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01/11 16:17
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary indicates strong financial performance with an 8.3% increase in net sales and improved margins. The company is expanding store openings and remodels, with a focus on digital investments. Despite some risks like cost increases and footwear sales decline, the overall outlook is positive. The market cap suggests a moderate reaction, leading to a prediction of a positive stock price movement of 2% to 8% over the next two weeks.
Net Income (Q2 2025) $45 million or $0.89 per share on a diluted basis, compared to $39.3 million or $0.78 per share in Q2 2024. This represents a year-over-year increase due to higher net sales and improved margins.
Net Income (Year-to-Date 2025) $80.2 million or $1.59 per share on a diluted basis, compared to $74.1 million or $1.48 per share in the prior year. The increase is attributed to higher sales and better cost management.
Net Sales (Q2 2025) $305.7 million, an 8.3% increase from $282.4 million in Q2 2024. The growth was driven by a 7.3% increase in comparable store sales and a 17.7% increase in online sales.
Net Sales (Year-to-Date 2025) $577.9 million, a 6.1% increase from $544.9 million in the prior year. This was supported by a 5.2% increase in comparable store sales and a 10.5% increase in online sales.
Gross Margin (Q2 2025) 47.4%, up 50 basis points from 46.9% in Q2 2024. The improvement was due to a 10 basis point increase in merchandise margin and 40 basis points of leverage in buying, distribution, and occupancy expenses.
Gross Margin (Year-to-Date 2025) 47.1%, up 60 basis points from 46.5% in the prior year. The increase was driven by a 30 basis point rise in merchandise margin and 30 basis points of leverage in buying, distribution, and occupancy expenses.
SG&A Expenses (Q2 2025) 29% of sales, down from 29.8% in Q2 2024. The decrease was due to a 65 basis point reduction in nonrecurring digital commerce investments, a 45 basis point decrease in store labor-related expenses, and a 55 basis point decrease in other SG&A categories, partially offset by an 85 basis point increase in incentive compensation accruals.
Operating Margin (Q2 2025) 18.4%, compared to 17.1% in Q2 2024. The improvement was driven by higher gross margins and controlled SG&A expenses.
Inventory (as of August 2, 2025) $142.5 million, up 8.4% from the same time a year ago, reflecting higher stock levels to support sales growth.
Capital Expenditures (Q2 2025) $12 million, primarily for new store construction, remodels, and technology upgrades.
Depreciation Expense (Q2 2025) $6.1 million, reflecting ongoing asset utilization.
Women's Merchandise Sales (Q2 2025) Increased 18.5% year-over-year, driven by strong performance in the denim category and higher average price points.
Men's Merchandise Sales (Q2 2025) Increased 1.5% year-over-year, led by a 4.5% growth in the denim category and higher average price points.
Accessory Sales (Q2 2025) Increased 9.5% year-over-year, supported by a 3% rise in average price points.
Footwear Sales (Q2 2025) Decreased 0.5% year-over-year, despite an 8% increase in average price points.
Kids Business Sales (Q2 2025) Increased 23% year-over-year, reflecting strong demand and increased awareness of the product line.
Women's Denim Growth: Women's denim sales increased by approximately 20.5%, with average price points rising from $80.60 to $85.35. Growth was driven by the Buckle Black Label and other higher price point national brands.
Kids Business Expansion: Kids' business grew by approximately 23% year-over-year, now accounting for 4.5% of total business for the quarter.
Private Label Growth: Private label sales represented 43.5% of total sales, up from 43% in the prior year.
New Store Openings and Remodels: Opened 2 new stores, completed 4 full remodels, and closed 1 store during the quarter. Year-to-date, 2 new stores opened, 9 remodels completed, and 3 stores closed. Plans to open 4 additional stores and complete 12 more remodels by year-end.
Online Sales Growth: Online sales increased by 17.7% to $43.6 million for the quarter and by 10.5% to $90 million year-to-date.
Gross Margin Improvement: Gross margin for the quarter increased to 47.4%, up 50 basis points from the prior year, driven by a 10 basis point increase in merchandise margin and 40 basis points of leverage in buying, distribution, and occupancy expenses.
SG&A Expense Reduction: SG&A expenses decreased to 29% of sales from 29.8% in the prior year, driven by reductions in digital commerce investments, store labor-related expenses, and other SG&A categories.
Shift to Off-Mall Locations: Relocating stores from malls to better off-mall locations, resulting in increased base rent and percentage rent due to strong sales performance.
Tariffs and Cost Increases: The company is experiencing low to mid-single-digit cost increases due to tariffs, with some vendors imposing higher single-digit increases. This could impact merchandise margins and overall profitability.
Occupancy Expenses: Occupancy expenses increased by 5.5% in Q2 compared to 3.5% in Q1, driven by new store openings, remodels, and relocations to off-mall locations. This rise in base rent and percentage rent could pressure operating margins.
Private Label Sales Mix: The percentage of private label sales mix decreased in Q2 compared to Q1, which may affect merchandise margin growth as private label products typically have higher margins.
Footwear Sales Decline: Footwear sales decreased by 0.5% in Q2, which could indicate challenges in this category and impact overall sales performance.
Supply Chain and Vendor Costs: The company is facing cost increases from a wide range of vendors, which could lead to higher product costs and potential pricing challenges.
New Store Openings: For the remainder of the year, we now anticipate opening 4 additional new stores and completing 12 more full remodeling projects.
Store Remodels: For the remainder of the year, we now anticipate completing 12 more full remodeling projects.
Digital Investments: Focus on digital, focus on growing e-com a year ago. Brought in consultants and third parties and really put a lot of effort around improving the buckle.com experience.
The selected topic was not discussed during the call.
The earnings call presents strong financial performance with increased net income, sales, and operating margins. Product development in women's and kids' merchandise is robust, and market strategy seems effective. Despite a slight dip in merchandise margins, overall sentiment remains positive with optimistic guidance and no major concerns from the Q&A. The company's market cap suggests a moderate reaction, leading to a positive stock price prediction (2% to 8%).
The earnings call presents a positive outlook with strong financial performance, including increased net income, sales growth, and improved margins. Despite a slight decline in private label sales, the company remains optimistic about its product lines, particularly women's denim. The Q&A section reflects confidence in consumer sentiment and business sustainability. The market cap indicates a moderate-sized company, suggesting a potential positive stock movement of 2% to 8% in response to these factors.
The earnings call summary indicates strong financial performance with an 8.3% increase in net sales and improved margins. The company is expanding store openings and remodels, with a focus on digital investments. Despite some risks like cost increases and footwear sales decline, the overall outlook is positive. The market cap suggests a moderate reaction, leading to a prediction of a positive stock price movement of 2% to 8% over the next two weeks.
The earnings call highlighted several concerns, including an EPS miss, increased SG&A expenses, and lack of guidance, which are negative indicators. The Q&A section revealed management's vague responses about tariffs and SG&A leverage, adding uncertainty. Despite revenue growth and improved margins, the absence of a share repurchase program and store closures further weigh on sentiment. Given the company's mid-cap status, these factors are likely to result in a negative stock price reaction, possibly between -2% to -8% over the next two weeks.
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