The Buckle, Inc. (BKE) 17 Nov 232024 Q3 Earnings call transcript

Good morning, and thank you for standing by. Welcome to Buckle's Third 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; Brady Fritz, Senior Vice President, General Counsel and Corporate Security.

As a review, operating results in the third quarter, which ended October 28, 2023, 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 described and factors Exchange as limited include, filings company's not are the Such Commission. with but to, in the Securities clear any not future forward-looking to not or any it statements, changes if does publicly will undertake company expressed revise The results or even experience make therein or that projected update implied realized. be

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

recorded. As a is this webcast reminder, being

the now Heacock. like to I'd And over turn Tom host, to your conference

with thanks us Good morning. for morning, being and this

million XX, a basis quarter, basis period ended XX-week XX-week Year-to-date, income third a XXXX XXXX, XX, on or press November income income the which $X.XX on diluted $XX.X share was XX, year for XX-week $X.XX XXXX. compared for ended XX, or Our which basis, prior a net per October to XX, million the the $X.XX the ended diluted to $XXX.X million per on $X.XX release net ended period on of compares basis XX-week or net XXXX, of share XXXX. or a share October for third diluted which year reported share per $XX.X quarter, October income October a for prior was million net per $XXX.X diluted

ended quarter. sales XX.X% $XXX.X to in the quarter in Year-to-date store our XX-week period fiscal $XXX.X online Net XX, to for X.X% Comparable net year, which million. comparison X.X% the decreased same were sales the year to third third sales and of to sales decreased $XXX.X for prior sales the million year store our to X.X% XX-week XX-week million. of sales year comparison the for ended $XXX.X XX-week October compared net X.X% X.X% period prior Comparable to down October decreased year-to-date decreased period 'XX in million period, XX-week and $XXX the fiscal the for quarter in the the for compared million to million XX, for same XXXX. net sales sales $XX.X the XX-week online prior decreased period to prior

unit increased the average For the the increased flat. our quarter, average retail approximately increased increased the also about and value average transaction about transaction unit X.X% slightly. UPTs Year-to-date, The and value decreased X.X% X.X%, approximately were average retail X.X%. UPTs

quarter of expense occupancy current the in merchandise decline of XX.X% margins as XX.X%, XXX the and decline The were merchandise gross XX.X%, flat was with year, result buying, deleverage of points result from point margin of for basis year-to-date XX is margin third margins. prior XXXX. down decline the with down a basis points buying, the along deleverage basis Gross from points in being XX.X% quarter quarter. and in basis was Year-to-date the the XXX XXX the distribution quarter expense for occupancy distribution

was quarter XX% the the of quarter administrative to period Selling, to and compared for of third were net XXXX, general and expenses XX.X% XX.X% compared the last for same year. SG&A for of sales sales XX.X% year-to-date,

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

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

quarter sheet of and assets, press net same in with inventory as flat the balance and ended of cash XX, ago also following: release inventory essentially the included investments. million total fixed included which levels million which $XXX.X XXXX, of was the October time year We accumulated $XXX.X $XXX.X a with million depreciation. a of at Our

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

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

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

remodels, relocations opened new store the into centers. we X During new completed and outdoor of shopping quarter, full X were X which stores

Bristol, this store X remodels to earlier full stores City, store new stores, new and Tennessee brings month closures. year-to-date additional which Park X remodel, in count and X Utah, in XX X opened completed our we full Additionally,

projects. the of For the with the XX quarter third stores states at the in XX year, in compared XXX full with the end year. ended additional anticipate last stores opening retail remainder XXX new completing states and we of quarter stores remodeling more X X Buckle

turn now it of President I'll our Vice And Adam to over Akerson, Finance.

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

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

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

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

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

sales XX.X% and of fiscal 'XX. approximately approximately accounted and tops for which in to accounted XX.X%, XX.X% for compares XX.X% for Denim third quarter of the each

our women's the our across business, unseasonably addition categories included short country. long the performing lightweight weather to better sleeve both business, much remained men's shorts For and in of warm and sleeves as

year-over-year. slower our both more fall in assortments, sell-throughs some flat inventory keep our merchandise Given we traditional margins of with and were ability levels pleased to

in be Our on QX continue men's the to volume Dude particularly comparisons challenged our with declines Hey side. also

business men's without sales Hey Dude X.X%. Third quarter for net were down our

We youth performance XX% of growth youth year the on of 'XX. private by were with approximately label We growth in continued remain business the private third growth brands building in and fiscal with a combined sales the our also quarter ago. XX.X% the with growing representing the X% versus business encouraged XX% pleased our quarter in for of

questions. welcome we your that, with And

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

This me. hear can is from you Hopefully, UBS. Great. Mauricio Serna

have you just to wanted to suppose also I if Just ask the understand be additional want wanted to so good in sure tends I know -- about to think that quarter, an make like, in I sales, that historically for or week margins? to bad a contribution but QX, there's I

I And quarter, sales then the that month deteriorated the this every than -- like XQ, was comp for weaker one. it noted previous on on the

ask probably probably anything this relatively weakening to that -- maybe out you causing you would to peers. is And compared call if is a I So think think standpoint that there's weaker performance? that this it's also fashion from would

you. Thank ever. was X people of in I sales, an And years the effect project we're mentioned warm then going mean, the stores. script, traffic just approximately we that I week. on sales million And getting as would the The our weather more probably and best of unseasonably against for week, of think the fifth out for $XX comp had in

from looking we stores, the that our And just the teams build travel fashion, standpoint, seem looking we think I good. As so excited our product target the -- to traffic. and and on are very very is

Got it.

margins? that like Or sorry, tell don't if -- affect if you And know for that the you good can does how the company's us the additional margins? week, is I

for loaded fully being without week. allocated -- that just week margin of better that a mean, is I costs that not Yes, the for some are

like things rent fully are different not a So or allocated.

than week typical So it for margin is week a a January. better

is question [ next Bragg Our from ]. John

looks we It from have follow-up like Mauricio a Serna. question

it. Got

Okay.

Sorry. like the Yes, expenses, guess noted that I X%. follow-ups. a I look results, was the just it had into if I selling couple of I down

the what wanted Just were main drivers to like that? understand behind

particularly for elaborate that I bit holiday that, you being you as December like come that, about then a the And season, in like important do about on now know more little -- especially a how talked feel the you we like shape. Maybe is good month you. could into inventory

ahead of and inventory consumer the the season? I about point feel you do holiday how this guess, at So

this second first and is Dennis question take question. the the Mauricio, it turn to Tom. I'll for over

decrease SG&A, around when is related, seen really this the costs, the the trend so far we've those that selling you with are so quarter-over-quarter compensation, for incentive at driver a year. really, for the compensation, benefits, look which people expense of consistent accruals But lot

markdown the nice say inventory, On has be had specials youth and Friday offering I that. pretty feel now, and Black cadence good have a gals the some right few over we about normal just weekend. we'll would The growth. we

about. have into to our good we brands there. But are denim, our we see really comfortable as a holiday some expect feel season. the So and private good we increase fall/winter go with and And the we inventory, in selection of

turn [Operator back I closing over Instructions] There any remarks. Buckle will to are questions. no now call further for the

for enjoy their weekend have week next your and everyone wonderful participation thank We and today, everybody, a week.