MANAGEMENT REPORT AND ANALYSIS OF THE FINANCIAL SITUATION AND OPERATING RESULTS

The following discussion should be read in conjunction with the condensed
consolidated financial statements and notes thereto of the Company included in
this Form 10-Q. All references herein to the "Company", "Buckle", "we", "us", or
similar terms refer to The Buckle, Inc. and its subsidiary. The following is
management's discussion and analysis of certain significant factors which have
affected the Company's financial condition and results of operations during the
periods included in the accompanying condensed consolidated financial
statements.

EXECUTIVE OVERVIEW

The company’s management considers the following as key performance indicators to assess the performance of the company.

Comparable Store Sales - Stores are deemed to be comparable stores if they were
open in the prior year on the first day of the fiscal period being presented.
Stores which have been remodeled, expanded, and/or relocated, but would
otherwise be included as comparable stores, are not excluded from the comparable
store sales calculation. Online sales are included in comparable store sales.
Management considers comparable store sales to be an important indicator of
current Company performance, helping leverage certain fixed costs when results
are positive. Negative comparable store sales results could reduce net sales and
have a negative impact on operating leverage, thus reducing net earnings.

Net Merchandise Margins - Management evaluates the components of merchandise
margin including initial markup and the amount of markdowns during a period. Any
inability to obtain acceptable levels of initial markups or any significant
increase in the Company's use of markdowns could have an adverse effect on the
Company's gross margin and results of operations.

Operating Margin - Operating margin is a good indicator for management of the
Company's success. Operating margin can be positively or negatively affected by
comparable store sales, merchandise margins, occupancy costs, and the Company's
ability to control operating costs.

Cash Flow and Liquidity (working capital) - Management reviews current cash and
short-term investments along with cash flow from operating, investing, and
financing activities to determine the Company's short-term cash needs for
operations and expansion. The Company believes that existing cash, short-term
investments, and cash flow from operations will be sufficient to fund current
and long-term anticipated capital expenditures and working capital requirements
for the next several years.

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RESULTS OF OPERATIONS

The following table shows certain financial data expressed as a percentage of net sales and the percentage change in the dollar amount of these items compared to the prior period:

                                           Percentage of Net Sales                                                              Percentage of Net Sales
                                           For Thirteen Weeks Ended                         Percentage                         For Twenty-Six Weeks Ended                         Percentage
                                       July 30,                July 31,                                                    July 30,                  July 31,
                                         2022                    2021                  Increase/(Decrease)                   2022                      2021                  Increase/(Decrease)

Net sales                                   100.0  %                100.0  %                             2.3  %                  100.0  %                 100.0  %                             2.8  %
Cost of sales (including buying,
distribution, and occupancy
costs)                                       51.8  %                 51.9  %                             2.3  %                   51.3  %                  51.3  %                             2.9  %
Gross profit                                 48.2  %                 48.1  %                             2.4  %                   48.7  %                  48.7  %                             2.7  %
Selling expenses                             22.5  %                 21.4  %                             7.8  %                   22.1  %                  20.7  %                             9.9  %
General and administrative
expenses                                      3.9  %                  3.7  %                             5.3  %                    3.9  %                   3.8  %                             3.0  %
Income from operations                       21.8  %                 23.0  %                            (3.2) %                   22.7  %                  24.2  %                            (3.4) %
Other income, net                             0.2  %                  0.1  %                           216.7  %                    0.1  %                     -  %                           203.2  %
Income before income taxes                   22.0  %                 23.1  %                            (2.5) %                   22.8  %                  24.2  %                            (3.0) %
Income tax expense                            5.4  %                  5.7  %                            (2.5) %                    5.6  %                   5.9  %                            (3.0) %
Net income                                   16.6  %                 17.4  %                            (2.5) %                   17.2  %                  18.3  %                            (3.0) %



Net sales increased from $295.1 million in the second quarter of fiscal 2021 to
$302.0 million in the second quarter of fiscal 2022, a 2.3% increase. Comparable
store net sales for the thirteen week quarter ended July 30, 2022 increased 1.6%
from comparable store net sales for the prior year thirteen week period ended
July 31, 2021. Total sales growth for the period was the result of a 3.6%
increase in the average unit retail and a 0.3% increase in the average number of
units sold per transaction, partially offset by a 1.5% decrease in the number of
transactions. Online sales for the quarter increased 6.5% to $46.2 million for
the thirteen week period ended July 30, 2022 compared to $43.4 million for the
thirteen week period ended July 31, 2021.

Net sales increased from $594.2 million for the first two quarters of fiscal
2021 to $611.0 million for the first two quarters of fiscal 2022, a 2.8%
increase. Comparable store net sales for the twenty-six week period ended
July 30, 2022 increased 2.6% from comparable store net sales for the prior year
twenty-six week period ended July 31, 2021. Total sales growth for the
year-to-date period was the result of a 1.0% increase in the number of
transactions and a 2.6% increase in the average unit retail, partially offset by
a 0.7% reduction in the average number of units sold per transaction. Online
sales for the year-to-date period increased 3.5% to $100.6 million for the
twenty-six week period ended July 30, 2022 compared to $97.2 million for the
twenty-six week period ended July 31, 2021.

The Company's average retail price per piece of merchandise sold increased
$1.53, or 3.6%, during the second quarter of fiscal 2022 compared to the second
quarter of fiscal 2021. This $1.53 increase was primarily attributable to the
following changes (with their corresponding effect on the overall average price
per piece): a 3.8% increase in average denim price points ($0.52), an 8.9%
increase in average sportswear price points ($0.46), a 3.5% increase in average
knit shirt price points ($0.36), a 5.3% increase in average accessory price
points ($0.24), a 5.5% increase in average footwear price points ($0.19), a 6.8%
increase in average woven shirt price points ($0.18), and an increase in average
price points for certain other merchandise categories ($0.23); which were
partially offset by a shift in the merchandise mix (-$0.65). These changes are
primarily a reflection of merchandise shifts in terms of brands and product
styles, fabrics, details, and finishes.

For the year-to-date period, the Company's average retail price per piece of
merchandise sold increased $1.16, or 2.6%, compared to the same period in fiscal
2021. This $1.16 increase was primarily attributable to the following changes
(with their corresponding effect on the overall average price per piece): a 4.3%
increase in average knit shirt price points ($0.42), a 1.8% increase in average
denim price points ($0.29), a 7.2% increase in average woven shirt price points
($0.20), a 4.3% increase in average footwear price points ($0.19), a 4.5%
increase in average sportswear price points ($0.19), and an increase in average
price points for certain other merchandise categories ($0.31), which were
partially offset by a shift in the merchandise mix (-$0.44). These changes are
primarily a reflection of merchandise shifts in terms of brands and product
styles, fabrics, details, and finishes.

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Gross profit after buying, distribution, and occupancy expenses was $145.4
million in the second quarter of fiscal 2022, compared to $142.0 million in the
second quarter of fiscal 2021. As a percentage of net sales, gross profit was
48.2% in the second quarter of fiscal 2022, up slightly from 48.1% in the second
quarter of fiscal 2021. The current quarter margin improvement was due to
leveraged buying, distribution, and occupancy expenses. Merchandise margins were
flat for the quarter.

Year-to-date, gross profit was $297.5 million for the twenty-six week period
ended July 30, 2022, compared to $289.6 million for the twenty-six week period
ended July 31, 2021. As a percentage of net sales, gross profit was 48.7% for
both the first two quarters of fiscal 2022 and the first two quarters of fiscal
2021. For the year-to-date period, leveraged buying, distribution, and occupancy
expenses were offset by a 10 basis point reduction in merchandise margins.

Selling, general, and administrative expenses were 26.4% of net sales for the
second quarter of fiscal 2022, compared to 25.1% for the second quarter of
fiscal 2021. The increase was the result of increases in store labor-related
expenses (1.35%, as a percentage of net sales) and certain other expense
categories (0.55%, as a percentage of net sales). These increases were partially
offset by a decrease in expense related to incentive compensation accruals
(0.60%, as a percentage of net sales).

For the 26-week year-to-date period, total selling, general, and administrative
expenses were 26.0% of net sales for fiscal 2022, compared to 24.5% for fiscal
2021. The increase was the result of increases in store labor-related expenses
(1.35%, as a percentage of net sales) and certain other expense categories
(0.65%, as a percentage of net sales). These increases were partially offset by
a decrease in expense related to incentive compensation accruals (0.50%, as a
percentage of net sales).

As a result of the above changes, the Company's income from operations was $65.7
million, or 21.8% of net sales, for the second quarter of fiscal 2022, compared
to income from operations of $67.9 million, or 23.0% of net sales, for the
second quarter of fiscal 2021. Income tax expense as a percentage of pre-tax
income was 24.5% for the second quarter of both fiscal 2022 and fiscal 2021,
bringing the Company's net income to $50.1 million in the second quarter of
fiscal 2022 compared to $51.4 million in the second quarter of fiscal 2021.

Year-to-date, income from operations was $138.8 million for the twenty-six week
period ended July 30, 2022 compared to $143.7 million for the twenty-six week
period ended July 31, 2021. Income from operations was 22.7% of net sales for
the first two quarters of fiscal 2022 compared to 24.2% of net sales for the
first two quarters of fiscal 2021. Income tax expense as a percentage of pre-tax
income was 24.5% for both the first two quarters of fiscal 2022 and the first
two quarters of fiscal 2021, bringing year-to-date net income to $105.4 million
for fiscal 2022 compared to $108.7 million for fiscal 2021.

CASH AND CAPITAL RESOURCES

As of July 30, 2022, the Company had working capital of $218.8 million,
including $266.7 million of cash and cash equivalents and $17.4 million of
short-term investments. The Company's cash receipts are generated from retail
sales and from investment income, and the Company's primary ongoing cash
requirements are for inventory, payroll, occupancy costs, dividend payments, new
store expansion, remodeling, and other capital expenditures. Historically, the
Company's primary source of working capital has been cash flow from operations.
During the first two quarters of fiscal 2022 and fiscal 2021, the Company's cash
flow from operations was $69.5 million and $136.5 million, respectively. Changes
in operating cash flow between periods is primarily a function of changes in net
income, along with changes in inventory and accounts payable based on the timing
and amount of merchandise purchased in each respective period. Operating cash
flow is also impacted by the timing of certain other payments, including rent,
income taxes, and annual incentive bonuses. The Company's reduction in operating
cash flow for the first two quarters of fiscal 2022 compared to the first two
quarters of fiscal 2021 is primarily attributable to changes in inventory and
accounts payable as the Company built its inventory back to more normalized
levels during the first half of fiscal 2022, as well as the first quarter
payment of incentive bonuses based on the Company's strong financial results in
fiscal 2021.

Uses of cash for the two twenty-six-week periods primarily include the payment of annual bonuses accrued at year-end, inventory purchases, dividend payments, construction costs for new and renovated stores, other capital expenditures and purchases of investment securities.

During the first two quarters of fiscal 2022 and 2021, the Company invested
$14.7 million and $8.6 million, respectively, in new store construction, store
renovation, and store technology upgrades. The Company also spent $0.2 million
and $0.6 million in the first two quarters of fiscal 2022 and 2021,
respectively, in capital expenditures for the corporate headquarters and
distribution facility.

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During the remainder of fiscal 2022, the Company anticipates completing 2 new
stores and an additional 11 full remodels. Management estimates that total
capital expenditures during fiscal 2022 will be approximately $22.0 to $27.0
million, which includes primarily planned store projects and technology
investments. The Company believes that existing cash and cash equivalents,
investments, and cash flow from operations will be sufficient to fund current
and long-term anticipated capital expenditures and working capital requirements
for the next several years. The Company has a consistent record of generating
positive cash flow from operations each year and, as of July 30, 2022, had total
cash and investments of $304.8 million, including $20.6 million of long-term
investments.

Future conditions, however, may reduce the availability of funds based upon
factors such as a decrease in demand for the Company's product, change in
product mix, competitive factors, and general economic conditions as well as
other risks and uncertainties which would reduce the Company's sales, net
profitability, and cash flows. Also, the Company's acceleration in store
openings and/or remodels or the Company entering into a merger, acquisition, or
other financial related transaction could reduce the amount of cash available
for further capital expenditures and working capital requirements.

The Company has available an unsecured line of credit of $25.0 million with
Wells Fargo Bank, N.A. for operating needs and letters of credit. The line of
credit agreement has an expiration date of July 31, 2023 and provides that $10.0
million of the $25.0 million line is available for letters of credit. Borrowings
under the line of credit provide for interest to be paid at a rate based on
SOFR. The Company has, from time to time, borrowed against these lines of
credit. There were no bank borrowings during the first two quarters of fiscal
2022 or 2021. The Company had no bank borrowings as of July 30, 2022 and was in
compliance with the terms and conditions of the line of credit agreement.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management's Discussion and Analysis of Financial Condition and Results of
Operations are based upon The Buckle, Inc.'s condensed consolidated financial
statements, which have been prepared in accordance with accounting principles
generally accepted in the United States of America. The preparation of these
consolidated financial statements requires that management make estimates and
judgments that affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities at the financial statement date,
and the reported amounts of sales and expenses during the reporting period. The
Company regularly evaluates its estimates, including those related to inventory,
investments, incentive bonuses, and income taxes. Management bases its estimates
on past experience and on various other factors that are thought to be
reasonable under the circumstances, the results of which form the basis for
making judgments about the carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from these
estimates under different assumptions or conditions. Management believes that
the estimates and judgments used in preparing these consolidated financial
statements were the most appropriate at that time. Presented below are those
critical accounting policies that management believes require subjective and/or
complex judgments that could potentially affect reported results of operations.
The critical accounting policies and estimates utilized by the Company in the
preparation of its condensed consolidated financial statements for the period
ended July 30, 2022 have not changed materially from those utilized for the
fiscal year ended January 29, 2022, included in The Buckle Inc.'s 2021 Annual
Report on Form 10-K.

1.Revenue Recognition. Retail store sales are recorded, net of expected returns,
upon the purchase of merchandise by customers. Online sales are recorded, net of
expected returns, when merchandise is tendered for delivery to the common
carrier. Shipping fees charged to customers are included in revenue and shipping
costs are included in selling expenses. The Company recognizes revenue from
sales made under its layaway program upon delivery of the merchandise to the
customer. Revenue is not recorded when gift cards and gift certificates are
sold, but rather when a card or certificate is redeemed for merchandise. A
current liability for unredeemed gift cards and certificates is recorded at the
time the card or certificate is purchased. The liability recorded for unredeemed
gift cards and gift certificates was $12.4 million and $16.5 million as of
July 30, 2022 and January 29, 2022, respectively. Gift card and gift certificate
breakage is recognized as revenue in proportion to the redemption pattern of
customers by applying an estimated breakage rate. The estimated breakage rate is
based on historical issuance and redemption patterns and is re-assessed by the
Company on a regular basis. Sales tax collected from customers is excluded from
revenue and is included as part of "accrued store operating expenses" on the
Company's condensed consolidated balance sheets.


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The Company establishes a liability for estimated merchandise returns, based
upon the historical average sales return percentage, that is recognized at the
transaction value. The Company also recognizes a return asset and a
corresponding adjustment to cost of sales for the Company's right to recover
returned merchandise, which is measured at the estimated carrying value, less
any expected recovery costs. Customer returns could potentially exceed the
historical average, thus reducing future net sales results and potentially
reducing future net earnings. The accrued liability for reserve for sales
returns was $4.2 million as of July 30, 2022 and $3.0 million as of January 29,
2022.

The Company's Buckle Rewards program allows participating guests to earn points
for every qualifying purchase, which (after achievement of certain point
thresholds) are redeemable as a discount off a future purchase. In addition,
through partnership with Bread Financial and Comenity Bank (collectively the
"Bank"), the Company offers a private label credit card ("PLCC") program. Buckle
Rewards members with a PLCC earn additional points under the Buckle Rewards
program for every qualifying purchase on their PLCC card. Reported revenue is
net of both current period reward redemptions and accruals for estimated future
rewards earned under the Buckle Rewards program. A liability has been recorded
for future rewards based on the Company's estimate of how many earned points
will turn into rewards and ultimately be redeemed prior to expiration. As of
July 30, 2022 and January 29, 2022, $11.1 million and $10.6 million was included
in "accrued store operating expenses" as a liability for estimated future
rewards.

Effective July 1, 2022, the Company entered into a new five year agreement (the
"Agreement") with the Bank, to continue providing guests with PLCC services.
Each PLCC bears the Buckle brand logo and can only be used at the Company's
retail locations and eCommerce platform. The Bank is the sole owner of the
accounts issued under the PLCC program and bears full risk associated with guest
non-payment.

As part of the Agreement, the Company receives a percentage of PLCC sales from
the Bank, along with other incentive payments upon the achievement of certain
performance targets. All amounts received from the Bank under the Agreement are
recorded in net sales in the condensed consolidated statements of income.

2.Inventory. Inventory is valued at the lower of cost or net realizable value.
Cost is determined using an average cost method that approximates the first-in,
first-out (FIFO) method. Management makes adjustments to inventory and cost of
goods sold, based upon estimates, to account for merchandise obsolescence and
markdowns that could affect net realizable value, based on assumptions using
calculations applied to current inventory levels within each different markdown
level. Management also reviews the levels of inventory in each markdown group
and the overall aging of the inventory versus the estimated future demand for
such product and the current market conditions. Such judgments could vary
significantly from actual results, either favorably or unfavorably, due to
fluctuations in future economic conditions, industry trends, consumer demand,
and the competitive retail environment. Such changes in market conditions could
negatively impact the sale of markdown inventory, causing further markdowns or
inventory obsolescence, resulting in increased cost of goods sold from
write-offs and reducing the Company's net earnings. The adjustment to inventory
for markdowns and/or obsolescence was $5.6 million as of both July 30, 2022 and
January 29, 2022.

3.Income Taxes. The Company records a deferred tax asset and liability for
expected future tax consequences resulting from temporary differences between
financial reporting and tax bases of assets and liabilities. The Company
considers future taxable income and ongoing tax planning in assessing the value
of its deferred tax assets. If the Company determines that it is more than
likely that these assets will not be realized, the Company would reduce the
value of these assets to their expected realizable value, thereby decreasing net
income. Estimating the value of these assets is based upon the Company's
judgment. If the Company subsequently determined that the deferred tax assets,
which had been written down, would be realized in the future, such value would
be increased. Adjustment would be made to increase net income in the period such
determination was made.

4.Leases. The Company's lease portfolio is primarily comprised of leases for
retail store locations. The Company also leases certain equipment and corporate
office space. Store leases for new stores typically have an initial term of 10
years, with options to renew for an additional 1 to 5 years. The exercise of
lease renewal options is at the Company's sole discretion and is included in the
lease term for calculations of its right-of-use assets and liabilities when it
is reasonably certain that the Company plans to renew these leases. Certain
store lease agreements include rental payments based on a percentage of retail
sales over contractual levels and others include rental payments adjusted
periodically for inflation. Lease agreements do not contain any residual value
guarantees, material restrictive covenants, or options to purchase the leased
property.


                                       20
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The Company records its lease liabilities at the present value of the lease
payments not yet paid, discounted at the rate of interest that the Company would
have to pay to borrow on a collateralized basis over a similar term. As the
Company's leases do not provide an implicit interest rate, the Company obtains
an incremental borrowing rate based on the information available at commencement
date in determining the present value of lease payments.

The Company has elected to apply the practical expedient to account for lease
components (e.g. fixed payments for rent, insurance, and real estate taxes) and
non-lease components (e.g. fixed payments for common area maintenance) together
as a single component for all underlying asset classes. Additionally, the
Company elected as an accounting policy to exclude short-term leases from the
recognition requirements.

Consistent with guidance in the FASB Staff Q&A regarding lease concessions
related to the effects of the COVID-19 pandemic, the Company made the election
to treat all lease concessions as though the enforceable rights and obligations
existed in each contract and, therefore, did not apply the lease modification
guidance in ASC 842.

5.Investments. Investments classified as short-term investments include
securities with a maturity of greater than three months and less than one year.
Available-for-sale securities are reported at fair value, with unrealized gains
and losses excluded from earnings and reported as a separate component of
stockholders' equity (net of the effect of income taxes), using the specific
identification method, until they are sold. Held-to-maturity securities are
reported at amortized cost. Trading securities are reported at fair value, with
unrealized gains and losses included in earnings, using the specific
identification method.

OFF-BALANCE SHEET ARRANGEMENTS, CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS

As referenced in the table below, the Company has contractual obligations and
commercial commitments that may affect the financial condition of the Company.
Based on management's review of the terms and conditions of its contractual
obligations and commercial commitments, there is no known trend, demand,
commitment, event, or uncertainty that is reasonably likely to occur which would
have a material effect on the Company's financial condition, results of
operations, or cash flows. In addition, the commercial obligations and
commitments made by the Company are customary transactions which are similar to
those of other comparable retail companies.

The following table identifies the material obligations and commitments as of
July 30, 2022:

                                                                            Payments Due by Fiscal Year
Contractual obligations (dollar amounts
in thousands):                              Total            2022 (remaining)          2023-2024          2025-2026           Thereafter

Purchase obligations                     $  20,284          $         

13,089 $5,501 $1,645 $49
Deferred compensation

                       20,163                         -                  -                  -               20,163
Operating lease payments (a)               291,335                    49,165            138,195             61,631               42,344
Total contractual obligations            $ 331,782          $         

62,254 $143,696 $63,276 $62,556

(a) See footnote 6 of the condensed consolidated financial statements.

The Company has available an unsecured line of credit of $25.0 million, which is
excluded from the preceding table. The line of credit agreement has an
expiration date of July 31, 2023 and provides that $10.0 million of the $25.0
million line is available for letters of credit. Certain merchandise purchase
orders require that the Company open letters of credit. When the Company takes
possession of the merchandise, it releases payment on the letters of credit. The
amounts of outstanding letters of credit reported reflect the open letters of
credit on merchandise ordered, but not yet received or funded. The Company
believes it has sufficient credit available to open letters of credit for
merchandise purchases. There were no bank borrowings during the first two
quarters of fiscal 2022 or the first two quarters of fiscal 2021. The Company
had outstanding letters of credit totaling $5.8 million and $2.7 million as of
July 30, 2022 and January 29, 2022, respectively. The Company has no other
off-balance sheet arrangements.

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SEASONALITY

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. For fiscal years 2021, 2020, and 2019, the holiday and back-to-school
seasons accounted for approximately 35% of the Company's fiscal year net sales.
Quarterly results may vary significantly depending on a variety of factors
including the timing and amount of sales and costs associated with the opening
of new stores, the timing and level of markdowns, the timing of store closings,
the remodeling of existing stores, competitive factors, and general economic
conditions.

FORWARD LOOKING STATEMENTS

Information in this report, other than historical information, may be considered
to be forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 (the "1995 Act"). Such statements are made in good
faith by the Company pursuant to the safe-harbor provisions of the 1995 Act. In
connection with these safe-harbor provisions, this management's discussion and
analysis contains certain forward-looking statements, which reflect management's
current views and estimates of future economic conditions, Company performance,
and financial results. The statements are based on many assumptions and factors
that could cause future results to differ materially. Such factors include, but
are not limited to, changes in product mix, changes in fashion trends,
competitive factors, and general economic conditions, economic conditions in the
retail apparel industry, as well as other risks and uncertainties inherent in
the Company's business and the retail industry in general. Any changes in these
factors could result in significantly different results for the Company. The
Company further cautions that the forward-looking information contained herein
is not exhaustive or exclusive. The Company does not undertake to update any
forward-looking statements, which may be made from time to time by or on behalf
of the Company.

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