THE BUCKLE, INC. REPORTS SECOND QUARTER NET INCOME
KEARNEY, NE -- 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.
Financial Tables to Follow
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
