The Buckle, Inc. (BKE) 19 Nov 212021 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Buckle's Third Quarter Earnings Release. At this point, all the participant lines are in a listen-only mode.

However, there will be an opportunity for your questions. instructions will be given at that time.

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

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

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

being morning. for with us thanks this and morning Good

ended October the increased the to October presses XX-week $X.XX October quarter, for report during for store XXXX October the sales compared the increased to same XX.X% period for net $X.XX the online a basis were store and third on online XXX.X XXst, year-to-date diluted on increased XXXX prior XX-week was XXXX prior-year period XXXX. in to ended the quarter or sales third year, October diluted for compared XXst The X% sales to to quarter. release in year-to-date XXth, quarter XXX.X of XX-week the net XXth, the income sales income net share million increased year, million net of prior income period million XX.X% that basis, fiscal $X.XX million XXXX. compared XX-week with income XX.X% quarter XX-week prior period or per for a XX-week of Our per XX-week XX-week for the same the of share ended for November ended sales $XXX.X for million. the period $XX.X million XXth, $X.XX million which XX.X% comparison Comparable prior for the the XXXX, million. a sales million sales or diluted ended to fiscal XX, in with year up XX.X%. XX-week a on increased third $XXX.X Comparable sales October Year-to-date prior on XX, net to comparison the third $XXX And $XX.X or million $XX.X year. $XXX.X a Year-to-date $XX.X net was period net XX-week XXXX. basis, a per ended basis diluted year for share Net compared

X decreased about %, s increased XX.X%, the X average decreased decreased third approximately from approximately retail X.X%, %, retail transaction X.X%. average X.X%, quarter transaction unit Year-to-date quarter up the For for value Gross and decreased the margin unit approximately in approximately and the of XXXX. the average average was increased value approximately quarter, UPTs UPT the the X.X%. XX.X%

gross same compared the period to margin for XX.X% year. was year-to-date last XX.X% Our

in for year-to-date, to administrative sales third XX% Selling same XX.X% third expenses quarter. performance was quarter margin the net result And XX.X% of The point with compared points quarter in net XX-basis leverage XX.X% of buying for sales a of period of improvement margins, basis gross the for result the quarter XXX as year. down SG&A costs distribution were general occupancy, the strong and of increase the merchandise coupled of was sales a the for from XXXX. last

several quarter point partially XX-basis The in point were labor-related basis in of store and a and third other decrease offset across point SG&A equity leverage XXX-basis which a increase accruals. was decrease by due expenses, incentive expenses, compensation XX to

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

XXXX, of which as down $XX.X million as Our of of $XXX.X quarter accumulated inventory $XXX.X total cash following: XX, and press from was includes XXXX, of assets of million and October depreciation. net XX, Inventory which investments ended fixed the We million, $XXX.X release the a also in of included sheet million. balance with October

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

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

shopping were in totals store. full the XX store, remodels, X relocations new quarter, and our completed closed to new year-to-date of brings the each X During outdoor centers This remodels, we store X and which X closures. full

For the Buckle of capital $XX which it President additional completing And investments. X on projects. in we of XX full Women's of anticipate store million, both remodeling our the now Vice I the and planned retail Molczyk, IT current to last quarter be we with year, XX in end the $XX expenditures expect Based compared the includes to remainder store XXX stores range Kelli plans, million stores projects to Merchandising. now with at the states, quarter ended third year. of turn over will XXX states in

start the to performance category the prior-year the Women's quarter. Thanks, quarter. by highlighting up for Tom. approximately of Merchandise fiscal sales Women's XX% were Merchandise quarter I'd our fiscal against for like the

strong women's We're quarter decreased our and $XX.XX of prior excited quarter to another was from sales quarter, points the price fiscal of $XX.XX the $XX.XX in X.X% increased women's business. XX.X% of in For business women's in compared the to denim price third 'XX, from overall $XX.XX. to about fiscal the XX% quarter report to approximately average XXXX points year. Average third

openings response assortment. nice of as our denim to and expanded to a fits, more expanded an private-label see upon into selection continue provided we our to continue bottom build We range

Vietnam. many other heavily most Revival from by due with categories, higher broad denim closures Rock Me Miss In brands particular, chain supply to impacted were disruptions. denim were for As impacted arrivals price our in point deliveries new like, and the

other denim our brands Some of slight quarter. also the in delays shipping during saw

performed label best. new categories, tops, We remain For also dressy other graphic while across fashion all flare categories, in key accessories Plaids, private our continuing fashion were focused building third to the boots, selection introduce products strategic and tees, markets. on brands with layers, drivers.

driving continues with Our denim knits and Youth business build sales. to

we that that minimize manufacturers, to received. been Youth's continue same product potential chain to our ongoing closely our of very Women's has Our brand with With well offering all the we and do in partners unique impacts. challenges, supply work mix

our to be of and agile in partners unique buying. from Our and vendor brand variety assortment, enables a sourced planning us

a slight women's business. still to across the the newness environment we result react deliver quickly our able to disruption As plans, full to of the changing were and

of us partnership of merchandise continue opportunities team, Dude Additionally, the And as women's towards we performance to add I Hey benefited to spite brands new retail. and But challenges in getting sales, all are the Carlberg, to our Sorel. all to to ability their it time stay hustle and diversified our discuss sell-through in Merchandising to bit on category their Men's performance like been in enough thank to whereas some work drive Bob was little again, receipts honestly our existing differently. will the of and for credit and And in-season to a categories. in product. buying being Vice cannot hard give strong ever-changing Senior for them challenged from that, an brands brands and of important, as men's our our turn greatly vendors It's top President with planned over I created looks of has for

fiscal Merchandise Men's Kelli. were quarter up XX% you, the prior against Thank for quarter. year sales the fiscal

price XX% third our points XXXX. was the XXXX about decreased points $XX.XX year. decreased to quarter fiscal in prior X% quarter, quarter $XX.XX business the $XX.XX fiscal of compared in net denim approximately overall, of the XX.X% Average average $XX.XX. the of in Men's from sales price men's And For from to to third

in over across in Our Demand men's quarter with business unit life was department had XX up all each brands %. another outstanding strong sales. sales

brand is them. see late, makes diversity greatest sense X able Buckle's that is of the serve. can of the help lifestyle strengths for we or substitutions guests One If are we guest to

guests. new received were very palettes, across by our fabrics, categories styling and Our well all color

our all we more work ever. and As product getting know, has planning to than taken doors

Revival managed fall prepare Our we very we've shutdowns knits. little with followed and denim countrywide product denim on it being as of well in the moved by been our Vietnam. month-to-month, up the team holiday. large in by dollar Outside growing double-digits, through partners continued the had inventory, men's for we and have catching delay gain denim, Rock we've very deliveries, Even with in Rock largest disrupted and the

our our brands knits, substitute In other as have the normal even within than best as and continue is During Salvage there our to our was stronger strong expand growth position we brand highest rock for inventory lifestyles. quarter, categories, and a denim.

breadth mention that Our early impacted have are and lifestyle business private and our every collections. has was dominated sweaters across COVID fronts volume I want come niche back. outerwear button we as Button brands. our in by and in our brands like grown by cover private front most to roaring

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

the created. fiscal private and the to this take incredible being wanted and Dennis and that to It's I'll at sales quarter call earnings our the journey. past opportunity buying a joy true specifically XXXX. business, my and thank the to great final compared also miss in with Buckle many XX% of With have the excitement I we each Dennis our the them. men's want label of for end other people to to before culture to the quarter, I work of business turn an year, For teammates, such of third of team. increased been present thank XX% the

future positioned you us. looks us few capitalize and talent, where opportunities to drive take Your look such the us adversity past questions. further And and welcome years, enabled creativity, your with bright the you. have to watching ahead. Thank and succeed in we forward of I to on well have over that, The the face

Jon have ahead. and City Ladies we please Capital, with go Instructions]. gentlemen, line, Kansas [Operator And in first Braatz

you and new terms anticipate Good Obviously, the morning, nice of stores, cash XXXX what terms in Would do everyone. a maybe see stores maybe ahead U.S. you Buckle of of going Dennis, in stores on? have in future forward? new so you much position.

years thank answering accomplished partner selection at wish in appreciate like has Jon. an The plan XX to take moment Buckle. Jon, talented we merchandise last in best morning, want Bob the excellent he Good XXXX. And have this I would I team. stores, is all we and is as to all Men's a earning been he a call. a future. has new your to his The store And the before The inventory He's Buckle. for outstanding very do Bob's question developed our merchant. great Youth X want our will stores. Bob for we at expand we Bob

a those good on making the Thank strip street regular of we remodels to centers, those locations the with outdoor store. be separate don't moving plus store those changes. have next the we've majority our plan have to success some of we Youth and very centers mall or specific over XX from shopping year-and-a-half, guests, X going Most probably past Although, stores. the will to We're open our -- years where are of have also, from exposure you. relocation the will had

regards a youth Okay. merchandise taking trying merchandise? are youth is When you stores. having Dennis, to segment your impact Buckle that merchandise. I'm on incremental out with the put to you that get the store, an into

way personnel cases of selection of for very more for expense saving about we're that a of separate size good No. taking X,XXX square product. the good our and of the relocations, and separate store news and the stores we are in store majority to feet out that the relocations lot not store expand a a without least our In the expanding majority makes at build-out. so us adding by And

are some to of you credit you last When question. team year higher for done, seen %. tailwinds everybody. -- obviously, you've keep what retain sustainable margin? to some able your and terms and XX do in you to everybody I'll much today, be Are will years of back a into are One where higher margins of and couple XXXX XXXX, are has and And a XXXX, the maybe, extraordinary your out-competed think macro when at XX% little up going helped we've a things you're maybe you've -- have year competitors. everybody. there been you're in around you've go than, that these you some that you of and the bit things this look done, be give you've of past? Obviously, that And you Okay. as I think, But how beyond look out-executed,

have Well, make going. a lot any good we won't of things we but predictions,

leaders have very are our are excitement, our teammates. the We stores, in great teams knowing stores, talented brade very the merchandise With and they store managers strong at and their guests. our

marketing has improved. Our

more strong staff each year, quarter at the the than and office. previous have guests support We substantially here a new

lot we starting a And on So, progress were have excited even we XXXX, investment’s about. to in of changes. of a be I make to our lot think things

guest and our And for we hard I what like take this work appreciate always because and and continued and as has their time, it the our Company. on teammates presentation, thank of all our focus staff kind Our gain compound been continued to improvements, doing within we we want and all over improvement stronger have to continued our interest, product, from focus a improving grow. service, improving get they're

So of think approach to we'll that's do well. kind we our continue and

Okay. Thank you, Dennis.

Yes.

Capital from ahead. with Our Brotchie is next Peter question Management, please go Brotchie,

questions. for couple Thanks A taking my of morning. Good call.

that experiencing this actually distribution? your store inflation any say you down heard I the in think wage Are level at you quarter. or guys I SG&A of was kind

doing commission, increases a lot Our a base so really teammates store, of are wage, primarily in our there's we're -- teammates, of and talent. it's business model has in most different our the in natural you for and the proper well read the a lot no for strong been And competitive and in of experience that press, incredibly our we're areas seeing. with

successful. recruiting constant that's wages here had fulfillment and also a really distribution stores. our have incentives had on adjustments of for We been strong I the for there. center. referrals applicants we're positions the some spot store. and we've in to our had is to new the e-commerce in make some sales positions our mean, same a fall centers the office, and focus And in of a We really in the for And for through especially some really both some our focus, here recruiting in added good

I'm the Great. that. go -- Along Thanks sorry for ahead.

All things considered.

right and they Sure. associates, time a dramatically. for great And home if the give that? you square speaking get fit people not get that how you your they're can or of and in-store sales online me it then fit happy fairly do online your have been Are you sales having how for if make custom to with personally. always right your they think coming on sure color -- just I'm buying some about guys spending with customers in them with when brand associates the wondering more increasing at

I that then like think of find we become lot the a shop they they have online their what and then And find into to favorite stores. as store they -- best. guests our would fits come of

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As XXXX, %. was quarter our ECOM over XX up third

are %, combination working so that it's I well think of very a second there. XX quarter was things up

ample about for question, holiday? final X how And great. Great, feel you inventory do having

our -- down we with in the was flow quarter, keep the inventory teens. third I get XX% to up were high Well, mean that hoping in able going. we're we the still

%. had running been XX over think it I down

catch and up, stores able success business, in And good to With it's to should been if a still be working nice we we're a coming planned, the but our problem get everything of hard. difficult that's we in the selection. offer

and fantastic a quarter. on thanks Well, again Great. congratulations

Peter. Take care. you, Thank

[Operator line & And from of Please Instructions] a we question C.L. ahead. go the do King Associates. Steve Marotta have with

just Dennis. wanted private to last items you general. morning, regarding Good the both ago? compared would follow question it and that months branded label for say I chain on up is in X supply to How

Steve. morning, difficult call a little Good out. to It's

it's our of slightly on a on a still some shipping others good but shape are I'd think in I have pretty improved, and product, still challenge. say vendors challenge.

That's update last that that the your X months any on helpful. over us also, helped have have And digital and with connect transact initiatives customers launched you digitally? can you digitally them

-- this is Tom mentioned -- mentioned Dennis omni-initiatives lifting prior heavy Dennis a to year. our was but this for of lot the done

experimenting initiatives. to and tool with take So, service up online, done, we're of store, online a were pickup This were that grow -- have the of rolling and year, in we ship-from-store inventory; buy teammates guests. where browse the all and which our in the stores their availability the inventory implementing out lot for those our a to terms that opening have in-store to purchase hoping in biggest to of ability

gap and teammates been they So, to in the bridging year. stores all it's to been well to added between Both well-received. the really both hope continue that That's that initiatives this We'll are. at And added wherever to grow and look that. We service are things Those guests We've continue received. online. taking probably options, some the those quarter. in-store -- of and options. more online significant payment have our during payment After-pay, and

continue to both see and in-store. We growth online

I of those all think of it's function investments. a

That's you. helpful. Thank

And a moments. few allow me

queue. further questions no in have We

up on for for call participating day. wonderful can a If there being wrap today. it questions, are have and we everybody the you, and Thank no

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

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