The Buckle Q3 Income Up 6.5%; Comps Just Miss Flat

The Buckle, Inc. saw net income for the third quarter rise 6.5% to $17.7 million, or 89 cents per diluted share from $16.6 million, or 82 cents per diluted share in the same quarter last year.

Net sales for the quarter increased 3.6% to $143.1 million from $138.1 million for the third quarter of fiscal 2005. Comparable store net sales, for stores open at least one year, declined 0.1% for the quarter.

Net income for the nine months ended October 28, 2006 rose 2.7% to $33.7 million or $1.75 per share ($1.69 per share on a diluted basis), compared with $32.8 million or $1.66 per share ($1.59 per share on a diluted basis) for the nine months ended October 29, 2005.

Net sales for the first nine months of fiscal 2006 increased 2.1% to $355.1 million compared to net sales of $347.7 million in the first nine months of fiscal 2005. Comparable store net sales declined 2.1% for the nine months ended October 28, 2006, compared with the nine months ended October 29, 2005.

The adoption of “SFAS No. 123®: Share-Based Payments” had a 1 cent and 4 cents per share impact on both the company's reported after-tax basic and diluted earnings per share for the third quarter and for the first nine months of fiscal 2006, respectively. No compensation expense related to stock option grants was recognized by the company for fiscal periods prior to fiscal 2006.

During the quarter ended October 28, 2006, the company repurchased 342,700 shares of its common stock at an average price of $35.82 per share. These shares were purchased pursuant to the 1,000,000 share corporate stock repurchase program authorized by the Board of Directors. The company had 253,400 shares remaining as of October 28, 2006 to be purchased to complete this authorization.

 THE BUCKLE, INC.

    STATEMENTS OF INCOME
    (Amounts in Thousands Except Per Share Amounts)
    (Unaudited)

                               Thirteen Weeks Ended    Thirty-nine Weeks Ended
                              October 28, October 29,  October 28, October 29,
                                 2006        2005         2006        2005

    SALES, Net of returns
     and allowances            $143,084    $138,067     $355,088    $347,744

    COST OF SALES
     (Including buying,
     distribution and
     occupancy costs)            84,435      81,818      223,344     217,999

           Gross profit          58,649      56,249      131,744     129,745

    OPERATING EXPENSES:
      Selling                    28,095      27,060       72,102      69,674
      General and
       administrative             4,713       4,096       12,254      12,074
                                 32,808      31,156       84,356      81,748

    INCOME FROM OPERATIONS       25,841      25,093       47,388      47,997

    OTHER INCOME, Net             2,193       1,116        6,059       3,853

    INCOME BEFORE INCOME TAXES   28,034      26,209       53,447      51,850

    PROVISION FOR INCOME TAXES   10,373       9,619       19,793      19,086

    NET INCOME                  $17,661     $16,590      $33,654     $32,764


    EARNINGS PER SHARE:
      Basic                       $0.92       $0.85        $1.75       $1.66

      Diluted                     $0.89       $0.82        $1.69       $1.59

    Basic weighted average
     shares                      19,167      19,458       19,280      19,756
    Diluted weighted average
     shares                      19,799      20,184       19,961      20,597