BKE - Earnings call transcript Q2 2025

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Operator

Good morning, and thank you for standing by. Welcome to Buckle's Second Quarter Earnings Release Webcast. [Operator Instructions] 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; Adam Akerson, Vice President of Finance and Corporate Controller; and Brady Fritz, Senior Vice President, General Counsel and Corporate Secretary.

As they review operating results, they would like to reiterate their policy of not giving future sales or earnings guidance and have the following safe harbor statement. Safe harbor statement under the Private Securities Litigation Reform Act of 1995. control. by subject involve factors to be the made uncertainties risks which statements beyond are and change company's forward-looking the material company and may All based on results Accordingly, may or the in forward-looking such any performance company's and implied differ from those future materially expressed statements. financial if described forward-looking publicly and or or factors company Exchange projected experience those limited does include, statements update filings it company's not any be not are the Such to or implied realized. Commission. The any revise with even but undertake make that changes to, in the not future will Securities clear expressed results

Additionally, the information Any may or relied recordings the of of company's the dissemination company quarterly should upon of conference as the unauthorized or reproductions call its does not consent. authorize reproduction calls be be or written recordings the transcripts audio without inaccurate. not expressed

As host, a to is conference like webcast the over recorded. Heacock. now I'd Tom being And reminder, today's to your turn

Thomas Heacock

Good morning, us and morning. joining thanks for this

quarter online in for second to XXXX. Year-to-date for comparison share ended prior sales share of year XX%. Year-to-date $XXX.X or prior the the a million comparison same fiscal share second million to for of X, million the the August sales the prior $X.XX quarter. to decreased diluted quarter fiscal and in August income year basis the store our quarter, to decreased for $XXX.X XX-week year, XXXX million to store XX-week same period. prior period million compared reported for million fiscal sales X, compared million income $XX.X sales sales for million income diluted XX%. per XX-week for net quarter, period the the the and to Compared same XX-week $XX.X to to X.X% decreased $XX.X XX-week the in XX-week XX-week sales diluted online period XX-week XXXX. Net prior compared XX-week $XX.X per on to July that to XX-week for year sales decreased X.X% ago, sales net XX-week ago, Comparable down or a million per $XX quarter. down or for second a million on million the the XX-week period period decreased $XXX.X year prior of for which year, basis net net ended $XX.X share XX.X% year the for $X.XX diluted were compared were $XX.X was XX, basis to XX-week the XX, X.X% or compared the decreased $X.XX on XX.X% sales period net per quarter a on fiscal XXXX, sales net the $X.XX online the net second ended prior July period. Comparable August compared a year-to-date XX-week which for to release year year-to-date XX-week a XXXX $XXX.X prior Our period the year Compared $XX.X was million fiscal of period press ended for income to basis in X.X% to year same the XX, online

margin point XXX in along basis buying average in increased in to Year-to-date, average partially and basis the point partially UPTs For The X.X%. approximately which approximately second basis in a to from of were basis year-to-date, X% approximately period a and approximately occupancy current costs in point second XX the quarter point distribution point SG&A XX.X% a by were point of XX with year-to-date increase the distribution down in prior buying down sales retail XX.X% costs, the the unit a quarter merchandise last increase year. and basis the points basis And for gross average and XXXX. increased of the about basis XX decreased value year. margin of basis was XX% X.X%. Gross net the decline administrative increase decline quarter approximately XX.X%, XX.X% quarter for increased points were margins. X.X%. increase XX XX average unit from the was was transaction margins. Selling, of XXXX. merchandise quarter, a and UPTs retail transaction same sales, the improvement of and was decreased XX.X% offset the value costs, of offset XX.X%, costs, expenses result increased X% XX The was XX for Year-to-date, occupancy both a by in result the net in improvement compared which general And quarter compared for XX.X% the X.X%,

partially increases salaries point and digital in increase point commerce expense basis The basis XX and a accruals increase XX investments, XXX a XX point basis second basis shipping a basis XX labor-related was point G&A quarter a point in increase categories. These SG&A in a marketing XX to point increase in incentive by XX in increase basis e-commerce were compensation point a decrease offset other due certain basis store to expenses. a expenses, related increase decrease in spend, and

year-to-date our net last to compared year-to-date compared XXXX. million tax XXXX. of pretax Our a for year-to-date period for the to XXXX. percentage second of expense quarter as to million a percentage XX.X% income net year year same pretax for of quarter and was in for expense margin Income bringing And net for quarter the both year. Income both million to income in XX.X% for current periods XXXX $XX.X fiscal and income $XX.X prior million second fiscal for bringing XX.X% to $XX.X tax also XX.X%, XXXX the compared for XX.X% as $XX.X fiscal XX.X%, the operating was margin operating to net income quarter prior period, the current was the was compared fiscal

X, following: the in inventory the net and million and We included accumulated XXXX, of million, also investments. of with included Our of assets in depreciation. down $XXX.X press quarter ago sheet cash $XXX.X a time same from release ended total the the which balance fixed X.X% $XXX.X as August year million

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

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

new remodels, count stores, to and XX X full shopping new outdoor one our closed the we opened During relocation a which brings and completed X remodels store year-to-date closures. quarter, into full stores, new center X a X was X which of stores,

remodeling we Akerson, projects. the the on Vice with additional For ended remainder the and more of count President new XXXX. And Finance. stores to of X the turn of our second plan it retail the store now XXX in X quarter with states, at the quarter I'll completing Buckle opening of which end XX consistent year, stores Adam is full over

Adam Akerson

quarter quarter points denim the overall women's while $XX.XX of Women's basis, $XX.XX. to points merchandise On year about sales $XX.XX average fiscal comparable approximately against down of increased from X.X%. sales Tom. about $XX.XX sales. price in fiscal XX.X% to second were Average XX-week represented a second the quarter for quarter women's approximately merchandise price fiscal Thanks, the total were XXXX, X% down and increased of the X.X% from in prior XXXX

X.X%. quarter men's approximately the down sales against quarter, merchandise XXXX the approximately year On sales. a points Average X.X% from men's XX.X% $XX.XX $XX.XX about fiscal sales the the the of basis, merchandise XXXX. quarter to side, fiscal second down were total second of in price fiscal decreased for were comparable On representing in prior of quarter XX-week denim

XX%. the increased fiscal about from quarter to respectively, combined For categories were period, basis, footwear accessory a for and in which quarter, the These each quarter comparable against prior X quarter $XX.XX. On second of the compares and down year approximately average the sales sales XXXX. price XX.X% XX.X% while overall of were X.X% X.X%, men's XX-week X% approximately accounted for sales, approximately XX-week $XX.XX the for X% net second to points down

points accessory footwear points slightly, average quarter, while up the up were were For price X%. price average

ago, of XX% For and tops the of the to the quarter to second XX.X% Denim built compares XX approximately for which X.X%. our down approximately continue XX%, categories Compared in July. quarter momentum accounted sales year combined denim same each XX% quarter, outperform weeks a and XXXX. was and for throughout about for were to fiscal down the and in the business denim fiscal total slightly accounted just

the of in being with business slightly women's for performance our July. particularly about are X.X% and quarter denim up pleased the down fiscal We just

about X%. On Our in were shorts both women's strength basis, for our growth down categories bottom other categories saw also fashion and pants casual top quarter. in a combined business the with

and Our was for were women's men's our trend short-sleeve woven quarter business the silhouettes. strong as basics

pleased were merchandise the with the quarter margin for even Additionally, down expansion sales. we with

about performance be the along to quality the We continue with private and our variety of brands. excited depth,

the the label XX% questions. welcome of XXXX. With sales quarter versus quarter, in For your second XX% represented private that, we of

Operator

is first Our Instructions] from Serna. question Mauricio [Operator

Mauricio Serna Vega

on that bit details doing particular And cost on more guess Great. will what company previous to penetration maybe could to what expansion any margin, higher get driving significant online is controls more the the see terms quarter then the that like that the I I on driving of you initiatives another wanted there? actually superhelpful. be just management a label in is around is nice Maybe it's or merchandise channel elaborate versus or promotions accelerating quarter. of underperformance, private

Thomas Heacock

question jump [indiscernible] take the Dennis let I'll Mauricio. merchandise we'll question. then into and the first, margin

Dennis Nelson

morning. Okay. Good

to nice margin continues some we're denim newness, sell-through in and Our very expansion be good and there. having

continue as our demand and well sell-through. As have to private brands solid

happy margins footwear, growth just as with margin been that's outside well. good we're very And very Kids kind improved. of overall, are the there. The of So

Thomas Heacock

in-store e-commerce part for last in I and the a was a knowing year. and this And on big year priority mean, e-commerce that gap of the year, first initiatives, performance this been between that's there then performance

teams engaged our comprehensive on start of at capabilities. help do focus parties our at we of third us the and site, So looking the come and our assist a quarter, analytics really the shoppability to website, of review the to in

of the shoppability the and guest conversion, experience groupings. The in like improvements interaction also a metrics we've throughout AOV. quarter, but the to positive to terms on focusing it site lot their find a to on led to in guest made display on-site the is feel to relates increases a that filters search, product and of iterative in the on-site so site itself, improvements site out increases that increase lot of shopping ability on positive of the iteration website, of next really navigation, experience check as made of we've the the site, the lot a And we quarter, product to in throughout to

next the is where really, So version we're of focusing traffic.

first quarter, to the the in talked traffic has I been we think challenged site.

the pivoted on mid-July driving and a lot acquisition, and digital During in we as our balanced to marketing really on to of relates was spend, spend of reviewed think to guest acquisition, focused dividends. e-com, dollars we it focused really a it quarter, approach, more to probably that's to reallocated our retention lot a I and our budget drop paid prior

necessarily in really late positive don't as You the see numbers, those terms of we results QX saw but traffic kicked some in the in. in quarter initiatives it of

Operator

There It looks are has further Instructions] queue. in another questions like [Operator the no question. Mauricio

Mauricio Serna Vega

follow-up. led I in growth answering elevated last previous like was was up now expenses, and timing see like that administrative on were still I but quarter, for X.X%. to operating general there a like total I expenses. of Yes, up remember excellence issue all, in just it the Thank another Maybe you, like had questions. Great. operating first

selling this general in administrative involved and time around. increases Some

driving the little down will is super Just helpful. them on given what curious bit initiatives if more company elaborate expenses, a is there that any to that are you those that that sales doing could on still increase manage be and

Thomas Heacock

Thank Mauricio. you, Yes.

So We I -- look and in you X at of if the kind different think look look mean at G&A. I we at selling buckets. it the

the is just the team QX there increases pretty mean invest in our are driver office as really things was consistent year-over-year the G&A the QX. in to I big think home to same we continue here. there, payroll I

we look called biggest dollar you selling, where during remarks in If increase QX, store selling the the payroll. was at prepared bulk that, like is out was the of

with that's at periods in we're of the fiscal so couple little I of combination and a of mean different things. the And a different bit shift calendar looking the a period.

the been to it that we're of also our just competitive. though make hours. that was to that. in managers part stores has then best seen that part and talent So sure wage of our increase guests care and mean to also I remain an teammates a to inflation our led we've wages of recruiting But for our as for take for

X big called then the our the are biggest those relationship there the side, driver with selling really like we help X other So and the -- -- to e-commerce. was on third-party out

Operator

Our from Alan. next question is

Alan Glenn

that. sorry Oh, Can about hear you now? me

Dennis Nelson

Yes.

Alan Glenn

stores With the store closed? opening, that now aren't haven't previously new your by you're that have stores been are been X in may that served those a served or areas

Dennis Nelson

We our an any us. that are feel good very be additions The good of distract have is markets in not this week are be from market year business this should or California X new much store it the long-term for will stores that opened we X unserved we we other later in in, but investments. other just too

from the of store, the on those. first after over them a basically, are but of markets new One taking change make another might of store a year

Operator

in further back for questions. are can ahead Instructions] no it are over Buckle further There go no remarks. questions turn to any There the closing queue. I and [Operator

Thomas Heacock

all for the Well, call. day. further everyone hope participating, We you today. thank up you rest and enjoy for If thank the wrap there of we participating the can are questions, no

The Buckle, Inc. (BKE) 23 Aug 242025 Q2 Earnings call transcript