Buckle Q2 Earnings Call Highlights

Key Points

• Sales increased but quarterly earnings dipped: Second-quarter net sales rose 4.6% to $319.8 million, with comparable-store sales up 2.1% and online sales up 2.3%. Net income declined slightly to $44.4 million, or $0.87 per diluted share, as higher expenses offset sales and gross-margin gains.
• Women’s merchandise drove growth: Women’s sales rose 9.5%, led by denim, alternative pants and tops, while the women’s share of total sales increased to 50%. Men’s sales were flat, with weakness in men’s denim partly offset by growth in tops.
• Buckle continued investing in expansion: The retailer ended the quarter with 446 stores and plans five additional openings and four more remodels for the rest of the year. Inventory increased 13.3% year over year, while cash and investments totaled $322.9 million.

Buckle NYSE: BKE reported second-quarter net income of $44.4 million, or $0.87 per diluted share, compared with $45 million, or $0.89 per diluted share, in the prior-year quarter, as higher sales and gross margin were offset by increased selling, general and administrative expenses.

For the 13 weeks ended Aug. 1, 2026, net sales increased 4.6% to $319.8 million. Comparable-store sales rose 2.1%, while online sales increased 2.3% to $44.6 million. Year-to-date net income increased to $91.3 million, or $1.79 per diluted share, from $80.2 million, or $1.59 per diluted share, a year earlier.

Chief Financial Officer Tom Heacock said year-to-date sales rose 5.3% to $608.6 million, with comparable-store sales up 3.5% and online sales up 2.5% to $92.2 million. The company reiterated that it does not provide forward sales or earnings guidance.

Margin and Expense Trends

Second-quarter gross margin increased 40 basis points from the prior year to 47.8%. Merchandise margins improved by 110 basis points, including a 65-basis-point benefit from tariff refunds received during the quarter. That improvement was partly offset by a 70-basis-point increase in buying, distribution and occupancy expenses associated with growth in new and relocated stores.

Heacock said merchandise margin improvement excluding the tariff refunds reflected a higher private-label mix, strong regular-price selling, lower markdowns and solid sell-through of new products. Private-label merchandise represented 44.5% of sales during the quarter, compared with 43.5% a year earlier.

The company received $2.5 million in tariff refunds during the quarter, according to Heacock. More than $2 million was credited to cost of goods sold, with most of the benefit already recognized and smaller amounts expected to flow into the second and third quarters. He said Buckle expects no additional tariff refunds.

SG&A expenses rose to 30.4% of net sales from 29.0% in the prior-year quarter, contributing to an operating margin decline to 17.4% from 18.4%. The increase included higher marketing, store labor, health insurance benefits, store supplies and other expenses, partially offset by lower incentive and equity compensation accruals.

Marketing expense increased by 45 basis points as Buckle expanded investments focused on customer acquisition and retention. Heacock said investments were spread across connected television, Spotify, search, social media, creators and email, while the company also experienced higher costs from marketing providers and invested in data and analytics tools.

Women’s Business Leads Sales Growth

Vice President of Finance and Corporate Controller Adam Akerson said the women’s business increased 9.5% during the quarter, following an 18.5% gain in the comparable quarter of 2025. Women’s merchandise represented 50% of quarterly sales, up from 47.5% a year earlier.

Women’s denim sales grew 11%, supported by demand across different leg openings and rises. Average women’s denim prices increased to $92.50 from $85.35 a year earlier. Alternative pants were the fastest-growing women’s segment, rising nearly 50%, driven by demand for prints, colors and wider-leg silhouettes. Women’s tops increased about 10.5%, while shorts accelerated during July.

President and CEO Dennis Nelson attributed the women’s performance to consumer interest in new product, fashion, denim and casual apparel, as well as coordinated merchandise groups featuring tops and the company’s brands.

Men’s sales were essentially flat from the prior year and represented 50% of sales, down from 52.5% a year ago. Men’s denim sales declined about 3.5%, although private-label denim outperformed as weakness was concentrated in higher-priced national brands. Men’s tops increased 3.5%, with graphic tees, short-sleeve woven shirts, polos and hoodies contributing to results.

Accessory sales increased approximately 2.5%, while footwear sales rose about 0.5%. Nelson said footwear remains a steady business but that the men’s category would likely remain smaller until a new fashion item or major brand drives greater volume. He added that footwear conditions appear difficult for many retailers.

The kids business increased 11%, building on a 23% increase in the prior-year second quarter. Akerson said growth was broad-based across denim, shorts, casual bottoms and tees, with “mini-me” styling supporting demand.

Store Expansion and Balance Sheet

Buckle ended the quarter with 446 retail stores in 42 states, compared with 440 stores in 42 states a year earlier. During the quarter, the company opened five stores, completed five full remodels—four of which were relocations to new outdoor shopping centers—and closed one store.

After quarter-end, Buckle opened another location, bringing its year-to-date total to nine new stores, 10 full remodels and two closures. The company expects to open five additional stores and complete four more full remodel projects during the remainder of the year.

Inventory totaled $161.4 million at quarter-end, up 13.3% from a year earlier. Buckle reported $322.9 million in total cash and investments and $191.7 million in fixed assets, net of accumulated depreciation. Quarterly capital expenditures were $29.8 million, including year-to-date spending on stores, remodels, technology upgrades, corporate headquarters and distribution center projects, as well as a replacement corporate aircraft.

About Buckle (NYSE:BKE)

Buckle, Inc is a retailer specializing in casual apparel, footwear and accessories for young men and women. The company is known for its denim-focused collections, offering both private-label lines and curated brand-name merchandise. Its product assortment includes jeans, tops, outerwear, shoes and a variety of accessories such as belts, jewelry and handbags, all aimed at blending contemporary style with everyday comfort.

Founded in 1948 in Kearney, Nebraska, Buckle began as a single clothing store and has since expanded into a nationwide chain.

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