8-K
BUCKLE INC (BKE)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
August 21, 2020
Date of Report (date of earliest event reported)
THE BUCKLE, INC.
(Exact name of Registrant as specified in its charter)
| Nebraska | 001-12951 | 47-0366193 | |
|---|---|---|---|
| (State or other jurisdiction of | (Commission | (I.R.S. Employer | |
| incorporation or organization) | File Number) | 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)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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
TABLE OF CONTENTS
ITEM 2.02 Results of Operations and Financial Condition
ITEM 9.01(d) Exhibits
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1
ITEM 2.02. Results of Operations and Financial Condition
On August 21, 2020, The Buckle, Inc. announced financial results for the fiscal quarter ended August 1, 2020. The full text of the press release is furnished as Exhibit 99.1 to this report.
The information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), as amended, and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as set forth by specific reference in such filing.
ITEM 9.01(d). Exhibits
Exhibit 99.1 Press Release Dated August 21, 2020
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 hereunto duly authorized.
| The Buckle, Inc. | |
|---|---|
| Date: August 24, 2020 | By: /s/ THOMAS B. HEACOCK |
| Name: Thomas B. Heacock | |
| Title: Senior Vice President of Finance, | |
| Treasurer and Chief Financial Officer |
EXHIBIT INDEX
| Exhibit 99.1 | Press Release Dated August 21, 2020 |
|---|
Document
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: August 21, 2020 | web: www.buckle.com | |
| Contact: | Thomas B. Heacock, 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 1, 2020 was $34.7 million, or $0.71 per share ($0.71 per share on a diluted basis).
Net sales for the 13-week fiscal quarter ended August 1, 2020 increased 6.0 percent to $216.0 million from net sales of $203.8 million for the prior year 13-week fiscal quarter ended August 3, 2019. Online sales increased 99.0 percent to $46.0 million for the 13-week period ended August 1, 2020, compared to net sales of $23.1 million for the 13-week period ended August 3, 2019.
Net sales for the 26-week fiscal period ended August 1, 2020 decreased 18.2 percent to $331.4 million from net sales of $405.1 million for the prior year 26-week fiscal period ended August 3, 2019. Online sales increased 64.3 percent to $78.1 million for the 26-week period ended August 1, 2020, compared to net sales of $47.5 million for the 26-week period ended August 3, 2019.
Net income for the second quarter of fiscal 2020 was $34.7 million, or $0.71 per share ($0.71 per share on a diluted basis), compared with $16.4 million, or $0.34 per share ($0.34 per share on a diluted basis) for the second quarter of fiscal 2019.
Net income for the 26-week fiscal period ended August 1, 2020 was $22.9 million, or $0.47 per share ($0.47 per share on a diluted basis), compared with $31.5 million, or $0.65 per share ($0.65 per share on a diluted basis) for the 26-week period ended August 3, 2019.
As previously announced, Buckle temporarily closed all brick and mortar stores due to the COVID-19 pandemic beginning March 18, 2020. The Company began the process of reopening certain stores the week of April 26, 2020, following state and local reopening guidelines. As of August 1, 2020, 431 of Buckle’s 446 stores were open. Of the 15 stores which were closed, 2 have not yet reopened due to damage sustained during the closure period. The remaining 13 stores are located in California and had previously reopened but were subsequently closed again during July in accordance with state guidelines. The Company’s online store has remained open without interruption.
Management will hold a conference call at 10:00 a.m. EDT today to discuss results for the quarter. To participate in the call, please call (877) 226-8216 for domestic calls or (409) 207-6983 for international calls and reference the conference code 9361957. A replay of the call will be available for a two-week period beginning today at 1:00 p.m. EDT by calling (866) 207-1041 for domestic calls or (402) 970-0847 for international calls and entering the conference code 2314297.
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 446 retail stores in 42 states. As of the end of the fiscal quarter, it operated 446 stores in 42 states compared with 449 stores in 42 states at the end of the second quarter of fiscal 2019.
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 | Twenty-Six Weeks Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| August 1,<br>2020 | August 3,<br>2019 | August 1,<br>2020 | August 3,<br>2019 | |||||
| SALES, Net of returns and allowances | $ | 216,025 | $ | 203,817 | $ | 331,438 | $ | 405,130 |
| COST OF SALES (Including buying, distribution, and occupancy costs) | 122,643 | 125,120 | 211,231 | 249,780 | ||||
| Gross profit | 93,382 | 78,697 | 120,207 | 155,350 | ||||
| OPERATING EXPENSES: | ||||||||
| Selling | 38,257 | 48,535 | 71,761 | 95,144 | ||||
| General and administrative | 9,593 | 10,560 | 19,096 | 21,870 | ||||
| 47,850 | 59,095 | 90,857 | 117,014 | |||||
| INCOME FROM OPERATIONS | 45,532 | 19,602 | 29,350 | 38,336 | ||||
| OTHER INCOME, Net | 404 | 2,086 | 978 | 3,341 | ||||
| INCOME BEFORE INCOME TAXES | 45,936 | 21,688 | 30,328 | 41,677 | ||||
| INCOME TAX EXPENSE | 11,254 | 5,314 | 7,430 | 10,211 | ||||
| NET INCOME | $ | 34,682 | $ | 16,374 | $ | 22,898 | $ | 31,466 |
| EARNINGS PER SHARE: | ||||||||
| Basic | $ | 0.71 | $ | 0.34 | $ | 0.47 | $ | 0.65 |
| Diluted | $ | 0.71 | $ | 0.34 | $ | 0.47 | $ | 0.65 |
| Basic weighted average shares | 48,714 | 48,550 | 48,719 | 48,551 | ||||
| Diluted weighted average shares | 48,913 | 48,760 | 48,918 | 48,747 |
THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
| ASSETS | August 1,<br>2020 | February 1,<br>2020 (1) | August 3,<br>2019 | |||
|---|---|---|---|---|---|---|
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 265,714 | $ | 220,969 | $ | 178,041 |
| Short-term investments | 12,637 | 12,532 | 52,051 | |||
| Receivables | 2,394 | 3,136 | 11,206 | |||
| Inventory | 116,479 | 121,258 | 129,068 | |||
| Prepaid expenses and other assets | 20,388 | 20,935 | 21,059 | |||
| Total current assets | 417,612 | 378,830 | 391,425 | |||
| PROPERTY AND EQUIPMENT | 451,899 | 452,205 | 453,416 | |||
| Less accumulated depreciation and amortization | (345,820) | (338,357) | (331,285) | |||
| 106,079 | 113,848 | 122,131 | ||||
| OPERATING LEASE RIGHT-OF-USE ASSETS | 305,814 | 350,088 | 335,448 | |||
| LONG-TERM INVESTMENTS | 16,536 | 15,863 | 15,477 | |||
| OTHER ASSETS | 9,782 | 9,261 | 7,952 | |||
| Total assets | $ | 855,823 | $ | 867,890 | $ | 872,433 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Accounts payable | $ | 48,142 | $ | 26,491 | $ | 42,531 |
| Accrued employee compensation | 9,391 | 22,929 | 11,512 | |||
| Accrued store operating expenses | 21,579 | 17,837 | 23,268 | |||
| Gift certificates redeemable | 12,611 | 15,319 | 13,305 | |||
| Current portion of operating lease liabilities | 81,427 | 87,314 | 75,992 | |||
| Income taxes payable | — | 2,751 | — | |||
| Total current liabilities | 173,150 | 172,641 | 166,608 | |||
| DEFERRED COMPENSATION | 16,536 | 15,863 | 14,984 | |||
| NON-CURRENT OPERATING LEASE LIABILITIES | 251,830 | 290,238 | 287,648 | |||
| Total liabilities | 441,516 | 478,742 | 469,240 | |||
| COMMITMENTS | ||||||
| STOCKHOLDERS’ EQUITY: | ||||||
| Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 49,407,731 shares at August 1, 2020, 49,205,681 shares at February 1, 2020, and 49,223,811 shares at August 3, 2019 | 494 | 492 | 492 | |||
| Additional paid-in capital | 154,517 | 152,258 | 151,027 | |||
| Retained earnings | 259,296 | 236,398 | 251,674 | |||
| Total stockholders’ equity | 414,307 | 389,148 | 403,193 | |||
| Total liabilities and stockholders’ equity | $ | 855,823 | $ | 867,890 | $ | 872,433 |
| (1) Derived from audited financial statements. |