The Buckle, Inc. Reports Third Quarter Net Income

Rhea-AI Summary

The Buckle (NYSE: BKE) reported Q3 fiscal 2024 financial results with net income of $44.2 million, or $0.89 per share. Net sales decreased 3.2% to $293.6 million compared to $303.5 million in the prior year quarter. Comparable store sales declined 0.7%, while online sales increased 1.1% to $46.6 million. For the 39-week period, net sales decreased 4.6% to $838.5 million, with comparable store sales down 5.4% and online sales declining 9.2% to $128.0 million.

Positive

• Online sales increased 1.1% to $46.6 million in Q3
• Maintained profitability with $44.2 million quarterly net income

Negative

• Q3 net sales decreased 3.2% to $293.6 million
• Comparable store sales declined 0.7% in Q3
• 39-week net sales decreased 4.6% to $838.5 million
• Online sales decreased 9.2% for the 39-week period
• Q3 net income declined from $51.8 million to $44.2 million year-over-year

Insights

Financial Analyst

The Q3 results show concerning trends for Buckle, with net income declining by 14.7% to $44.2 million from $51.8 million year-over-year. The company's performance metrics are broadly negative:

• Net sales dropped 3.2% to $293.6 million
• Comparable store sales decreased 0.7%
• Year-to-date net sales declined 4.6%
• Online sales growth was minimal at 1.1%

The earnings per share decline from $1.05 to $0.89 reflects pressure on margins and overall business performance. The weak year-to-date metrics, including a 9.2% drop in online sales and 5.4% decrease in comparable store sales, suggest structural challenges beyond seasonal fluctuations.

KEARNEY, Neb.--(BUSINESS WIRE)-- The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended November 2, 2024 was $44.2 million, or $0.89 per share ($0.88 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended November 2, 2024 decreased 3.2 percent to $293.6 million from net sales of $303.5 million for the prior year 13-week fiscal quarter ended October 28, 2023. Comparable store net sales for the 13-week fiscal quarter ended November 2, 2024 decreased 0.7 percent from comparable store net sales for the prior year 13-week period ended November 4, 2023. Online sales increased 1.1 percent to $46.6 million for the 13-week fiscal quarter ended November 2, 2024, compared to net sales of $46.1 million for the 13-week fiscal quarter ended October 28, 2023.

Net sales for the 39-week fiscal period ended November 2, 2024 decreased 4.6 percent to $838.5 million from net sales of $878.7 million for the prior year 39-week fiscal period ended October 28, 2023. Comparable store net sales for the 39-week period ended November 2, 2024 decreased 5.4 percent from comparable store net sales for the prior year 39-week period ended November 4, 2023. Online sales decreased 9.2 percent to $128.0 million for the 39-week period ended November 2, 2024, compared to net sales of $141.0 million for the 39-week period ended October 28, 2023.

Due to the 53rd week in fiscal 2023, comparable store net sales for the quarter and year-to-date periods are compared to the 13-week and 39-week periods ended November 4, 2023.

Net income for the third quarter of fiscal 2024 was $44.2 million, or $0.89 per share ($0.88 per share on a diluted basis), compared with net income of $51.8 million, or $1.05 per share ($1.04 per share on a diluted basis) for the third quarter of fiscal 2023.

Net income for the 39-week fiscal period ended November 2, 2024 was $118.3 million, or $2.37 per share ($2.35 per share on a diluted basis), compared with net income of $140.3 million, or $2.83 per share ($2.81 per share on a diluted basis) for the 39-week period ended October 28, 2023.

Management will hold a live audio webcast at 10:00 a.m. EST today to discuss results for the quarter. To register for the live event, please visit https://buckle.zoom.us/webinar/register/WN_ZagNJtIfQImjiUbr7g6zdw. A replay of the event can be accessed through Buckle’s investor relations website within twenty-four hours after the conclusion of the live event (https://corporate.buckle.com/investors/earnings-webcasts).

About Buckle

Buckle is a specialty retailer focused on delivering exceptional service and style through unforgettable experiences. Offering a curated mix of high-quality, on-trend apparel, accessories, and footwear, Buckle is for those living the styled life. 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 445 retail stores in 42 states. As of the end of the fiscal quarter, it operated 445 stores in 42 states compared with 443 stores in 42 states at the end of the third quarter of fiscal 2023.

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.

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
	November 2, 2024			October 28, 2023			November 2, 2024			October 28, 2023
SALES, Net of returns and allowances	$	293,618		$	303,457		$	838,490		$	878,719
COST OF SALES (Including buying, distribution, and occupancy costs)		153,547			156,242			445,188			459,835
Gross profit		140,071			147,215			393,302			418,884
OPERATING EXPENSES:
Selling		71,986			70,242			206,454			205,081
General and administrative		13,602			12,908			41,709			39,247
		85,588			83,150			248,163			244,328
INCOME FROM OPERATIONS		54,483			64,065			145,139			174,556
OTHER INCOME, Net		4,023			4,490			11,510			11,322
INCOME BEFORE INCOME TAXES		58,506			68,555			156,649			185,878
INCOME TAX EXPENSE		14,334			16,793			38,379			45,540
NET INCOME	$	44,172		$	51,762		$	118,270		$	140,338
EARNINGS PER SHARE:
Basic	$	0.89		$	1.05		$	2.37		$	2.83
Diluted	$	0.88		$	1.04		$	2.35		$	2.81
Basic weighted average shares		49,854			49,513			49,854			49,513
Diluted weighted average shares		50,297			49,937			50,230			49,891

THE BUCKLE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
ASSETS	November 2, 2024		February 3, 2024 (1)		October 28, 2023
CURRENT ASSETS:
Cash and cash equivalents	$ 301,958		$ 268,213		$ 311,657
Short-term investments	23,482		22,210		23,446
Receivables	7,901		8,697		10,341
Inventory	149,351		126,290		152,289
Prepaid expenses and other assets	22,236		18,846		11,206
Total current assets	504,928		444,256		508,939
PROPERTY AND EQUIPMENT	508,273		489,037		483,435
Less accumulated depreciation and amortization	(365,241)		(360,200)		(359,367)
	143,032		128,837		124,068
OPERATING LEASE RIGHT-OF-USE ASSETS	287,687		280,813		253,418
LONG-TERM INVESTMENTS	27,261		24,993		22,508
OTHER ASSETS	13,362		10,911		12,274
Total assets	$ 976,270		$ 889,810		$ 921,207
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$ 67,701		$ 45,958		$ 63,320
Accrued employee compensation	27,095		49,827		34,784
Accrued store operating expenses	25,921		19,067		26,335
Gift certificates redeemable	12,571		16,667		12,305
Current portion of operating lease liabilities	76,963		85,265		78,884
Income taxes payable	2,519		4,672		536
Total current liabilities	212,770		221,456		216,164
DEFERRED COMPENSATION	27,261		24,993		22,508
NON-CURRENT OPERATING LEASE LIABILITIES	247,850		230,141		208,517
Total liabilities	487,881		476,590		447,189
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 50,773,796 shares at November 2, 2024, 50,445,186 shares at February 3, 2024, and 50,445,386 shares at October 28, 2023	508		504		504
Additional paid-in capital	202,895		192,686		189,297
Retained earnings	284,986		220,030		284,217
Total stockholders’ equity	488,389		413,220		474,018
Total liabilities and stockholders’ equity	$ 976,270		$ 889,810		$ 921,207
(1) Derived from audited financial statements.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241122655791/en/

Thomas B. Heacock, Chief Financial Officer

The Buckle, Inc.

(308) 236-8491

Source: The Buckle, Inc.

FAQ

What was Buckle's (BKE) net income for Q3 2024?

Buckle reported net income of $44.2 million, or $0.89 per share ($0.88 diluted), for Q3 fiscal 2024.

How much did Buckle's (BKE) online sales grow in Q3 2024?

Buckle's online sales increased 1.1% to $46.6 million in Q3 2024 compared to $46.1 million in Q3 2023.

What was Buckle's (BKE) comparable store sales performance in Q3 2024?

Buckle's comparable store sales decreased 0.7% for the 13-week fiscal quarter ended November 2, 2024.

How did Buckle's (BKE) total net sales perform in Q3 2024?

Buckle's net sales decreased 3.2% to $293.6 million from $303.5 million in the prior year quarter.