BUCKLE INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - THE BUCKLE, INC. 8-K - BUCKLE INC	bke20161118-8kdoc.htm

Exhibit 99.1



	The Buckle, Inc.

	2407 W. 24^th St. Kearney, NE 68845

	P.O. Box 1480 Kearney, NE 68848-1480

	phone: 308-236-8491

	fax: 308-236-4493

For Immediate Release: November 18, 2016	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 October 29, 2016 was $23.4 million, or $0.49 per share ($0.48 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended October 29, 2016 decreased 14.6 percent to $239.2 million from net sales of $280.2 million for the prior year 13-week fiscal quarter ended October 31, 2015. Comparable store net sales for the 13-week period ended October 29, 2016 decreased 15.3 percent from comparable store net sales for the prior year 13-week period ended October 31, 2015. Online sales decreased 8.5 percent to $23.7 million for the 13-week period ended October 29, 2016, compared to net sales of $25.9 million for the 13-week period ended October 31, 2015.

Net sales for the 39-week fiscal period ended October 29, 2016 decreased 11.8 percent to $694.9 million from net sales of $787.6 million for the prior year 39-week fiscal period ended October 31, 2015. Comparable store net sales for the 39-week period ended October 29, 2016 decreased 12.5 percent from comparable store net sales for the prior year 39-week period ended October 31, 2015. Online sales decreased 3.7 percent to $67.6 million for the 39-week period ended October 29, 2016, compared to net sales of $70.2 million for the 39-week period ended October 31, 2015.

Net income for the third quarter of fiscal 2016 was $23.4 million, or $0.49 per share ($0.48 per share on a diluted basis), compared with $35.9 million, or $0.75 per share ($0.74 per share on a diluted basis) for the third quarter of fiscal 2015.

Net income for the 39-week fiscal period ended October 29, 2016 was $62.0 million, or $1.29 per share ($1.28 per share on a diluted basis), compared with $92.9 million, or $1.93 per share ($1.93 per share on a diluted basis) for the 39-week period ended October 31, 2015.

Please note that net sales for the 13-week and 39-week periods ended October 29, 2016 are reported net of the impact of both reward redemptions and accruals for estimated future rewards related to the Company’s new Guest Loyalty program, which launched during the fiscal quarter ended April 30, 2016.

Management will hold a conference call at 10:00 a.m. EST today to discuss results for the quarter. To participate in the call, please call (888) 428-4476 for domestic calls or (651) 291-0561 for international calls and reference the conference code 405754. A replay of the call will be available for a two-week period beginning today at 12:00 p.m. EST by calling (800) 475-6701 for domestic calls or (320) 365-3844 for international calls and entering the conference code 405754.

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 471 retail stores in 44 states. As of the end of the fiscal quarter, it operated 470 stores in 44 states compared with 468 stores in 44 states at the end of the third quarter of fiscal 2015.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors which may be beyond the Company’s control. Accordingly, the Company’s future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

Note: News releases and other information on The Buckle, Inc. can be accessed at www.buckle.com on the Internet.

Financial Tables to Follow

THE BUCKLE, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Amounts in Thousands Except Per Share Amounts)

(Unaudited)




	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	October 29, 2016		October 31, 2015		October 29, 2016		October 31, 2015

SALES, Net of returns and allowances	$	239,213	$	280,187	$	694,913	$	787,585

COST OF SALES (Including buying, distribution, and occupancy costs)	142,339		162,923		423,428		462,129

Gross profit	96,874		117,264		271,485		325,456

OPERATING EXPENSES:
Selling	50,820		52,268		144,448		147,780
General and administrative	9,234		8,701		29,705		31,399
	60,054		60,969		174,153		179,179

INCOME FROM OPERATIONS	36,820		56,295		97,332		146,277

OTHER INCOME, Net	497		951		1,500		1,959

INCOME BEFORE INCOME TAXES	37,317		57,246		98,832		148,236

PROVISION FOR INCOME TAXES	13,920		21,353		36,866		55,292

NET INCOME	$	23,397	$	35,893	$	61,966	$	92,944


EARNINGS PER SHARE:
Basic	$	0.49	$	0.75	$	1.29	$	1.93

Diluted	$	0.48	$	0.74	$	1.28	$	1.93

Basic weighted average shares	48,107		48,073		48,107		48,074
Diluted weighted average shares	48,259		48,219		48,230		48,203

THE BUCKLE, INC.

CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands Except Share and Per Share Amounts)

(Unaudited)




ASSETS	October 29, 2016			January 30, 2016 (1)			October 31, 2015

CURRENT ASSETS:
Cash and cash equivalents	$	163,006		$	161,185		$	121,430
Short-term investments	49,987			36,465			28,181
Receivables	13,427			9,651			12,855
Inventory	148,193			149,566			175,852
Prepaid expenses and other assets	7,320			6,030			28,917
Total current assets	381,933			362,897			367,235

PROPERTY AND EQUIPMENT	464,507			450,762			450,185
Less accumulated depreciation and amortization	(289,547		)	(277,981		)	(271,813		)
	174,960			172,781			178,372

LONG-TERM INVESTMENTS	19,828			33,826			42,372
OTHER ASSETS	4,850			3,269			1,914

Total assets	$	581,571		$	572,773		$	589,893

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:
Accounts payable	$	36,314		$	33,862		$	52,537
Accrued employee compensation	15,651			33,126			21,382
Accrued store operating expenses	16,440			6,639			11,410
Gift certificates redeemable	16,088			22,858			16,738
Income taxes payable	2,751			11,141			6,420
Total current liabilities	87,244			107,626			108,487

DEFERRED COMPENSATION	12,571			12,849			13,358
DEFERRED RENT LIABILITY	38,602			39,655			39,623
OTHER LIABILITIES	—			—			9,821
Total liabilities	138,417			160,130			171,289

COMMITMENTS

STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 48,622,780 shares at October 29, 2016, 48,428,110 shares at January 30, 2016, and 48,511,876 shares at October 31, 2015	486			484			485
Additional paid-in capital	139,670			134,864			134,886
Retained earnings	303,176			277,626			283,658
Accumulated other comprehensive loss	(178		)	(331		)	(425		)
Total stockholders’ equity	443,154			412,643			418,604

Total liabilities and stockholders’ equity	$	581,571		$	572,773		$	589,893

(1) Derived from audited financial statements.

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