Thirteen Weeks Ended
July 30, 2022
July 31, 2021
Net Income
Weighted Average Shares (a)
Per Share Amount
Net Income
Weighted Average Shares (a)
Per Share Amount
Basic EPS
$
50,144
49,214
$
1.02
$
51,419
48,946
$
1.05
Effect of Dilutive Securities:
Non-vested shares
—
321
(0.01)
—
395
(0.01)
Diluted EPS
$
50,144
49,535
$
1.01
$
51,419
49,341
$
1.04
Twenty-Six Weeks Ended
Twenty-Six Weeks Ended
July 30, 2022
July 31, 2021
Net Income
Weighted Average Shares (a)
Per Share Amount
Net Income
Weighted Average Shares (a)
Per Share Amount
Basic EPS
$
105,398
49,214
$
2.14
$
108,688
48,946
$
2.22
Effect of Dilutive Securities:
Non-vested shares
—
317
(0.01)
—
379
(0.02)
Diluted EPS
$
105,398
49,531
$
2.13
$
108,688
49,325
$
2.20
(a)Shares in thousands.
9
4.Investments
The following is a summary of investments as of July 30, 2022:
Amortized Cost or Par Value
Gross Unrealized Gains
Gross Unrealized Losses
Other-than- Temporary Impairment
Estimated Fair Value
Held-to-Maturity Securities:
State and municipal bonds
$
17,864
$
13
$
(6)
$
—
$
17,871
Trading Securities:
Mutual funds
$
19,740
$
423
$
—
$
—
$
20,163
The following is a summary of investments as of January 29, 2022:
Amortized Cost or Par Value
Gross Unrealized Gains
Gross Unrealized Losses
Other-than- Temporary Impairment
Estimated Fair Value
Held-to-Maturity Securities:
State and municipal bonds
$
12,926
$
1
$
(4)
$
—
$
12,923
Trading Securities:
Mutual funds
$
17,932
$
1,420
$
—
$
—
$
19,352
The amortized cost and fair value of debt securities by contractual maturity as of July 30, 2022 is as follows:
Amortized Cost
Fair Value
Held-to-Maturity Securities
Less than 1 year
$
17,387
$
17,394
1 - 5 years
477
477
Total
$
17,864
$
17,871
As of July 30, 2022 and January 29, 2022, $477 and $0 of held-to-maturity securities are classified in long-term investments. Trading securities are held in a Rabbi Trust, intended to fund the Company’s deferred compensation plan, and are classified in long-term investments.
10
5.Fair Value Measurements
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories:
•Level 1 – Quoted market prices in active markets for identical assets or liabilities. Short-term and long-term investments with active markets or known redemption values are reported at fair value utilizing Level 1 inputs.
•Level 2 – Observable market-based inputs (either directly or indirectly) such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or inputs that are corroborated by market data.
•Level 3 – Unobservable inputs that are not corroborated by market data and are projections, estimates, or interpretations that are supported by little or no market activity and are significant to the fair value of the assets.
As of July 30, 2022 and January 29, 2022, the Company held certain assets that are required to be measured at fair value on a recurring basis including its investments in trading securities.
The Company’s financial assets measured at fair value on a recurring basis are as follows:
Fair Value Measurements at Reporting Date Using
Quoted Prices in Active Markets for Identical Assets
Significant Observable Inputs
Significant Unobservable Inputs
July 30, 2022
(Level 1)
(Level 2)
(Level 3)
Total
Trading securities (including mutual funds)
$
20,163
$
—
$
—
$
20,163
Fair Value Measurements at Reporting Date Using
Quoted Prices in Active Markets for Identical Assets
Significant Observable Inputs
Significant Unobservable Inputs
January 29, 2022
(Level 1)
(Level 2)
(Level 3)
Total
Trading securities (including mutual funds)
$
19,352
$
—
$
—
$
19,352
Securities included in Level 1 represent securities which have publicly traded quoted prices.
The carrying value of cash equivalents approximates fair value due to the low level of risk these assets present and their relatively liquid nature, particularly given their short maturities. The Company also holds certain financial instruments that are not carried at fair value on the condensed consolidated balance sheets, including held-to-maturity securities. Held-to-maturity securities consist primarily of state and municipal bonds. The fair values of these debt securities are based on quoted market prices and yields for the same or similar securities, which the Company determined to be Level 2 inputs. As of July 30, 2022, the fair value of held-to-maturity securities was $17,871 compared to the carrying amount of $17,864. As of January 29, 2022, the fair value of held-to-maturity securities was $12,923 compared to the carrying amount of $12,926.
11
The carrying values of receivables, accounts payable, accrued expenses, and other current liabilities approximates fair value because of their short-term nature. From time to time, the Company measures certain assets at fair value on a non-recurring basis, specifically long-lived assets evaluated for impairment. These are typically store specific assets, which are reviewed for impairment when circumstances indicate impairment may exist due to the questionable recoverability of the carrying values of long-lived assets. If expected future cash flows related to a store’s assets are less than their carrying value, an impairment loss would be recognized for the difference between the carrying value and the estimated fair value of the store's assets. The fair value of the store's assets is estimated utilizing an income-based approach based on the expected cash flows over the remaining life of the store's lease. The amount of impairment related to long-lived assets was immaterial for all periods presented.
6.Leases
The Company's lease portfolio is primarily comprised of leases for retail store locations. The Company also leases certain equipment and corporate office space. Store leases for new stores typically have an initial term of 10 years, with options to renew for an additional 1 to 5 years. The exercise of lease renewal options is at the Company's sole discretion and is included in the lease term for calculations of its right-of-use assets and liabilities when it is reasonably certain that the Company plans to renew these leases. Certain store lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Lease agreements do not contain any residual value guarantees, material restrictive covenants, or options to purchase the leased property.
The Company records its lease liabilities at the present value of the lease payments not yet paid, discounted at the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. As the Company's leases do not provide an implicit interest rate, the Company obtains an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.
The Company has elected to apply the practical expedient to account for lease components (e.g. fixed payments for rent, insurance, and real estate taxes) and non-lease components (e.g. fixed payments for common area maintenance) together as a single component for all underlying asset classes. Additionally, the Company elected as an accounting policy to exclude short-term leases from the recognition requirements.
Lease expense is included in cost of sales in the condensed consolidated statements of income. The components of total lease cost are as follows:
Thirteen Weeks Ended
Twenty-Six Weeks Ended
July 30, 2022
July 31, 2021
July 30, 2022
July 31, 2021
Operating lease cost
$
23,363
$
23,630
$
46,638
$
47,327
Variable lease cost (a)
4,687
4,544
10,961
9,008
Total lease cost
$
28,050
$
28,174
$
57,599
$
56,335
(a) Includes variable payments related to both lease and non-lease components, such as contingent rent payments based on performance and payments related to taxes, insurance, and maintenance costs. Also includes payments related to short-term leases with periods of less than twelve months.
12
Supplemental cash flow information related to leases is as follows:
Thirteen Weeks Ended
Twenty-Six Weeks Ended
July 30, 2022
July 31, 2021
July 30, 2022
July 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$
24,225
$
24,359
$
48,431
$
49,224
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases
$
13,341
$
9,651
$
27,257
$
36,742
The Company uses its incremental borrowing rate as the discount rate to determine the present value of lease payments. As of July 30, 2022, the weighted-average remaining lease term was 4.6 years and the weighted-average discount rate was 3.9%.
The table below reconciles undiscounted future lease payments (e.g. fixed payments for rent, insurance, real estate taxes, and common area maintenance) for each of the next five fiscal years and the total of the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of July 30, 2022:
Fiscal Year
Operating Leases (a)
2022 (remaining)
$
49,165
2023
80,516
2024
57,679
2025
36,189
2026
25,442
Thereafter
42,344
Total lease payments
291,335
Less: Imputed interest
26,865
Total operating lease liability
$
264,470
(a) Operating lease payments exclude $23,593 of legally binding minimum lease payments for leases signed, but not yet commenced.
7.Supplemental Cash Flow Information
The Company had non-cash investing activities during the twenty-six week periods ended July 30, 2022 and July 31, 2021 of ($464) and $11, respectively. The non-cash investing activity relates to the change in the balance of unpaid purchases of property, plant, and equipment included in accounts payable as of the end of the period. The liability for unpaid purchases of property, plant, and equipment included in accounts payable was $1,820 and $1,356 as of July 30, 2022 and January 29, 2022, respectively. Amounts reported as unpaid purchases are recorded as cash outflows from investing activities for purchases of property, plant, and equipment in the condensed consolidated statement of cash flows in the period they are paid.
Additional cash flow information for the Company includes cash paid for income taxes during the twenty-six week periods ended July 30, 2022 and July 31, 2021 of $39,670 and $51,373, respectively.
13
8.Stock-Based Compensation
The Company has several stock option plans which allow for granting of stock options to employees, executives, and directors. The Company has not granted any stock options since fiscal 2008 and there are currently no stock options outstanding. The Company also has a restricted stock plan that allows for the granting of non-vested shares of common stock to employees and executives and a restricted stock plan that allows for the granting of non-vested shares of common stock to non-employee directors. As of July 30, 2022, 644,783 shares were available for grant under the Company’s various restricted stock plans, of which 581,222 shares were available for grant to executive officers.
Compensation expense was recognized during fiscal 2022 and fiscal 2021 for equity-based grants, based on the grant date fair value of the awards. The fair value of grants of non-vested common stock awards is the stock price on the date of grant.
Information regarding the impact of compensation expense related to grants of non-vested shares of common stock is as follows:
Thirteen Weeks Ended
Twenty-Six Weeks Ended
July 30, 2022
July 31, 2021
July 30, 2022
July 31, 2021
Stock-based compensation expense, before tax
$
2,774
$
2,464
$
5,722
$
5,094
Stock-based compensation expense, after tax
$
2,094
$
1,860
$
4,320
$
3,846
Non-vested shares of common stock granted during the twenty-six week periods ended July 30, 2022 and July 31, 2021 were granted pursuant to the Company’s 2005 Restricted Stock Plan and the Company’s 2008 Director Restricted Stock Plan. Shares granted under the 2005 Plan are typically "performance based" and vest over a period of four years, only upon certification by the Compensation Committee of the Board of Directors that the Company has achieved its pre-established performance targets for the fiscal year.Certain shares granted under the 2005 Plan, however, are "non-performance based" and vest over a period of four years without being subject to the achievement of performance targets.Shares granted under the 2008 Director Plan vest 25% on the date of grant and then in equal portions on each of the first three anniversaries of the date of grant.
A summary of the Company’s stock-based compensation activity related to grants of non-vested shares of common stock for the twenty-six week period ended July 30, 2022 is as follows:
Shares
Weighted Average Grant Date Fair Value
Non-Vested - beginning of year
590,462
$
32.20
Granted
366,300
36.52
Forfeited
(200)
37.92
Vested
(75,458)
36.95
Non-Vested - end of quarter
881,104
$
33.59
As of July 30, 2022, there was $15,702 of unrecognized compensation expense related to grants of non-vested shares. It is expected that this expense will be recognized over a weighted average period of approximately 2.1 years. The total fair value of shares vested during the twenty-six week periods ended July 30, 2022 and July 31, 2021 was $2,810 and $3,091, respectively.
14
9.Recently Issued Accounting Pronouncements
The Company has considered all recent accounting pronouncements and concluded that there are no recent accounting pronouncements that may have a material impact on the Company's consolidated financial statements, based on current information.
15
THE BUCKLE, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto of the Company included in this Form 10-Q. All references herein to the “Company”, “Buckle”, “we”, “us”, or similar terms refer to The Buckle, Inc. and its subsidiary. The following is management’s discussion and analysis of certain significant factors which have affected the Company’s financial condition and results of operations during the periods included in the accompanying condensed consolidated financial statements.
EXECUTIVE OVERVIEW
Company management considers the following items to be key performance indicators in evaluating Company performance.
Comparable Store Sales – Stores are deemed to be comparable stores if they were open in the prior year on the first day of the fiscal period being presented. Stores which have been remodeled, expanded, and/or relocated, but would otherwise be included as comparable stores, are not excluded from the comparable store sales calculation. Online sales are included in comparable store sales. Management considers comparable store sales to be an important indicator of current Company performance, helping leverage certain fixed costs when results are positive. Negative comparable store sales results could reduce net sales and have a negative impact on operating leverage, thus reducing net earnings.
Net Merchandise Margins – Management evaluates the components of merchandise margin including initial markup and the amount of markdowns during a period. Any inability to obtain acceptable levels of initial markups or any significant increase in the Company’s use of markdowns could have an adverse effect on the Company’s gross margin and results of operations.
Operating Margin – Operating margin is a good indicator for management of the Company’s success. Operating margin can be positively or negatively affected by comparable store sales, merchandise margins, occupancy costs, and the Company’s ability to control operating costs.
Cash Flow and Liquidity (working capital) – Management reviews current cash and short-term investments along with cash flow from operating, investing, and financing activities to determine the Company’s short-term cash needs for operations and expansion. The Company believes that existing cash, short-term investments, and cash flow from operations will be sufficient to fund current and long-term anticipated capital expenditures and working capital requirements for the next several years.
16
RESULTS OF OPERATIONS
The following table sets forth certain financial data expressed as a percentage of net sales and the percentage change in the dollar amount of such items compared to the prior period:
Percentage of Net Sales
Percentage of Net Sales
For Thirteen Weeks Ended
Percentage
For Twenty-Six Weeks Ended
Percentage
July 30, 2022
July 31, 2021
Increase/(Decrease)
July 30, 2022
July 31, 2021
Increase/(Decrease)
Net sales
100.0
%
100.0
%
2.3
%
100.0
%
100.0
%
2.8
%
Cost of sales (including buying, distribution, and occupancy costs)
51.8
%
51.9
%
2.3
%
51.3
%
51.3
%
2.9
%
Gross profit
48.2
%
48.1
%
2.4
%
48.7
%
48.7
%
2.7
%
Selling expenses
22.5
%
21.4
%
7.8
%
22.1
%
20.7
%
9.9
%
General and administrative expenses
3.9
%
3.7
%
5.3
%
3.9
%
3.8
%
3.0
%
Income from operations
21.8
%
23.0
%
(3.2)
%
22.7
%
24.2
%
(3.4)
%
Other income, net
0.2
%
0.1
%
216.7
%
0.1
%
—
%
203.2
%
Income before income taxes
22.0
%
23.1
%
(2.5)
%
22.8
%
24.2
%
(3.0)
%
Income tax expense
5.4
%
5.7
%
(2.5)
%
5.6
%
5.9
%
(3.0)
%
Net income
16.6
%
17.4
%
(2.5)
%
17.2
%
18.3
%
(3.0)
%
Net sales increased from $295.1 million in the second quarter of fiscal 2021 to $302.0 million in the second quarter of fiscal 2022, a 2.3% increase. Comparable store net sales for the thirteen week quarter ended July 30, 2022 increased 1.6% from comparable store net sales for the prior year thirteen week period ended July 31, 2021. Total sales growth for the period was the result of a 3.6% increase in the average unit retail and a 0.3% increase in the average number of units sold per transaction, partially offset by a 1.5% decrease in the number of transactions. Online sales for the quarter increased 6.5% to $46.2 million for the thirteen week period ended July 30, 2022 compared to $43.4 million for the thirteen week period ended July 31, 2021.
Net sales increased from $594.2 million for the first two quarters of fiscal 2021 to $611.0 million for the first two quarters of fiscal 2022, a 2.8% increase. Comparable store net sales for the twenty-six week period ended July 30, 2022 increased 2.6% from comparable store net sales for the prior year twenty-six week period ended July 31, 2021. Total sales growth for the year-to-date period was the result of a 1.0% increase in the number of transactions and a 2.6% increase in the average unit retail, partially offset by a 0.7% reduction in the average number of units sold per transaction. Online sales for the year-to-date period increased 3.5% to $100.6 million for the twenty-six week period ended July 30, 2022 compared to $97.2 million for the twenty-six week period ended July 31, 2021.
The Company's average retail price per piece of merchandise sold increased $1.53, or 3.6%, during the second quarter of fiscal 2022 compared to the second quarter of fiscal 2021. This $1.53 increase was primarily attributable to the following changes (with their corresponding effect on the overall average price per piece): a 3.8% increase in average denim price points ($0.52), an 8.9% increase in average sportswear price points ($0.46), a 3.5% increase in average knit shirt price points ($0.36), a 5.3% increase in average accessory price points ($0.24), a 5.5% increase in average footwear price points ($0.19), a 6.8% increase in average woven shirt price points ($0.18), and an increase in average price points for certain other merchandise categories ($0.23); which were partially offset by a shift in the merchandise mix (-$0.65). These changes are primarily a reflection of merchandise shifts in terms of brands and product styles, fabrics, details, and finishes.
For the year-to-date period, the Company's average retail price per piece of merchandise sold increased $1.16, or 2.6%, compared to the same period in fiscal 2021. This $1.16 increase was primarily attributable to the following changes (with their corresponding effect on the overall average price per piece): a 4.3% increase in average knit shirt price points ($0.42), a 1.8% increase in average denim price points ($0.29), a 7.2% increase in average woven shirt price points ($0.20), a 4.3% increase in average footwear price points ($0.19), a 4.5% increase in average sportswear price points ($0.19), and an increase in average price points for certain other merchandise categories ($0.31), which were partially offset by a shift in the merchandise mix (-$0.44). These changes are primarily a reflection of merchandise shifts in terms of brands and product styles, fabrics, details, and finishes.
17
Gross profit after buying, distribution, and occupancy expenses was $145.4 million in the second quarter of fiscal 2022, compared to $142.0 million in the second quarter of fiscal 2021. As a percentage of net sales, gross profit was 48.2% in the second quarter of fiscal 2022, up slightly from 48.1% in the second quarter of fiscal 2021. The current quarter margin improvement was due to leveraged buying, distribution, and occupancy expenses. Merchandise margins were flat for the quarter.
Year-to-date, gross profit was $297.5 million for the twenty-six week period ended July 30, 2022, compared to $289.6 million for the twenty-six week period ended July 31, 2021. As a percentage of net sales, gross profit was 48.7% for both the first two quarters of fiscal 2022 and the first two quarters of fiscal 2021. For the year-to-date period, leveraged buying, distribution, and occupancy expenses were offset by a 10 basis point reduction in merchandise margins.
Selling, general, and administrative expenses were 26.4% of net sales for the second quarter of fiscal 2022, compared to 25.1% for the second quarter of fiscal 2021. The increase was the result of increases in store labor-related expenses (1.35%, as a percentage of net sales) and certain other expense categories (0.55%, as a percentage of net sales). These increases were partially offset by a decrease in expense related to incentive compensation accruals (0.60%, as a percentage of net sales).
For the 26-week year-to-date period, total selling, general, and administrative expenses were 26.0% of net sales for fiscal 2022, compared to 24.5% for fiscal 2021. The increase was the result of increases in store labor-related expenses (1.35%, as a percentage of net sales) and certain other expense categories (0.65%, as a percentage of net sales). These increases were partially offset by a decrease in expense related to incentive compensation accruals (0.50%, as a percentage of net sales).
As a result of the above changes, the Company's income from operations was $65.7 million, or 21.8% of net sales, for the second quarter of fiscal 2022, compared to income from operations of $67.9 million, or 23.0% of net sales, for the second quarter of fiscal 2021. Income tax expense as a percentage of pre-tax income was 24.5% for the second quarter of both fiscal 2022 and fiscal 2021, bringing the Company's net income to $50.1 million in the second quarter of fiscal 2022 compared to $51.4 million in the second quarter of fiscal 2021.
Year-to-date, income from operations was $138.8 million for the twenty-six week period ended July 30, 2022 compared to $143.7 million for the twenty-six week period ended July 31, 2021. Income from operations was 22.7% of net sales for the first two quarters of fiscal 2022 compared to 24.2% of net sales for the first two quarters of fiscal 2021. Income tax expense as a percentage of pre-tax income was 24.5% for both the first two quarters of fiscal 2022 and the first two quarters of fiscal 2021, bringing year-to-date net income to $105.4 million for fiscal 2022 compared to $108.7 million for fiscal 2021.
LIQUIDITY AND CAPITAL RESOURCES
As of July 30, 2022, the Company had working capital of $218.8 million, including $266.7 million of cash and cash equivalents and $17.4 million of short-term investments. The Company's cash receipts are generated from retail sales and from investment income, and the Company's primary ongoing cash requirements are for inventory, payroll, occupancy costs, dividend payments, new store expansion, remodeling, and other capital expenditures. Historically, the Company's primary source of working capital has been cash flow from operations. During the first two quarters of fiscal 2022 and fiscal 2021, the Company's cash flow from operations was $69.5 million and $136.5 million, respectively. Changes in operating cash flow between periods is primarily a function of changes in net income, along with changes in inventory and accounts payable based on the timing and amount of merchandise purchased in each respective period. Operating cash flow is also impacted by the timing of certain other payments, including rent, income taxes, and annual incentive bonuses. The Company's reduction in operating cash flow for the first two quarters of fiscal 2022 compared to the first two quarters of fiscal 2021 is primarily attributable to changes in inventory and accounts payable as the Company built its inventory back to more normalized levels during the first half of fiscal 2022, as well as the first quarter payment of incentive bonuses based on the Company's strong financial results in fiscal 2021.
The uses of cash for both twenty-six week periods primarily include payment of annual bonuses accrued at fiscal year end, inventory purchases, dividend payments, construction costs for new and remodeled stores, other capital expenditures, and purchases of investment securities.
During the first two quarters of fiscal 2022 and 2021, the Company invested $14.7 million and $8.6 million, respectively, in new store construction, store renovation, and store technology upgrades. The Company also spent $0.2 million and $0.6 million in the first two quarters of fiscal 2022 and 2021, respectively, in capital expenditures for the corporate headquarters and distribution facility.
18
During the remainder of fiscal 2022, the Company anticipates completing 2 new stores and an additional 11 full remodels. Management estimates that total capital expenditures during fiscal 2022 will be approximately $22.0 to $27.0 million, which includes primarily planned store projects and technology investments. The Company believes that existing cash and cash equivalents, investments, and cash flow from operations will be sufficient to fund current and long-term anticipated capital expenditures and working capital requirements for the next several years. The Company has a consistent record of generating positive cash flow from operations each year and, as of July 30, 2022, had total cash and investments of $304.8 million, including $20.6 million of long-term investments.
Future conditions, however, may reduce the availability of funds based upon factors such as a decrease in demand for the Company's product, change in product mix, competitive factors, and general economic conditions as well as other risks and uncertainties which would reduce the Company's sales, net profitability, and cash flows. Also, the Company's acceleration in store openings and/or remodels or the Company entering into a merger, acquisition, or other financial related transaction could reduce the amount of cash available for further capital expenditures and working capital requirements.
The Company has available an unsecured line of credit of $25.0 million with Wells Fargo Bank, N.A. for operating needs and letters of credit. The line of credit agreement has an expiration date of July 31, 2023 and provides that $10.0 million of the $25.0 million line is available for letters of credit. Borrowings under the line of credit provide for interest to be paid at a rate based on SOFR. The Company has, from time to time, borrowed against these lines of credit. There were no bank borrowings during the first two quarters of fiscal 2022 or 2021. The Company had no bank borrowings as of July 30, 2022 and was in compliance with the terms and conditions of the line of credit agreement.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Management’s Discussion and Analysis of Financial Condition and Results of Operations are based upon The Buckle, Inc.’s condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these consolidated financial statements requires that management make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the financial statement date, and the reported amounts of sales and expenses during the reporting period. The Company regularly evaluates its estimates, including those related to inventory, investments, incentive bonuses, and income taxes. Management bases its estimates on past experience and on various other factors that are thought to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Management believes that the estimates and judgments used in preparing these consolidated financial statements were the most appropriate at that time. Presented below are those critical accounting policies that management believes require subjective and/or complex judgments that could potentially affect reported results of operations. The critical accounting policies and estimates utilized by the Company in the preparation of its condensed consolidated financial statements for the period ended July 30, 2022 have not changed materially from those utilized for the fiscal year ended January 29, 2022, included in The Buckle Inc.’s 2021 Annual Report on Form 10-K.
1.Revenue Recognition. Retail store sales are recorded, net of expected returns, upon the purchase of merchandise by customers. Online sales are recorded, net of expected returns, when merchandise is tendered for delivery to the common carrier. Shipping fees charged to customers are included in revenue and shipping costs are included in selling expenses. The Company recognizes revenue from sales made under its layaway program upon delivery of the merchandise to the customer. Revenue is not recorded when gift cards and gift certificates are sold, but rather when a card or certificate is redeemed for merchandise. A current liability for unredeemed gift cards and certificates is recorded at the time the card or certificate is purchased. The liability recorded for unredeemed gift cards and gift certificates was $12.4 million and $16.5 million as of July 30, 2022 and January 29, 2022, respectively. Gift card and gift certificate breakage is recognized as revenue in proportion to the redemption pattern of customers by applying an estimated breakage rate. The estimated breakage rate is based on historical issuance and redemption patterns and is re-assessed by the Company on a regular basis. Sales tax collected from customers is excluded from revenue and is included as part of “accrued store operating expenses” on the Company's condensed consolidated balance sheets.
19
The Company establishes a liability for estimated merchandise returns, based upon the historical average sales return percentage, that is recognized at the transaction value. The Company also recognizes a return asset and a corresponding adjustment to cost of sales for the Company's right to recover returned merchandise, which is measured at the estimated carrying value, less any expected recovery costs. Customer returns could potentially exceed the historical average, thus reducing future net sales results and potentially reducing future net earnings. The accrued liability for reserve for sales returns was $4.2 million as of July 30, 2022 and $3.0 million as of January 29, 2022.
The Company's Buckle Rewards program allows participating guests to earn points for every qualifying purchase, which (after achievement of certain point thresholds) are redeemable as a discount off a future purchase. In addition, through partnership with Bread Financial and Comenity Bank (collectively the "Bank"), the Company offers a private label credit card ("PLCC") program. Buckle Rewards members with a PLCC earn additional points under the Buckle Rewards program for every qualifying purchase on their PLCC card. Reported revenue is net of both current period reward redemptions and accruals for estimated future rewards earned under the Buckle Rewards program. A liability has been recorded for future rewards based on the Company's estimate of how many earned points will turn into rewards and ultimately be redeemed prior to expiration. As of July 30, 2022 and January 29, 2022, $11.1 million and $10.6 million was included in "accrued store operating expenses" as a liability for estimated future rewards.
Effective July 1, 2022, the Company entered into a new five year agreement (the "Agreement") with the Bank, to continue providing guests with PLCC services. Each PLCC bears the Buckle brand logo and can only be used at the Company's retail locations and eCommerce platform. The Bank is the sole owner of the accounts issued under the PLCC program and bears full risk associated with guest non-payment.
As part of the Agreement, the Company receives a percentage of PLCC sales from the Bank, along with other incentive payments upon the achievement of certain performance targets. All amounts received from the Bank under the Agreement are recorded in net sales in the condensed consolidated statements of income.
2.Inventory. Inventory is valued at the lower of cost or net realizable value. Cost is determined using an average cost method that approximates the first-in, first-out (FIFO) method. Management makes adjustments to inventory and cost of goods sold, based upon estimates, to account for merchandise obsolescence and markdowns that could affect net realizable value, based on assumptions using calculations applied to current inventory levels within each different markdown level. Management also reviews the levels of inventory in each markdown group and the overall aging of the inventory versus the estimated future demand for such product and the current market conditions. Such judgments could vary significantly from actual results, either favorably or unfavorably, due to fluctuations in future economic conditions, industry trends, consumer demand, and the competitive retail environment. Such changes in market conditions could negatively impact the sale of markdown inventory, causing further markdowns or inventory obsolescence, resulting in increased cost of goods sold from write-offs and reducing the Company’s net earnings. The adjustment to inventory for markdowns and/or obsolescence was $5.6 million as of both July 30, 2022 and January 29, 2022.
3.Income Taxes. The Company records a deferred tax asset and liability for expected future tax consequences resulting from temporary differences between financial reporting and tax bases of assets and liabilities. The Company considers future taxable income and ongoing tax planning in assessing the value of its deferred tax assets. If the Company determines that it is more than likely that these assets will not be realized, the Company would reduce the value of these assets to their expected realizable value, thereby decreasing net income. Estimating the value of these assets is based upon the Company’s judgment. If the Company subsequently determined that the deferred tax assets, which had been written down, would be realized in the future, such value would be increased. Adjustment would be made to increase net income in the period such determination was made.
4.Leases. The Company's lease portfolio is primarily comprised of leases for retail store locations. The Company also leases certain equipment and corporate office space. Store leases for new stores typically have an initial term of 10 years, with options to renew for an additional 1 to 5 years. The exercise of lease renewal options is at the Company's sole discretion and is included in the lease term for calculations of its right-of-use assets and liabilities when it is reasonably certain that the Company plans to renew these leases. Certain store lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Lease agreements do not contain any residual value guarantees, material restrictive covenants, or options to purchase the leased property.
20
The Company records its lease liabilities at the present value of the lease payments not yet paid, discounted at the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. As the Company's leases do not provide an implicit interest rate, the Company obtains an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.
The Company has elected to apply the practical expedient to account for lease components (e.g. fixed payments for rent, insurance, and real estate taxes) and non-lease components (e.g. fixed payments for common area maintenance) together as a single component for all underlying asset classes. Additionally, the Company elected as an accounting policy to exclude short-term leases from the recognition requirements.
Consistent with guidance in the FASB Staff Q&A regarding lease concessions related to the effects of the COVID-19 pandemic, the Company made the election to treat all lease concessions as though the enforceable rights and obligations existed in each contract and, therefore, did not apply the lease modification guidance in ASC 842.
5.Investments. Investments classified as short-term investments include securities with a maturity of greater than three months and less than one year. Available-for-sale securities are reported at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component of stockholders’ equity (net of the effect of income taxes), using the specific identification method, until they are sold. Held-to-maturity securities are reported at amortized cost. Trading securities are reported at fair value, with unrealized gains and losses included in earnings, using the specific identification method.
OFF-BALANCE SHEET ARRANGEMENTS, CONTRACTUAL OBLIGATIONS, AND COMMERCIAL COMMITMENTS
As referenced in the table below, the Company has contractual obligations and commercial commitments that may affect the financial condition of the Company. Based on management’s review of the terms and conditions of its contractual obligations and commercial commitments, there is no known trend, demand, commitment, event, or uncertainty that is reasonably likely to occur which would have a material effect on the Company’s financial condition, results of operations, or cash flows. In addition, the commercial obligations and commitments made by the Company are customary transactions which are similar to those of other comparable retail companies.
The following table identifies the material obligations and commitments as of July 30, 2022:
Payments Due by Fiscal Year
Contractual obligations (dollar amounts in thousands):
Total
2022 (remaining)
2023-2024
2025-2026
Thereafter
Purchase obligations
$
20,284
$
13,089
$
5,501
$
1,645
$
49
Deferred compensation
20,163
—
—
—
20,163
Operating lease payments (a)
291,335
49,165
138,195
61,631
42,344
Total contractual obligations
$
331,782
$
62,254
$
143,696
$
63,276
$
62,556
(a) See Footnote 6 to the condensed consolidated financial statements.
The Company has available an unsecured line of credit of $25.0 million, which is excluded from the preceding table. The line of credit agreement has an expiration date of July 31, 2023 and provides that $10.0 million of the $25.0 million line is available for letters of credit. Certain merchandise purchase orders require that the Company open letters of credit. When the Company takes possession of the merchandise, it releases payment on the letters of credit. The amounts of outstanding letters of credit reported reflect the open letters of credit on merchandise ordered, but not yet received or funded. The Company believes it has sufficient credit available to open letters of credit for merchandise purchases. There were no bank borrowings during the first two quarters of fiscal 2022 or the first two quarters of fiscal 2021. The Company had outstanding letters of credit totaling $5.8 million and $2.7 million as of July 30, 2022 and January 29, 2022, respectively. The Company has no other off-balance sheet arrangements.
21
SEASONALITY
The Company's business is seasonal, with the holiday season (from approximately November 15 to December 30) and the back-to-school season (from approximately July 15 to September 1) historically contributing the greatest volume of net sales. For fiscal years 2021, 2020, and 2019, the holiday and back-to-school seasons accounted for approximately 35% of the Company's fiscal year net sales. Quarterly results may vary significantly depending on a variety of factors including the timing and amount of sales and costs associated with the opening of new stores, the timing and level of markdowns, the timing of store closings, the remodeling of existing stores, competitive factors, and general economic conditions.
FORWARD LOOKING STATEMENTS
Information in this report, other than historical information, may be considered to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “1995 Act”). Such statements are made in good faith by the Company pursuant to the safe-harbor provisions of the 1995 Act. In connection with these safe-harbor provisions, this management’s discussion and analysis contains certain forward-looking statements, which reflect management’s current views and estimates of future economic conditions, Company performance, and financial results. The statements are based on many assumptions and factors that could cause future results to differ materially. Such factors include, but are not limited to, changes in product mix, changes in fashion trends, competitive factors, and general economic conditions, economic conditions in the retail apparel industry, as well as other risks and uncertainties inherent in the Company’s business and the retail industry in general. Any changes in these factors could result in significantly different results for the Company. The Company further cautions that the forward-looking information contained herein is not exhaustive or exclusive. The Company does not undertake to update any forward-looking statements, which may be made from time to time by or on behalf of the Company.
ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest Rate Risk - The Company is exposed to market risk related to interest rate risk on the cash and investments in interest-bearing securities. These investments have carrying values that are subject to interest rate changes that could impact earnings to the extent that the Company did not hold the investments to maturity. If there are changes in interest rates, those changes would also affect the investment income the Company earns on its cash and investments. For each one-quarter percent decline in the interest/dividend rate earned on cash and investments, the Company’s net income would decrease approximately $0.5 million, or less than $0.01 per share. This amount could vary based upon the number of shares of the Company’s stock outstanding and the level of cash and investments held by the Company.
ITEM 4 – CONTROLS AND PROCEDURES
The Company maintains a system of disclosure controls and procedures that are designed to provide reasonable assurance that material information, which is required to be timely disclosed, is accumulated and communicated to management in a timely manner. An evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”)) was performed as of the end of the period covered by this report. This evaluation was performed under the supervision and with the participation of the Company’s Chief Executive Officer and Chief Financial Officer.
Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures as of the end of the period covered by this report were effective to provide reasonable assurance that information required to be disclosed by the Company in the Company’s reports that it files or submits under the Exchange Act is accumulated and communicated to management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and are effective to provide reasonable assurance that such information is recorded, processed, summarized, and reported within the time periods specified by the SEC’s rules and forms.
Change in Internal Control Over Financial Reporting
There were no changes in the Company's internal control over financial reporting that occurred during the Company's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
22
THE BUCKLE, INC.
PART II -- OTHER INFORMATION
Item 1. Legal Proceedings: None
Item 1A. Risk Factors:
There have been no material changes from the risk factors disclosed under “Item 1A - Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2022.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds:
The following table sets forth information concerning purchases made by the Company of its common stock for each of the months in the fiscal quarter ended July 30, 2022:
Total Number of Shares Purchased
Average Price Paid Per Share
Total Number of Shares Purchased as Part of Publicly Announced Plans
Maximum Number of Shares that May Yet Be Purchased Under Publicly Announced Plans
May 1, 2022 to May 28, 2022
-
-
-
410,655
May 29, 2022 to July 2, 2022
-
-
-
410,655
July 3, 2022 to July 30, 2022
-
-
-
410,655
-
-
-
The Board of Directors authorized a 1,000,000 share repurchase plan on November 20, 2008. The Company has 410,655 shares remaining to complete this authorization.
Item 3. Defaults Upon Senior Securities: None
Item 4. Mine Safety Disclosures: None
Item 5. Other Information: None
23
Item 6. Exhibits:
Exhibit 31.1
Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer (Section 302 of the Sarbanes-Oxley Act of 2002)
Exhibit 31.2
Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer (Section 302 of the Sarbanes-Oxley Act of 2002)
Exhibit 32.1
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 32.2
Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 101
The following materials from The Buckle, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July 30, 2022, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Income; (iii) Condensed Consolidated Statements of Stockholders’ Equity; (iv) Condensed Consolidated Statements of Cash Flows; and (v) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and in detail.
Exhibit 104
Cover page formatted as Inline XBRL and contained in Exhibit 101
24
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
THE BUCKLE, INC.
Date:
September 8, 2022
By:
/s/ DENNIS H. NELSON
DENNIS H. NELSON,
President and CEO
(principal executive officer)
Date:
September 8, 2022
By:
/s/ THOMAS B. HEACOCK
THOMAS B. HEACOCK,
Senior Vice President of Finance, Treasurer, and CFO
Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 101
The following materials from The Buckle, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July 30, 2022, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Income; (iii) Condensed Consolidated Statements of Stockholders’ Equity; (iv) Condensed Consolidated Statements of Cash Flows; and (v) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and in detail.
Exhibit 104
Cover page formatted as Inline XBRL and contained in Exhibit 101
