管理層發言
Good morning, and thank you for standing by, and welcome to Buckle's Second Quarter Earnings Release Webcast. 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. Before beginning, the company would like to reiterate its policy of not providing future sales or earnings guidance. All forward-looking statements made on the call are pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to risks and uncertainties described in the company's SEC filings. The company undertakes no obligation to publicly update or revise these statements, except as required by law. Additionally, the company does not authorize the reproduction or dissemination of transcripts or audio recordings of the company's quarterly conference calls without its expressed written consent. Any unauthorized reproductions or recordings of the calls should not be relied upon as the information may be inaccurate. As a reminder, today's webcast is being recorded. And I'd now like to turn the conference over to your host, Tom Heacock.
Good morning, and thanks for joining us this morning. Our August 21, 2026, press release reported that net income for the 13-week second quarter, which ended August 1, 2026, was $44.4 million or $0.87 per share on a diluted basis, which compares to net income of $45 million or $0.89 per share on a diluted basis for the prior year 13-week second quarter, which ended August 2, 2025. Year-to-date net income for the 26-week period ended August 1, 2026, was $91.3 million or $1.79 per share on a diluted basis, which compares to net income of $80.2 million or $1.59 per share on a diluted basis for the prior year 26-week period ended August 2, 2025. Net sales for the 13-week second quarter increased 4.6% to $319.8 million compared to net sales of $305.7 million for the prior year 13-week second quarter. Comparable store sales for the quarter increased 2.1% in comparison to the same 13-week period in the prior year, and our online sales increased 2.3% to $44.6 million. Year-to-date net sales increased 5.3% to $608.6 million compared to net sales of $577.9 million for the prior year 26-week fiscal period and comparable store sales for the year-to-date period increased 3.5% in comparison to the same 26-week period in the prior year, and our online sales increased 2.5% to $92.2 million. For both the quarter and year-to-date periods, UPTs decreased approximately 1%, the average unit retail increased approximately 4.5% and the average transaction value increased about 3.5%. Gross margin for the quarter was 47.8%, a 40 basis point increase from 47.4% in the second quarter of 2025. For the quarter, merchandise margins improved by 110 basis points, which includes 65 basis points of impact from tariff refunds received during the quarter and was partially offset by a 70 basis point increase in buying, distribution and occupancy expenses related to continued growth in the number of both new and relocated store locations. Year-to-date, gross margin was 47.1%, consistent with the same period in the prior year. And during the period, a 55 basis point increase in merchandise margins was offset by a 55 basis point increase in buying, distribution and occupancy expenses. Selling, general and administrative expenses for the quarter were 30.4% of net sales compared to 29.0% for the second quarter of 2025. Year-to-date, SG&A was 28.1% of sales compared to 29.8% for the same period in the prior year. The second quarter increase was due to a 45 basis point increase in marketing expenses as we increased investments in initiatives aimed at driving guest acquisition and strengthening long-term brand momentum as well as a 35 basis point increase in store labor-related expenses, a 30 basis point increase in health insurance benefits, a 20 basis point increase in store supplies and a 45 basis point increase in certain other SG&A categories. These increases were partially offset by a 35 basis point reduction in incentive and equity compensation accrual. Our operating margin for the quarter was 17.4% compared to 18.4% for the second quarter of 2025. And for the year-to-date period, our operating margin was 19% compared to 17.3% for the same period last year. Income tax expense as a percentage of pretax net income for each of the current and prior year quarter and year-to-date periods was 24.5%. Our press release also included a balance sheet as of August 1, 2026, which included the following: inventory of $161.4 million, up 13.3% from the same time a year ago and $322.9 million of total cash and investments. We ended the quarter with $191.7 million in fixed assets net of accumulated depreciation. Our capital expenditures for the quarter were $29.8 million and depreciation expense was $6.9 million. For the year-to-date period, capital expenditures were $44.5 million and depreciation expense was $13.4 million. Year-to-date capital spending is broken down as follows: $24.4 million for new store construction, store remodels and technology upgrades and $20.1 million for capital spending at the corporate headquarters and distribution center, which includes the purchase of a new corporate aircraft as a replacement for the plane that was sold during fiscal 2025. During the quarter, we opened 5 new stores, completed 5 full store remodels, 4 of which were relocations into new outdoor shopping centers and closed 1 store. Following quarter end, we opened 1 additional new store, which brings our year-to-date counts through to date to 9 new stores, 10 full remodels and 2 store closures. For the remainder of the year, we anticipate opening 5 additional new stores and completing 4 more full remodel projects. Buckle ended the quarter with 446 retail stores in 42 states compared with 440 stores in 42 states at the end of the second quarter of 2025. And now I'll turn the call over to Adam Akerson, our Vice President of Finance.
Thanks, Tom, and good morning. Our women's business continued its strong performance during the quarter, increasing 9.5% on top of an 18.5% increase in the second quarter of 2025. The women's business represented 50% of total sales for the quarter, up from 47.5% last year, reflecting broad-based strength across key categories. Women's denim remained a standout performer, growing 11% year-over-year, supported by strong denim trends across a variety of leg openings and rises. Guests responded particularly well to the depth and versatility of the assortment, driving both unit and dollar growth with average denim price points increasing from $85.35 to $92.50 during the quarter. Beyond traditional denim, the alternative pants category continued to be the fastest-growing segment of the women's business, increasing almost 50% year-over-year. This growth was fueled by strong guest demand for prints and colors across a range of wider leg silhouettes. Women's tops also delivered a strong performance, growing approximately 10.5% year-over-year, led by fashion and graphic styles that paired well with wider leg and patterned bottoms. Additionally, women's shorts experienced strong selling during the quarter, accelerating in July as customers shopped this summer season and began preparing for back-to-school. Our men's business delivered consistent performance during the quarter with total sales remaining essentially flat to last year, representing 50% of the total company sales compared to 52.5% in the prior year. While men's denim sales declined approximately 3.5% year-over-year, private label denim outperformed the category as the majority of the softness was concentrated in higher price point national brands. Despite the shift in brand mix, average denim price points remained consistent at $89.20 versus $89.30 last year. Slight growth in our shorts category helped offset a portion of the denim decline, reflecting guests' positive response to our seasonal assortment. Tops continued to be a bright spot within the men's business, growing 3.5% year-over-year, showcasing the strength and breadth of our assortment. Graphic tees performed particularly well across a variety of lifestyles, fabric weights and designs, while short-sleeve wovens and shirts delivered strong results in both print and solid styles. Our expanded polo assortment also resonated with guests, providing style options for a range of occasions. Strong selling in hoodies generated incremental sales growth during the quarter, reflecting consistent guest demand for casual and versatile apparel. On a combined basis, accessory sales for the quarter increased approximately 2.5% against the prior year and footwear sales increased about 0.5%. These two categories accounted for approximately 11.5% and 5%, respectively, of second quarter net sales for both fiscal 2025 and 2026. For the quarter, average accessory price points were up approximately 5% and average footwear price points were up 10%. Our kids business delivered another outstanding quarter, increasing 11% on top of 23% increase in the second quarter of 2025. Growth was broad-based across the category, led by strong performance in denim, shorts and casual bottoms and tees. Many of the same trends driving success in our adult business resonated well with kids and parents alike as Mini Me styling remained a meaningful driver of demand. For the quarter, denim accounted for approximately 35.5% of sales and tops accounted for approximately 30.5%, which compares with 36% and 29.5% for each in the second quarter of fiscal 2025. Our private label business for the quarter represented 44.5% of sales versus 43.5% for the second quarter of 2025. And with that, we welcome your questions.
分析師問答
Our first question comes from Mauricio Serna from UBS.
Just going back to the comment on merchandise margin. I think you mentioned it was up 110 basis points. That included 65 basis points of tariff refunds. Two-part question: what drove the other 45 basis points included in merchandise margin expansion? And just on the tariff refund, are you expecting any other tariff refunds going into the back half? And how are the tariff refunds being accounted for on the balance sheet at this point?
Yes. Thank you, Mauricio. Thanks for the question. On merchandise margins, the numbers that we gave: total merchandise margins for the quarter were up 110 basis points, of which 65 basis points was due to tariff refunds. So they were up 45 basis points without the impact of tariff refunds. The driver of that was really a slight increase in private label. Private label was up about 100 basis points, strong regular-price selling, markdowns are down, really clean business there and strong sell-throughs of new product. It was broad-based — both men's and women's merchandise margins were up. So there was not one specific item; it was a combination of factors. As far as tariffs, all of the refunds that we expect to receive were received. We received a total of $2.5 million during the period. A little over $2 million was recognized as a credit to cost of goods sold in earlier periods, with smaller amounts recognized in the most recent quarter and a small amount that will flow into Q3. So most of it has been recognized.
Got it. A quick follow-up on SG&A: you flagged 45 basis points of marketing deleverage. Could you give us a sense of how much marketing dollars were up year-over-year? And where are you seeing that spend — how are you feeling about the return on that investment as you think about potential acceleration in the back half of the year?
I don't know that we'll give out the dollar amount of how much it was up. It was 45 basis points. The investment was spread across a number of initiatives and has been a broad-based focus on both new-to-file acquisition and retention. When you look across our programs, it was spread between connected TV, Spotify, search, social creators — really all of those channels — and email as well, to focus on both retention and acquisition. We've seen a nice response and are pleased with the return we've seen so far, and we have more plans to continue building there going forward. Part of the increase is also due to rising costs from providers in those channels, so it's not just increased spend to attract more guests; costs are rising too. We've also invested over the last several quarters in tooling for our marketing team to increase data, analytics and insights to help drive our programs going forward. So those factors together drove the increase.
Our next question comes from Jon Braatz with Kansas City Capital.
Tom, Adam, when you look at the results over the last year or so, the women's business has been relatively stronger than the men's. I'm wondering if you could comment on the relative weakness in the men's category versus the women.
Jon, I think the excitement around new product, fashion, denim and casuals in the women's business — and the ladies doing a great job collecting groups and building our brands — has really created excitement and grown that business substantially. The men's business has been more consistent and is probably a little more weather-sensitive, but it's a solid business, and we feel really good about the men's business as well.
Okay. I don't want to nitpick, but looking back at the numbers, there have been 50 consecutive months of year-over-year declines in footwear volumes. I know early on you had some tough comps with HEYDUDE. Is footwear being deemphasized at all? What might account for the softness in footwear — is it soft across the board in all footwear companies? Any thoughts on that?
Well, for men's footwear, we need a strong brand like HEYDUDE or a similar partner to drive huge volume. Right now it's still a steady business for us, but not at the scale we had several years ago when we had exclusive styles in depth. On the women's side, footwear is pretty consistent and depends on fashion. The men's footwear business will remain a smaller part of our overall business until we find the right new fashion item to drive it. My understanding is that the footwear business is difficult right now for many retailers.
Our next question comes from Mauricio Serna with UBS Investment Bank.
Great. Yes. A quick follow-up on back-to-school: there's been talk of some delay in back-to-school spending that might be weighing on the retail environment. Any thoughts on that? For example, could July have been relatively slow with some improvement shifting into August? Any comments on what you're seeing related to back-to-school would be helpful.
Each year, tax-free weekends and school start dates vary by state, which can shift timing between months. Some states start school earlier or later, which can create timing challenges for comps in certain markets. Overall, across our total store base it tends to average out most of the time.
There are no further questions. I'll now hand the call back over to Buckle for any closing remarks.
If there are no further questions, we'll wrap up the call. Thank you, everyone, for participating, and have a wonderful rest of the day.