UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended July ~~31, 2021~~30, 2022

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from ____________ to ____________

Commission File Number: 001-12951

THE BUCKLE, INC.

(Exact name of Registrant as specified in its charter)


Nebraska			47-0366193
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

2407 West 24th Street, Kearney, Nebraska 68845-4915

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (308) 236-8491

(Former name, former address, and former fiscal year if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.01 par value	BKE	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for a shorter period that the registrant was required to submit such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer oþ; Accelerated filer þo;

Non-accelerated filer o; Smaller reporting company o;

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No þ

The number of shares outstanding of the Registrant's Common Stock, $0.01 par value, as of September ~~3, 2021,~~2, 2022, was ~~49,783,381.~~50,094,751.

THE BUCKLE, INC.

FORM 10-Q

INDEX

THE BUCKLE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands Except Share and Per Share Amounts)

(Unaudited)


ASSETS	ASSETS	July 31, 2021		January 30, 2021		ASSETS	July 30, 2022		January 29, 2022

CURRENT ASSETS:	CURRENT ASSETS:					CURRENT ASSETS:
Cash and cash equivalents	Cash and cash equivalents	$	406,714	$	318,789	Cash and cash equivalents	$	266,731	$	253,970
Short-term investments	Short-term investments	8,592		3,359		Short-term investments	17,387		12,926
Receivables	Receivables	6,667		2,823		Receivables	13,015		12,087
Inventory	Inventory	95,276		101,063		Inventory	128,498		102,095
Prepaid expenses and other assets	Prepaid expenses and other assets	20,294		11,190		Prepaid expenses and other assets	9,445		10,128
Total current assets	Total current assets	537,543		437,224		Total current assets	435,076		391,206

PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT	452,460		451,357		PROPERTY AND EQUIPMENT	460,362		453,228
Less accumulated depreciation and amortization	Less accumulated depreciation and amortization	(352,773)		(350,942)		Less accumulated depreciation and amortization	(353,929)		(352,724)
		99,687		100,415			106,433		100,504

OPERATING LEASE RIGHT-OF-USE ASSETS	OPERATING LEASE RIGHT-OF-USE ASSETS	264,177		279,358		OPERATING LEASE RIGHT-OF-USE ASSETS	234,634		258,914
LONG-TERM INVESTMENTS	LONG-TERM INVESTMENTS	19,558		18,320		LONG-TERM INVESTMENTS	20,640		19,352
OTHER ASSETS	OTHER ASSETS	11,720		10,497		OTHER ASSETS	12,281		10,908

Total assets	Total assets	$	932,685	$	845,814	Total assets	$	809,064	$	780,884

LIABILITIES AND STOCKHOLDERS’ EQUITY	LIABILITIES AND STOCKHOLDERS’ EQUITY					LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:	CURRENT LIABILITIES:					CURRENT LIABILITIES:
Accounts payable	Accounts payable	$	67,812	$	43,399	Accounts payable	$	63,036	$	59,950
Accrued employee compensation	Accrued employee compensation	33,878		35,865		Accrued employee compensation	29,509		62,055
Accrued store operating expenses	Accrued store operating expenses	30,724		20,303		Accrued store operating expenses	30,497		20,264
Gift certificates redeemable	Gift certificates redeemable	11,434		14,279		Gift certificates redeemable	12,411		16,470
Current portion of operating lease liabilities	Current portion of operating lease liabilities	82,255		81,762		Current portion of operating lease liabilities	80,827		88,273
Income taxes payable	Income taxes payable	—		10,751		Income taxes payable	—		1,529
Total current liabilities	Total current liabilities	226,103		206,359		Total current liabilities	216,280		248,541

DEFERRED COMPENSATION	DEFERRED COMPENSATION	19,558		18,320		DEFERRED COMPENSATION	20,163		19,352
NON-CURRENT OPERATING LEASE LIABILITIES	NON-CURRENT OPERATING LEASE LIABILITIES	209,472		224,506		NON-CURRENT OPERATING LEASE LIABILITIES	183,643		200,067
Total liabilities	Total liabilities	455,133		449,185		Total liabilities	420,086		467,960

COMMITMENTS	COMMITMENTS	0		0		COMMITMENTS

STOCKHOLDERS’ EQUITY:	STOCKHOLDERS’ EQUITY:					STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $0.01 par value; 49,783,381 and 49,407,731 shares issued and outstanding at July 31, 2021 and January 30, 2021 respectively		498		494
Common stock, authorized 100,000,000 shares of $0.01 par value; 50,094,751 and 49,728,651 shares issued and outstanding at July 30, 2022 and January 29, 2022 respectively						Common stock, authorized 100,000,000 shares of $0.01 par value; 50,094,751 and 49,728,651 shares issued and outstanding at July 30, 2022 and January 29, 2022 respectively	501		497
Additional paid-in capital	Additional paid-in capital	163,148		158,058		Additional paid-in capital	173,046		167,328
Retained earnings	Retained earnings	313,906		238,077		Retained earnings	215,431		145,099
Total stockholders’ equity	Total stockholders’ equity	477,552		396,629		Total stockholders’ equity	388,978		312,924

Total liabilities and stockholders’ equity	Total liabilities and stockholders’ equity	$	932,685	$	845,814	Total liabilities and stockholders’ equity	$	809,064	$	780,884

See notes to unaudited condensed consolidated financial statements.

THE BUCKLE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in Thousands Except Per Share Amounts)

(Unaudited)


		Thirteen Weeks Ended				Twenty-Six Weeks Ended					Thirteen Weeks Ended				Twenty-Six Weeks Ended
		July 31, 2021		August 1, 2020		July 31, 2021		August 1, 2020			July 30, 2022		July 31, 2021		July 30, 2022		July 31, 2021

SALES, Net of returns and allowances	SALES, Net of returns and allowances	$	295,120	$	216,025	$	594,245	$	331,438	SALES, Net of returns and allowances	$	301,976	$	295,120	$	611,040	$	594,245

COST OF SALES (Including buying, distribution, and occupancy costs)	COST OF SALES (Including buying, distribution, and occupancy costs)	153,101		122,643		304,673		211,231		COST OF SALES (Including buying, distribution, and occupancy costs)	156,607		153,101		313,511		304,673

Gross profit	Gross profit	142,019		93,382		289,572		120,207		Gross profit	145,369		142,019		297,529		289,572

OPERATING EXPENSES:	OPERATING EXPENSES:									OPERATING EXPENSES:
Selling	Selling	63,056		38,257		123,056		71,761		Selling	67,982		63,056		135,228		123,056
General and administrative	General and administrative	11,081		9,593		22,832		19,096		General and administrative	11,674		11,081		23,529		22,832
		74,137		47,850		145,888		90,857			79,656		74,137		158,757		145,888

INCOME FROM OPERATIONS	INCOME FROM OPERATIONS	67,882		45,532		143,684		29,350		INCOME FROM OPERATIONS	65,713		67,882		138,772		143,684

OTHER INCOME, Net	OTHER INCOME, Net	222		404		273		978		OTHER INCOME, Net	703		222		828		273

INCOME BEFORE INCOME TAXES	INCOME BEFORE INCOME TAXES	68,104		45,936		143,957		30,328		INCOME BEFORE INCOME TAXES	66,416		68,104		139,600		143,957

INCOME TAX EXPENSE	INCOME TAX EXPENSE	16,685		11,254		35,269		7,430		INCOME TAX EXPENSE	16,272		16,685		34,202		35,269

NET INCOME	NET INCOME	$	51,419	$	34,682	$	108,688	$	22,898	NET INCOME	$	50,144	$	51,419	$	105,398	$	108,688

EARNINGS PER SHARE:	EARNINGS PER SHARE:									EARNINGS PER SHARE:
Basic	Basic	$	1.05	$	0.71	$	2.22	$	0.47	Basic	$	1.02	$	1.05	$	2.14	$	2.22

Diluted	Diluted	$	1.04	$	0.71	$	2.20	$	0.47	Diluted	$	1.01	$	1.04	$	2.13	$	2.20

Basic weighted average shares	Basic weighted average shares	48,946		48,714		48,946		48,719		Basic weighted average shares	49,214		48,946		49,214		48,946
Diluted weighted average shares	Diluted weighted average shares	49,341		48,913		49,325		48,918		Diluted weighted average shares	49,535		49,341		49,531		49,325

See notes to unaudited condensed consolidated financial statements.

THE BUCKLE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Amounts in Thousands Except Share and Per Share Amounts)

(Unaudited)


		Number of Shares	Common Stock		Additional Paid-in Capital		Retained Earnings		Total			Number of Shares	Common Stock		Additional Paid-in Capital		Retained Earnings		Total

FISCAL 2022											FISCAL 2022

BALANCE, May 1, 2022											BALANCE, May 1, 2022	50,094,851	$	501	$	170,272	$	182,820	$	353,593
Net income											Net income	—	—		—		50,144		50,144
Dividends paid on common stock, ($0.35 per share)											Dividends paid on common stock, ($0.35 per share)	—	—		—		(17,533)		(17,533)
Issuance of non-vested stock, net of forfeitures											Issuance of non-vested stock, net of forfeitures	(100)	—		—		—		—
Amortization of non-vested stock grants, net of forfeitures											Amortization of non-vested stock grants, net of forfeitures	—	—		2,774		—		2,774

BALANCE, July 30, 2022											BALANCE, July 30, 2022	50,094,751	$	501	$	173,046	$	215,431	$	388,978

BALANCE, January 30, 2022											BALANCE, January 30, 2022	49,728,651	$	497	$	167,328	$	145,099	$	312,924
Net income											Net income	—	—		—		105,398		105,398
Dividends paid on common stock, ($0.70 per share)											Dividends paid on common stock, ($0.70 per share)	—	—		—		(35,066)		(35,066)
Issuance of non-vested stock, net of forfeitures											Issuance of non-vested stock, net of forfeitures	366,100	4		(4)		—		—
Amortization of non-vested stock grants, net of forfeitures											Amortization of non-vested stock grants, net of forfeitures	—	—		5,722		—		5,722

BALANCE, July 30, 2022											BALANCE, July 30, 2022	50,094,751	$	501	$	173,046	$	215,431	$	388,978

FISCAL 2021	FISCAL 2021										FISCAL 2021

BALANCE, May 2, 2021	BALANCE, May 2, 2021	49,788,891	$	498	$	160,684	$	278,916	$	440,098	BALANCE, May 2, 2021	49,788,891	$	498	$	160,684	$	278,916	$	440,098
Net income	Net income	—	—		—		51,419		51,419		Net income	—	—		—		51,419		51,419
Dividends paid on common stock, ($0.33 per share)	Dividends paid on common stock, ($0.33 per share)	—	—		—		(16,429)		(16,429)		Dividends paid on common stock, ($0.33 per share)	—	—		—		(16,429)		(16,429)
Issuance of non-vested stock, net of forfeitures	Issuance of non-vested stock, net of forfeitures	(5,510)	—		—		—		—		Issuance of non-vested stock, net of forfeitures	(5,510)	—		—		—		—
Amortization of non-vested stock grants, net of forfeitures	Amortization of non-vested stock grants, net of forfeitures	—	—		2,464		—		2,464		Amortization of non-vested stock grants, net of forfeitures	—	—		2,464		—		2,464

BALANCE, July 31, 2021	BALANCE, July 31, 2021	49,783,381	$	498	$	163,148	$	313,906	$	477,552	BALANCE, July 31, 2021	49,783,381	$	498	$	163,148	$	313,906	$	477,552

BALANCE, January 31, 2021	BALANCE, January 31, 2021	49,407,731	$	494	$	158,058	$	238,077	$	396,629	BALANCE, January 31, 2021	49,407,731	$	494	$	158,058	$	238,077	$	396,629
Net income	Net income	—	—		—		108,688		108,688		Net income	—	—		—		108,688		108,688
Dividends paid on common stock, ($0.66 per share)	Dividends paid on common stock, ($0.66 per share)	—	—		—		(32,859)		(32,859)		Dividends paid on common stock, ($0.66 per share)	—	—		—		(32,859)		(32,859)
Issuance of non-vested stock, net of forfeitures	Issuance of non-vested stock, net of forfeitures	375,650	4		(4)		—		—		Issuance of non-vested stock, net of forfeitures	375,650	4		(4)		—		—
Amortization of non-vested stock grants, net of forfeitures	Amortization of non-vested stock grants, net of forfeitures	—	—		5,094		—		5,094		Amortization of non-vested stock grants, net of forfeitures	—	—		5,094		—		5,094

BALANCE, July 31, 2021	BALANCE, July 31, 2021	49,783,381	$	498	$	163,148	$	313,906	$	477,552	BALANCE, July 31, 2021	49,783,381	$	498	$	163,148	$	313,906	$	477,552

FISCAL 2020

BALANCE, May 3, 2020		49,408,181	$	494	$	152,841	$	224,614	$	377,949
Net income		—	—		—		34,682		34,682

Issuance of non-vested stock, net of forfeitures		(450)	—		—		—		—
Amortization of non-vested stock grants, net of forfeitures		—	—		1,676		—		1,676
Common stock purchased and retired		—	—		—		—		—
BALANCE, August 1, 2020		49,407,731	$	494	$	154,517	$	259,296	$	414,307

BALANCE, February 2, 2020		49,205,681	$	492	$	152,258	$	236,398	$	389,148
Net income		—	—		—		22,898		22,898

Issuance of non-vested stock, net of forfeitures		227,050	2		(2)		—		—
Amortization of non-vested stock grants, net of forfeitures		—	—		2,633		—		2,633
Common stock purchased and retired		(25,000)	—		(372)		—		(372)
BALANCE, August 1, 2020		49,407,731	$	494	$	154,517	$	259,296	$	414,307

See notes to unaudited condensed consolidated financial statements.

THE BUCKLE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in Thousands)

(Unaudited)


		Twenty-Six Weeks Ended					Twenty-Six Weeks Ended
		July 31, 2021		August 1, 2020			July 30, 2022		July 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:	CASH FLOWS FROM OPERATING ACTIVITIES:					CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	Net income	$	108,688	$	22,898	Net income	$	105,398	$	108,688
Adjustments to reconcile net income to net cash flows from operating activities:	Adjustments to reconcile net income to net cash flows from operating activities:					Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	Depreciation and amortization	9,700		11,010		Depreciation and amortization	9,181		9,700
Amortization of non-vested stock grants, net of forfeitures	Amortization of non-vested stock grants, net of forfeitures	5,094		2,633		Amortization of non-vested stock grants, net of forfeitures	5,722		5,094
Deferred income taxes	Deferred income taxes	(1,223)		(632)		Deferred income taxes	(1,373)		(1,223)
Other	Other	229		58		Other	274		229
Changes in operating assets and liabilities:	Changes in operating assets and liabilities:					Changes in operating assets and liabilities:
Receivables	Receivables	286		1,278		Receivables	1,638		286
Inventory	Inventory	5,787		4,779		Inventory	(26,403)		5,787
Prepaid expenses and other assets	Prepaid expenses and other assets	(9,104)		547		Prepaid expenses and other assets	683		(9,104)
Accounts payable	Accounts payable	24,424		21,734		Accounts payable	2,622		24,424
Accrued employee compensation	Accrued employee compensation	(1,987)		(13,538)		Accrued employee compensation	(32,546)		(1,987)
Accrued store operating expenses	Accrued store operating expenses	11,005		3,279		Accrued store operating expenses	10,260		11,005
Gift certificates redeemable	Gift certificates redeemable	(2,845)		(2,708)		Gift certificates redeemable	(4,059)		(2,845)
Income taxes payable	Income taxes payable	(14,881)		(3,287)		Income taxes payable	(4,095)		(14,881)
Other assets and liabilities	Other assets and liabilities	1,294		1,115		Other assets and liabilities	2,190		1,294

Net cash flows from operating activities	Net cash flows from operating activities	136,467		49,166		Net cash flows from operating activities	69,492		136,467

CASH FLOWS FROM INVESTING ACTIVITIES:	CASH FLOWS FROM INVESTING ACTIVITIES:					CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	Purchases of property and equipment	(9,212)		(3,382)		Purchases of property and equipment	(14,920)		(9,212)
Change in other assets		—		111
Purchases of investments	Purchases of investments	(10,700)		(15,953)		Purchases of investments	(17,670)		(10,700)
Proceeds from sales/maturities of investments	Proceeds from sales/maturities of investments	4,229		15,175		Proceeds from sales/maturities of investments	10,925		4,229

Net cash flows from investing activities	Net cash flows from investing activities	(15,683)		(4,049)		Net cash flows from investing activities	(21,665)		(15,683)

CASH FLOWS FROM FINANCING ACTIVITIES:	CASH FLOWS FROM FINANCING ACTIVITIES:					CASH FLOWS FROM FINANCING ACTIVITIES:
Purchases of common stock		—		(372)
Payment of dividends	Payment of dividends	(32,859)		—		Payment of dividends	(35,066)		(32,859)

Net cash flows from financing activities	Net cash flows from financing activities	(32,859)		(372)		Net cash flows from financing activities	(35,066)		(32,859)

NET INCREASE IN CASH AND CASH EQUIVALENTS	NET INCREASE IN CASH AND CASH EQUIVALENTS	87,925		44,745		NET INCREASE IN CASH AND CASH EQUIVALENTS	12,761		87,925

CASH AND CASH EQUIVALENTS, Beginning of period	CASH AND CASH EQUIVALENTS, Beginning of period	318,789		220,969		CASH AND CASH EQUIVALENTS, Beginning of period	253,970		318,789

CASH AND CASH EQUIVALENTS, End of period	CASH AND CASH EQUIVALENTS, End of period	$	406,714	$	265,714	CASH AND CASH EQUIVALENTS, End of period	$	266,731	$	406,714

See notes to unaudited condensed consolidated financial statements.

THE BUCKLE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

THIRTEEN AND TWENTY-SIX WEEKS ENDED JULY 30, 2022 AND JULY 31, 2021 ~~AND AUGUST 1, 2020~~

(Dollar Amounts in Thousands Except Share and Per Share Amounts)

(Unaudited)

1.Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments necessary for the fair presentation of the results of operations for the interim periods have been included. All such adjustments are of a normal recurring nature. Because of the seasonal nature of the business, results for interim periods are not necessarily indicative of a full year's operations. The accounting policies followed by the Company and additional footnotes are reflected in the consolidated financial statements for the fiscal year ended January ~~30, 2021,~~29, 2022, included in The Buckle, Inc.'s ~~2020~~2021 Form 10-K. The condensed consolidated balance sheet as of January ~~30, 2021~~29, 2022 is derived from audited financial statements.

For purposes of this report, unless the context otherwise requires, all references herein to the “Company”, “Buckle”, “we”, “us”, or similar terms refer to The Buckle, Inc. and its subsidiary.

The Company follows generally accepted accounting principles (“GAAP”) established by the Financial Accounting Standards Board (“FASB”). References to GAAP in these notes are to the FASB Accounting Standards Codification (“ASC”).

2.Revenues

The Company is a retailer of medium to better priced casual apparel, footwear, and accessories for fashion conscious young men and women. The Company operates its business as 1one reportable segment. The Company sells its merchandise through its retail stores and e-Commerce platform. The Company had ~~442~~441 stores located in 42 states throughout the United States as of July ~~31, 2021~~30, 2022 and ~~446~~442 stores in 42 states as of ~~August~~July 31, 2021. During the twenty-six week period ended July 30, 2022, the Company opened 2 new stores, substantially remodeled 13 stores, and closed 1 ~~2020.~~store, which includes 2 new stores, 7 substantially remodeled stores, and no closed stores for the second quarter. During the twenty-six week period ended July 31, 2021, the Company opened 1 new store, substantially remodeled 7 stores, and closed 2 stores, which includes 1 new store, 2 substantially remodeled stores, and 1 closed ~~stores~~store for the second quarter. During the twenty-six week period ended August 1, 2020, the Company opened 3 new stores, substantially remodeled 1 store, and closed 5 stores, which includes 3 new stores, 0 substantially remodeled stores, and 3 closed stores for the second quarter.

Revenue for fiscal 2020 was significantly affected by the impacts of COVID-19. The Company temporarily closed all of its brick and mortar stores beginning March 18, 2020 to protect the health and welfare of its guests, teammates, and communities. The Company began the process of reopening certain stores the week of April 26, 2020, following all appropriate federal, state, and local reopening guidelines. The store closings had a significant impact on the Company's revenue for the twenty-six week period ended August 1, 2020, which was down $73,692 or 18.2% from the same twenty-six week period in the prior year. The Company's online store remained open without interruption and experienced significant growth during the twenty-six week period ended August 1, 2020, growing $30,555 or 64.3% compared to the same twenty-six week period in the prior year.

For the thirteen week periods ended July 30, 2022 and July 31, 2021, ~~and August 1, 2020,~~ online revenues accounted for ~~14.7%~~15.3% and ~~21.3%~~14.7%, respectively, of the Company's net sales. For the twenty-six week periods ended July 30, 2022 and July 31, 2021, ~~and August 1, 2020,~~ online revenues accounted for ~~16.4%~~16.5% and ~~23.6%~~16.4%, respectively. No sales to an individual customer or country, other than the United States, accounted for more than 10% of net sales.

The following is information regarding the Company’s major product lines, stated as a percentage of the Company’s net sales:


		Thirteen Weeks Ended				Twenty-Six Weeks Ended					Thirteen Weeks Ended				Twenty-Six Weeks Ended
Merchandise Group	Merchandise Group	July 31, 2021		August 1, 2020		July 31, 2021		August 1, 2020		Merchandise Group	July 30, 2022		July 31, 2021		July 30, 2022		July 31, 2021

Denims	Denims	33.6	%	32.1	%	37.9	%	36.9	%	Denims	31.9	%	33.6	%	36.0	%	37.9	%
Tops (including sweaters)	Tops (including sweaters)	30.9		30.3		28.5		29.4		Tops (including sweaters)	30.6		30.9		29.2		28.5
Sportswear/Fashions	Sportswear/Fashions	13.8		15.6		11.3		12.4		Sportswear/Fashions	13.9		13.8		10.6		11.3
Footwear	Footwear	8.0		9.6		9.5		9.2		Footwear	8.3		8.0		10.2		9.5
Accessories	Accessories	10.3		9.8		9.4		9.2		Accessories	11.0		10.3		9.9		9.4
Casual bottoms	Casual bottoms	0.8		0.7		0.8		0.8		Casual bottoms	0.9		0.8		0.9		0.8
Outerwear	Outerwear	0.3		0.3		0.5		0.6		Outerwear	0.3		0.3		0.5		0.5
Youth	Youth	2.3		1.6		2.1		1.5		Youth	3.1		2.3		2.7		2.1
		100.0	%	100.0	%	100.0	%	100.0	%
Total										Total	100.0	%	100.0	%	100.0	%	100.0	%

Effective July 1, 2022, the Company entered into a new five year agreement (the "Agreement") with Bread Financial and Comenity Bank (collectively the "Bank"), to provide guests with private label credit cards ("PLCC"). Each PLCC bears the Buckle brand logo and can only be used at the Company's retail locations and eCommerce platform. The Bank is the sole owner of the accounts issued under the PLCC program and bears full risk associated with guest non-payment.

As part of the Agreement, the Company receives a percentage of PLCC sales from the Bank, along with other incentive payments upon the achievement of certain performance targets. All amounts received from the Bank under the Agreement are recorded in net sales in the condensed consolidated statements of income.

3.Earnings Per Share

Basic earnings per share data are based on the weighted average outstanding common shares during the period. Diluted earnings per share data are based on the weighted average outstanding common shares and the effect of all dilutive potential common shares.


		Thirteen Weeks Ended					Thirteen Weeks Ended						Thirteen Weeks Ended					Thirteen Weeks Ended
		July 31, 2021					August 1, 2020						July 30, 2022					July 31, 2021
		Net Income		Weighted Average Shares (a)	Per Share Amount		Net Income		Weighted Average Shares (a)	Per Share Amount			Net Income		Weighted Average Shares (a)	Per Share Amount		Net Income		Weighted Average Shares (a)	Per Share Amount

Basic EPS	Basic EPS	$	51,419	48,946	$	1.05	$	34,682	48,714	$	0.71	Basic EPS	$	50,144	49,214	$	1.02	$	51,419	48,946	$	1.05
Effect of Dilutive Securities:	Effect of Dilutive Securities:											Effect of Dilutive Securities:
Non-vested shares	Non-vested shares	—		395	(0.01)		—		199	—		Non-vested shares	—		321	(0.01)		—		395	(0.01)
Diluted EPS	Diluted EPS	$	51,419	49,341	$	1.04	$	34,682	48,913	$	0.71	Diluted EPS	$	50,144	49,535	$	1.01	$	51,419	49,341	$	1.04

		Twenty-Six Weeks Ended					Twenty-Six Weeks Ended						Twenty-Six Weeks Ended					Twenty-Six Weeks Ended
		July 31, 2021					August 1, 2020						July 30, 2022					July 31, 2021
		Net Income		Weighted Average Shares (a)	Per Share Amount		Net Income		Weighted Average Shares (a)	Per Share Amount			Net Income		Weighted Average Shares (a)	Per Share Amount		Net Income		Weighted Average Shares (a)	Per Share Amount

Basic EPS	Basic EPS	$	108,688	48,946	$	2.22	$	22,898	48,719	$	0.47	Basic EPS	$	105,398	49,214	$	2.14	$	108,688	48,946	$	2.22
Effect of Dilutive Securities:	Effect of Dilutive Securities:											Effect of Dilutive Securities:
Non-vested shares	Non-vested shares	—		379	(0.02)		—		199	—		Non-vested shares	—		317	(0.01)		—		379	(0.02)
Diluted EPS	Diluted EPS	$	108,688	49,325	$	2.20	$	22,898	48,918	$	0.47	Diluted EPS	$	105,398	49,531	$	2.13	$	108,688	49,325	$	2.20

(a) Shares in thousands.

4.Investments

The following is a summary of investments as of July ~~31, 2021:~~30, 2022:


		Amortized Cost or Par Value		Gross Unrealized Gains		Gross Unrealized Losses		Other-than- Temporary Impairment		Estimated Fair Value			Amortized Cost or Par Value		Gross Unrealized Gains		Gross Unrealized Losses		Other-than- Temporary Impairment		Estimated Fair Value
Held-to-Maturity Securities:	Held-to-Maturity Securities:											Held-to-Maturity Securities:
State and municipal bonds	State and municipal bonds	$	8,592	$	10	$	—	$	—	$	8,602	State and municipal bonds	$	17,864	$	13	$	(6)	$	—	$	17,871

Trading Securities:	Trading Securities:											Trading Securities:
Mutual funds	Mutual funds	$	16,100	$	3,458	$	—	$	—	$	19,558	Mutual funds	$	19,740	$	423	$	—	$	—	$	20,163

The following is a summary of investments as of January ~~30, 2021:~~29, 2022:


		Amortized Cost or Par Value		Gross Unrealized Gains		Gross Unrealized Losses		Other-than- Temporary Impairment		Estimated Fair Value			Amortized Cost or Par Value		Gross Unrealized Gains		Gross Unrealized Losses		Other-than- Temporary Impairment		Estimated Fair Value
Held-to-Maturity Securities:	Held-to-Maturity Securities:											Held-to-Maturity Securities:
State and municipal bonds	State and municipal bonds	$	3,359	$	7	$	—	$	—	$	3,366	State and municipal bonds	$	12,926	$	1	$	(4)	$	—	$	12,923

Trading Securities:	Trading Securities:											Trading Securities:
Mutual funds	Mutual funds	$	16,121	$	2,199	$	—	$	—	$	18,320	Mutual funds	$	17,932	$	1,420	$	—	$	—	$	19,352

The amortized cost and fair value of debt securities by contractual maturity as of July ~~31, 2021~~30, 2022 is as follows:


		Amortized Cost		Fair Value			Amortized Cost		Fair Value
Held-to-Maturity Securities	Held-to-Maturity Securities					Held-to-Maturity Securities
Less than 1 year	Less than 1 year	$	8,592	$	8,602	Less than 1 year	$	17,387	$	17,394
1 - 5 years	1 - 5 years	—		—		1 - 5 years	477		477
		$	8,592	$	8,602
Total						Total	$	17,864	$	17,871

As of July ~~31, 2021~~30, 2022 and January ~~30, 2021, all~~29, 2022, $477 and $0 of ~~the Company's investments in~~ held-to-maturity securities are classified in ~~short-term~~long-term investments. Trading securities are held in a Rabbi Trust, intended to fund the Company’s deferred compensation plan, and are classified in long-term investments.

5.Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories:

•Level 1 – Quoted market prices in active markets for identical assets or liabilities. Short-term and long-term investments with active markets or known redemption values are reported at fair value utilizing Level 1 inputs.

•Level 2 – Observable market-based inputs (either directly or indirectly) such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or inputs that are corroborated by market data.

•Level 3 – Unobservable inputs that are not corroborated by market data and are projections, estimates, or interpretations that are supported by little or no market activity and are significant to the fair value of the assets.

As of July ~~31, 2021~~30, 2022 and January ~~30, 2021,~~29, 2022, the Company held certain assets that are required to be measured at fair value on a recurring basis including its investments in trading securities.

The Company’s financial assets measured at fair value on a recurring basis are as follows:


		Fair Value Measurements at Reporting Date Using									Fair Value Measurements at Reporting Date Using
		Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs					Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs
July 31, 2021		(Level 1)		(Level 2)		(Level 3)		Total
July 30, 2022										July 30, 2022	(Level 1)		(Level 2)		(Level 3)		Total

Trading securities (including mutual funds)	Trading securities (including mutual funds)	$	19,558	$	—	$	—	$	19,558	Trading securities (including mutual funds)	$	20,163	$	—	$	—	$	20,163


		Fair Value Measurements at Reporting Date Using									Fair Value Measurements at Reporting Date Using
		Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs					Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs
January 30, 2021		(Level 1)		(Level 2)		(Level 3)		Total
January 29, 2022										January 29, 2022	(Level 1)		(Level 2)		(Level 3)		Total

Trading securities (including mutual funds)	Trading securities (including mutual funds)	$	18,320	$	—	$	—	$	18,320	Trading securities (including mutual funds)	$	19,352	$	—	$	—	$	19,352

Securities included in Level 1 represent securities which have publicly traded quoted prices.

The carrying value of cash equivalents approximates fair value due to the low level of risk these assets present and their relatively liquid nature, particularly given their short maturities. The Company also holds certain financial instruments that are not carried at fair value on the condensed consolidated balance sheets, including held-to-maturity securities. Held-to-maturity securities consist primarily of state and municipal bonds. The fair values of these debt securities are based on quoted market prices and yields for the same or similar securities, which the Company determined to be Level 2 inputs. As of July ~~31, 2021,~~30, 2022, the fair value of held-to-maturity securities was ~~$8,602~~$17,871 compared to the carrying amount of ~~$8,592.~~$17,864. As of January ~~30, 2021,~~29, 2022, the fair value of held-to-maturity securities was ~~$3,366~~$12,923 compared to the carrying amount of ~~$3,359.~~$12,926.

The carrying values of receivables, accounts payable, accrued expenses, and other current liabilities approximates fair value because of their short-term nature. From time to time, the Company measures certain assets at fair value on a non-recurring basis, specifically long-lived assets evaluated for impairment. These are typically store specific assets, which are reviewed for impairment when circumstances indicate impairment may exist due to the questionable recoverability of the carrying values of long-lived assets. If expected future cash flows related to a store’s assets are less than their carrying value, an impairment loss would be recognized for the difference between the carrying value and the estimated fair value of the store's assets. The fair value of the store's assets is estimated utilizing an income-based approach based on the expected cash flows over the remaining life of the store's lease.

~~Given the substantial reduction in the Company's sales (and the related impact on cash flow projections) as a result~~ The amount of store closures due to the COVID-19 pandemic, an impairment assessment was triggered for certain stores as of May 2, 2020. This analysis resulted in $1,000 of store-related asset impairment charges in the fiscal quarter ended May 2, 2020. There was no impairment related to long-lived assets was immaterial for all ~~other~~ periods presented.

6.Leases

The Company's lease portfolio is primarily comprised of leases for retail store locations. The Company also leases certain equipment and corporate office space. Store leases for new stores typically have an initial term of 10 years, with options to renew for an additional 1 to 5 years. The exercise of lease renewal options is at the Company's sole discretion and is included in the lease term for calculations of its right-of-use assets and liabilities when it is reasonably certain that the Company plans to renew these leases. Certain store lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Lease agreements do not contain any residual value guarantees, material restrictive covenants, or options to purchase the leased property.

The Company records its lease liabilities at the present value of the lease payments not yet paid, discounted at the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. As the Company's leases do not provide an implicit interest rate, the Company obtains an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The Company has elected to apply the practical expedient to account for lease components (e.g. fixed payments for rent, insurance, and real estate taxes) and non-lease components (e.g. fixed payments for common area maintenance) together as a single component for all underlying asset classes. Additionally, the Company elected as an accounting policy to exclude short-term leases from the recognition requirements.

During the period of store closures in fiscal 2020 in response to the COVID-19 pandemic, the Company paid essentially full rent for the month of April but was then able to negotiate substantial rent deferrals for May and June. Consistent with guidance in the FASB Staff Q&A regarding lease concessions related to the effects of the COVID-19 pandemic, the Company made the election to treat all lease concessions as though the enforceable rights and obligations existed in each contract and, therefore, did not apply the lease modification guidance in ASC 842. As such, these deferrals had no impact on rent expense. Amounts deferred and payable in future periods have been included in "accounts payable" on the Company's condensed consolidated balance sheets.

Lease expense is included in cost of sales in the condensed consolidated statements of income. The components of total lease cost are as follows:


		Thirteen Weeks Ended				Twenty-Six Weeks Ended					Thirteen Weeks Ended				Twenty-Six Weeks Ended
		July 31, 2021		August 1, 2020		July 31, 2021		August 1, 2020			July 30, 2022		July 31, 2021		July 30, 2022		July 31, 2021

Operating lease cost	Operating lease cost	$	23,630	$	24,431	$	47,327	$	49,021	Operating lease cost	$	23,363	$	23,630	$	46,638	$	47,327
Variable lease cost (a)	Variable lease cost (a)	4,544		1,667		9,008		6,156		Variable lease cost (a)	4,687		4,544		10,961		9,008
Total lease cost	Total lease cost	$	28,174	$	26,098	$	56,335	$	55,177	Total lease cost	$	28,050	$	28,174	$	57,599	$	56,335

(a) Includes variable payments related to both lease and non-lease components, such as contingent rent payments based on performance and payments related to taxes, insurance, and maintenance costs. Also includes payments related to short-term leases with periods of less than twelve months.

Supplemental cash flow information related to leases is as follows:


		Thirteen Weeks Ended				Twenty-Six Weeks Ended					Thirteen Weeks Ended				Twenty-Six Weeks Ended
		July 31, 2021		August 1, 2020		July 31, 2021		August 1, 2020			July 30, 2022		July 31, 2021		July 30, 2022		July 31, 2021

Cash paid for amounts included in the measurement of lease liabilities:	Cash paid for amounts included in the measurement of lease liabilities:									Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	Operating cash flows from operating leases	$	24,359	$	15,175	$	49,224	$	40,210	Operating cash flows from operating leases	$	24,225	$	24,359	$	48,431	$	49,224

Right-of-use assets obtained in exchange for new lease obligations:	Right-of-use assets obtained in exchange for new lease obligations:									Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	Operating leases	$	9,651	$	2,590	$	36,742	$	5,970	Operating leases	$	13,341	$	9,651	$	27,257	$	36,742

The Company uses its incremental borrowing rate as the discount rate to determine the present value of lease payments. As of July ~~31, 2021,~~30, 2022, the weighted-average remaining lease term was ~~4.4~~4.6 years and the weighted-average discount rate was ~~3.7%~~3.9%.

The table below reconciles undiscounted future lease payments (e.g. fixed payments for rent, insurance, real estate taxes, and common area maintenance) for each of the next five fiscal years and the total of the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of July ~~31, 2021:~~30, 2022:


Fiscal Year	Fiscal Year	Operating Leases (a)		Fiscal Year	Operating Leases (a)
2021 (remaining)		$	48,912
2022		85,193
2022 (remaining)				2022 (remaining)	$	49,165
2023	2023	67,574		2023	80,516
2024	2024	48,487		2024	57,679
2025	2025	30,049		2025	36,189
2026				2026	25,442
Thereafter	Thereafter	36,868		Thereafter	42,344
Total lease payments	Total lease payments	317,083		Total lease payments	291,335
Less: Imputed interest	Less: Imputed interest	25,356		Less: Imputed interest	26,865
Total operating lease liability	Total operating lease liability	$	291,727	Total operating lease liability	$	264,470

(a) Operating lease payments exclude ~~$18,093~~$23,593 of legally binding minimum lease payments for leases signed, but not yet commenced.

7.Supplemental Cash Flow Information

The Company had non-cash investing activities during the twenty-six week periods ended July 30, 2022 and July 31, 2021 of ($464) and ~~August 1, 2020 of~~ $11, ~~and $83,~~ respectively. The non-cash investing activity relates to the change in the balance of unpaid purchases of property, plant, and equipment included in accounts payable as of the end of the period. The liability for unpaid purchases of property, plant, and equipment included in accounts payable was ~~$708~~$1,820 and ~~$719~~$1,356 as of July ~~31, 2021~~30, 2022 and January ~~30, 2021,~~29, 2022, respectively. Amounts reported as unpaid purchases are recorded as cash outflows from investing activities for purchases of property, plant, and equipment in the condensed consolidated statement of cash flows in the period they are paid.

Additional cash flow information for the Company includes cash paid for income taxes during the twenty-six week periods ended July 30, 2022 and July 31, 2021 of $39,670 and ~~August 1, 2020 of~~ $51,373, ~~and $11,349,~~ respectively.

8.Stock-Based Compensation

The Company has several stock option plans which allow for granting of stock options to employees, executives, and directors. The Company has not granted any stock options since fiscal 2008 and there are currently no stock options outstanding. The Company also has a restricted stock plan that allows for the granting of non-vested shares of common stock to employees and executives and a restricted stock plan that allows for the granting of non-vested shares of common stock to non-employee directors. As of July ~~31, 2021, 956,153~~30, 2022, 644,783 shares were available for grant under the Company’s various restricted stock plans, of which ~~874,592~~581,222 shares were available for grant to executive officers.

Compensation expense was recognized during fiscal ~~2021~~2022 and fiscal ~~2020~~2021 for equity-based grants, based on the grant date fair value of the awards. The fair value of grants of non-vested common stock awards is the stock price on the date of grant.

Information regarding the impact of compensation expense related to grants of non-vested shares of common stock is as follows:


		Thirteen Weeks Ended				Twenty-Six Weeks Ended					Thirteen Weeks Ended				Twenty-Six Weeks Ended
		July 31, 2021		August 1, 2020		July 31, 2021		August 1, 2020			July 30, 2022		July 31, 2021		July 30, 2022		July 31, 2021

Stock-based compensation expense, before tax	Stock-based compensation expense, before tax	$	2,464	$	1,676	$	5,094	$	2,633	Stock-based compensation expense, before tax	$	2,774	$	2,464	$	5,722	$	5,094

Stock-based compensation expense, after tax	Stock-based compensation expense, after tax	$	1,860	$	1,265	$	3,846	$	1,988	Stock-based compensation expense, after tax	$	2,094	$	1,860	$	4,320	$	3,846

Non-vested shares of common stock granted during the twenty-six week periods ended July 30, 2022 and July 31, 2021 ~~and August 1, 2020~~ were granted pursuant to the Company’s 2005 Restricted Stock Plan and the Company’s 2008 Director Restricted Stock Plan. Shares granted under the 2005 Plan are typically "performance based" and vest over a period of four years, only upon certification by the Compensation Committee of the Board of Directors that the Company has achieved its pre-established performance targets for the fiscal year. Certain shares granted under the 2005 Plan, however, are "non-performance based" and vest over a period of four years without being subject to the achievement of performance targets. Shares granted under the 2008 Director Plan vest 25% on the date of grant and then in equal portions on each of the first three anniversaries of the date of grant.

A summary of the Company’s stock-based compensation activity related to grants of non-vested shares of common stock for the twenty-six week period ended July ~~31, 2021~~30, 2022 is as follows:


		Shares	Weighted Average Grant Date Fair Value			Shares	Weighted Average Grant Date Fair Value

Non-Vested - beginning of year	Non-Vested - beginning of year	538,750	$	22.28	Non-Vested - beginning of year	590,462	$	32.20
Granted	Granted	381,300	39.32		Granted	366,300	36.52
Forfeited	Forfeited	(5,650)	24.61		Forfeited	(200)	37.92
Vested	Vested	(76,673)	24.71		Vested	(75,458)	36.95
Non-Vested - end of quarter	Non-Vested - end of quarter	837,727	$	29.79	Non-Vested - end of quarter	881,104	$	33.59

As of July ~~31, 2021,~~30, 2022, there was ~~$14,469~~$15,702 of unrecognized compensation expense related to grants of non-vested shares. It is expected that this expense will be recognized over a weighted average period of approximately ~~2.2~~2.1 years. The total fair value of shares vested during the twenty-six week periods ended July 30, 2022 and July 31, 2021 was $2,810 and ~~August 1, 2020 was~~ $3,091, ~~and $744,~~ respectively.

9.Recently Issued Accounting Pronouncements

The Company has considered all recent accounting pronouncements and concluded that there are no recent accounting pronouncements that may have a material impact on the Company's consolidated financial statements, based on current information.

1315

THE BUCKLE, INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto of the Company included in this Form 10-Q. All references herein to the “Company”, “Buckle”, “we”, “us”, or similar terms refer to The Buckle, Inc. and its subsidiary. The following is management’s discussion and analysis of certain significant factors which have affected the Company’s financial condition and results of operations during the periods included in the accompanying condensed consolidated financial statements.

EXECUTIVE OVERVIEW

Company management considers the following items to be key performance indicators in evaluating Company performance.

Comparable Store Sales – Stores are deemed to be comparable stores if they were open in the prior year on the first day of the fiscal period being presented. Stores which have been remodeled, expanded, and/or relocated, but would otherwise be included as comparable stores, are not excluded from the comparable store sales calculation. Online sales are included in comparable store sales. Management considers comparable store sales to be an important indicator of current Company performance, helping leverage certain fixed costs when results are positive. Negative comparable store sales results could reduce net sales and have a negative impact on operating leverage, thus reducing net earnings.

Net Merchandise Margins – Management evaluates the components of merchandise margin including initial markup and the amount of markdowns during a period. Any inability to obtain acceptable levels of initial markups or any significant increase in the Company’s use of markdowns could have an adverse effect on the Company’s gross margin and results of operations.

Operating Margin – Operating margin is a good indicator for management of the Company’s success. Operating margin can be positively or negatively affected by comparable store sales, merchandise margins, occupancy costs, and the Company’s ability to control operating costs.

Cash Flow and Liquidity (working capital) – Management reviews current cash and short-term investments along with cash flow from operating, investing, and financing activities to determine the Company’s short-term cash needs for operations and expansion. The Company believes that existing cash, short-term investments, and cash flow from operations will be sufficient to fund current and long-term anticipated capital expenditures and working capital requirements for the next several years.

1416

RESULTS OF OPERATIONS

The following table sets forth certain financial data expressed as a percentage of net sales and the percentage change in the dollar amount of such items compared to the prior period:

Percentage of Net Sales Percentage of Net Sales
For Thirteen Weeks Ended Percentage For Twenty-Six Weeks Ended Percentage
July 31,
2021 August 1,
2020 Increase/(Decrease) July 31,
2021 August 1,
2020 Increase/(Decrease)
Net sales 100.0 % 100.0 % 36.6 % 100.0 % 100.0 % 79.3 %
Cost of sales (including buying, distribution, and occupancy costs) 51.9 % 56.8 % 24.8 % 51.3 % 63.7 % 44.2 %
Gross profit 48.1 % 43.2 % 52.1 % 48.7 % 36.3 % 140.9 %
Selling expenses 21.4 % 17.7 % 64.8 % 20.7 % 21.6 % 71.5 %
General and administrative expenses 3.7 % 4.4 % 15.5 % 3.8 % 5.8 % 19.6 %
Income from operations 23.0 % 21.1 % 49.1 % 24.2 % 8.9 % 389.6 %
Other income, net 0.1 % 0.2 % (45.2) % — % 0.3 % (72.1) %
Income before income taxes 23.1 % 21.3 % 48.3 % 24.2 % 9.2 % 374.7 %
Income tax expense 5.7 % 5.2 % 48.3 % 5.9 % 2.3 % 374.7 %
Net income 17.4 % 16.1 % 48.3 % 18.3 % 6.9 % 374.7 %

Results for the twenty-six week period ended August 1, 2020 were significantly impacted by the Company’s closure of all brick and mortar stores due to the COVID-19 pandemic beginning March 18, 2020. As a result of the impact of the store closures on prior year reported net sales, the Company is not separately reporting comparable store sales for all periods presented.


	Percentage of Net Sales						Percentage of Net Sales
	For Thirteen Weeks Ended				Percentage		For Twenty-Six Weeks Ended				Percentage
	July 30, 2022		July 31, 2021		Increase/(Decrease)		July 30, 2022		July 31, 2021		Increase/(Decrease)

Net sales	100.0	%	100.0	%	2.3	%	100.0	%	100.0	%	2.8	%
Cost of sales (including buying, distribution, and occupancy costs)	51.8	%	51.9	%	2.3	%	51.3	%	51.3	%	2.9	%
Gross profit	48.2	%	48.1	%	2.4	%	48.7	%	48.7	%	2.7	%
Selling expenses	22.5	%	21.4	%	7.8	%	22.1	%	20.7	%	9.9	%
General and administrative expenses	3.9	%	3.7	%	5.3	%	3.9	%	3.8	%	3.0	%
Income from operations	21.8	%	23.0	%	(3.2)	%	22.7	%	24.2	%	(3.4)	%
Other income, net	0.2	%	0.1	%	216.7	%	0.1	%	—	%	203.2	%
Income before income taxes	22.0	%	23.1	%	(2.5)	%	22.8	%	24.2	%	(3.0)	%
Income tax expense	5.4	%	5.7	%	(2.5)	%	5.6	%	5.9	%	(3.0)	%
Net income	16.6	%	17.4	%	(2.5)	%	17.2	%	18.3	%	(3.0)	%

Net sales increased from ~~$216.0 million in the second quarter of fiscal 2020 to~~ $295.1 million in the second quarter of fiscal 2021 to $302.0 million in the second quarter of fiscal 2022, a ~~36.6%~~2.3% increase. Comparable store net sales for the thirteen week quarter ended July 30, 2022 increased 1.6% from comparable store net sales for the prior year thirteen week period ended July 31, 2021. Total sales growth for the period was the result of a ~~42.1%~~3.6% increase in the average unit retail and a 0.3% increase in the average number of units sold per transaction, partially offset by a 1.5% decrease in the number of transactions. Online sales for the quarter increased 6.5% to $46.2 million for the thirteen week period ended July 30, 2022 compared to $43.4 million for the thirteen week period ended July 31, 2021.

Net sales increased from $594.2 million for the first two quarters of fiscal 2021 to $611.0 million for the first two quarters of fiscal 2022, a 2.8% increase. Comparable store net sales for the twenty-six week period ended July 30, 2022 increased 2.6% from comparable store net sales for the prior year twenty-six week period ended July 31, 2021. Total sales growth for the year-to-date period was the result of a 1.0% increase in the number of transactions and a 2.6% increase in the average unit retail, partially offset by a 6.3% reduction in the average number of units sold per transaction. Online sales for the quarter decreased 5.5% to $43.4 million for the thirteen week period ended July 31, 2021 compared to $46.0 million for the thirteen week period ended August 1, 2020.

Net sales increased from $331.4 million for the first two quarters of fiscal 2020 to $594.2 million for the first two quarters of fiscal 2021, a 79.3% increase. Total sales growth for the year-to-date period was the result of an 80.1% increase in the number of transactions and a 4.1% increase in the average unit retail, partially offset by a 4.6%0.7% reduction in the average number of units sold per transaction. Online sales for the year-to-date period increased ~~24.5%~~3.5% to $100.6 million for the twenty-six week period ended July 30, 2022 compared to $97.2 million for the twenty-six week period ended July 31, ~~2021 compared to $78.1 million for the twenty-six week period ended August 1, 2020.~~2021.

The Company's average retail price per piece of merchandise sold increased ~~$1.09,~~$1.53, or ~~2.6%~~3.6%, during the second quarter of fiscal ~~2021~~2022 compared to the second quarter of fiscal ~~2020.~~2021. This ~~$1.09~~$1.53 increase was primarily attributable to the following changes (with their corresponding effect on the overall average price per piece): a ~~4.7%~~3.8% increase in average denim price points ($0.52), an 8.9% increase in average sportswear price points ($0.46), a 3.5% increase in average knit shirt price points ($~~0.47)~~0.36), a 5.3% increase in average accessory price points ($0.24), a 5.5% increase in average ~~accessories~~footwear price points ($~~0.23)~~0.19), a ~~5.2%~~6.8% increase in average woven shirt price points ($~~0.13)~~0.18), and an increase in average price points for certain other merchandise categories ($~~0.14), and a shift in the merchandise mix ($0.54)~~0.23); which were partially offset by a ~~1.5% reduction~~shift in ~~average denim price points~~the merchandise mix (-$~~0.21) and a 3.4% reduction in average sportswear/fashion price points (-$0.21)~~0.65). These changes are primarily a reflection of merchandise shifts in terms of brands and product styles, fabrics, details, and finishes.

For the year-to-date period, the Company's average retail price per piece of merchandise sold increased ~~$1.77,~~$1.16, or ~~4.1%~~2.6%, compared to the same period in fiscal ~~2020.~~2021. This ~~$1.77~~$1.16 increase was primarily attributable to the following changes (with their corresponding effect on the overall average price per piece): a ~~4.9%~~4.3% increase in average knit shirt price points ($~~0.47)~~0.42), a ~~6.5%~~1.8% increase in average ~~accessories~~denim price points ($~~0.26)~~0.29), a ~~3.2%~~7.2% increase in average woven shirt price points ($0.20), a 4.3% increase in average footwear price points ($~~0.13)~~0.19), a 4.5% increase in average sportswear price points ($0.19), and an increase in average price points for certain other merchandise categories ($~~0.10)~~0.31), ~~and~~which were partially offset by a shift in the merchandise mix ~~($0.93); which were partially offset by a 2.3% reduction in average sportswear/fashion price points~~ (-$~~0.12)~~0.44). These changes are primarily a reflection of merchandise shifts in terms of brands and product styles, fabrics, details, and finishes.

1517

Gross profit after buying, distribution, and occupancy expenses was $145.4 million in the second quarter of fiscal 2022, compared to $142.0 million in the second quarter of fiscal ~~2021, compared to $93.4 million in the second quarter of fiscal 2020.~~2021. As a percentage of net sales, gross profit was 48.2% in the second quarter of fiscal 2022, up slightly from 48.1% in the second quarter of fiscal ~~2021, compared~~2021. The current quarter margin improvement was due to ~~43.2% in~~leveraged buying, distribution, and occupancy expenses. Merchandise margins were flat for the second quarter of fiscal 2020. The gross margin increase was the result of leveraged occupancy, buying, and distribution expenses (4.40%, as a percentage of net sales) and an improvement in merchandise margins (0.50%, as a percentage of net sales).quarter.

Year-to-date, gross profit was $297.5 million for the twenty-six week period ended July 30, 2022, compared to $289.6 million for the twenty-six week period ended July 31, ~~2021, compared to $120.2 million for the twenty-six week period ended August 1, 2020.~~2021. As a percentage of net sales, gross profit was 48.7% for both the first two quarters of fiscal ~~2021, compared to 36.3% for~~2022 and the first two quarters of fiscal ~~2020. The gross margin increase for~~2021. For the year-to-date period, ~~was the result of~~ leveraged buying, distribution, and occupancy ~~buying, and distribution~~ expenses ~~(10.50%, as~~were offset by a ~~percentage of net sales) and an improvement~~10 basis point reduction in merchandise ~~margins (1.90%, as a percentage of net sales).~~margins.

Selling, expenses were $63.1 million in the second quarter of fiscal 2021, compared to $38.3 million in the second quarter of fiscal 2020. As a percentage of net sales, selling expenses were 21.4% of net sales in the second quarter of fiscal 2021, compared to 17.7% in the second quarter of fiscal 2020. Year-to-date, selling expenses were $123.1 million for the first two quarters of fiscal 2021, compared to $71.8 million for the first two quarters of fiscal 2020. As a percentage of net sales, selling expenses were 20.7% of net sales for the first two quarters of fiscal 2021, compared to 21.6% for the first two quarters of fiscal 2020.

~~General and administrative expenses were $11.1 million in the second quarter of fiscal 2021, compared to $9.6 million in the second quarter of fiscal 2020. As a percentage of net sales,~~ general, and administrative expenses were 3.7% of net sales in the second quarter of fiscal 2021, compared to 4.4% in the second quarter of fiscal 2020. Year-to-date, general and administrative expenses were $22.8 million for the first two quarters of fiscal 2021, compared to $19.1 million for the first two quarters of fiscal 2020. As a percentage of net sales, general and administrative expenses were 3.8% of net sales in fiscal 2021, compared to 5.8% in fiscal 2020.

~~In total, selling, general, and administrative expenses were 25.1%~~26.4% of net sales for the second quarter of fiscal ~~2021,~~2022, compared to ~~22.1%~~25.1% for the second quarter of fiscal ~~2020.~~2021. The increase was the result of increases in ~~expense related to incentive compensation accruals (2.50%~~store labor-related expenses (1.35%, as a percentage of net sales) and ~~store labor-related expenses (1.30%~~certain other expense categories (0.55%, as a percentage of net sales)~~; which~~. These increases were partially offset by ~~decreased shipping costs (0.70%, as~~ a ~~percentage of net sales) and sales leverage across several other~~decrease in expense ~~categories (0.10%~~related to incentive compensation accruals (0.60%, as a percentage of net sales).

For the 26-week year-to-date period, total selling, general, and administrative expenses were ~~24.5%~~26.0% of net sales for fiscal ~~2021,~~2022, compared to ~~27.4%~~24.5% for fiscal ~~2020.~~2021. The ~~decrease~~increase was the result of ~~reductions (as~~increases in store labor-related expenses (1.35%, as a percentage of net sales) ~~in store~~ and ~~home office labor-related expenses (2.85%) and shipping costs (0.65%) along with leverage across several~~certain other expense categories ~~(1.75%); which~~(0.65%, as a percentage of net sales). These increases were partially offset by ~~an increase~~a decrease in expense related to incentive compensation accruals ~~(2.35%~~(0.50%, as a percentage of net sales).

As a result of the above changes, the Company's income from operations was $65.7 million, or 21.8% of net sales, for the second quarter of fiscal 2022, compared to income from operations of $67.9 million, or 23.0% of net sales, for the second quarter of fiscal ~~2021, compared to income from operations of $45.5 million, or 21.1% of net sales, for the second quarter of fiscal 2020.~~

Year-to-date, income from operations was $143.7 million for the twenty-six week period ended July 31, 2021 compared to $29.4 million for the twenty-six week period ended August 1, 2020. Income from operations was 24.2% of net sales for the first two quarters of fiscal 2021 compared to 8.9% of net sales for the first two quarters of fiscal 2020.

2021. Income tax expense as a percentage of pre-tax income was 24.5% for the second quarter of both fiscal ~~2021~~2022 and fiscal ~~2020,~~2021, bringing the Company's net income to $50.1 million in the second quarter of fiscal 2022 compared to $51.4 million in the second quarter of fiscal ~~2021 compared to $34.7 million in the second quarter of fiscal 2020.~~2021.

Year-to-date, income from operations was $138.8 million for the twenty-six week period ended July 30, 2022 compared to $143.7 million for the twenty-six week period ended July 31, 2021. Income from operations was 22.7% of net sales for the first two quarters of fiscal 2022 compared to 24.2% of net sales for the first two quarters of fiscal 2021. Income tax expense as a percentage of pre-tax income was 24.5% for both the first two quarters of fiscal ~~2021~~2022 and the first two quarters of fiscal ~~2020,~~2021, bringing year-to-date net income to $105.4 million for fiscal 2022 compared to $108.7 million for fiscal ~~2021 compared to $22.9 million for fiscal 2020.~~2021.

LIQUIDITY AND CAPITAL RESOURCES

As of July ~~31, 2021,~~30, 2022, the Company had working capital of ~~$311.4~~$218.8 million, including ~~$406.7~~$266.7 million of cash and cash equivalents and ~~$8.6~~$17.4 million of short-term investments. The Company's cash receipts are generated from retail sales and from investment income, and the Company's primary ongoing cash requirements are for inventory, payroll, occupancy costs, dividend payments, new store expansion, remodeling, and other capital expenditures. Historically, the Company's primary source of working capital has been cash flow from operations. During the first two quarters of fiscal ~~2021~~2022 and fiscal ~~2020,~~2021, the Company's cash flow from operations was ~~$136.5~~$69.5 million and ~~$49.2~~$136.5 million, respectively. Changes in operating cash flow between periods is primarily a function of changes in net income, along with changes in inventory and accounts payable based on the timing and amount of merchandise purchased in each respective period. Operating cash flow is also impacted by the timing of certain other payments, including rent, income taxes, and ~~income taxes.~~annual incentive bonuses. The Company's ~~strong~~reduction in operating cash flow for the first ~~six months~~two quarters of fiscal ~~2021~~2022 compared to the first ~~six months~~two quarters of fiscal ~~2020~~2021 is primarily attributable to changes in inventory and accounts payable as the ~~374.7% or $85.8 million increase~~Company built its inventory back to more normalized levels during the first half of fiscal 2022, as well as the first quarter payment of incentive bonuses based on the Company's strong financial results in ~~net income.~~fiscal 2021.

The uses of cash for both twenty-six week periods primarily include payment of annual bonuses accrued at fiscal year end, inventory purchases, dividend payments, construction costs for new and remodeled stores, other capital expenditures, and purchases of investment securities.

During the first two quarters of fiscal ~~2021~~2022 and ~~2020,~~2021, the Company invested ~~$8.6~~$14.7 million and ~~$2.6~~$8.6 million, respectively, in new store construction, store renovation, and store technology upgrades. The Company also spent ~~$0.6~~$0.2 million and ~~$0.8~~$0.6 million in the first two quarters of fiscal ~~2021~~2022 and ~~2020,~~2021, respectively, in capital expenditures for the corporate headquarters and distribution facility.

During the remainder of fiscal ~~2021,~~2022, the Company anticipates completing ~~six~~2 new stores and an additional ~~store construction projects, which are all remodels/relocations.~~11 full remodels. Management estimates that total capital expenditures during fiscal ~~2021~~2022 will be approximately ~~$12.0~~$22.0 to ~~$15.0~~$27.0 million, which includes primarily planned store projects and technology investments. The Company believes that existing cash and cash equivalents, investments, and cash flow from operations will be sufficient to fund current and long-term anticipated capital expenditures and working capital requirements for the next several years. The Company has a consistent record of generating positive cash flow from operations each year and, as of July ~~31, 2021,~~30, 2022, had total cash and investments of ~~$434.9~~$304.8 million, including ~~$19.6~~$20.6 million of long-term investments.

Future conditions, however, may reduce the availability of funds based upon factors such as a decrease in demand for the Company's product, change in product mix, competitive factors, and general economic conditions as well as other risks and uncertainties which would reduce the Company's sales, net profitability, and cash flows. Also, the Company's acceleration in store openings and/or remodels or the Company entering into a merger, acquisition, or other financial related transaction could reduce the amount of cash available for further capital expenditures and working capital requirements.

The Company has available an unsecured line of credit of $25.0 million with Wells Fargo Bank, N.A. for operating needs and letters of credit. The line of credit agreement has an expiration date of July 31, 2023 and provides that $10.0 million of the $25.0 million line is available for letters of credit. Borrowings under the line of credit provide for interest to be paid at a rate based on SOFR. The Company has, from time to time, borrowed against these lines of credit. There were no bank borrowings during the first two quarters of fiscal ~~2021~~2022 or ~~2020.~~2021. The Company had no bank borrowings as of July ~~31, 2021~~30, 2022 and was in compliance with the terms and conditions of the line of credit agreement.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management’s Discussion and Analysis of Financial Condition and Results of Operations are based upon The Buckle, Inc.’s condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these consolidated financial statements requires that management make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the financial statement date, and the reported amounts of sales and expenses during the reporting period. The Company regularly evaluates its estimates, including those related to inventory, investments, incentive bonuses, and income taxes. Management bases its estimates on past experience and on various other factors that are thought to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Management believes that the estimates and judgments used in preparing these consolidated financial statements were the most appropriate at that time. Presented below are those critical accounting policies that management believes require subjective and/or complex judgments that could potentially affect reported results of operations. The critical accounting policies and estimates utilized by the Company in the preparation of its condensed consolidated financial statements for the period ended July ~~31, 2021~~30, 2022 have not changed materially from those utilized for the fiscal year ended January ~~30, 2021,~~29, 2022, included in The Buckle Inc.’s ~~2020~~2021 Annual Report on Form 10-K.

1.Revenue Recognition. Retail store sales are recorded, net of expected returns, upon the purchase of merchandise by customers. Online sales are recorded, net of expected returns, when merchandise is tendered for delivery to the common carrier. Shipping fees charged to customers are included in revenue and shipping costs are included in selling expenses. The Company recognizes revenue from sales made under its layaway program upon delivery of the merchandise to the customer. Revenue is not recorded when gift cards and gift certificates are sold, but rather when a card or certificate is redeemed for merchandise. A current liability for unredeemed gift cards and certificates is recorded at the time the card or certificate is purchased. The liability recorded for unredeemed gift cards and gift certificates was ~~$11.4~~$12.4 million and ~~$14.3~~$16.5 million as of July ~~31, 2021~~30, 2022 and January ~~30, 2021,~~29, 2022, respectively. Gift card and gift certificate breakage is recognized as revenue in proportion to the redemption pattern of customers by applying an estimated breakage rate. The estimated breakage rate is based on historical issuance and redemption patterns and is re-assessed by the Company on a regular basis. Sales tax collected from customers is excluded from revenue and is included as part of “accrued store operating expenses” on the Company's condensed consolidated balance sheets.

The Company establishes a liability for estimated merchandise returns, based upon the historical average sales return percentage, that is recognized at the transaction value. The Company also recognizes a return asset and a corresponding adjustment to cost of sales for the Company's right to recover returned merchandise, which is measured at the estimated carrying value, less any expected recovery costs. Customer returns could potentially exceed the historical average, thus reducing future net sales results and potentially reducing future net earnings. The accrued liability for reserve for sales returns was ~~$4.0~~$4.2 million as of July ~~31, 2021~~30, 2022 and ~~$2.6~~$3.0 million as of January ~~30, 2021.~~29, 2022.

The Company's Buckle Rewards program allows participating guests to earn points for every qualifying purchase, which (after achievement of certain point thresholds) are redeemable as a discount off a future purchase. In addition, through partnership with Bread Financial and Comenity Bank (collectively the "Bank"), the Company offers a private label credit card ("PLCC") program. Buckle Rewards members with a PLCC earn additional points under the Buckle Rewards program for every qualifying purchase on their PLCC card. Reported revenue is net of both current period reward redemptions and accruals for estimated future rewards earned under the Buckle Rewards program. A liability has been recorded for future rewards based on the Company's estimate of how many earned points will turn into rewards and ultimately be redeemed prior to expiration. As of July ~~31, 2021~~30, 2022 and January ~~30, 2021, $11.0~~29, 2022, $11.1 million and ~~$10.2~~$10.6 million was included in "accrued store operating expenses" as a liability for estimated future rewards.

Effective July 1, 2022, the Company entered into a new five year agreement (the "Agreement") with the Bank, to continue providing guests with PLCC services. Each PLCC bears the Buckle brand logo and can only be used at the Company's retail locations and eCommerce platform. The Bank is the sole owner of the accounts issued under the PLCC program and bears full risk associated with guest non-payment.

~~Through partnership with Comenity Bank,~~As part of the Agreement, the Company ~~offers~~receives a ~~private label credit card ("PLCC"). Prior to October 2020, Customers~~percentage of PLCC sales from the Bank, along with ~~a PLCC were enrolled in our B-Rewards~~other incentive ~~program and earned points for every qualifying purchase on their card. At~~payments upon the ~~end~~achievement of ~~each rewards period, customers who exceeded a minimum point threshold~~certain performance targets. All amounts received a reward to be redeemed on a future purchase. The B-Rewards program also provided other discount and promotional opportunities to cardholders on a routine basis. Reported revenue was net of both current period reward redemptions, current period discounts and promotions, and accruals for estimated future rewards earnedfrom the Bank under the ~~B-Rewards program. A liability was~~Agreement are recorded ~~for future rewards based on the Company's estimate of how many earned points would turn into rewards and ultimately be redeemed prior to expiration, which was included~~ in "gift certificates redeemable" on the Company's consolidated balance sheets. In October 2020, the Company merged the B-Rewards program and the Buckle Rewards program enabling participating guests to earn additional points for qualifying purchases on their PLCC card under the newly enhanced Buckle Rewards program. Effective January 30, 2021, and for all future periods, the accrual for points earned under the combined Buckle Rewards program is included in "accrued store operating expenses" on the Company's consolidated balance sheets as referencednet sales in the ~~previous paragraph.~~condensed consolidated statements of income.

2.Inventory. Inventory is valued at the lower of cost or net realizable value. Cost is determined using an average cost method that approximates the first-in, first-out (FIFO) method. Management makes adjustments to inventory and cost of goods sold, based upon estimates, to account for merchandise obsolescence and markdowns that could affect net realizable value, based on assumptions using calculations applied to current inventory levels within each different markdown level. Management also reviews the levels of inventory in each markdown group and the overall aging of the inventory versus the estimated future demand for such product and the current market conditions. Such judgments could vary significantly from actual results, either favorably or unfavorably, due to fluctuations in future economic conditions, industry trends, consumer demand, and the competitive retail environment. Such changes in market conditions could negatively impact the sale of markdown inventory, causing further markdowns or inventory obsolescence, resulting in increased cost of goods sold from write-offs and reducing the Company’s net earnings. The adjustment to inventory for markdowns and/or obsolescence was ~~$7.9~~$5.6 million as of both July ~~31, 2021~~30, 2022 and ~~$10.8 million as of~~ January ~~30, 2021.~~29, 2022.

3.Income Taxes. The Company records a deferred tax asset and liability for expected future tax consequences resulting from temporary differences between financial reporting and tax bases of assets and liabilities. The Company considers future taxable income and ongoing tax planning in assessing the value of its deferred tax assets. If the Company determines that it is more than likely that these assets will not be realized, the Company would reduce the value of these assets to their expected realizable value, thereby decreasing net income. Estimating the value of these assets is based upon the Company’s judgment. If the Company subsequently determined that the deferred tax assets, which had been written down, would be realized in the future, such value would be increased. Adjustment would be made to increase net income in the period such determination was made.

4.Leases. The Company's lease portfolio is primarily comprised of leases for retail store locations. The Company also leases certain equipment and corporate office space. Store leases for new stores typically have an initial term of 10 years, with options to renew for an additional 1 to 5 years. The exercise of lease renewal options is at the Company's sole discretion and is included in the lease term for calculations of its right-of-use assets and liabilities when it is reasonably certain that the Company plans to renew these leases. Certain store lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Lease agreements do not contain any residual value guarantees, material restrictive covenants, or options to purchase the leased property.

Consistent with guidance in the FASB Staff Q&A regarding lease concessions related to the effects of the COVID-19 pandemic, the Company made the election to treat all lease concessions as though the enforceable rights and obligations existed in each contract and, therefore, did not apply the lease modification guidance in ASC 842.

5.Investments. Investments classified as short-term investments include securities with a maturity of greater than three months and less than one year. Available-for-sale securities are reported at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component of stockholders’ equity (net of the effect of income taxes), using the specific identification method, until they are sold. Held-to-maturity securities are reported at amortized cost. Trading securities are reported at fair value, with unrealized gains and losses included in earnings, using the specific identification method.

OFF-BALANCE SHEET ARRANGEMENTS, CONTRACTUAL OBLIGATIONS, AND COMMERCIAL COMMITMENTS

As referenced in the table below, the Company has contractual obligations and commercial commitments that may affect the financial condition of the Company. Based on management’s review of the terms and conditions of its contractual obligations and commercial commitments, there is no known trend, demand, commitment, event, or uncertainty that is reasonably likely to occur which would have a material effect on the Company’s financial condition, results of operations, or cash flows. In addition, the commercial obligations and commitments made by the Company are customary transactions which ~~the Company believes to be~~are similar to those of other comparable retail companies.

The following table identifies the material obligations and commitments as of July ~~31, 2021:~~30, 2022:


		Payments Due by Fiscal Year											Payments Due by Fiscal Year
Contractual obligations (dollar amounts in thousands):	Contractual obligations (dollar amounts in thousands):	Total		2021 (remaining)		2022-2023		2024-2025		Thereafter		Contractual obligations (dollar amounts in thousands):	Total		2022 (remaining)		2023-2024		2025-2026		Thereafter

Purchase obligations	Purchase obligations	$	13,882	$	6,835	$	5,613	$	1,434	$	—	Purchase obligations	$	20,284	$	13,089	$	5,501	$	1,645	$	49
Deferred compensation	Deferred compensation	19,558		—		—		—		19,558		Deferred compensation	20,163		—		—		—		20,163
Operating lease payments (a)	Operating lease payments (a)	317,083		48,912		152,767		78,536		36,868		Operating lease payments (a)	291,335		49,165		138,195		61,631		42,344
Total contractual obligations	Total contractual obligations	$	350,523	$	55,747	$	158,380	$	79,970	$	56,426	Total contractual obligations	$	331,782	$	62,254	$	143,696	$	63,276	$	62,556

(a) See Footnote 6 to the condensed consolidated financial statements.

The Company has available an unsecured line of credit of $25.0 million, ~~for operating needs and letters of credit,~~ which is excluded from the preceding table. The line of credit agreement has an expiration date of July 31, 2023 and provides that $10.0 million of the $25.0 million line is available for letters of credit. Certain merchandise purchase orders require that the Company open letters of credit. When the Company takes possession of the merchandise, it releases payment on the letters of credit. The amounts of outstanding letters of credit reported reflect the open letters of credit on merchandise ordered, but not yet received or funded. The Company believes it has sufficient credit available to open letters of credit for merchandise purchases. There were no bank borrowings during the first two quarters of fiscal ~~2021~~2022 or the first two quarters of fiscal ~~2020.~~2021. The Company had outstanding letters of credit totaling ~~$4.4~~$5.8 million and ~~$1.8~~$2.7 million as of July ~~31, 2021~~30, 2022 and January ~~30, 2021,~~29, 2022, respectively. The Company has no other off-balance sheet arrangements.

SEASONALITY

The Company's business is seasonal, with the holiday season (from approximately November 15 to December 30) and the back-to-school season (from approximately July 15 to September 1) historically contributing the greatest volume of net sales. For fiscal years 2021, 2020, ~~2019,~~ and ~~2018,~~2019, the holiday and back-to-school seasons accounted for approximately 35% of the Company's fiscal year net sales. Quarterly results may vary significantly depending on a variety of factors including the timing and amount of sales and costs associated with the opening of new stores, the timing and level of markdowns, the timing of store closings, the remodeling of existing stores, competitive factors, and general economic conditions.

FORWARD LOOKING STATEMENTS

Information in this report, other than historical information, may be considered to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “1995 Act”). Such statements are made in good faith by the Company pursuant to the safe-harbor provisions of the 1995 Act. In connection with these safe-harbor provisions, this management’s discussion and analysis contains certain forward-looking statements, which reflect management’s current views and estimates of future economic conditions, Company performance, and financial results. The statements are based on many assumptions and factors that could cause future results to differ materially. Such factors include, but are not limited to, changes in product mix, changes in fashion trends, competitive factors, and general economic conditions, economic conditions in the retail apparel industry, as well as other risks and uncertainties inherent in the Company’s business and the retail industry in general. Any changes in these factors could result in significantly different results for the Company. The Company further cautions that the forward-looking information contained herein is not exhaustive or exclusive. The Company does not undertake to update any forward-looking statements, which may be made from time to time by or on behalf of the Company.

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk - The Company is exposed to market risk related to interest rate risk on the cash and investments in interest-bearing securities. These investments have carrying values that are subject to interest rate changes that could impact earnings to the extent that the Company did not hold the investments to maturity. If there are changes in interest rates, those changes would also affect the investment income the Company earns on its cash and investments. For each one-quarter percent decline in the interest/dividend rate earned on cash and investments, the Company’s net income would decrease approximately $0.5 million, or less than $0.01 per share. This amount could vary based upon the number of shares of the Company’s stock outstanding and the level of cash and investments held by the Company.

ITEM 4 – CONTROLS AND PROCEDURES

The Company maintains a system of disclosure controls and procedures that are designed to provide reasonable assurance that material information, which is required to be timely disclosed, is accumulated and communicated to management in a timely manner. An evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”)) was performed as of the end of the period covered by this report. This evaluation was performed under the supervision and with the participation of the Company’s Chief Executive Officer and Chief Financial Officer.

Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures as of the end of the period covered by this report were effective to provide reasonable assurance that information required to be disclosed by the Company in the Company’s reports that it files or submits under the Exchange Act is accumulated and communicated to management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and are effective to provide reasonable assurance that such information is recorded, processed, summarized, and reported within the time periods specified by the SEC’s rules and forms.

Change in Internal Control Over Financial Reporting

There were no changes in the Company's internal control over financial reporting that occurred during the Company's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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THE BUCKLE, INC.

PART II -- OTHER INFORMATION

Item 1. Legal Proceedings: None

Item 1A. Risk Factors:

There have been no material changes from the risk factors disclosed under “Item 1A - Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended January ~~30, 2021.~~29, 2022.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds:

The following table sets forth information concerning purchases made by the Company of its common stock for each of the months in the fiscal quarter ended July ~~31, 2021:~~30, 2022:


	Total Number of Shares Purchased	Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans	Maximum Number of Shares that May Yet Be Purchased Under Publicly Announced Plans

May ~~2, 2021~~1, 2022 to May ~~29, 2021~~28, 2022	-	-	-	410,655
May ~~30, 2021~~29, 2022 to July ~~3, 2021~~2, 2022	-	-	-	410,655
July ~~4, 2021~~3, 2022 to July ~~31, 2021~~30, 2022	-	-	-	410,655
	-	-	-

The Board of Directors authorized a 1,000,000 share repurchase plan on November 20, 2008. The Company has 410,655 shares remaining to complete this authorization.

Item 3. Defaults Upon Senior Securities: None

Item 4. Mine Safety Disclosures: None

Item 5. Other Information: None

Item 6. Exhibits:


~~Exhibit 10.1~~			Revolving Line of Credit Note and Fifth Amendment to Credit Agreement, dated July 16, 2021 between The Buckle, Inc. and Buckle Brands, Inc. and Wells Fargo Bank, N.A. for a $25.0 million line of credit
Exhibit 31.1			Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer (Section 302 of the Sarbanes-Oxley Act of 2002)
Exhibit 31.2			Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer (Section 302 of the Sarbanes-Oxley Act of 2002)
Exhibit 32.1			Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 32.2			Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 101			The following materials from The Buckle, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July ~~31, 2021,~~30, 2022, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Income; (iii) Condensed Consolidated Statements of Stockholders’ Equity; (iv) Condensed Consolidated Statements of Cash Flows; and (v) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and in detail.
Exhibit 104			Cover page formatted as Inline XBRL and contained in Exhibit 101

2224

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			THE BUCKLE, INC.

Date:	September ~~9, 2021~~8, 2022	By:	/s/ DENNIS H. NELSON
			DENNIS H. NELSON,
			President and CEO
			(principal executive officer)

Date:	September ~~9, 2021~~8, 2022	By:	/s/ THOMAS B. HEACOCK
			THOMAS B. HEACOCK,
			Senior Vice President of Finance, Treasurer, and CFO
			(principal accounting officer)

2325

EXHIBIT INDEX


~~Exhibit 10.1~~			Revolving Line of Credit Note and Fifth Amendment to Credit Agreement, dated July 16, 2021 between The Buckle, Inc. and Buckle Brands, Inc. and Wells Fargo Bank, N.A. for a $25.0 million line of credit
Exhibit 31.1			Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer (Section 302 of the Sarbanes-Oxley Act of 2002)
Exhibit 31.2			Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer (Section 302 of the Sarbanes-Oxley Act of 2002)
Exhibit 32.1			Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 32.2			Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 101			The following materials from The Buckle, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July ~~31, 2021,~~30, 2022, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Income; (iii) Condensed Consolidated Statements of Stockholders’ Equity; (iv) Condensed Consolidated Statements of Cash Flows; and (v) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and in detail.
Exhibit 104			Cover page formatted as Inline XBRL and contained in Exhibit 101

2426


		Pages
Part I. Financial Information (unaudited)

Item 1.	Financial Statements	3

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	1416

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2122

Item 4.	Controls and Procedures	2122


Part II. Other Information

Item 1.	Legal Proceedings	2223

Item 1A.	Risk Factors	2223

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2223

Item 3.	Defaults Upon Senior Securities	2223

Item 4.	Mine Safety Disclosures	2223

Item 5.	Other Information	2223

Item 6.	Exhibits	2224

Signatures		2325

Exhibit Index		2426