SOURCE: Buckle, Inc.

November 20, 2008 07:00 ET

The Buckle, Inc. Reports 31 Percent Increase in Third Quarter Net Income

KEARNEY, NE--(Marketwire - November 20, 2008) - The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended November 1, 2008 increased 31.0 percent on a 25.7 percent net sales increase.

Comparable store net sales for the 13-week third quarter ended November 1, 2008 increased 19.1 percent from comparable store net sales for the prior year 13-week third quarter ended November 3, 2007. Net sales for the 13-week fiscal period ended November 1, 2008 increased 25.7 percent to $210.6 million from net sales of $167.6 million for the prior year 13-week fiscal period ended November 3, 2007.

Comparable store net sales year-to-date for the 39-week period ended November 1, 2008 increased 23.7 percent from comparable store net sales for the 39-week period ended November 3, 2007. Net sales for the 39-week fiscal period ended November 1, 2008 increased 30.9 percent to $540.6 million from net sales of $412.9 million for the prior year 39-week fiscal period ended November 3, 2007.

Net income for the third quarter of fiscal 2008 increased 31.0 percent to $29.1 million, or $0.64 per share ($0.62 per share on a diluted basis), compared with $22.2 million, or $0.50 per share ($0.48 per share on a diluted basis) for the third quarter of fiscal 2007.

Net income for the 39-week period ended November 1, 2008 increased 51.7 percent to $70.1 million, or $1.55 per share ($1.50 per share on a diluted basis), compared with $46.2 million, or $1.04 per share ($1.00 per share on a diluted basis) for the 39-week period ended November 3, 2007.

Earnings per share and the weighted average shares outstanding for the prior year third quarter and year-to-date periods have been adjusted to reflect the impact of the Company's 3-for-2 stock split paid in the form of a stock dividend on October 31, 2008. The prior year third quarter and year-end stockholders' equity data have not been split adjusted.

During the third quarter of fiscal 2008, the Company recorded a $1.8 million unrealized loss resulting from the "Other-than-Temporary" impairment of certain of its investments in auction-rate securities. The unrealized loss has been recorded in the Statements of Income for the quarter and year-to-date periods ended November 1, 2008 and had a $0.02 per share after-tax impact on reported basic and diluted earnings per share for both the quarter and year-to-date periods.

Subsequent to the end of fiscal October, the Company repurchased 100,000 shares of its common stock at an average price of $17.92 per share through November 18, 2008. These shares were purchased pursuant to the 750,000 share corporate stock repurchase program authorized by the Board of Directors on November 27, 2007. The Company had 256,400 shares remaining under this authorization as of November 18, 2008.

Management will hold a conference call at 10:00 a.m. EST today to discuss third quarter results. To participate in the call, please call (866) 835-8908 and reference the conference code 968603. A replay of the call will be available for a two-week period beginning November 20, 2008 at 12:00 p.m. EST by calling (800) 475-6701 and entering the conference code 968603.

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 388 retail stores in 39 states, which includes the opening of a new store in Alexandria, Louisiana last week. As of the end of the third quarter, it operated 384 stores in 39 states compared with 367 stores in 38 states at the end of the third quarter of fiscal 2007.

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.

STATEMENTS OF INCOME
(Amounts in Thousands Except Per Share Amounts)
(Unaudited)



                          Thirteen Weeks Ended    Thirty-nine Weeks Ended
                        ------------------------  ------------------------
                        November 1,  November 3,  November 1,  November 3,
                            2008         2007         2008         2007

SALES, Net of returns
 and allowances         $   210,567  $    167,559 $   540,632  $    412,927

COST OF SALES
 (Including buying,
 distribution, and
 occupancy costs)           118,762        96,810     312,937       250,262
                        -----------  ------------ -----------  ------------

     Gross profit            91,805        70,749     227,695       162,665
                        -----------  ------------ -----------  ------------

OPERATING EXPENSES:
  Selling                    39,415        31,864     104,454        80,353
  General and
   administrative             7,000         5,746      17,172        15,617
                        -----------  ------------ -----------  ------------
                             46,415        37,610     121,626        95,970
                        -----------  ------------ -----------  ------------

INCOME FROM OPERATIONS       45,390        33,139     106,069        66,695

OTHER INCOME, Net             1,794         2,177       6,163         6,560
UNREALIZED LOSS ON
 SECURITIES                  (1,800)            -      (1,800)            -
                        -----------  ------------ -----------  ------------

INCOME BEFORE INCOME
 TAXES                       45,384        35,316     110,432        73,255

PROVISION FOR INCOME
 TAXES                       16,308        13,118      40,363        27,072
                        -----------  ------------ -----------  ------------

NET INCOME              $    29,076  $     22,198 $    70,069  $     46,183
                        ===========  ============ ===========  ============


EARNINGS PER SHARE:
  Basic                 $      0.64  $       0.50 $      1.55  $       1.04
                        ===========  ============ ===========  ============

  Diluted               $      0.62  $       0.48 $      1.50  $       1.00
                        ===========  ============ ===========  ============

Basic weighted average
 shares                      45,666        44,687      45,273        44,517
Diluted weighted
 average shares              46,851        46,372      46,563        46,263




THE BUCKLE, INC.

BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)


                                     November 1,  February 2,  November 3,
ASSETS                                   2008       2008 (1)       2007

CURRENT ASSETS:
  Cash and cash equivalents          $    92,419  $    64,293  $    40,092
  Short-term investments                  25,963      102,910      140,725
  Accounts receivable, net of
   allowance of $32, $62, and $54,
   respectively                            4,609        2,800        4,407
  Inventory                              118,202       77,639       99,492
  Prepaid expenses and other assets       18,502       13,979       16,002
                                     -----------  -----------  -----------
    Total current assets                 259,695      261,621      300,718
                                     -----------  -----------  -----------

PROPERTY AND EQUIPMENT:                  262,303      240,237      235,240
  Less accumulated depreciation and
   amortization                         (145,548)    (137,903)    (133,409)
                                     -----------  -----------  -----------
                                         116,755      102,334      101,831
                                     -----------  -----------  -----------

LONG-TERM INVESTMENTS                     64,446       81,201       28,391
OTHER ASSETS                               5,122        5,501        4,044
                                     -----------  -----------  -----------

                                     $   446,018  $   450,657  $   434,984
                                     ===========  ===========  ===========

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:
  Accounts payable                   $    40,515  $    25,155  $    31,896
  Accrued employee compensation           27,279       27,836       17,506
  Accrued store operating expenses         9,143        5,704        6,447
  Gift certificates redeemable             5,816        8,511        4,263
  Income taxes payable                     5,149       10,020        6,553
                                     -----------  -----------  -----------
    Total current liabilities             87,902       77,226       66,665

DEFERRED COMPENSATION                      4,239        4,127        4,120
DEFERRED RENT LIABILITY                   34,744       30,984       32,095
                                     -----------  -----------  -----------
    Total liabilities                    126,885      112,337      102,880
                                     -----------  -----------  -----------

COMMITMENTS

STOCKHOLDERS' EQUITY:
  Common stock, authorized
   100,000,000 shares of $.01 par
   value; issued and outstanding;
   46,462,708 shares at November
   1, 2008, 29,841,668 shares at
   February 2, 2008, and
   30,306,186 shares at November
   3, 2007                                   465          298          303
  Additional paid-in capital              76,295       46,977       62,363
  Retained earnings                      243,630      291,045      269,438
  Accumulated other comprehensive
   loss                                   (1,257)           -            -
                                     -----------  -----------  -----------
    Total stockholders’ equity           319,133      338,320      332,104
                                     -----------  -----------  -----------

                                     $   446,018  $   450,657  $   434,984
                                     ===========  ===========  ===========

(1) Derived from audited financial statements.

Contact Information

  • Contact:
    Karen B. Rhoads
    Chief Financial Officer
    The Buckle, Inc.
    308/236-8491

    The Buckle, Inc.
    2407 W. 24th St. Kearney, NE 68845
    P.O. Box 1480 Kearney, NE 68848-1480
    phone: 308-236-8491
    fax: 308-236-4493
    web: www.buckle.com