SOURCE: The Buckle, Inc.

The Buckle, Inc.

August 20, 2009 07:00 ET

The Buckle, Inc. Reports Second Quarter Net Income

KEARNEY, NE--(Marketwire - August 20, 2009) - The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended August 1, 2009 was $25.0 million, or $0.55 per share ($0.54 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended August 1, 2009 increased 13.6 percent to $192.9 million from net sales of $169.8 million for the prior year 13-week fiscal quarter ended August 2, 2008. Comparable store net sales for the 13-week period ended August 1, 2009 increased 8.6 percent from comparable store net sales for the prior year 13-week period ended August 2, 2008. Online sales (which are not included in comparable store sales) increased 39.0 percent to $10.1 million for the 13-week period ended August 1, 2009, compared to the 13-week period ended August 2, 2008.

Net sales for the 26-week fiscal period ended August 1, 2009 increased 18.9 percent to $392.6 million from net sales of $330.1 million for the prior year 26-week fiscal period ended August 2, 2008. Comparable store net sales year-to-date for the 26-week period ended August 1, 2009 increased 13.1 percent from comparable store net sales for the 26-week period ended August 2, 2008. Online sales (which are not included in comparable store sales) increased 56.4 percent to $21.8 million for the 26-week period ended August 1, 2009, compared to the 26-week period ended August 2, 2008.

Net income for the second quarter of fiscal 2009 was $25.0 million, or $0.55 per share ($0.54 per share on a diluted basis), compared with $22.3 million, or $0.49 per share ($0.48 per share on a diluted basis) for the second quarter of fiscal 2008.

Net income for the 26-week fiscal period ended August 1, 2009 was $51.9 million, or $1.14 per share ($1.11 per share on a diluted basis), compared with $41.0 million, or $0.91 per share ($0.88 per share on a diluted basis) for the 26-week fiscal period ended August 2, 2008.

General and administrative expenses for the prior year quarter and year-to-date periods ended August 2, 2008 are reported net of a $3.0 million gain from the involuntary conversion of one of the Company's corporate aircrafts to a monetary asset upon receipt of the insurance proceeds. The aircraft was destroyed by a tornado that hit the airport in Kearney, Nebraska. This gain had a $0.04 per share after-tax impact on reported basic and diluted earnings per share for both the prior year quarter and year-to-date periods.

Earnings per share and the weighted average shares outstanding for the prior year 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 30, 2008.

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) 531-2989 and reference the conference code 111545. A replay of the call will be available for a two-week period beginning August 20, 2009 at 12:00 p.m. EDT by calling (800) 475-6701 and entering the conference code 111545.

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 401 retail stores in 41 states. As of the end of the fiscal quarter, it operated 401 stores in 41 states compared with 381 stores in 39 states at the end of the second quarter of fiscal 2008.

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   Twenty-six Weeks Ended
                            ----------------------- -----------------------
                             August 1,   August 2,   August 1,   August 2,
                               2009        2008        2009        2008

SALES, Net of returns and
 allowances                 $   192,906 $   169,765 $   392,603 $   330,065

COST OF SALES (Including
 buying, distribution, and
 occupancy costs)               110,628      99,497     223,622     194,175
                            ----------- ----------- ----------- -----------

           Gross profit          82,278      70,268     168,981     135,890
                            ----------- ----------- ----------- -----------

OPERATING EXPENSES:
  Selling                        37,507      33,480      75,104      65,039
  General and
   administrative                 6,647       3,477      14,025      10,172
                            ----------- ----------- ----------- -----------
                                 44,154      36,957      89,129      75,211
                            ----------- ----------- ----------- -----------

INCOME FROM OPERATIONS           38,124      33,311      79,852      60,679

OTHER INCOME, Net                 1,549       2,049       2,459       4,369
                            ----------- ----------- ----------- -----------

INCOME BEFORE INCOME TAXES       39,673      35,360      82,311      65,048

PROVISION FOR INCOME TAXES       14,679      13,084      30,455      24,055
                            ----------- ----------- ----------- -----------

NET INCOME                  $    24,994 $    22,276 $    51,856 $    40,993
                            =========== =========== =========== ===========


EARNINGS PER SHARE:
  Basic                     $      0.55 $      0.49 $      1.14 $      0.91
                            =========== =========== =========== ===========

  Diluted                   $      0.54 $      0.48 $      1.11 $      0.88
                            =========== =========== =========== ===========

Basic weighted average
 shares                          45,640      45,346      45,585      45,076
Diluted weighted average
 shares                          46,623      46,587      46,572      46,418







THE BUCKLE, INC.

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


                                      August 1,   January 31,   August 2,
ASSETS                                   2009       2009 (1)       2008

CURRENT ASSETS:
  Cash and cash equivalents          $   145,736  $   162,463  $   184,144
  Short-term investments                  17,288       19,150       22,760
  Accounts receivable, net of
   allowance of $28, $46, and $24,
   respectively                            6,719        3,734        5,012
  Inventory                              106,523       83,963      103,432
  Prepaid expenses and other assets       18,865       17,655       16,486
                                     -----------  -----------  -----------
           Total current assets          295,131      286,965      331,834
                                     -----------  -----------  -----------

PROPERTY AND EQUIPMENT:                  286,136      264,154      239,639
  Less accumulated depreciation and
   amortization                         (154,023)    (147,460)    (141,840)
                                     -----------  -----------  -----------
                                         132,113      116,694       97,799
                                     -----------  -----------  -----------

LONG-TERM INVESTMENTS                     65,448       56,213       71,880
OTHER ASSETS                               4,650        5,468        4,930
                                     -----------  -----------  -----------

                                     $   497,342  $   465,340  $   506,443
                                     ===========  ===========  ===========

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:
  Accounts payable                   $    42,546  $    22,472  $    48,218
  Accrued employee compensation           19,748       40,460       16,501
  Accrued store operating expenses         8,397        7,701        7,004
  Gift certificates redeemable             6,986       10,144        5,814
  Income taxes payable                     2,042        8,649        7,097
                                     -----------  -----------  -----------
           Total current liabilities      79,719       89,426       84,634

DEFERRED COMPENSATION                      5,761        4,090        4,830
DEFERRED RENT LIABILITY                   35,886       34,602       34,607
                                     -----------  -----------  -----------
           Total liabilities             121,366      128,118      124,071
                                     -----------  -----------  -----------

COMMITMENTS

STOCKHOLDERS’ EQUITY:
  Common stock, authorized
   100,000,000 shares of $.01 par
   value; issued and outstanding;
   46,277,205 shares at August 1,
   2009, 45,906,265 shares at
   January 31, 2009, and 30,651,343
   shares at August 2, 2008                  463          459          307
  Additional paid-in capital              74,359       68,894       66,272
  Retained earnings                      302,169      268,789      316,769
  Accumulated other comprehensive
   loss                                   (1,015)        (920)        (976)
                                     -----------  -----------  -----------
           Total stockholders’
            equity                       375,976      337,222      382,372
                                     -----------  -----------  -----------

                                     $   497,342  $   465,340  $   506,443
                                     ===========  ===========  ===========

(1) Derived from audited financial statements.

Contact Information

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