The Buckle (BKE) Update / Briefing February 05, 2025 07:00 PM ET Company Participants Adam Akerson - VP of Finance, Controller & Assistant Treasurer Adam Akerson Hi. This is Adam Ackerson with Buckle, and this is a recording of Buckle's commentary regarding the company's January 2025 sales press release. Our 02/06/2025 press release reported that comparable store sales for stores opened at least one full year for the four week period ended 02/01/2025, increased 4.4% in comparison to the prior year four week ...

Core Insights - Meta CEO Mark Zuckerberg emphasized the need for employees to prepare for an "intense" year ahead, highlighting a sense of urgency and the importance of AI in the company's future [1][2] AI Strategy - Meta is focusing on AI, with Zuckerberg predicting that by 2025, a "highly intelligent and personalized" digital assistant will reach a billion users, which he believes will provide a significant competitive advantage [3] - Zuckerberg stated that this year will see AI agents taking on various tasks, including software development, although the impact on job roles remains uncertain [4] Policy Changes - Recent policy changes include a shift from third-party fact-checking to a community note system, which Zuckerberg expressed optimism about [5] - The company is also looking to reset its relationship with governments, particularly in the U.S., aiming for productive partnerships while maintaining its principles [6][7] Diversity, Equity, and Inclusion (DEI) - Meta is rolling back its DEI programs in response to changing legal and regulatory environments, with Zuckerberg noting that policies favoring specific groups may be viewed as unlawful [8][10] - He reiterated that diversity is viewed as a strength within the company, but adjustments are necessary to align with current legal standards [11]

Core Viewpoint - Buckle Inc. is facing challenges with declining sales and increasing costs, yet maintains a strong balance sheet with no debt and significant cash reserves, indicating potential resilience in a tough retail environment [1][2]. Financial Performance - Buckle's revenue for the first nine months of 2024 decreased by 5% year-over-year to $838 million, driven by a 5.4% decline in comparable store sales and a 9.2% drop in online sales [1]. - The company's net income fell by 16% year-over-year to $118 million, primarily due to rising selling expenses and a decline in gross margins by 80 basis points to 46.9% [1]. - Transaction volumes decreased by 5.3%, and units per transaction fell by 2.6%, impacting profitability [1]. Sales Trends - Buckle's comparable store sales have shown signs of improvement, with a decline slowing from 9% in Q1 2024 to 0.7% in Q3 2024, suggesting stabilization efforts may be effective [2]. Market Position - Buckle's stock is currently trading at about $48 per share, with a valuation of approximately 12 times consensus 2025 earnings, which is relatively higher compared to Gap Inc.'s 10 times forward earnings [3]. - Despite Buckle's stock increasing in value over the last four years, it has not consistently outperformed the market, with returns of 70% in 2021, 11% in 2022, 15% in 2023, and 17% in 2024 [4]. Brand Portfolio - The company offers a diverse range of brands, including BKE, Buckle Black, Salvage, and Daytrip, targeting the young adult demographic [3]. Store Expansion - Buckle's store count has expanded minimally to 445 locations by September 2024, with revenue growth primarily driven by comparable store sales rather than new store openings [2].

Group 1 - The article emphasizes the importance of macroeconomic and geopolitical developments in investment analysis [1] - It highlights the need for in-depth research on various investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [2] - The article mentions the author's long position in shares of companies like GE, UNP, and REXR, indicating a personal investment interest [3]

Financial Performance - Net sales decreased from $303.5 million in Q3 2023 to $293.6 million in Q3 2024, a 3.2% decrease [72] - Comparable store net sales for the thirteen-week period ended November 2, 2024 decreased 0.7% compared to the prior year [72] - Gross profit was $140.1 million in Q3 2024, representing 47.7% of net sales, down from 48.5% in Q3 2023 [77] - Year-to-date net sales decreased from $878.7 million in the first three quarters of fiscal 2023 to $838.5 million in fiscal 2024, a 4.6% decrease [73] - Income from operations was $54.5 million, or 18.6% of net sales, for Q3 2024, compared to $64.1 million, or 21.1% of net sales, for Q3 2023 [81] - Selling, general, and administrative expenses were 29.1% of net sales for Q3 2024, up from 27.4% in Q3 2023 [79] Cash Flow and Capital Expenditures - Cash flow from operations was $121.2 million for the first three quarters of fiscal 2024, down from $145.3 million in fiscal 2023 [83] - Total capital expenditures for fiscal 2024 are estimated to be approximately $36.0 to $40.0 million [87] Store Operations and Inventory - The company plans to complete 1 new store and 7 full store remodels during the remainder of fiscal 2024 [87] - The average retail price per piece of merchandise sold increased by $1.40, or 2.8%, in Q3 2024 compared to Q3 2023 [74] - The adjustment to inventory for markdowns and/or obsolescence was $11.2 million as of November 2, 2024, up from $9.1 million as of February 3, 2024 [95] Liabilities and Obligations - The liability for unredeemed gift cards and certificates was $12.6 million as of November 2, 2024, down from $16.7 million as of February 3, 2024 [91] - The accrued liability for sales returns was $3.6 million as of November 2, 2024, compared to $2.6 million as of February 3, 2024 [93] - Total contractual obligations amounted to $442.173 million as of November 2, 2024, with operating lease payments of $394.210 million included [103] - The Company had outstanding letters of credit totaling $3.1 million as of November 2, 2024, slightly down from $3.2 million as of February 3, 2024 [103] Seasonal Business and Interest Rates - The Company’s business is seasonal, with the holiday and back-to-school seasons historically contributing approximately 35% of annual net sales [104] - A one-quarter percent decline in interest/dividend rates would decrease the Company's net income by approximately $0.5 million [107] Credit and Borrowing - The Company has an unsecured line of credit of $25.0 million, with $10.0 million available for letters of credit, expiring on July 31, 2025 [89] - The Company has not made any bank borrowings during the first three quarters of fiscal 2024 or 2023 [89] - The Company believes it has sufficient credit available to open letters of credit for merchandise purchases [103]

Group 1 - The Buckle (NYSE: BKE) was upgraded from 'hold' to 'buy' in October 2022 despite experiencing challenges [1] - The company specializes in casual apparel, footwear, and accessories [1] Group 2 - Crude Value Insights provides an investing service focused on oil and natural gas, emphasizing cash flow and growth prospects [1] - Subscribers have access to a stock model account, cash flow analyses of E&P firms, and live sector discussions [2]

Financial Performance - Net income for the third quarter of fiscal 2024 was $44.2 million, or $0.89 per share, compared to $51.8 million, or $1.05 per share in the same quarter of fiscal 2023, representing a decrease of 14.9% in net income [3][6]. - For the 39-week fiscal period ended November 2, 2024, net income was $118.3 million, or $2.37 per share, down from $140.3 million, or $2.83 per share in the prior year [7]. Sales Performance - Net sales for the 13-week fiscal quarter ended November 2, 2024, decreased by 3.2% to $293.6 million from $303.5 million in the prior year [4]. - Comparable store net sales for the 13-week fiscal quarter decreased by 0.7% compared to the same period last year [4]. - Online sales increased by 1.1% to $46.6 million for the 13-week fiscal quarter ended November 2, 2024, compared to $46.1 million for the same period last year [4]. - The company reported a gross profit of $140.1 million for the 13-week fiscal quarter, down from $147.2 million in the prior year [12]. Assets and Liabilities - Total current assets as of November 2, 2024, were $504.9 million, compared to $508.9 million at the end of the previous fiscal quarter [15]. - Total assets increased to $976.3 million as of November 2, 2024, from $921.2 million at the end of the previous fiscal year [15]. - Total liabilities were $487.9 million as of November 2, 2024, compared to $447.2 million at the end of the previous fiscal year [15]. Store Operations - The company operated 445 retail stores in 42 states as of the end of the fiscal quarter, an increase from 443 stores in the same period last year [9].

Group 1 - The Buckle, Inc. (NYSE: BKE) is identified as a specialty retail stock that has experienced significant gains in recent months, aligning with overall market trends [1] - The company has previously been traded, indicating a history of market activity and investor interest [1] Group 2 - The company has activated a BLACK FRIDAY deal ahead of competitors, suggesting a strategic move to attract customers and secure sales [2] - A promotional offer is available, providing a 28% discount for new members, which may enhance customer acquisition and retention [2] Group 3 - The company offers a money-back guarantee for its services, indicating confidence in customer satisfaction and product quality [3] - There is a light version of the service available, which may appeal to a broader audience by providing flexible options [3]

The Buckle, Inc. (NYSE:BKE) Q3 2024 Earnings Conference Call November 22, 2024 10:00 AM ET Company Participants Thomas Heacock - SVP of Finance, Treasurer & CFO Adam Akerson - VP of Finance & Corporate Controller Dennis Nelson - President & CEO Conference Call Participants Mauricio Serna - UBS Nancy Frohna - 1492 Capital Management Operator Good morning. Thank you for standing by, and welcome to Buckle's Third Quarter Earnings Release Webcast. As a reminder, all participants are currently in listen-only mod ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended August 3, 2024 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ____________ to ____________ Commission File Number: 001-12951 THE BUCKLE, INC. (Exact name of Registrant as specified in its charter) Nebraska 47-0366193 (State or other j ...