Q2 2026 The Buckle, Inc. Earnings Call Transcript
Key Points
- Net sales increased 4.6% in Q2 and 5.3% year-to-date, with comparable store sales up 2.1% and 3.5%, respectively.
- Women's business grew 9.5% in Q2, with strong performance in denim (up 11%), alternative pants (up nearly 50%), and tops (up 10.5%).
- Kids business delivered another outstanding quarter, increasing 11% on top of a 23% increase in the prior year.
- Merchandise margins improved by 110 basis points in Q2, driven by strong regular price selling and reduced markdowns.
- Year-to-date net income increased to $91.3 million, up from $80.2 million in the prior year, reflecting strong profitability.
- Men's business remained flat in Q2, with men's denim sales declining approximately 3.5% year-over-year.
- SG&A expenses increased to 30.4% of net sales in Q2, up from 29.0%, due to higher marketing, labor, and health insurance costs.
- Inventory levels rose 13.3% year-over-year, potentially indicating slower sell-through or overstocking.
- Footwear sales increased only 0.5% in Q2, continuing a trend of softness in the category.
- Operating margin declined to 17.4% in Q2 from 18.4% in the prior year, reflecting increased expenses.
Good morning, and thank you for standing by, and welcome to Buckle's second quarter earnings release webcast. (Operator Instructions) 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
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