Buckle, Inc. Reports 3.2% Decline in Third Quarter Net Sales

The Buckle, Inc. reported a decline in financial performance for the third quarter of fiscal 2024, with net sales decreasing to $293.6 million from $303.5 million in the same period last year, marking a 3.2% drop. For the first three quarters of the fiscal year, total sales fell to $838.5 million, down 4.6% from $878.7 million in the prior year. The decrease in sales was attributed to a 3.8% reduction in the number of transactions and a 0.8% decline in the average number of units sold per transaction, although these were partially offset by a 2.8% increase in the average unit retail price. The company's net income for the quarter was $44.2 million, down from $51.8 million a year earlier, resulting in diluted earnings per share of $0.88 compared to $1.04 in the prior year.

In terms of operational metrics, Buckle's comparable store net sales for the thirteen-week period ended November 2, 2024, decreased by 0.7% compared to the same period last year. The company operated 445 stores across 42 states as of November 2, 2024, having opened seven new stores and remodeled 13 during the first three quarters of the fiscal year. Online sales accounted for 15.9% of net sales in the third quarter, a slight increase from 15.2% in the previous year, although year-to-date online sales decreased by 9.2% to $128.0 million.

The company's gross profit for the third quarter was $140.1 million, representing 47.7% of net sales, down from 48.5% in the same quarter of the previous year. This decline was primarily due to increased buying, distribution, and occupancy expenses. Selling, general, and administrative expenses also rose, accounting for 29.1% of net sales compared to 27.4% in the prior year, driven by higher store labor-related expenses and investments in digital commerce. Consequently, income from operations fell to $54.5 million, or 18.6% of net sales, down from 21.1% in the same quarter last year.

Looking ahead, Buckle anticipates completing one new store and seven full store remodels by the end of fiscal 2024, with total capital expenditures projected to be between $36.0 million and $40.0 million. The company maintains a strong liquidity position, with $302.0 million in cash and cash equivalents and $23.5 million in short-term investments as of November 2, 2024. Management believes that existing cash, short-term investments, and cash flow from operations will be sufficient to meet current and long-term capital requirements. However, they acknowledge that future economic conditions and changes in consumer demand could impact sales and profitability.