Buckle

 [ Price:$14.4+$3=$17; margin of safety: $15; don’t know when the sales declining will end!]

http://corporate.buckle.com/investors/sec-filings

http://seekingalpha.com/article/4041138-buckle-possible-upside-ahead-overstate-discount?ifp=0


8-K On 05/18/2017 [NOT GOOD] & 10Q

Net sales for the 13-week fiscal quarter ended April 29, 2017 decreased 12.8 percent to $212.3 million from net sales of $243.5 million for the prior year 13-week fiscal quarter ended April 30, 2016 . Comparable store net sales for the 13-week period ended April 29, 2017 decreased 12.7 percent from comparable store net sales for the prior year 13-week period ended April 30, 2016 . Online sales decreased 7.2 percent to $21.8 million for the 13-week period ended April 29, 2017 , compared to net sales of $23.5 million for the 13-week period ended April 30, 2016 .
Net income for the first quarter of fiscal 2017 was $16.3 million , or $0.34 per share ( $0.34 per share on a diluted basis), compared with $23.1 million , or $0.48 per share ( $0.48 per share on a diluted basis) for thefirst quarter of fiscal 2016 .
Management estimates that total capital expenditures during fiscal 2017 will be approximately $25.0 to $30.0 million
Online sales for the quarter decreased 7.2% to $21.8 million for the thirteen week period ended April 29, 2017 compared to $23.5 million for the thirteen week period ended April 30, 2016 .
Total square footage as of April 29, 2017 was 2.367 million compared to 2.383 million as of April 30, 2016

04/07/2017 PRE 14A – Preliminary Proxy Statement

As of March 31, 2017 , the Company had outstanding 48,848,725 shares of Common Stock

03/29/2017 10-K Annual Report 2016

File: BUCKLE INC FORM 10-K (Annual Report) 2016.pdf

Shares: 48,848,725 .
Incorporated in Nebraska in 1948, the Company commenced business under the name Mills Clothing, Inc., a conventional men’s clothing store with only one location. In 1967, a second store, under the trade name Brass Buckle, was purchased. In the early 1970s, the store image changed to that of a jeans store with a wide selection of denims and shirts. The first branch store was opened in Columbus, Nebraska, in 1976. In 1977, the Company began selling young women’s apparel and opened its first mall store. The Company changed its corporate name to The Buckle, Inc. on April 23, 1991
The Company has experienced significant growth over the past ten years, growing from 350 stores at the start of fiscal 2007 to 467 stores at the end of fiscal 2016 .
Denim is a significant contributor to total sales ( 42.2% of fiscal 2016 net sales) and is a key to the Company’s merchandising strategy.
Tops are also significant contributors to total sales ( 30.8% of fiscal 2016 net sales).
Brand name merchandise accounted for approximately 65% of the Company’s sales during fiscal 2016 .

In fiscal 2016 , the Company spent $16.2 million, or 1.7% of net sales,

The average store is approximately 5,100 square feet (of which the Company estimates an average of approximately 80% is selling space), and stores range in size from 2,900 square feet to 8,475 square feet.

In fiscal 2016 , Miss Me/Rock Revival accounted for 22.5% of the Company’s net sales and Axis Denim (which produces private label denim for the Company) accounted for 11.2% of net sales.

As of March 24, 2017, the Company operated 465 stores in 44 states. 57 lifestyle centers, and 394 shopping malls. Texas 54

The Company generally seeks sites of 4,250 to 5,000 square feet for its stores. The projected cost of opening a store is approximately $1.0 million, including construction costs of approximately $0.8 million (prior to any construction allowance received) and inventory costs of approximately $0.2 million, net of accounts payable.

The Company’s criteria used when considering a particular location for expansion include:

• Market area, including proximity to existing markets to capitalize on name recognition; • Trade area population (number, average age, and college population); • Economic vitality of market area; • Mall location, anchor tenants, tenant mix, and average sales per square foot; • Available location within a mall, square footage, storefront width, and facility of using the current store design; • Availability of experienced management personnel for the market; • Cost of rent, including minimum rent, common area, and extra charges; • Estimated construction costs, including landlord charge backs and tenant allowances.

anticipates capital spending of approximately $25.0 to $30.0 million during fiscal 2017

While the Company believes it is able to compete favorably with other merchandisers, including department stores and specialty retailers, with respect to each of these factors, the Company believes it competes mainly on the basis of customer service and merchandise selection.

[competitors] retailers such as Abercrombie & Fitch, American Eagle Outfitters, Charlotte Russe, Express, Forever 21, Gap, H&M, Hollister, Maurices, Pacific Sunwear, Tilly’s, Urban Outfitters, Wet Seal, and Zumiez. The women’s market also competes with department stores, such as Dillards, Macy’s, Bon-Ton stores, Nordstrom

Mr. Nelson was elected Chief Executive Officer on March 17, 1997. Mr. Nelson began his career with the Company in 1970 as a part-time salesman while he was attending Kearney State College (now the University of Nebraska – Kearney).

Chairman of the Board since April 19, 1991
[Who is CEO between 1991-1997?]
later worked part-time on the sales floor.Ms. Rhoads practiced as a CPA for 6 1/2 years, during which time she began working on tax and accounting matters for the Company as a client. She has been employed with Buckle since November 1987.

Mr. Heacock is the son-in-law of Dennis H. Nelson

Sales from private label merchandise accounted for approximately 35% of net sales for fiscal 2016 and 36% for fiscal 2015 .
The Company’s private label products generally earn a higher margin than branded products.
Adjust to Changes in Shopping Center Traffic and Consumer Trends Related to E-Commerce Shopping

During fiscal 2014, the Company paid cash dividends of $0.22 per share in each of the first three quarters and $0.23 per share in the fourth quarter and also paid a special cash dividend of $2.77 per share in the fourth quarter. During fiscal 2015, the Company paid cash dividends of $0.23 per share in each of the first three quarters and $0.25 per share in the fourth quarter and also paid a special cash dividend of $1.00 per share in the fourth quarter. During fiscal 2016, the Company paid cash dividends of $0.25 per share in each of the four quarters and also paid a special cash dividend of $0.75 per share in the fourth quarter. The Company plans to continue its quarterly dividends during fiscal 2017 .

 

The graph below compares the cumulative total return on common shares of the Company for the last five fiscal years with the cumulative total return on the Russell 2000 Stock Index and a peer group of Retail Trade Stocks:

Net income margin 10.0%(2017) 13.2%(2016) 14.1%(2015)

As of January 28, 2017 , the Company had working capital of $287.8 million , including $196.5 million of cash and cash equivalents and $50.0 million of short-term investments.

During fiscal 2016 , 2015 , and 2014 , the Company invested $29.5 million, $22.6 million, and $31.2 million, respectively, in new store construction, store renovation, and store technology upgrades. The Company spent $2.2 million, $12.0 million, and $14.3 million in fiscal 2016 , 2015 , and 2014 , respectively, in capital expenditures for the corporate headquarters and distribution facility.

During fiscal 2016 , the Company paid total cash dividends of $84.9 million as follows

During fiscal 2015 , the Company paid total cash dividends of $93.8 million as follows

During fiscal 2014 , the Company paid total cash dividends of $176.6 million as follows

During fiscal 2015, the Company repurchased 103,693 shares of its common stock at a total cost of $3.2 million, or an average of $31.01 per share

Shipping fees charged to customers are included in revenue and shipping costs are included in selling expenses

The Company’s business is seasonal, with the holiday season (from approximately November 15 to December 30) and the back-to-school season (from approximately July 15 to September 1) historically contributing the greatest volume of net sales. accounted for approximately 35% of the Company’s fiscal year net sales

  Denims 42.2% 42.5% 43.7% Tops (including sweaters) 30.8 31.0 30.8

14/2/2017 FMR LLC

a) Amount Beneficially Owned: 7,292,000 (b) Percent of Class: 14.997% (c) Number of shares as to which such person has: (i) sole power to vote or to direct the vote: 1,817,900

10/2/2017 S.S. OR I.R.S. & The Vanguard Group – 23-1945930

  1. SOLE VOTING POWER 41,263
  2. SHARED VOTING POWER 3,700
  3. SOLE DISPOSITIVE POWER 2,491,467
  4. SHARED DISPOSITIVE POWER 43,277
  5. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,534,744
  6. PERCENT OF CLASS REPRESENTED 5.21%

31/1/2017 NELSON DENNIS H PRESIDENT & CEO

293200 D; 2756105 I By Trust; 67500 I By Wife; 6711.74 (1) I Held by 401(k) Plan : Total:3,123,516

30/1/2017 DENNIS H. NELSON

3,003,517; 6.2%

30/1/2017 DANIEL J. HIRSCHFELD

16,200,000; 33.3%

19/1/2017 BlackRock

3,291,241; 6.9%

3/1/2017 Royce & Associates, LP 52-2343049

2,780,868; 5.72%

2 Feb 2017 THE BUCKLE, INC. REPORTS JANUARY 2017 NET SALES

The Company operated 468 stores in 44 states as of February 2, 2016.
6/10/2016 September comparable-store sales fell 15.5% year-over-year. Net sales slumped 14.8% to $82.9 million year-over-year.

8/12/2016 10-Q

  • The number of shares outstanding of the Registrant’s Common Stock, as of December 2, 2016 , was 48,622,780 .
  • Total liabilities 138,417
  • Total stockholders’ equity 443,154
  • Net cash flows from operating activities 64,148 53,591
  • Purchases of property and equipment (26,738) (30,925)
  • Payment of dividends (36,416) (33,397)
  • Stock-based compensation expense, before tax $ 1,135 $ (50) $ 4,808 $ 4,460
  • For fiscal years 2015 , 2014 , and 2013 , the holiday and back-toschool seasons accounted for approximately 35% of the Company’s fiscal year net sales.

6/12/2016

$0.75 PER SHARE SPECIAL CASH DIVIDEND AND A $0.25 PER SHARE REGULAR QUARTERLY DIVIDEND; payable on January 25, 2017

November 18, 2016

net income for the fiscal quarter ended October 29, 2016 was $23.4 million, or $0.49 per share ($0.48 per share on a diluted basis).

Comparable store net sales year-to-date for the 35-week period ended October 1, 2016 decreased 12.1 percent yoy

Net sales for the 35-week fiscal period ended October 1, 2016 decreased 11.4 percent to $625.8 million from net sales of $706.2 million yoy

Please note that net sales for the 5-week and 35-week periods ended October 1, 2016 are reported net of the impact of both reward redemptions and accruals for estimated future rewards related to the Company’s new Guest Loyalty program, which launched during the fiscal quarter ended April 30, 2016

oct/06/2016 Royce & Associates, LLC 52-2343049

3,474,775; 7.15%

13/9/16 authorized a $0.25 per share quarterly dividend to be paid to shareholders of record on October 14, 2016, with a pay on October 27, 2016.

1/9/2016 August sales down 14%, 30weeks down 10-11%

19/8/16 Q2

net income for the fiscal quarter ended July 30, 2016 was $15.5 million, or $0.32 per share

Net sales decreased 10.1 percent to $212.2 million from $236.1 million yoy

Net income for the 26-week fiscal period ended July 30, 2016 was $38.6 million, or $0.80 per share ($0.80 per share on a diluted basis), compared with $57.1 million, or $1.19 per share

31/5/16 $0.25 per share quarterly dividend

Q1 2016

sales $243.5m, down 10% net income $23.1m

EPS $0.48; down 31.4% [estimated eps for 2016 0.7/3.06=0.48/x; x=2.1; Q2 should be worse ]

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Buckle 2015-Annual Report-web.pdf

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image Net sales for the year were down 2.9% to $1.120 billion, with sales in comparable stores down 4.4%. Net income was down 9.4% to $147.3 million or $3.06 per diluted share compared to $162.6 million or $3.38 per diluted share in 2014. Our gross margin was 43.0% compared to 44.0% in 2014 and our operating margin was 20.5% compared to 22.3% in 2014 – marking our 8th consecutive year with a gross margin above 43.0% and an operating margin above 20.0%.

Our consistent focus on running a profitable business has enabled us to maintain a strong balance sheet, while at the same time rewarding our loyal shareholders. In January 2016, we paid a $1.00 per share special cash dividend – our 8th consecutive year of paying a special cash dividend and 9th out of the last 10 years – and also increased our quarterly dividend 8.7% from $0.23 per share to $0.25 per share. The $93.8 million we paid in dividends during 2015 brings our total cash returned to shareholders over the last 10 years to $1.326 billion. Additionally, we ended the fiscal year with $231.5 million in cash and investments, stockholders’ equity of $412.6 million, and no long term debt.

total shares: 48,633,690

Denim is a significant contributor to total sales (42.5% of fiscal 2015 net sales)

Tops are also significant contributors to total sales (31.0% of fiscal 2015 net sales)

Brand name merchandise accounted for approximately 64% of the Company’s sales during fiscal 2015. The remaining balance is comprised of private label merchandise

The Company does not hold store-wide off-price sales at any time.

In fiscal 2015, the Company spent $13.3 million, or 1.2% of net sales, on seasonal marketing campaigns, advertising, promotions, online marketing, and in-store point-of-sale materials.

Comenity Bank, a third-party bank that owns the Buckle Card accounts.

Recognizing talent and promoting managers from within allows the Company to build a strong foundation for management.

In general, each store has 1 manager, 1 or 2 assistant managers, 1 to 3 additional full-time salespeople, and up to 20 part-time salespeople.

The average store is approximately 5,000 square feet (of which the Company estimates an average of approximately 80% is selling space), and stores range in size from 2,900 square feet to 8,475 square feet.

In fiscal 2015, Miss Me/Rock Revival accounted for 24.7% of the Company’s net sales and Axis Denim (which produces private label denim for the Company) accounted for 11.2% of net sales.

The Company generally seeks sites of 4,250 to 5,000 square feet for its stores. The projected cost of opening a store is approximately $1.0 million, including construction costs of approximately $0.8 million (prior to any construction allowance received) and inventory costs of approximately $0.2 million, net of accounts payable.

[competitors] Abercrombie & Fitch, American Eagle Outfitters, Charlotte Russe, Express, Forever 21, Gap, H&M, Hollister, Maurices, Pacific Sunwear, Tilly’s, Urban Outfitters, Vanity, Wet Seal, and Zumiez. The men’s market also competes with certain department stores, such as Dillards, Macy’s, Bon-Ton stores, Nordstrom,

All of the store locations operated by the Company are leased facilities

During fiscal 2013, the Company paid cash dividends of $0.20 per share in each of the first three quarters and $0.22 per share in the fourth quarter and also paid a special cash dividend of $1.20 per share in the fourth quarter. During fiscal 2014, the Company paid cash dividends of $0.22 per share in each of the first three quarters and $0.23 per share in the fourth quarter and also paid a special cash dividend of $2.77 per share in the fourth quarter. During fiscal 2015, the Company paid cash dividends of $0.23 per share in each of the first three quarters and $0.25 per share in the fourth quarter and also paid a special cash dividend of $1.00 per share in the fourth quarter. The Company plans to continue its quarterly dividends during fiscal 2016.

bought back 83,596 shares @30.29

Stock Price Performance Graphimage

During fiscal 2015, 2014, and 2013, the Company invested $22.6 million, $31.2 million, and $21.0 million, respectively, in new store construction, store renovation, and store technology upgrades. The Company spent $12.0 million, $14.3 million, and $7.8 million in fiscal 2015, 2014, and 2013, respectively, in capital expenditures for the corporate headquarters and distribution facility.

Management estimates that total capital expenditures during fiscal 2016 will be approximately $31.0 to $35.0 million,

During fiscal 2015, the Company paid total cash dividends of $93.8 million as follows: $0.23 per share in each of the first three quarters, $0.25 per share in the fourth quarter, and a special cash dividend of $1.00 per share in the fourth quarter. During fiscal 2014, the Company paid total cash dividends of $176.6 million as follows: $0.22 per share in each of the first three quarters, $0.23 per share in the fourth quarter, and a special cash dividend of $2.77 per share in the fourth quarter. During fiscal 2013, the Company paid total cash dividends of $97.1 million as follows: $0.20 per share in each of the first three quarters, $0.22 per share in the fourth quarter, and a special cash dividend of $1.20 per share in the fourth quarter. The Company plans to continue its quarterly dividends in fiscal 2016

During fiscal 2015, the Company repurchased 103,693 shares of its common stock at a total cost of $3.2 million, or an average of $31.01 per share. The Company did not repurchase any shares of its common stock during fiscal 2014 or fiscal 2013. As of January 30, 2016, 440,207 shares remained available under the Company’s current 1,000,000 share repurchase plan that was approved by the Board of Directors on November 20, 2008.

the first-in, first-out (FIFO) method

For fiscal years 2015, 2014, and 2013, the holiday and back-to-school seasons accounted for approximately 35% of the Company’s fiscal year net sales

Omaha, Nebraska

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