The Buckle, Inc. Q4 FY2025 earnings call

Good morning, net income for Q4 2026 was $80.8 million vs $77.2 million prior year; net sales for Q4 increased 5.3% to $399.1 million; comparable store sales increased 3.9%; online sales increased 6.4%; full-year net sales increased 6.6% to $1.298 billion; comparable store sales increased 5.6%; online sales increased 9.8%; Q4 gross margin was 52.6%; full-year gross margin was 49% up 30 basis points; SG&A for Q4 was 27.4% of sales vs 27.2% 2024; full-year SG&A was 28.8% of net sales vs 28.9% prior year; Q4 operating margin was 25.2% vs 25.4% 2024; full-year operating margin was 20.2% vs 19.8% last year; inventory was $139.5 million up 15.5% YOY; total cash and investments $306.6 million after dividends; opened 2 new stores, completed 5 full store remodels, closed 4 stores in Q4; full-year had 6 new stores, 20 full remodels, 7 store closures; fiscal 2026 plans to open 12 - 14 new stores and complete 12 - 14 full remodel projects, with at least half remodels in new outdoor centers; ended year with 440 retail stores in 42 states.

For the quarter, women's business had merchandise sales increase about 12%, representing approximately 46% of sales (compared to 43% last year); women's denim category was the driver, with denim up 10.5% YOY and average price points increasing; men's merchandise sales were down about 0.5%, representing approximately 54% of total sales (compared to 57% a year ago); men's denim business was down about 3.5% but had slight growth in key private label brands; accessory sales increased approximately 3.5% YOY, footwear sales were down about 3%; kids business grew approximately 16% YOY, with denim accounting for approximately 44% of sales and tops accounting for approximately 29.5%.

The company reiterates its policy of not providing future sales or earnings guidance.

Actual results may differ materially due to risks and uncertainties described in the company's SEC filings.

Q: How are you accelerating your store expansion plan?

A: We have an opportunistic approach, successful with premium and Tanger outlets, looking at new opportunities, relocations to outdoor centers and improvements in current malls.

Q: What is driving the denim category and what consumers are looking for?

A: New fashion like different rises, finishes, wide leg; building private brands and branded partners, expanding sizes and inseams.

Q: Do all your stores have youth products?

A: Majority have good selection, some have mainly denim jeans and T-shirts, about 15% of stores don't have youth due to space; had 4 youth stores, expanded 3 and now have 1 separate youth store.

Q: Can you provide information about net cash flows?

A: Cash flow is typically in SEC filings, not included in press release.