The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended January 28, 2017 was $36.0 million, or $0.75 per share ($0.74 per share on a diluted basis). Net income for the fiscal year ended January 28, 2017 was $98.0 million, or $2.04 per share ($2.03 per share on a diluted basis).
Dennis Nelson, President and Chief Executive Officer, commented:
“Thank you to each of Buckle’s 8,000+ teammates for their dedication and efforts to managing our business in what has proven to be a challenging and evolving retail environment. While overall results for both the quarter and year were below expectations, we were able to maintain merchandise margins and finish the year with an operating margin of 15.7 percent. Our focus on running a profitable business also enabled us to maintain a strong balance sheet, ending the year with $264.6 million in cash and investments and no debt.”
Net sales for the 13-week fiscal quarter ended January 28, 2017 decreased 15.7 percent to $280.0 million from net sales of $332.0 million for the prior year 13-week fiscal quarter ended January 30, 2016. Comparable store net sales for the 13-week period ended January 28, 2017 decreased 16.1 percent from comparable store net sales for the prior year 13-week period ended January 30, 2016. Online sales decreased 8.8 percent to $32.2 million for the 13-week period ended January 28, 2017, compared to net sales of $35.3 million for the 13-week period ended January 30, 2016.
Net sales for the 52-week fiscal year ended January 28, 2017 decreased 12.9 percent to $974.9 million from net sales of $1.120 billion for the 52-week fiscal year ended January 30, 2016. Comparable store net sales for the 52-week period ended January 28, 2017 decreased 13.5 percent from comparable store net sales for the prior year 52-week period ended January 30, 2016. Online sales decreased 5.4 percent to $99.8 million for the 52-week period ended January 28, 2017, compared to net sales of $105.5 million for the 52-week period ended January 30, 2016.
Net income for the fourth quarter of fiscal 2016 was $36.0 million, or $0.75 per share ($0.74 per share on a diluted basis), compared with $54.3 million, or $1.13 per share ($1.13 per share on a diluted basis) for the fourth quarter of fiscal 2015.
Net income for the fiscal year ended January 28, 2017 was $98.0 million, or $2.04 per share ($2.03 per share on a diluted basis), compared with $147.3 million, or $3.06 per share ($3.06 per share on a diluted basis) for the fiscal year ended January 30, 2016.
Please note that net sales for the 13-week and 52-week periods ended January 28, 2017 are reported net of the impact of both reward redemptions and accruals for estimated future rewards related to the Company’s new Guest Loyalty program, which launched during the fiscal quarter ended April 30, 2016.
Management will hold a conference call at 9:00 a.m. EST today to discuss fourth quarter results. To participate in the call, please call (800) 230-1059 for domestic calls or (612) 234-9960 for international calls and reference the conference code 419676. A replay of the call will be available for a two-week period beginning March 10, 2017 at 11:00 a.m. EST by calling (800) 475-6701 for domestic calls or (320) 365-3844 for international calls and entering the conference code 419676.
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 465 retail stores in 44 states. As of the end of the fiscal year, it operated 467 stores in 44 states compared with 468 stores in 44 states at the end of fiscal 2015.
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 | Fifty-Two Weeks Ended | |||||||||||
| January 28, | January 30, | January 28, | January 30, | |||||||||
| 2017 | 2016 | 2017 | 2016 (1) | |||||||||
| SALES, Net of returns and allowances | $ | 279,960 | $ | 332,031 | $ | 974,873 | $ | 1,119,616 | ||||
| COST OF SALES (Including buying, distribution, and occupancy costs) | 154,277 | 176,086 | 577,705 | 638,215 | ||||||||
| Gross profit | 125,683 | 155,945 | 397,168 | 481,401 | ||||||||
| OPERATING EXPENSES: | ||||||||||||
| Selling | 61,485 | 64,751 | 205,933 | 212,531 | ||||||||
| General and administrative | 8,770 | 7,883 | 38,475 | 39,282 | ||||||||
| 70,255 | 72,634 | 244,408 | 251,813 | |||||||||
| INCOME FROM OPERATIONS | 55,428 | 83,311 | 152,760 | 229,588 | ||||||||
| OTHER INCOME, Net | 2,011 | 3,277 | 3,511 | 5,236 | ||||||||
| INCOME BEFORE INCOME TAXES | 57,439 | 86,588 | 156,271 | 234,824 | ||||||||
| PROVISION FOR INCOME TAXES | 21,444 | 32,249 | 58,310 | 87,541 | ||||||||
| NET INCOME | $ | 35,995 | $ | 54,339 | $ | 97,961 | $ | 147,283 | ||||
| EARNINGS PER SHARE | ||||||||||||
| Basic | $ | 0.75 | $ | 1.13 | $ | 2.04 | $ | 3.06 | ||||
| Diluted | $ | 0.74 | $ | 1.13 | $ | 2.03 | $ | 3.06 | ||||
| Basic weighted average shares | 48,177 | 48,096 | 48,125 | 48,079 | ||||||||
| Diluted weighted average shares | 48,335 | 48,209 | 48,256 | 48,204 | ||||||||
| (1) Derived from audited financial statements | ||||||||||||
THE BUCKLE, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Amounts in Thousands Except Share and Per Share Amounts) | ||||||||
(Unaudited) | ||||||||
| January 28, | January 30, | |||||||
| ASSETS | 2017 | 2016 (1) | ||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 196,536 | $ | 161,185 | ||||
| Short-term investments | 49,994 | 36,465 | ||||||
| Receivables | 8,210 | 9,651 | ||||||
| Inventory | 125,694 | 149,566 | ||||||
| Prepaid expenses and other assets | 6,023 | 6,030 | ||||||
| Total current assets | 386,457 | 362,897 | ||||||
| PROPERTY AND EQUIPMENT | 459,359 | 450,762 | ||||||
| Less accumulated depreciation and amortization | (290,364 | ) | (277,981 | ) | ||||
| 168,995 | 172,781 | |||||||
| LONG-TERM INVESTMENTS | 18,092 | 33,826 | ||||||
| OTHER ASSETS | 6,303 | 3,269 | ||||||
| Total assets | $ | 579,847 | $ | 572,773 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 25,079 | $ | 33,862 | ||||
| Accrued employee compensation | 26,906 | 33,126 | ||||||
| Accrued store operating expenses | 14,695 | 6,639 | ||||||
| Gift certificates redeemable | 21,199 | 22,858 | ||||||
| Income taxes payable | 10,737 | 11,141 | ||||||
| Total current liabilities | 98,616 | 107,626 | ||||||
| DEFERRED COMPENSATION | 13,092 | 12,849 | ||||||
| DEFERRED RENT LIABILITY | 37,600 | 39,655 | ||||||
| Total liabilities | 149,308 | 160,130 | ||||||
| COMMITMENTS | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Common stock, authorized 100,000,000 shares of $.01 par value; 48,622,780 and 48,428,110 shares issued and outstanding at January 28, 2017 and January 30, 2016, respectively | 486 | 484 | ||||||
| Additional paid-in capital | 139,398 | 134,864 | ||||||
| Retained earnings | 290,737 | 277,626 | ||||||
| Accumulated other comprehensive loss | (82 | ) | (331 | ) | ||||
| Total stockholders’ equity | 430,539 | 412,643 | ||||||
| Total liabilities and stockholders’ equity | $ | 579,847 | $ | 572,773 | ||||
| (1) Derived from audited financial statements | ||||||||
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Contacts:
Karen B. Rhoads, 308-236-8491
Chief Financial
Officer
