Exhibit 99.1
For Immediate Release: March 11, 2008 | 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 web: www.buckle.com |
Contact | Karen B. Rhoads, Chief Financial Officer |
The Buckle, Inc. | |
308/236-8491 |
THE BUCKLE, INC. REPORTS
FOURTH QUARTER AND FISCAL YEAR 2007 NET INCOME
KEARNEY, NE -- The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended February 2, 2008 increased 31.7 percent on an 18.3 percent net sales increase. The Company’s net income for the fiscal year ended February 2, 2008 increased 35.0 percent on a 16.9 percent net sales increase.
Net income for the fourth quarter of fiscal 2007 was $29.1 million, or $0.98 per share ($0.94 per share on a diluted basis), compared with $22.1 million, or $0.77 per share ($0.73 per share on a diluted basis) for the fourth quarter of fiscal 2006.
Net income for the fiscal year ended February 2, 2008 was $75.2 million or $2.53 per share ($2.44 per share on a diluted basis), compared with $55.7 million or $1.93 per share ($1.86 per share on a diluted basis) for the fiscal year ended February 3, 2007.
Comparable store net sales for the 13-week fourth quarter ended February 2, 2008 increased 18.7 percent from comparable store net sales for the 13-week period ended February 3, 2007. Net sales for the 13-week fourth quarter ended February 2, 2008 were up 25.2 percent compared to the 13-week period ended February 3, 2007. Net sales for the 13-week fourth quarter ended February 2, 2008 increased 18.3 percent to $207.0 million compared to net sales of $175.0 million for the prior year 14-week fourth quarter ended February 3, 2007.
Comparable store net sales for the 52-week fiscal year ended February 2, 2008 increased 13.2 percent from comparable store net sales for the 52-week period ended February 3, 2007. Net sales were up 18.7 percent compared to the 52-week period ended February 3, 2007. Net sales for the 52-week fiscal year ended February 2, 2008 increased 16.9 percent to $619.9 million from net sales of $530.1 million for the prior year 53-week fiscal year ended February 3, 2007.
During fiscal 2007, the Company purchased and retired 642,500 shares of its outstanding common stock at an average price of $33.58 per share. Of the shares repurchased, 380,100 were purchased pursuant to the 1,500,000 share corporate stock repurchase program authorized by the Board of Directors on October 12, 2005, and amended on March 24, 2006, completing this authorization. Additionally, 262,400 shares were purchased pursuant to the 500,000 share corporate stock repurchase program authorized by the Board of Directors on November 27, 2007. The Company has 237,600 shares remaining to complete this authorization.
Management will hold a conference call at 9:30 a.m. EDT today, to discuss fourth quarter results. To participate in the call, please dial (866) 812-0403 and reference the conference code 914338. A replay of the call will be available for a two-week period beginning March 11, 2008, at 11:30 a.m. EDT by dialing (800) 475-6701 and entering the conference code 914338.
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 370 retail stores in 38 states, which includes the opening of one new store on March 6, 2008 in South Jordan, Utah. As of the end of the fiscal year, it operated 368 stores in 38 states compared with 350 stores in 38 states at the end 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.
News releases and other information about The Buckle, Inc., can be
found on the Internet at www.buckle.com
Financial Tables to Follow
THE BUCKLE, INC. |
STATEMENTS OF INCOME |
(Amounts in Thousands Except Per Share Amounts) |
(Unaudited) |
Thirteen | Fourteen | Fifty-two | Fifty-three | ||||||||||
Weeks Ended | Weeks Ended | ||||||||||||
February 2, | February 3, | February 2, | February 3, | ||||||||||
2008 | 2007 | 2008 | 2007 (1) | ||||||||||
SALES, Net of returns and allowances | $ | 206,961 | $ | 174,986 | $ | 619,888 | $ | 530,074 | |||||
COST OF SALES (Including buying, | |||||||||||||
distribution and occupancy costs) | 115,088 | 99,416 | 365,350 | 322,760 | |||||||||
Gross profit | 91,873 | 75,570 | 254,538 | 207,314 | |||||||||
OPERATING EXPENSES: | |||||||||||||
Selling | 38,346 | 35,490 | 118,699 | 107,592 | |||||||||
General and administrative | 10,595 | 8,447 | 26,212 | 20,701 | |||||||||
48,941 | 43,937 | 144,911 | 128,293 | ||||||||||
INCOME FROM OPERATIONS | 42,932 | 31,633 | 109,627 | 79,021 | |||||||||
OTHER INCOME, Net | 2,623 | 2,973 | 9,183 | 9,032 | |||||||||
INCOME BEFORE INCOME TAXES | 45,555 | 34,606 | 118,810 | 88,053 | |||||||||
PROVISION FOR INCOME TAXES | 16,491 | 12,534 | 43,563 | 32,327 | |||||||||
NET INCOME | $ | 29,064 | $ | 22,072 | $ | 75,247 | $ | 55,726 | |||||
EARNINGS PER SHARE: | |||||||||||||
Basic | $ | 0.98 | $ | 0.77 | $ | 2.53 | $ | 1.93 | |||||
Diluted | $ | 0.94 | $ | 0.73 | $ | 2.44 | $ | 1.86 | |||||
Basic weighted average shares | 29,767 | 28,847 | 29,701 | 28,902 | |||||||||
Diluted weighted average shares | 30,817 | 30,232 | 30,836 | 30,014 | |||||||||
(1) Derived from audited financial statements. |
BALANCE SHEETS | |||||||
(Amounts in Thousands Except Share and Per Share Amounts) | |||||||
(Unaudited) | |||||||
February 2, | February 3, | ||||||
ASSETS | 2008 (2)(3) | 2007 (1) | |||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 64,293 | $ | 35,752 | |||
Short-term investments | 102,910 | 115,721 | |||||
Accounts receivable, net of allowance of $62 and $72, respectively | 2,800 | 4,046 | |||||
Inventory | 77,639 | 70,306 | |||||
Prepaid expenses and other assets | 13,979 | 12,401 | |||||
Total current assets | 261,621 | 238,226 | |||||
PROPERTY AND EQUIPMENT: | 240,237 | 215,630 | |||||
Less accumulated depreciation and amortization | (137,903 | ) | (121,811 | ) | |||
102,334 | 93,819 | ||||||
LONG-TERM INVESTMENTS | 81,201 | 31,958 | |||||
OTHER ASSETS | 5,501 | 4,195 | |||||
$ | 450,657 | $ | 368,198 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 25,155 | $ | 14,670 | |||
Accrued employee compensation | 27,836 | 17,800 | |||||
Accrued store operating expenses | 5,704 | 4,468 | |||||
Gift certificates redeemable | 8,511 | 6,709 | |||||
Income taxes payable | 10,020 | 5,562 | |||||
Total current liabilities | 77,226 | 49,209 | |||||
DEFERRED COMPENSATION | 4,127 | 3,368 | |||||
DEFERRED RENT LIABILITY | 30,984 | 29,034 | |||||
Total liabilities | 112,337 | 81,611 | |||||
COMMITMENTS | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Common stock, authorized 100,000,000 shares of $.01 par value; 29,841,668 and 29,408,576 | |||||||
shares issued and outstanding at February 2, 2008 and February 3, 2007, respectively | 298 | 294 | |||||
Additional paid-in capital | 46,977 | 43,493 | |||||
Retained earnings | 291,045 | 242,800 | |||||
Total stockholders’ equity | 338,320 | 286,587 | |||||
$ | 450,657 | $ | 368,198 | ||||
(1) | Derived from audited financial statements. |
(2) | Long-term investments include $56.9 million in auction-rate securities that have not experienced a successful auction subsequent to year-end. Since the Company cannot predict when future auctions related to these securities will be successful, the Company has classified this amount as long-term investments. |
(3) | Short-term investments include $88.9 million in auction-rate securities, of which $62.6 million have been liquidated subsequent to year-end at par plus interest. |