The Buckle, Inc. (BKE) 10 Mar 232022 Q4 Earnings call transcript

Well, good morning, everyone, and thank you for standing by. And welcome to Buckle's Fourth Quarter Earnings Release Webcast.

As a reminder, all participants are currently in a listen-only mode. A question-and-answer session will be conducted following the company's prepared remarks with instructions given at that time. 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.

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

reproduction or calls express without call of recorded. of a being of authorize company or transcripts not And is inaccurate. reproductions recordings its should reminder, conference information be Additionally, upon the as today's unauthorized the recordings does quarterly webcast Any as or dissemination the company's relied may the be not consent. the written audio

now, Nelson. And you. over pleasure is webcast turn Dennis, to host, your it over to the my Dennis to

product maintaining reputation destination, our make the markets. whenever are out delivered working for developing and however all store great morning multi-channel we sure going, guests plans denim you. thank our and all our and they and Thank and our year the to top want, shopping by to off the momentum best past a great us. over deepening to our out you growing base our ever, work of line, best developed call businesses you area relationships shop a and want in optimizing I start to talented while in Good growing teammates guests, their keep we as today's thanking joining guests by for empowering assortments, with year. Coming

profitability strong protecting this and cash operating and on while the XX.X%, to the debt-free ending keeping and solid fundamentals. sheet, our of all ended long-term of our year with balance focus total We investments committed $XXX.X million. margins achieved of with year We remain and

practice our special paying to have in consecutive am ongoing opportunity and confident XXXX. success, XXth guests for I'm year. us a also dividend excited teams the about paid our well-positioned continued our We dividends continue of for quarterly and servicing the

I our to will CFO, Heacock. it now over Tom turn

Good thanks with for morning, and being us.

for per of net XX-week a fourth Our per or fourth January share that income diluted basis, to fiscal XX, or income on the basis prior-year XXXX, March January ended XXXX. net $XXX.X share basis a share XXXX. ended compared basis to diluted on XX, share net quarter Net compared prior-year January on was income press $X.XX the for $X.XX or XX-week fiscal the ended year diluted quarter, XX, XXXX million year XX, release $XXX.X XXXX of XX-week million for XX, income per ended diluted $X.XX was a January XX-week $X.XX reported the a million on per or for million $XX.X $XX.X

to and sales the Net the for XX-week our million the increased to increased sales in compared year, million, million. the in quarter for increased sales $XXX.X quarter X.X% XX-week online to XX-week $XX.X sales quarter. net of for comparison fourth Comparables fourth prior to the period to X.X% prior-year X.X% $XXX.X same

our prior period our Comparables increased $X.XXX XX-week $XXX.X fiscal in same comparison net X.X% online XX-week the net for and year, year compared fiscal to sales year For were sales billion million. X.X% to of X.X% year. billion sales to increased prior fiscal the up the for for the in sales full-year, to year to XX-week the $X.XXX

about increased X.X%, approximately X%, quarter, decreased transaction UPTs X.X%. the and average unit increased the retail the approximately value For average

XX.X%, the approximately X%, transaction XXXX. for basis approximately fourth quarter increased quarter UPTs and Gross in For X.X%, of was from the retail the margin XX decreased approximately the increased X%. average average value down unit the points full-year, XX.X%

also for Merchandise XX.X%, margins was the the for basis XX margin last gross about points from period. year. quarter about period XX.X% XX down same points were basis full-year XX full-year the basis and points Our for down

Full-year basis compared full-year. And year. general, increase store impact. net was for quarter in labor-related fourth store quarter point which to expense increases the expenses along the combined was and a for in the Selling, with basis of primarily The SG&A had in increase due XX labor-related expenses compared for several several fourth a point combined increase basis sales, impact same basis increases with administrative of was XXX due to XX.X% SG&A the quarter other categories, which the categories full-year last XX.X% SG&A XXXX. expenses across along net were XX a had XX.X% for point period to of sales, to XX.X% XX other expense increase

XX.X%, bringing percentage for a to $XX.X XXXX, margin operating of compared income fourth in to compared million And quarter in expense for the operating compared net of quarter $XX.X for for quarter XX% the fourth year. quarter XX.X% XX.X% XX.X%, margin the fourth for XX.X% pre-tax XXXX. to of same fiscal million tax net our Income XXXX. quarter as the was Our full-year, compared was last to the to fiscal the XXXX, for was period income

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

approximately of $XXX.X million fiscal XXXX. the XX, XXXX, year-over-year, Our to press included of but following. only of a inventory of also included X% at the up release as which balance compared up XX.X% end sheet, Inventory was $XXX.X million, January which

$XXX.X year. investments We net $XXX.X also depreciation. assets year in year ended the ended which the dividends cash during was with million million, the in and accumulated million total with of of We after payment of fixed $XXX.X

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

million. $XX.X was For depreciation expenditures the were full-year, capital million, $XX.X expense and

as corporate center. distribution store million store million capital $XX.X new construction, $X.X down for was and and follows: spending Full-year remodels, upgrades, headquarters technology broken at and capital for spending the

store, three remodeling quarter, the for full one store. store completing new of full closures. four XX relocations shopping stores, outdoor and Of into one opening brings during and totals closed we XX new six were relocations the remodels new XXXX year, new XX completed new remodels, outdoor our XX During to which were four This plan full-year centers total opened and includes remodels, to stores centers. XX full seven projects. to Current the shopping fiscal XXXX

year-to-date in to XX store retail at ended end the stores a in with stores states XXX two additional XX year of We stores closing XXX March. Buckle closed compared have with one also XXXX. plan the states fiscal for

Akerson, President our of will turn Finance. I to it Now, Adam Vice over

points Thanks, sales average in down year. of the XX.X% of X% sales compared $XX.XX. quarter price were for price XX.X% merchandise $XX.XX to increased X.X% the Tom. fourth a fiscal against the prior Average women's while points about of in approximately ‘XX quarter Women's increased from represented the prior in and quarter $XX.XX about denim $XX.XX overall year fourth fiscal ‘XX to the from to

prior of Average of ‘XX fiscal fiscal fourth sales the in against approximately for prior quarter $XX.XX the total $XX.XX price year. representing the to in ‘XX. the side, denim increased XX.X% On in X.X% points merchandise quarter men's sales were XX.X% fourth up quarter of from to compared the year, the

price overall average points For to the approximately X.X% quarter, $XX.XX. increased $XX.XX men's from

for XX% On XX.X% X.X% two to about XXXX. accessory quarter which and combined These a prior approximately footwear X%. the each sales fiscal quarter sales, approximately compares for were XX% down quarter accounted year categories the basis, sales up respectively against while fourth X%, for in of fourth and the of were net

points average down X.X% slightly. For up the price quarter, price were were footwear average accessory points approximately and

fourth quarter, for the compares quarter XX.X% denim sales accounted and XX%, for accounted XX.X% tops in approximately of each of fiscal ‘XX. For XX.X% for to and approximately which the

to during an continued holiday the XX.X% nicely business youth Our quarter. period on grow the posting up

total For the represented our year, and approximately grew business of sales. X% youth XX%

brands. deliver private strong continued to assortment develop a teams buying and of Our label

the For the stayed with quarter, XX% private of consistent prior representing sales. year label

XX.X% sales grew label selection in in private ‘XX our fiscal Full-year, the ‘XX. XX.X% and from For fiscal of

continue during strong price We we inventory feel are full to pleased quarter. and selling about our position, good the with the

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please Oh, question go wants we I Well, at time. now see Alan we with Glenn. from Alan, no ask do question. questions to your have a have -- that John ahead still this

have sales Yes, numbers, about Concord a Main. Was insight believe, X% year? I & Do that previous the wondered February it I just comp showed, Alan from you into any a that? tough with Glenn the decline.

footwear. say Yes, were was Alan, we up, I the -- in This million down, of We down it. $X.X year, we were part Of was of down main X%. the $X.X year, last that's were XX%. that would decrease that million it

thank you. Okay,

last to that, February. Yes. to in category the the just up year, XX% add footwear And was

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on I just but in may in of Thank are you. it results. it generally? thank follows or caution question, thinking consumer Terrific, light commentary, from levels seeing you're you to the various just inventory characterize customers? wondering previous your how the might And about -- what you how but you for have the missed I'm

-- our are about we we feel good inventory. Yes, you. Thank

our previous our they deliveries substantially Revival, from from Our our because XXXX are inventories Miss where were we dollars today. Actually, units the are than down are of are where to Me year. due up down X% more probably Rock probably -- up,

coming very So, our feel in some to our continue up we're excitement we and new stores. will deliveries with comfortable the create inventory,

of just times a That elaborate you cliché, to And -- figuring -- versus normalized, should view guess your couple if sounds we you And could are sort you've XXXX. thoughts, not on I that's mentioned of but be how to great.

of it's kind some about. investors been guideline a hear our Yes, that still like I to of mean

XXXX, last growth And probably XXX% and improvement going be the the from our so, few shows up e-comm the years. in there. over comments just over the this so will our business business from last is Like

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turn So, things Buckle for will I back any team closing remarks. The to

for we'll what wonderful get it to your Just day. question us. joining have later. And, And all have but hope we would John, wish you, you everybody, we have thank known a was,

and you, enjoy thank So, everyone, the day.

seeing to you all everyone, the you And Absolutely. today. next And for we earnings. on forward we again, us thank joining look

in care take all Thank So, you much. so the meantime.