Exhibit 99.1
| The Buckle, Inc. |
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| | 2407 W. 24th St. Kearney, NE 68845 |
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| | P.O. Box 1480 Kearney, NE 68848-1480 |
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| | phone: 308-236-8491 |
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| | fax: 308-236-4493 |
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For Immediate Release: August 23, 2007 | web: www.buckle.com |
| | Karen B. Rhoads, Chief Financial Officer |
| | | The Buckle, Inc. |
| | | 308/236-8491 |
THE BUCKLE, INC. REPORTS SECOND QUARTER NET INCOME
KEARNEY, NE -- The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended August 4, 2007 increased 77.6 percent on a 21.3 percent net sales increase.
Net sales for the 13-week second quarter ended August 4, 2007 increased 21.3 percent to $124.3 million compared to net sales of $102.4 million for the prior year 13-week second quarter ended July 29, 2006. Comparable store net sales, for stores open at least one year, for the second quarter increased 10.1 percent from comparable store net sales for the 13-week period ended August 5, 2006.
Net sales for the 26-week period ended August 4, 2007 increased 15.7 percent to $245.4 million from net sales of $212.0 million for the 26-week period ended July 29, 2006. Comparable store net sales for the 26-week period ended August 4, 2007 increased 8.3 percent from comparable store net sales for the 26-week period ended August 5, 2006.
Due to the 53rd week in fiscal 2006, comparable store net sales for the quarter and year-to-date periods are compared to the prior year 13-week and 26-week periods ended August 5, 2006.
Net income for the second quarter of fiscal 2007 was $11.8 million, or $0.40 per share ($0.38 per share on a diluted basis), compared with $6.6 million, or $0.23 per share ($0.22 per share on a diluted basis) for the second quarter of fiscal 2006.
Net income for the 26-week period ended August 4, 2007 was $24.0 million or $0.81 per share ($0.78 per share on a diluted basis), compared with $16.0 million or $0.55 per share ($0.53 per share on a diluted basis) for the 26-week period ended July 29, 2006.
Earnings per share and the weighted average shares outstanding for the prior year second quarter and year-to-date period have been adjusted to reflect the impact of the Company’s 3-for-2 stock split paid in the form of a stock dividend on January 12, 2007. The prior year second quarter stockholders’ equity data was not split adjusted.
Management will hold a conference call at 11:00 a.m. EDT today to discuss second quarter results. To participate in the call, please call (800) 230-1951 and reference the conference code 883075. A replay of the call will be available for a two-week period beginning August 23, 2007 at 2:30 p.m. EDT by calling (800) 475-6701 and entering the conference code 883075.
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 364 retail stores in 38 states, which includes the opening of new stores in Tempe, Arizona and Irvine, California during fiscal August. As of the end of the second quarter, it operated 362 stores in 38 states compared with 346 stores in 38 states at the end of the second quarter of fiscal 2006.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995; All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors which may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
Note: News releases and other information on The Buckle, Inc. can be accessed at www.buckle.com on the Internet.
Financial Tables to Follow
THE BUCKLE, INC.
STATEMENTS OF INCOME
(Amounts in Thousands Except Per Share Amounts)
(Unaudited)
| | | Thirteen Weeks Ended | | Twenty-six Weeks Ended | |
| | | August 4, | | July 29, | | August 4, | | July 29, | |
| | | 2007 | | 2006 | | 2007 | | 2006 | |
| | | | | | | | | | |
| SALES, Net of returns and allowances | | $ | 124,257 | | $ | 102,398 | | $ | 245,368 | | $ | 212,004 | |
| | | | | | | | | | | | | | |
COST OF SALES (Including buying, distribution, and occupancy costs) | | | 77,844 | | | 68,330 | | | 153,452 | | | 138,909 | |
| | | | | | | | | | | | | | |
| Gross profit | | | 46,413 | | | 34,068 | | | 91,916 | | | 73,095 | |
| | | | | | | | | | | | | | |
| OPERATING EXPENSES: | | | | | | | | | | | | | |
| Selling | | | 25,065 | | | 22,102 | | | 48,489 | | | 44,007 | |
| General and administrative | | | 4,891 | | | 3,677 | | | 9,871 | | | 7,541 | |
| | | | 29,956 | | | 25,779 | | | 58,360 | | | 51,548 | |
| | | | | | | | | | | | | | |
| INCOME FROM OPERATIONS | | | 16,457 | | | 8,289 | | | 33,556 | | | 21,547 | |
| | | | | | | | | | | | | | |
| OTHER INCOME, Net | | | 2,260 | | | 2,282 | | | 4,383 | | | 3,866 | |
| | | | | | | | | | | | | | |
| INCOME BEFORE INCOME TAXES | | | 18,717 | | | 10,571 | | | 37,939 | | | 25,413 | |
| | | | | | | | | | | | | | |
| PROVISION FOR INCOME TAXES | | | 6,925 | | | 3,932 | | | 13,954 | | | 9,420 | |
| | | | | | | | | | | | | | |
| NET INCOME | | $ | 11,792 | | $ | 6,639 | | $ | 23,985 | | $ | 15,993 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| EARNINGS PER SHARE: | | | | | | | | | | | | | |
| Basic | | $ | 0.40 | | $ | 0.23 | | $ | 0.81 | | $ | 0.55 | |
| | | | | | | | | | | | | | |
| Diluted | | $ | 0.38 | | $ | 0.22 | | $ | 0.78 | | $ | 0.53 | |
| | | | | | | | | | | | | | |
| Basic weighted average shares | | | 29,776 | | | 29,050 | | | 29,622 | | | 29,006 | |
| Diluted weighted average shares | | | 30,924 | | | 30,111 | | | 30,806 | | | 30,062 | |
THE BUCKLE, INC.
BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
| | | August 4, | | February 3, | | July 29, | |
| | | 2007 | | 2007 (1) | | 2006 | |
ASSETS | | | | | | | |
| | | | | | | | |
| CURRENT ASSETS: | | | | | | | |
| Cash and cash equivalents | | $ | 25,578 | | $ | 35,752 | | $ | 8,482 | |
| Short-term investments | | | 132,095 | | | 115,721 | | | 135,553 | |
| Accounts receivable, net of allowance of $42, $72, and $55, respectively | | | 3,841 | | | 4,046 | | | 4,067 | |
| Inventory | | | 96,021 | | | 70,306 | | | 90,893 | |
| Prepaid expenses and other assets | | | 14,582 | | | 12,401 | | | 8,044 | |
| Total current assets | | | 272,117 | | | 238,226 | | | 247,039 | |
| | | | | | | | | | | |
| PROPERTY AND EQUIPMENT: | | | 228,693 | | | 215,630 | | | 208,426 | |
| Less accumulated depreciation and amortization | | | (128,896 | ) | | (121,811 | ) | | (115,345 | ) |
| | | | 99,797 | | | 93,819 | | | 93,081 | |
| | | | | | | | | | | |
| LONG-TERM INVESTMENTS | | | 29,387 | | | 31,958 | | | 40,834 | |
| OTHER ASSETS | | | 4,044 | | | 4,195 | | | 2,625 | |
| | | | | | | | | | | |
| | | $ | 405,345 | | $ | 368,198 | | $ | 383,579 | |
| | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | |
| | | | | | | | | | | |
| CURRENT LIABILITIES: | | | | | | | | | | |
| Accounts payable | | $ | 35,003 | | $ | 14,670 | | $ | 26,724 | |
| Accrued employee compensation | | | 9,705 | | | 17,800 | | | 8,398 | |
| Accrued store operating expenses | | | 5,461 | | | 4,468 | | | 4,187 | |
| Gift certificates redeemable | | | 4,311 | | | 6,709 | | | 3,573 | |
| Income taxes payable | | | 1,466 | | | 5,562 | | | - | |
| Total current liabilities | | | 55,946 | | | 49,209 | | | 42,882 | |
| | | | | | | | | | | |
| DEFERRED COMPENSATION | | | 3,845 | | | 3,368 | | | 2,985 | |
| DEFERRED RENT LIABILITY | | | 30,657 | | | 29,034 | | | 27,944 | |
| Total liabilities | | | 90,448 | | | 81,611 | | | 73,811 | |
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| COMMITMENTS | | | | | | | | | | |
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| STOCKHOLDERS’ EQUITY: | | | | | | | | | | |
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 30,192,753 shares at August 4, 2007, 29,408,576 shares at February 3, 2007, and 19,544,399 shares at July 29, 2006 | | | 302 | | | 294 | | | 195 | |
| Additional paid-in capital | | | 59,823 | | | 43,493 | | | 38,279 | |
| Retained earnings | | | 254,772 | | | 242,800 | | | 271,294 | |
| Total stockholders’ equity | | | 314,897 | | | 286,587 | | | 309,768 | |
| | | | | | | | | | | |
| | | $ | 405,345 | | $ | 368,198 | | $ | 383,579 | |
(1) Derived from audited financial statements.
