The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended April 30, 2016 was $23.1 million, or $0.48 per share ($0.48 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended April 30, 2016 decreased 10.2 percent to $243.5 million from net sales of $271.3 million for the prior year 13-week fiscal quarter ended May 2, 2015. Comparable store net sales for the 13-week period ended April 30, 2016 decreased 11.1 percent from comparable store net sales for the prior year 13-week period ended May 2, 2015. Online sales decreased 2.8 percent to $23.5 million for the 13-week period ended April 30, 2016, compared to net sales of $24.2 million for the 13-week period ended May 2, 2015.

Net income for the first quarter of fiscal 2016 was $23.1 million, or $0.48 per share ($0.48 per share on a diluted basis), compared with $33.6 million, or $0.70 per share ($0.70 per share on a diluted basis) for the first quarter of fiscal 2015.

Please note that net sales for the 13-week fiscal quarter ended April 30, 2016 are net of a $3.0 million adjustment recorded as a reduction to revenue to accrue for estimated future rewards related to the Company’s new Guest Loyalty program, which launched during the quarter. Absent the impact of this adjustment for estimated future rewards, total net sales for the quarter were down 9.1 percent and comparable store net sales were down 10.0 percent. Despite the impact on reported sales, the Company is excited about the many potential benefits Guest Loyalty will provide to both Buckle and its guests.

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 (800) 230-1092 for domestic calls or (612) 332-0107 for international calls and reference the conference code 393064. A replay of the call will be available for a two-week period beginning today at 12:00 p.m. EDT by calling (800) 475-6701 for domestic calls or (320) 365-3844 for international calls and entering the conference code 393064.

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 467 retail stores in 44 states, following the closing of one store earlier this month in Phoenix, Arizona. As of the end of the fiscal quarter, it operated 468 stores in 44 states compared with 463 stores in 44 states at the end of the first quarter 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
April 30,   May 2,
2016 2015
 
SALES, Net of returns and allowances $ 243,543 $ 271,345
 
COST OF SALES (Including buying, distribution, and occupancy costs) 148,814   157,748
 
Gross profit 94,729   113,597
 
OPERATING EXPENSES:
Selling 47,563 49,154
General and administrative 10,736   11,638
58,299   60,792
 
INCOME FROM OPERATIONS 36,430 52,805
 
OTHER INCOME, Net 408   736
 
INCOME BEFORE INCOME TAXES 36,838 53,541
 
PROVISION FOR INCOME TAXES 13,741   19,971
 
NET INCOME $ 23,097   $ 33,570
 
 
EARNINGS PER SHARE:
Basic $ 0.48   $ 0.70
 
Diluted $ 0.48   $ 0.70
 
Basic weighted average shares 48,107 48,074
Diluted weighted average shares 48,203 48,188
 
 
THE BUCKLE, INC.
 
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
 
                 
April 30, January 30, May 2,
ASSETS 2016 2016 (1) 2015
 
CURRENT ASSETS:
Cash and cash equivalents $ 153,415 $ 161,185 $ 134,632
Short-term investments 39,453 36,465 22,792
Receivables 8,853 9,651 6,627
Inventory 138,788 149,566 129,626
Prepaid expenses and other assets 16,977   6,030   27,552  
Total current assets 357,486   362,897   321,229  
 
PROPERTY AND EQUIPMENT 455,087 450,762 436,393
Less accumulated depreciation and amortization (282,694 ) (277,981 ) (260,193 )
172,393   172,781   176,200  
 
LONG-TERM INVESTMENTS 30,986 33,826 45,103
OTHER ASSETS 3,954   3,269   2,043  
 
Total assets $ 564,819   $ 572,773   $ 544,575  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
CURRENT LIABILITIES:
Accounts payable $ 32,139 $ 33,862 $ 38,778
Accrued employee compensation 9,857 33,126 12,037
Accrued store operating expenses 11,665 6,639 11,399
Gift certificates redeemable 18,590 22,858 19,402
Income taxes payable 13,231   11,141   19,265  
Total current liabilities 85,482   107,626   100,881  
 
DEFERRED COMPENSATION 13,770 12,849 13,541
DEFERRED RENT LIABILITY 40,066 39,655 39,940
OTHER LIABILITIES —   —   10,192  
Total liabilities 139,318   160,130   164,554  
 
COMMITMENTS
 
STOCKHOLDERS’ EQUITY:

Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 48,623,190 shares at April 30, 2016, 48,428,110 shares at January 30, 2016, and 48,532,213 shares at May 2, 2015

486 484 485
Additional paid-in capital 136,743 134,864 133,446
Retained earnings 288,567 277,626 246,519
Accumulated other comprehensive loss (295 ) (331 ) (429 )
Total stockholders’ equity 425,501   412,643   380,021  
 
Total liabilities and stockholders' equity $ 564,819   $ 572,773   $ 544,575  
 
(1) Derived from audited financial statements.