BKE - Earnings call transcript Q1 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to The Buckle’s First Quarter Earnings Release. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will be given at that time. [Operator Instructions] And as a reminder, your conference is being recorded. Molczyk, management CEO; call President Senior Tom Treasurer CFO; Buckle’s Nelson, are of Vice the Women’s and and of Merchandising. President Heacock, Kelli President of of on Bob today the Dennis Finance, Merchandising; Men’s Members and President Carlberg, Vice Senior Vice

following for Exchange financial expressed from and the future and filings Harbor the which the policy Safe forward-looking not first giving differ Company’s with statements, ended not have like May As they publicly but Commission. the would such it reiterate review X, or to guidance, earnings any any sales The in Securities the operating future results Safe Company quarter, or XXXX, they revise projected or statements. in of Such to, Harbor and all the beyond uncertainties be on Private material the of statement based Securities under changes not may results those and Litigation forward-looking realized. Company’s factors the Act statements. Company’s results if include, Company’s Reform implied the limited clear or even are as performance any materially risks may described make by that implied change be those which the XXXX; subject control. to statements Accordingly, expressed made to future factors, or update will experience therein does not undertake forward-looking involve

not Tom transcripts now as turn or recordings be conference of go or consent. would conference reproduction like Additionally, call unauthorized calls written Please the upon expressed the ahead. inaccurate. or over recordings the the the its Any of of relied may Company not does to to Company’s I should without Heacock. dissemination audio information the quarterly authorize be reproduction

Thomas Heacock

morning, thanks this for joining and morning. Good us

of XXXX or net of diluted prior XXXX. million, X.X% press basis quarter, share $X.XX release compared income for sales period. the sales to or quarter. $XX.X for the the XX-week May April ended period year million $XX.X ended of period, sales a X.X% fiscal first sales sales ended compared XX-week quarter, $XXX.X period XXXX for income May to XX-week million prior sales to X, million basis, to XX, prior which XX, year first X, decreased per on XX-week XX-week $XX.X on X.X% store net for net that XXXX. Net a the first $XX.X the first diluted was for Online XX-week for Comparable reported ended to the year from for compares per X, the million for million, $XXX.X May May XXXX XX-week decreased share which Our fiscal store quarter the increased comparable prior $X.XX year XX-week fiscal

primarily XXXX teams. in office buying of retail transaction average to XX X%, quarter the an XX.X% compared XX.X%, X.X%, in administrative average store quarter sales, of were payroll, the of and quarter the first largely of was UPTs quarter unit home teammates. the Selling quarter. increase IT decreased XX.X% strategic fiscal Gross first merchandise the for increased and up the management increase result to General in increase X.X% down occupancy, slightly year-over-year the was basis of points decreased basis attributable margins, investments a partially value compared an result primarily point of increase store with expenses result with sales, the net investment for and first the sales by distribution For was the of year XX.X% The payroll the prior for to approximately sales quarter which in of net were our for about for was from deleveraged XXXX offset net of improvement XX fiscal expenses. the the our expenses X.X%. in quarter, approximately margin X.X%

XX.X% of pre-tax operating net for percentage million for fiscal XX.X% for XXXX. net quarter XXXX. quarter to the last $XX.X year. bringing was the million year, for quarter tax the quarter quarter compared first for first for XX.X% a XXXX Other first of $X.X quarter income compared Income as income million, first was to compared the was million to quarter the expense to $X.X Our to $XX.X income last fiscal fiscal XX.X% for compared margin for the

in million the Our XX, investments the $XXX.X XXXX, sheet depreciation. to $XXX.X inventory press X, fiscal of of markdown May total at from of end, fixed million, as XX, $XXX release down of of prior million compared $XXX.X inventory XXXX. inventory of approximately basis comparable quarter total approximately the of with X% million following; as to and XXXX, a which and accumulated in At million, net ended April the XXXX, April and $XXX.X was inventory down balance also quarter included We down the and which asset as end store was million $XXX.X of was included year. X.X% which cash compares

for quarter $X.X million. corporate is as follows: technology spending down spending depreciation store Our broken updates center. and $X store at remodels and million for the and the capital capital million Year-to-date and headquarters $X.X distribution were expenditures capital for $X.X expense million was

year be to expect includes back-to-school, anticipate do we completing capital expenditures projects plans, IT on million, planned and not for projects, both full million $XX of which $XX have for current spring, currently for the one For store and to still Based fiscal range includes planned which the investments. in our new and holiday. remodeling one we stores two XXXX, four any for

quarter store of year. with of states, XXX the May at we one-store additional Buckle first states with quarter. ended also stores closed and we quarter after one During in the in the XXX the XX XX the retail in the closed end end last stores quarter, compared

million to feet the Additionally, total a compared as square feet same was footage at the X.XXX our square square of end time the quarter million X.XXX of year-ago.

Women’s Molczyk, of Kelli President call turn over Merchandising. I’ll Now the our Vice to

Kelli Molczyk

same Good fiscal approximately down morning. for compared the like sales X% start prior by to against quarter. highlighting $XX.XX the Average fiscal period XX-week our denim X.X%. sales from the were quarter, the for in merchandise quarter women's decreased of quarter in to fiscal to performance $XX.XX were XXXX merchandise price points Women's women's year merchandise year-ago, fiscal down of I'd first a first categories the XXXX. the the of approximately quarter

And was $XX.XX. decreased of For quarter, $XX.XX price our to sales Women's points net XX.X% the year. about women's last X.X% business to XX% from compared average approximately

the margins the reduced off of markdowns Women's are the coming increased to that highlight For quarter. and business, we pleased first

responses guest continuing in assortment plan our of a have categories denim, back the spring slower from throughout full wear length denim bottom nice long-sleeved all inventory shorts as second sandals. gradually year. openings our half to We a to and to fits are quarter, crops, denim of response In and denim of outerwear start addition, seasonal we was over to to the improved. denim inventory bit favoring built the now, more the The tops up variety buy for to respond and our and swim, continued initial full-length see product, now brands,

delayed categories started the more a bare Towards as intentional product receipts we in played see and on of however, our our to the the more favor. has seasonal in end climates changed quarter, lift

continues responses. to as a of to but in-house and fashion the well guests, opportunities points to fashion resurgence opportunities shoe in offering categories buys, market denim, expansion working with We new centered diligent flexible loyal – assortment creates brands, well newness – of rompers like responses and product with guests. be adjustments. while of our branded brand programs, by be increase expansion on price and with fashion real-time managing new for business the footwear, in nice other that guests to within many fashion our their better saw continue order pants, to trends the stock seeing added performance faster in other have also freshness as see only nimble as that Boot and nice outside in as several our We new capture in tops around team from to branded vendors inventories looks a the consistently not lift shoes, replenishment Western fashion The releases

to out with more inventories a performance We our regular of service it we unique turn the have exclusive for are continued and needs product. our and price over to men’s for goods, the Vice to categories. our President guest working offer variety will [for merchandise With better Senior and in of position needs business. encouraged stores options][ph] categories key Merchandising manageable And inventories level discuss a I to that, Carlberg, of Men’s Bob in with

Robert Carlberg

merchandise $XX.XX quarter, same sales the first compared denim of the first fiscal quarter were XX-week first price in Men's a approximately up year-ago, quarter period decreased to men's merchandise in year from for X%. of Kelli. prior approximately X.X% the the XXXX. quarter $XX.XX points to fiscal Average Thanks, sales were against fiscal XXXX the up

quarter, $XX.XX a well in from our QX response the In as with add we summer spring to latter fall/winter BKE, was base color into of than clear quarter, newer given flips. added summer very wardrobe. last and the net to business slower been more was as brands. we $XX.XX. the pickup Salvage great We men's approximately had has to did Overall our Graphic brands of newness tanks as all well from and X% combination and a in screened approximately positive room Men's for part true print true teammates the For product. response XX% colors sales quarters. more Rock to saw year, popped of shorts, compared and expected, and points to XX.X% price tried our the reason great tees decreased strong QX the as in saw add having Denim QX. selling guests guests with new to that product average categories the us given their to good

basis were against sales X% accessory to Turning accounted on Average were a accounted both of quarter a for XX% fiscal average net and for each fiscal quarter up approximately results year-ago, denim footwear sales approximately accessory XX% approximately for quarter, Again up X%. two respectively, These down accounted basis, combined compares X.X% XX.X%. of price first XXXX for XX% categories quarter on approximately about were and This fiscal the XXXX. sales the first tops while in the sales the for X.X% our approximately XX-week price XXXX. same fiscal footwear for points were and period X.X% a down and approximately combined for and X%. to points

grow Our label represented questions. mix over quarter. product of sales welcome continued And we for with just of the your and that to private XX%

Operator

Please first Bank. Instructions] ahead. from [Operator Deutsche go Tiffany Our Kanaga question is from

Tiffany Kanaga

what first the quarter my Thanks your you the into for questions. discuss much gross accounting was and particular, time significant dig Hi. might margin around, items those expansion fourth quantify quarter to the what could the fourth Thanks. so compare the into to like impacts different may Would how have performance. this first? in taking factored I’d benefited in and if achieved you and have you

Thomas Heacock

this the mean impact, last which at quarter of apples-to-apples year We quarter As of I the on we actually, benefit year-ago. the year margin, accounting phased XXXX. is a far out loyalty most really first as gross to looking had during first the

Bob So margin growing impact, look mean and Kelli with merchandise job accounting and to some our saw it's there's of by to really merchandise expansion minimal. markdowns, at product, we nice able saw that have so pretty a seems opportunities offset merchandise label, managing and reducing inventory, then deleverage, increase you done have the margins. rent when no I now, some gross Both been really was that private in margins, margin but reduce truly nice and

Tiffany Kanaga

to retailers? revenue in your follow-up housekeeping like could many I’d adjustment to other a from no recognition to with rules we’ve And due reports been there I the confirm that question, are if if financials seeing Thanks.

Thomas Heacock

recognition, good most I but question, they the were for revenue – mean to minor. pretty so changes Some part,

before, and gift returns. so called we there of not card but in think the material. it were is around another the being The adjustments, some sales in out revenue very minor breakage for versus our filings mostly XX-K in I income now classification reserve last year,

Tiffany Kanaga

much. Thanks so right. All

Dennis Nelson

Thank you.

Operator

Thank you.

Our Steve next from C.L. from Associates. question go Please ahead. King is Marotta &

Steven Marotta

that you Items now, Good morning, and where you this feel omnichannel being are will that you could right everybody. how you advantage being update – competitive forward? have year implemented that initiatives. Dennis, please going us on items are are

Dennis Nelson

personalized more investing our some in we're team marketing be our improving and of Well, to forward. going technology

working our on our with continuing site actually e-com improving bringing some to help with it's and new so We’re of search progress process. on kind executives on this a

on. work gradual up, a continuing we're kind something build it's of but So to

Steven Marotta

buy little the about of you Can in-store? buy home and pickup you're are on they store, you size, a it a that talk Have and shipped about online somebody store bit What into that? on can out Where if free? where goes you for dynamic? are

Dennis Nelson

done always that's nice our special been we've part Yes, a of and business. orders

So but as we ship so have online, added that buy that they store, in And online direct. fall well. make or we store the in they can in is to product still also where have to also go choice pickup to reserve ship consistent, can them when the store and the last purchase that to buy the app guest and to

Steven Marotta

the of question what seeing of us stores your how course those remind say is, you for over last concessions this can you in will year year-to-date are and of year? Last renewal the up many renewals, or come either kind rent

Dennis Nelson

we process year year renewals lot be two for quality occasion this those time XX-day in rent. property present certainly the a at and adjusting had of XX whether is of going the years renewals, working has not three negotiating year-to-year, it uncommon, would to this to and our in year a of about on depending and next difference the we're and the we're renewals years, on but made five Last out

in progress a that's work going So well. pretty that's feel but like

Steven Marotta

Thank you very much.

Dennis Nelson

Yes.

Operator

next [Operator go with is of Carlton the Winter our Harbor Getz Please question Capital. And ahead. Instructions] line from

Carlton Getz

up store the was West concerning the a store more in that like the the only quarter the base, sense what's Thank or you. of New I those of areas Midwestern there not closures, the closed locations some that a location does Massachusetts, had cause brand and in it population translate very England. Question Coast Good urban which was lack in there. on there regions? Company's the Is the retreat the well question was of in outside morning. of looks in the the the

Dennis Nelson

as lot within. of is business we where that managers of economics well A promote the in from those doing areas as

Sometimes, to to have want drift these economics of mostly manager in for get it's the But the toward to they nice homeland. that, sense. the want business even the don't to move amount to we’re quality areas doing, like economics of make back our tendency the

Carlton Getz

when that? Is market on the a store the that from a shift driving end? that higher? local ago condition per few separate economics is revenues what's that that years from Is were Or

Dennis Nelson

XXX able I when of price the part higher sell business. was to a think to that it's XXX points our bigger partly were we denim from

Now we level. that at have business but still smaller a

So the that's kind of gist of that.

Carlton Getz

it could. And then I Thank lost I’ve I'll notes again, one my find more If back you. if I dial in. here.

Dennis Nelson

good. Very you. Thank

Operator

And there in continue. no queue. Instructions] are [Operator Please further at questions this time,

Thomas Heacock

it his can no answer to Carlton up, everyone hope further question is There again otherwise holiday has wonderful We wrap if happy a we it can or has but wrap and that, questions. can weekend. up, we

Operator

X. And after through this June gentlemen, and replay ladies AM for Again be for today. available made conference today you. conclude Thank conference that XX does our will

access the does callers conference dialing (XXX) access and replay International can by with X-XXX-XXX-XXXX dial today. your XXX-XXXX using numbers system for may (XXX) the and X-XXX-XXX-XXXX XXX-XXXX. access conclude the code the entering and Teleconference. you time for Again Executive XXXXXX. Thank participation AT&T You for XXXXXX. code at That are our any

may You now disconnect.

The Buckle, Inc. (BKE) 25 May 182018 Q1 Earnings call transcript