Exhibit 99.1
 | The Buckle, Inc. |
2407 W. 24th St. Kearney, NE 68845 | |
| P.O. Box 1480 Kearney, NE 68848-1480 | |
phone: 308-236-8491 | |
fax: 308-236-4493 | |
For Immediate Release: November 21, 2007 | web: www.buckle.com |
Contact: | Karen B. Rhoads, Chief Financial Officer |
| The Buckle, Inc. | |
| 308/236-8491 |
THE BUCKLE, INC. REPORTS THIRD QUARTER NET INCOME
KEARNEY, NE -- The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended November 3, 2007 increased 25.7 percent on a 17.1 percent net sales increase.
Net sales for the 13-week third quarter ended November 3, 2007 increased 17.1 percent to $167.6 million compared to net sales of $143.1 million for the prior year 13-week third quarter ended October 28, 2006. Comparable store net sales, for stores open at least one year, for the third quarter increased 14.3 percent from comparable store net sales for the prior year 13-week period ended November 4, 2006.
Net sales for the 39-week period ended November 3, 2007 increased 16.3 percent to $412.9 million from net sales of $355.1 million for the prior year 39-week period ended October 28, 2006. Comparable store net sales for the 39-week period ended November 3, 2007 increased 10.6 percent from comparable store net sales for the prior year 39-week period ended November 4, 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 39-week periods ended November 4, 2006.
Net income for the third quarter of fiscal 2007 was $22.2 million, or $0.75 per share ($0.72 per share on a diluted basis), compared with $17.7 million, or $0.61 per share ($0.59 per share on a diluted basis) for the third quarter of fiscal 2006.
Net income for the 39-week period ended November 3, 2007 was up 37.2 percent to $46.2 million or $1.56 per share ($1.50 per share on a diluted basis), compared with $33.7 million or $1.16 per share ($1.12 per share on a diluted basis) for the 39-week period ended October 28, 2006.
Earnings per share and the weighted average shares outstanding for the prior year third quarter and year-to-date periods 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 third quarter stockholders’ equity data have not been split adjusted.
Management will hold a conference call at 10:00 a.m. EST today to discuss third quarter results. To participate in the call, please call (877) 209-9919 and reference the conference code 893861. A replay of the call will be available for a two-week period beginning November 21, 2007 at 12:30 p.m. EST by calling (800) 475-6701 and entering the conference code 893861.
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 369 retail stores in 38 states, which includes the opening of new stores in Portland, Oregon and Columbus, Ohio last week. As of the end of the third quarter, it operated 367 stores in 38 states compared with 352 stores in 38 states at the end of the third 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 | Thirty-nine Weeks Ended | ||||||||||||
November 3, | October 28, | November 3, | October 28, | ||||||||||
2007 | 2006 | 2007 | 2006 | ||||||||||
| SALES, Net of returns and allowances | $ | 167,559 | $ | 143,084 | $ | 412,927 | $ | 355,088 | |||||
| COST OF SALES (Including buying, | |||||||||||||
| distribution, and occupancy costs) | 96,810 | 84,435 | 250,262 | 223,344 | |||||||||
| Gross profit | 70,749 | 58,649 | 162,665 | 131,744 | |||||||||
| OPERATING EXPENSES: | |||||||||||||
| Selling | 31,864 | 28,095 | 80,353 | 72,102 | |||||||||
| General and administrative | 5,746 | 4,713 | 15,617 | 12,254 | |||||||||
| 37,610 | 32,808 | 95,970 | 84,356 | ||||||||||
| INCOME FROM OPERATIONS | 33,139 | 25,841 | 66,695 | 47,388 | |||||||||
| OTHER INCOME, Net | 2,177 | 2,193 | 6,560 | 6,059 | |||||||||
| INCOME BEFORE INCOME TAXES | 35,316 | 28,034 | 73,255 | 53,447 | |||||||||
| PROVISION FOR INCOME TAXES | 13,118 | 10,373 | 27,072 | 19,793 | |||||||||
| NET INCOME | $ | 22,198 | $ | 17,661 | $ | 46,183 | $ | 33,654 | |||||
| EARNINGS PER SHARE: | |||||||||||||
| Basic | $ | 0.75 | $ | 0.61 | $ | 1.56 | $ | 1.16 | |||||
| Diluted | $ | 0.72 | $ | 0.59 | $ | 1.50 | $ | 1.12 | |||||
| Basic weighted average shares | 29,791 | 28,750 | 29,678 | 28,921 | |||||||||
| Diluted weighted average shares | 30,915 | 29,699 | 30,842 | 29,941 | |||||||||
THE BUCKLE, INC. | ||||||
BALANCE SHEETS | ||||||
(Amounts in Thousands Except Share and Per Share Amounts) | ||||||
(Unaudited) |
November 3, | February 3, | October 28, | ||||||||
ASSETS | 2007 | 2007 (1) | 2006 | |||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | $ | 40,092 | $ | 35,752 | $ | 10,053 | ||||
| Short-term investments | 140,725 | 115,721 | 131,299 | |||||||
| Accounts receivable, net of allowance of $54, $72, and $62, respectively | 4,407 | 4,046 | 5,164 | |||||||
| Inventory | 99,492 | 70,306 | 99,974 | |||||||
| Prepaid expenses and other assets | 16,002 | 12,401 | 8,100 | |||||||
| Total current assets | 300,718 | 238,226 | 254,590 | |||||||
| PROPERTY AND EQUIPMENT: | 235,240 | 215,630 | 213,714 | |||||||
| Less accumulated depreciation and amortization | (133,409 | ) | (121,811 | ) | (118,538 | ) | ||||
| 101,831 | 93,819 | 95,176 | ||||||||
| LONG-TERM INVESTMENTS | 28,391 | 31,958 | 37,936 | |||||||
| OTHER ASSETS | 4,044 | 4,195 | 2,624 | |||||||
| $ | 434,984 | $ | 368,198 | $ | 390,326 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| CURRENT LIABILITIES: | ||||||||||
| Accounts payable | $ | 31,896 | $ | 14,670 | $ | 19,126 | ||||
| Accrued employee compensation | 17,506 | 17,800 | 10,943 | |||||||
| Accrued store operating expenses | 6,447 | 4,468 | 4,755 | |||||||
| Gift certificates redeemable | 4,263 | 6,709 | 3,793 | |||||||
| Income taxes payable | 6,553 | 5,562 | 7,139 | |||||||
| Total current liabilities | 66,665 | 49,209 | 45,756 | |||||||
| DEFERRED COMPENSATION | 4,120 | 3,368 | 3,203 | |||||||
| DEFERRED RENT LIABILITY | 32,095 | 29,034 | 29,320 | |||||||
| Total liabilities | 102,880 | 81,611 | 78,279 | |||||||
| COMMITMENTS | ||||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||||
| Common stock, authorized 100,000,000 shares of $.01 par value; | ||||||||||
| issued and outstanding; 30,306,186 shares at November 3, 2007, 29,408,576 | ||||||||||
| shares at February 3, 2007, and 19,200,516 shares at October 28, 2006 | 303 | 294 | 192 | |||||||
| Additional paid-in capital | 62,363 | 43,493 | 26,741 | |||||||
| Retained earnings | 269,438 | 242,800 | 285,114 | |||||||
| Total stockholders’ equity | 332,104 | 286,587 | 312,047 | |||||||
| $ | 434,984 | $ | 368,198 | $ | 390,326 | |||||
| (1) Derived from audited financial statements. |