The Buckle, Inc. reported net income increased 31% in the third quarter ended Nov. 1 on a 25.7% net sales increase. Comps vaulted 19.1%.
Comparable store net sales year-to-date for the 39-week period ended Nov. 1, 2008 increased 23.7% from comparable store net sales for the 39-week period ended Nov. 3, 2007. Net sales for the 39-week fiscal period ended Nov. 1, 2008 increased 30.9% to $540.6 million from net sales of $412.9 million for the prior year 39-week fiscal period ended Nov. 3, 2007.
Net income for the 39-week period ended Nov. 1, 2008 increased 51.7% to $70.1 million, or $1.55 per share ($1.50 per share on a diluted basis), compared with $46.2 million, or $1.04 per share ($1.00 per share on a diluted basis) for the 39-week period ended Nov. 3, 2007.
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 Oct. 31, 2008. The prior year third quarter and year-end stockholders' equity data have not been split adjusted.
During the third quarter of fiscal 2008, the company recorded a $1.8 million unrealized loss resulting from the “Other-than-Temporary” impairment of certain of its investments in auction-rate securities. The unrealized loss has been recorded in the Statements of Income for the quarter and year-to-date periods ended Nov. 1, 2008 and had a 2 cents per share after-tax impact on reported basic and diluted earnings per share for both the quarter and year-to-date periods.
Subsequent to the end of fiscal October, the company repurchased 100,000 shares of its common stock at an average price of $17.92 per share through Nov. 18, 2008. These shares were purchased pursuant to the 750,000 share corporate stock repurchase program authorized by the Board of Directors on Nov. 27, 2007. The company had 256,400 shares remaining under this authorization as of Nov. 18, 2008.
STATEMENTS OF INCOME
(Amounts in Thousands Except Per Share Amounts)
(Unaudited)
Thirteen Weeks Ended Thirty-nine Weeks Ended
------------------------ ------------------------
November 1, November 3, November 1, November 3,
2008 2007 2008 2007
SALES, Net of returns
and allowances $ 210,567 $ 167,559 $ 540,632 $ 412,927
COST OF SALES
(Including buying,
distribution, and
occupancy costs) 118,762 96,810 312,937 250,262
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Gross profit 91,805 70,749 227,695 162,665
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OPERATING EXPENSES:
Selling 39,415 31,864 104,454 80,353
General and
administrative 7,000 5,746 17,172 15,617
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46,415 37,610 121,626 95,970
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INCOME FROM OPERATIONS 45,390 33,139 106,069 66,695
OTHER INCOME, Net 1,794 2,177 6,163 6,560
UNREALIZED LOSS ON
SECURITIES (1,800) - (1,800) -
----------- ------------ ----------- ------------
INCOME BEFORE INCOME
TAXES 45,384 35,316 110,432 73,255
PROVISION FOR INCOME
TAXES 16,308 13,118 40,363 27,072
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NET INCOME $ 29,076 $ 22,198 $ 70,069 $ 46,183
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EARNINGS PER SHARE:
Basic $ 0.64 $ 0.50 $ 1.55 $ 1.04
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Diluted $ 0.62 $ 0.48 $ 1.50 $ 1.00
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