The Buckle Reports Decline in Net Sales and Profitability for Q2 and YTD 2024

The Buckle, Inc. reported its financial results for the thirteen and twenty-six weeks ended August 3, 2024, revealing a decline in both net sales and profitability compared to the same periods in the previous fiscal year.

For the thirteen weeks ended August 3, 2024, net sales totaled $282.4 million, a decrease of 3.4% from $292.4 million in the prior year. Gross profit for the same period was $132.5 million, down from $138.4 million, resulting in a gross profit margin of 46.9%, slightly lower than 47.3% in the previous year. Income from operations also fell to $48.3 million, or 17.1% of net sales, compared to $56.8 million, or 19.4% of net sales, in the prior year. Net income for the quarter was $39.3 million, down from $45.6 million, leading to basic and diluted earnings per share of $0.79 and $0.78, respectively, compared to $0.92 in the same quarter of 2023.

For the twenty-six weeks ended August 3, 2024, net sales were $544.9 million, a 5.3% decrease from $575.3 million in the same period of fiscal 2023. Gross profit for this period was $253.2 million, down from $271.7 million, with a gross profit margin of 46.5%, compared to 47.2% in the previous year. Year-to-date income from operations decreased to $90.7 million from $110.5 million, and net income was $74.1 million, down from $88.6 million. Basic and diluted earnings per share for the year-to-date period were $1.49 and $1.48, respectively, compared to $1.79 and $1.78 in the prior year.

The company reported a decline in online sales, which accounted for 13.1% of net sales in the most recent quarter, down from 14.9% in the prior year. Comparable store net sales decreased by 6.6% for the quarter and 7.7% year-to-date.

Buckle's operational activities included the opening of two new stores, remodeling of twelve stores, and the closure of six stores during the twenty-six weeks ended August 3, 2024. The company maintained a store count of 440 across 42 states.

Cash flow from operations for the first two quarters of fiscal 2024 was $77.5 million, a decrease from $81.5 million in the previous year, attributed to lower net income. The company has planned capital expenditures of approximately $34.0 to $38.0 million for fiscal 2024, primarily for store projects and technology investments.

As of August 3, 2024, Buckle had total cash and investments of $336.1 million, including $287.3 million in cash and cash equivalents. The company has no bank borrowings and maintains an unsecured line of credit of $25.0 million.