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The Buckle, Inc. Reports Third Quarter Net Income

KEARNEY, Neb.--(BUSINESS WIRE)-- The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended October 28, 2017 was $19.9 million, or $0.41 per share ($0.41 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended October 28, 2017 decreased 6.2 percent to $224.3 million from net sales of $239.2 million for the prior year 13-week fiscal quarter ended October 29, 2016. Comparable store net sales for the 13-week period ended October 28, 2017 decreased 5.9 percent from comparable store net sales for the prior year 13-week period ended October 29, 2016. Online sales decreased 1.2 percent to $23.4 million for the 13-week period ended October 28, 2017, compared to net sales of $23.7 million for the 13-week period ended October 29, 2016.

Net sales for the 39-week fiscal period ended October 28, 2017 decreased 9.0 percent to $632.2 million from net sales of $694.9 million for the prior year 39-week fiscal period ended October 29, 2016. Comparable store net sales for the 39-week period ended October 28, 2017 decreased 8.8 percent from comparable store net sales for the prior year 39-week period ended October 29, 2016. Online sales decreased 4.3 percent to $64.7 million for the 39-week period ended October 28, 2017, compared to net sales of $67.6 million for the 39-week period ended October 29, 2016.

Net income for the third quarter of fiscal 2017 was $19.9 million, or $0.41 per share ($0.41 per share on a diluted basis), compared with $23.4 million, or $0.49 per share ($0.48 per share on a diluted basis) for the third quarter of fiscal 2016.

Net income for the 39-week fiscal period ended October 28, 2017 was $47.7 million, or $0.99 per share ($0.99 per share on a diluted basis), compared with $62.0 million, or $1.29 per share ($1.28 per share on a diluted basis) for the 39-week period ended October 29, 2016.

Management will hold a conference call at 9:30 a.m. EST today to discuss results for the quarter. To participate in the call, please call (800) 230-1093 for domestic calls or (612) 288-0337 for international calls and reference the conference code 432975. A replay of the call will be available for a two-week period beginning today at 11:30 a.m. EST by calling (800) 475-6701 for domestic calls or (320) 365-3844 for international calls and entering the conference code 432975.

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 462 retail stores in 44 states. As of the end of the fiscal quarter, it operated 461 stores in 44 states compared with 470 stores in 44 states at the end of the third quarter of fiscal 2016.

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 Thirty-Nine Weeks Ended

October 28,
2017

October 29,
2016

October 28,
2017

October 29,
2016

SALES, Net of returns and allowances $ 224,307 $ 239,213 $ 632,208 $ 694,913
COST OF SALES (Including buying, distribution, and occupancy costs) 133,379 142,339 385,424 423,428
Gross profit 90,928 96,874 246,784 271,485
OPERATING EXPENSES:
Selling 50,684 50,820 144,281 144,448
General and administrative 9,307 9,234 29,113 29,705
59,991 60,054 173,394 174,153
INCOME FROM OPERATIONS 30,937 36,820 73,390 97,332
OTHER INCOME, Net 808 497 2,642 1,500
INCOME BEFORE INCOME TAXES 31,745 37,317 76,032 98,832
PROVISION FOR INCOME TAXES 11,841 13,920 28,360 36,866
NET INCOME $ 19,904 $ 23,397 $ 47,672 $ 61,966
EARNINGS PER SHARE:
Basic $ 0.41 $ 0.49 $ 0.99 $ 1.29
Diluted $ 0.41 $ 0.48 $ 0.99 $ 1.28
Basic weighted average shares 48,218 48,107 48,218 48,107
Diluted weighted average shares 48,339 48,259 48,331 48,230
THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
ASSETS

October 28,
2017

January 28,
2017 (1)

October 29,
2016
CURRENT ASSETS:
Cash and cash equivalents $ 205,247 $ 196,536 $ 163,006
Short-term investments 52,202 49,994 49,987
Receivables 11,247 8,210 13,427
Inventory 128,821 125,694 148,193
Prepaid expenses and other assets 8,317 6,023 7,320
Total current assets 405,834 386,457 381,933
PROPERTY AND EQUIPMENT 462,798 459,359 464,507
Less accumulated depreciation and amortization (306,655 ) (290,364 ) (289,547 )
156,143 168,995 174,960
LONG-TERM INVESTMENTS 18,386 18,092 19,828
OTHER ASSETS 7,760 6,303 4,850
Total assets $ 588,123 $ 579,847 $ 581,571
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $ 41,294 $ 25,079 $ 36,314
Accrued employee compensation 14,899 26,906 15,651
Accrued store operating expenses 17,044 14,695 16,440
Gift certificates redeemable 14,853 21,199 16,088
Income taxes payable 4,087 10,737 2,751
Total current liabilities 92,177 98,616 87,244
DEFERRED COMPENSATION 14,581 13,092 12,571
DEFERRED RENT LIABILITY 35,452 37,600 38,602
Total liabilities 142,210 149,308 138,417
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 48,841,280 shares at October 28, 2017, 48,622,780 shares at January 28, 2017, and 48,622,780 shares at October 29, 2016 488 486 486
Additional paid-in capital 143,670 139,398 139,670
Retained earnings 301,834 290,737 303,176
Accumulated other comprehensive loss (79 ) (82 ) (178 )
Total stockholders’ equity 445,913 430,539 443,154
Total liabilities and stockholders’ equity $ 588,123 $ 579,847 $ 581,571
(1) Derived from audited financial statements.

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The Buckle, Inc.
Thomas B. Heacock, 308-236-8491
Chief Financial Officer

Source: The Buckle, Inc.