The Buckle Sees Q2 Sales and Earnings Fall

The Buckle, Inc.’s net income for the second quarter of fiscal 2006 decreased 12.1% to $6.6 million, or 34 cents per share (33 cents per share on a diluted basis), compared to net income of $7.6 million, or 39 cents per share (38 cents per share on a diluted basis) for the second quarter of fiscal 2005.

Net sales for the second quarter ended July 29, 2006, decreased 1.7% to $102.4 million compared to net sales of $104.1 million for the second quarter of fiscal 2005. Comparable store net sales declined 5.7% for the quarter ended July 29, 2006, compared with the quarter ended July 30, 2005.

Net income for the six months ended July 29, 2006 declined 1.1 percent to $16.0 million or 83 cents per share (80 cents per share on a diluted basis), compared with $16.2 million or 81 cents per share (78 cents per share on a diluted basis) for the six months ended July 30, 2005.

Net sales for the first six months of fiscal 2006 increased 1.1 percent to $212.0 million compared to net sales of $209.7 million in the first six months of fiscal 2005. Comparable store net sales declined 3.4 percent for the six months ended July 29, 2006 compared with the six months ended July 30, 2005.

The adoption of “SFAS No. 123®: Share-Based Payments” had a $0.01 and $0.02 per share impact on both the Company’s reported after-tax basic and diluted earnings per share for the second quarter and for the first half of fiscal 2006, respectively. No compensation expense related to stock option grants was recognized by the Company for fiscal periods prior to fiscal 2006.

Additionally, other income for the second quarter of fiscal 2006 included proceeds received from the settlement of Hurricane Katrina insurance claims and settlement of a lawsuit related to Visa/Mastercard interchange fees. These proceeds had a $0.02 per share impact on both the Company’s reported after-tax basic and diluted earnings per share.

                          Financial Table to Follow



    THE BUCKLE, INC.

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

                                Thirteen Weeks Ended    Twenty-six Weeks Ended
                                  July 29,   July 30,     July 29,  July 30,
                                   2006       2005         2006       2005

    NET SALES                    $102,398   $104,130     $212,004   $209,677

    COST OF SALES (Including
     buying, distribution and
     occupancy costs)              68,330     67,883      138,909    136,181

               Gross profit        34,068     36,247       73,095     73,496

    OPERATING EXPENSES:
      Selling                      22,102     21,721       44,007     42,614
      General and administrative    3,677      3,850        7,541      7,978
                                   25,779     25,571       51,548     50,592

    INCOME FROM OPERATIONS          8,289     10,676       21,547     22,904

    OTHER INCOME, Net               2,282      1,256        3,866      2,737

    INCOME BEFORE INCOME TAXES     10,571     11,932       25,413     25,641

    PROVISION FOR INCOME TAXES      3,932      4,379        9,420      9,467

    NET INCOME                     $6,639     $7,553      $15,993    $16,174


    EARNINGS PER SHARE:
      Basic                         $0.34      $0.39        $0.83      $0.81

      Diluted                       $0.33      $0.38        $0.80      $0.78

    Basic weighted average shares  19,367     19,145       19,337     19,905
    Diluted weighted average
     shares                        20,074     20,100       20,041     20,804