BKE - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Buckle’s Fourth Quarter Earnings Release.

For the conference all the participant lines are in a listen-only mode. [Operator Instructions].

As a reminder, today’s call is being recorded. Members of Buckle’s management on the call today are Dennis Nelson, President and CEO; Tom Heacock, Senior Vice President of Finance, Treasurer and CFO; Kelli Molczyk, Vice President of Women’s Merchandising; Bob Carlberg, Senior Vice President of Men’s Merchandising; and Brady Fritz, General Counsel and Corporate Secretary.

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

unauthorized the With dissemination or written company’s conference the turn information calls company without ahead of inaccurate. upon Dennis may the as be go of the the relied I’ll transcripts Any or sir. authorize does Nelson. expressed the Additionally, to audio recordings calls Mr. should over quarterly reproductions Please be reproduction its call not that, recordings of not or consent.

Dennis Nelson

keep joining Good our provide and experience team through such and made way we and came to by to all our a difficult the morning our guests on enjoyable the promise managed year. am Despite of the continued thank leaders I shopping proud us. you we team new good delivering all possible. safe, throughout sincere most together gratitude exciting I for and products challenges, want start mates my to all expressing to the country.

and ago. with for thank our to beyond. possible who to and product allow response, store. this despite turn past each during forward not ahead. also presentation excited the look I your about the in strong a our Tom back online fresh to alone. at me teams sales relentless about year did adjust, and dedication loyalty. home Finishing been and want the it in us to I such the is and move incredible, now guest, store office. of worked could has continued to ability year, talented our not we orders your appreciate vendor thank in throughout and our I XXXX progress made continued a XXXX thought I for to half and net expedite both challenging to will our year am course you our full over I of not focus the greatly time The achieved And without the opportunities the or on stores do optimistic trust and partners us is something year with partnership and this have growth CFO, we a gross capitalize Heacock. Of which

Tom Heacock

morning and us. Good thanks joining for

income million compared Net $XXX.X for income XXXX X.X% Net $XX.X a the share March year comparison for million XX.X% $X.XX sales ended to million. sales the XX, the prior same on reported fourth year for of Comparable quarter for press the basis share compared sales XX% in per XX.X% quarter. ended XX-week diluted $XX.X Our fourth quarter of $XXX for increased XX-week to sales diluted prior X, $XX net $X.XX increased compared XX-week in a basis ended Net XX-week sales XX-week year the fourth XXXX. income the period on for online and for our $XXX.X increased XX-week for or million million a January net or to compared fourth Comparable store year net XXXX to fiscal comparison quarter $X.XX sales in share year on the January the increased the the XX-week a year diluted a income of million or to prior were diluted XXXX. online sales share up fiscal basis the XX, and for store XXXX on XX, prior XX-week per $XXX.X net X, February February year was per XX% $XXX.X XX-week per to prior ended or X.X% prior million to fiscal $X.XX to to million $XXX.X million. year the period which XX-week of basis net year. release million our for of the sales increased in year $XXX.X same the quarter

margins quarter. up fourth year points increased approximately improvement X.X%, given UPT's increased XX.X%, quarter, merchandise increased value basis margin X.X%. UPTs XX.X% quarter retail the distribution XXX the retail year-over-year unit the Year-to-date quarter. approximately X.X% value average and result and occupancy leverage points basis performance from X%. and top point For XXX the The prior average the of the in unit X.X%, X.X% of approximate buying decreased increased the costs, line Gross strong average decreased approximately transaction and was the the XXX was the for approximately basis in for average transaction increase approximately

and related as ago. were compensation in related XXX our related expenses, point expenses a continued ecommerce the reduction across gross a basis same SG&A XXX store, increase costs. strong and store For accruals. a were Selling, travel from point XX.X% expenses improvement spend. improvement The margins, net XX related point and period across to The which and several prior sales health result shipping the due increase partially related basis year reduction merchandise include labor XXX the a net as as of to costs, of point reduction year-over-year insurance reduction expenses savings in the benefit accruals. as point other well SG&A year. was SG&A buying were basis to for health XX.X% our incentive in basis is up improvement basis savings well through period costs, year-to-date The the basis XXX ago. point basis the year-over-year for costs, compensation for several costs administrative e-commerce for for of quarter and offset reduction other the expenses, a incentive increase XX.X% other year-over-year again occupancy insurance year strong year basis and to is margin XX.X% points a an XX.X% in XXX benefit basis in result in of related general point These reduction and XXX XX the and XX.X% of XX XXX point which and point the by XX travel expenses result was shipping basis other sales same basis point compared XXX compared labor basis partially offset includes performance spend. were by The point costs to increase performance in period distribution increase

was for margin compared for operating the fourth XXXX. quarter the fiscal Our XX.X% XX.X% of quarter to

For year-to-date the million year-to-date XX.X% $X.X quarter fourth period period for to XX.X% and our XXXX was for income the the period year. other million for to fiscal was $X.X income operating compared the Other was was quarter for the fourth fiscal compared for last million quarter $X.X million the of tax XXXX margin $XX.X XXXX. same $XX compared expense $X.X for for prior as fourth income compared million to XX.X% income quarter in of compared a net to pretax XX.X% bringing year. XXXX the Income the million quarter percentage to net fiscal of in fiscal to

for $XXX.X expense For year-to-date million full was net net the pretax fiscal income to bringing tax in XXXX, compared income $XXX.X of for versus income fiscal year XX.X% million to XX.X% XXXX. XXXX

which $XXX.X $XXX.X of as the sheet and payment XXXX. balance in was quarter of which as XX.X% total, $XXX.X million, XXXX. fiscal XXXX Our of $XXX.X In net fixed the February accumulated included ended X, of included dividends end which $XXX.X of inventory million press with assets cash million down release $XXX.X approximately million, January of We and in following. a of investments to Inventory at the also depreciation. after compares XX, was million year from of during the million

expense the was for $X.X expenditures million. capital million $X and quarter were depreciation Our

were store center. capital million store and was corporate the headquarters million. follows: at technology and period capital as for $X.X year-to-date depreciation and upgrades, million the capital Year-to-date $X.X broken construction, distribution and For down spending $X.X remodels expenditures new for spending is $XX.X expense million

During count to one year our we full new three completed stores, which quarter remodel full remodels four the brings and and full closed closures. stores, three store eight

store We right additional the also year. closed one fiscal the of after end

XXX eight projects. includes between expenditures we on store completing For current remodeling Based to President we end Women’s both XXXX. XXX in store full Buckle one $XX over I'll our ended million, capital million investments. at planned currently turn stores plans to store and states, and states projects fiscal of Kelli the now, XXXX of range in $XX and in of the to retail XX compared XX Vice with new Molczyk, year opening be to the expect used XX fiscal And it which Merchandising. IT stores plan on

Kelli Molczyk

women's Tom. fiscal XX% year to the quarter. approximately the of prior quarter categories quarter. Thanks by fiscal our sales the up merchandise like highlighting merchandise performance I for for would against Women's start were the

was exciting X% our fiscal about time to business of to in sales $XX fourth knit, net in shoes $XX.XX. our quarter woman’s decreased XX.X% XXXX price denim lounge quarter fourth women's $XX.XX casual overall categories quarter and the business wear For was price while compared from sweaters, wear for XX.X% to the year. of of soft growth. points Average XXXX, of approximately the women's QX in an increased with $XX.XX our and simplified from the prior denim, fiscal point driving

casual The as prices quarter top For well shoe strength bottom very lounge accessories, our finishes of a expanded casual wide focus. such quarter. and great developing in mix broad everybody’s mom impacted younger category. what fit in nice nice evolve that timing hats, way. category. during denim growth our see to a different and we in job continues looks, Buckle our our and for We giftables to our exclusive in with dad across flow the branded a within bags business buying with and great as product and keeps at led redeveloping we guests mix the continue brands. team of Exclusive and the In openings, a to fashion Comfort with developed paired to throughout denim had belts branded continued the be private the stores. and and Congestion with continue the sweaters denim, nicely and fragrance, of to more and variety to youth products guests fit and wear a to and tops, may of doors youth our aligns this also ports range a we our our success resonate see label do response mix, for

of delivering proud strong performance position with am of the Year. men’s products resulting margins President through with and inventory turn the to leaving a season the it in into category. way I continued the our good and discuss However, holiday a of markdowns, ended moving to year Men’s team in the XXXX. us into that, position Bob Merchandising and exciting New I’ll in new We reduced Carlberg, Vice Senior over our merchandise And comfortable

Bob Carlberg

were you, quarter fiscal XX.X% Kelli. fiscal Thank prior Men's year the comparison the in quarter. to merchandise for sales up

points Salvage in outerwear a sales fourth Denim denim, For overall $XX.XX Inventories in showed were quarter maintain in our quarter from XXXX fiscal to approximately was strong well fiscal $XX.XX to growth great of about nice had accessories, the business for almost fresh Men’s price denim $XX.XX all managed are in set increased men's cadence. while particular fourth the over price quarter XX.X% $XX.XX. XXXX, Average prior points Fall to low year. men’s and of Street compared the last X% year. in to from Holiday BKE, In up led net Rock, QX, way. denim, these markdown of Sweaters to decreased for shape XX.X% our the the all footwear knit, ’XX. us be and and the and the

the younger and both balance by our brands. fresh new comments great and product a through addition fun with an and challenges across stores. looks season Knits issues. teammates. youth as to is help and a strong Its have guests and deliveries were this also to related both of boys response I the to Denim did managing Street well nice stores like and as on units of finish having to graphic an provided our led out our a children capture drawing I'd themselves. as color echo expanded selection. with audience of you Our their from our the Kelli's audience wanted We did guests teams job our year. to job to COVID teams they loyal spring-summer extraordinary say had men's transportation our thank as out All amazing and

results fiscal approximately the the net were of XX.X% X.X% Now, for in up X% footwear XX% the and approximately points accounted of tops of quarter accounted fiscal points about a and XX.X%. quarter price quarter turning quarter against price approximately a quarter, X.X%. X.X% sales were compares respectively and approximately each to X.X%, each basis Accessory for fourth were average accessory compares XXXX. on the up XX.X% the XXXX. quarter down sales combined XX% categories and Average sales two in combined XX%. on fiscal about These to XX% denim for while Again, fiscal for for were approximately for basis. footwear This This up to accounted sales. prior year and of fourth for fourth

business XX.X% for Thank quarter you. for year. that, private your approximately will of Our XX% With welcome and label the the we represented sales questions.

Operator

line first King Steve with [Operator & Instructions]. And of got we’ve Marotta Please the ahead. C.L. go Associates.

Steve Marotta

Good morning everybody.

wanted inventory quarter, aggregate the might been toward about levels that on - level down issues of the plan. ask little still little you've Can inventory received What experiencing? about in more in bit you a basis think your be Just experienced talk XX%. if timely had bit have the being you to you core would do you that levels items a otherwise a

Dennis Nelson

question. Steve. your Thank for morning Good you

categories, be making on are on are the response, have would or late situation couple the the has we pressure catch – receiving and We it's excited on its different it helped are catching turns level on and a about the that take ball kept been weeks think some about parking for our well in average up teams the But we've of and very give but which that goods at approaching inventory nice the to good two over months. up able have we we’ll we and point, inventory. sales on stores going next on to the think response

Steve Marotta

and structure My Thank talk have Can or with you. reductions. last abatements how date? a little may do Thank bit affected has permanently that you. question to or you altered about expense I to rent deferrals had your

Dennis Nelson

a Most idea working with on of next what little on. we on, we that have didn't left paid the over the deferrals might work we bit months. been landlords few was with early the when There any But going appreciated now. be have that

strategy overall We our we a stores? we evaluating focused reposition and are in alone. them having on the reduction in have very want or other the keep Do the them rents Do in company to we stand where do and we're centers locations to also of our malls? top

are way a improve reviewing in. very busy, have that been and and we've we so opportunities this some to to do update and continued locations half over stores last of think the so we there's And and year the our of a of good lot

Steve Marotta

you. Thank

Dennis Nelson

Yes.

Operator

question And ahead. with Jon City we Kansas go from Instructions]. [Operator Braatz do Capital. Please have a

Jon Braatz

cost XXXX everyone. at do your when in get structure? XXXX? rent your forward, and was to think were you us. at – aggregate be operating on, But where Dennis, operating you little that how overall, you an odd changed will mix a year. your with a obviously bit got you look has but Good compares it are Obviously you Good structure cost morning behind lower so you some in and relief going

Dennis Nelson

on we’ve basis. our of our and cost some think which processes improvements I structure, will and Yes, made progress some improve

less past that travel less insurance – a probably health than probably maybe ago. have know this although or know more you there’ll of year, maybe You there where be normalized, years couple expense travel will was we'll the

our constant year few processes. know may what and a past very focused be we're just and think doing among you we’re So on improvement I of teams this up those sped

So we're growing forward. business expenses our as and optimistic move about controlling we

Jon Braatz

lower you employee you of number How you to of on are normal had back the – re-opened sort compensation level than typically at a do, level? you a store store thoughts what’s labor? I when know but of employees your

Dennis Nelson

and stores The are in factor to one level that's improved of several I our they have closer would although our before big on the the or they where of were, new of stores, don't say, payroll we’d the year is such. be helpful much morning hours stores. XX even most in in the been X we X till they to changing the see used the and night at

close the open in at and or You that XX a at of too. lot way at now X X morning a that's XX them night, know been so benefit or

Jon Braatz

thoughts your say was the February lastly, very Any on to difficult at weather impacted numbers? a how And alright. least. Okay, weather February month

Dennis Nelson

any Texas, challenge lot well as a but yes, the with Oklahoma, John, don't affected there definitely period stores and the a Arkansas, of of southeast in details I stores we're specific all have for our parts, as time.

Jon Braatz

very Okay, alright, you much. thank

Dennis Nelson

Thank you.

Operator

In no a Nelson, coming – Mr. while, in a few further moments questions in.

Dennis Nelson

Yes, Tom.

Tom Heacock

further no wonderful wonderful are and wrap questions, everyone weekend. and have thank call everyone up there and participating If for day a the we’ll

Operator

Ladies your and conclude that Thank you does gentlemen, for conference. your participation.

You may disconnect. now

The Buckle, Inc. (BKE) 12 Mar 212020 Q4 Earnings call transcript