In This Article:
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Net Income (Q3): $44.2 million or $0.88 per share, down from $51.8 million or $1.04 per share in the prior year.
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Net Income (Year-to-Date): $118.3 million or $2.35 per share, down from $140.3 million or $2.81 per share in the prior year.
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Net Sales (Q3): Decreased 3.2% to $293.6 million from $303.5 million in the prior year.
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Comparable Store Sales (Q3): Decreased 0.7% compared to the same period a year ago.
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Online Sales (Q3): Increased 1.1% to $46.6 million from $46.1 million in the prior year.
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Gross Margin (Q3): 47.7%, down 80 basis points from 48.5% in the prior year.
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SG&A Expenses (Q3): 29.1% of net sales, up from 27.4% in the prior year.
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Operating Margin (Q3): 18.6%, down from 21.1% in the prior year.
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Inventory: $149.4 million, down 1.9% from the same time a year ago.
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Total Cash and Investments: $352.7 million.
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Capital Expenditures (Q3): $10.2 million.
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Store Count: 445 retail stores in 42 states, up from 443 stores in the prior year.
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Women's Merchandise Sales (Q3): Down 0.5%, representing 47% of sales.
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Men's Merchandise Sales (Q3): Down 5.5%, representing 53% of sales.
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Accessory Sales (Q3): Up approximately 3%.
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Footwear Sales (Q3): Down about 17%.
Release Date: November 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Buckle Inc (NYSE:BKE) reported a net income of $44.2 million for the third quarter, reflecting a solid financial performance.
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Online sales increased by 1.1% for the quarter, indicating growth in the digital commerce segment.
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Women's merchandise sales saw a 3% increase on a 13-week comparable basis, with a notable 9% growth in denim.
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The company opened five new stores and completed one full remodel during the quarter, showing expansion efforts.
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Private label denim showed strong growth, contributing to a 55 basis point improvement in merchandise margins.
Negative Points
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Net sales for the third quarter decreased by 3.2% compared to the prior year, indicating a decline in overall sales.
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Comparable store sales decreased by 0.7% for the quarter, reflecting challenges in maintaining in-store sales.
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Year-to-date net sales decreased by 4.6%, showing a downward trend in sales performance.
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Gross margin for the quarter decreased by 80 basis points due to increased occupancy and distribution costs.
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Footwear sales were down approximately 17% for the quarter, impacting overall sales performance.
Q & A Highlights
Q: Could you elaborate on the gross margin drivers and the apparent slowdown in merchandise margin growth compared to the second quarter? A: Thomas Heacock, CFO, explained that the gross margin for the quarter was impacted by a 100 basis point increase in occupancy costs and a 35 basis point increase in distribution and buying costs, offset by a 55 basis point improvement in merchandise margins. The merchandise margin growth is consistent with year-to-date trends, driven by strong private label denim sales and a favorable mix shift away from lower-margin categories like footwear.