Group 1 - The core investment strategy of Quipus Capital focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective rather than market-driven dynamics [1] - Quipus Capital emphasizes understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations from Quipus Capital will be holds, indicating a cautious approach to market conditions and a belief that only a small fraction of companies are suitable for buying at any given time [1] Group 2 - The articles produced by Quipus Capital aim to provide valuable information for future investors while maintaining a healthy skepticism towards a generally bullish market [1]

The Buckle, Inc. Reports Second Quarter Net Income [Key Financial Highlights (Q2 & YTD Fiscal 2025)](index=1&type=section&id=Key%20Financial%20Highlights%20%28Q2%20%26%20YTD%20Fiscal%202025%29) The Buckle, Inc. reported strong financial performance for both the second fiscal quarter and the first 26-week period of fiscal 2025, with notable year-over-year growth across key metrics including net income, net sales, comparable store sales, and online sales Q2 Fiscal 2025 vs. Q2 Fiscal 2024 Performance | Metric | Q2 FY25 | Q2 FY24 | Change (%) | | :-------------------------- | :-------- | :-------- | :--------- | | Net Income | $45.0 million | $39.3 million | +14.5% | | Basic EPS | $0.90 | $0.79 | +13.9% | | Diluted EPS | $0.89 | $0.78 | +14.1% | | Net Sales | $305.7 million | $282.4 million | +8.3% | | Comparable Store Net Sales | +7.3% | N/A | N/A | | Online Sales | $43.6 million | $37.0 million | +17.7% | - Net income for the fiscal quarter ended August 2, 2025, was **$45.0 million**, or **$0.90** per share (**$0.89** diluted), compared to **$39.3 million**, or **$0.79** per share (**$0.78** diluted) for the prior year's second quarter[3](index=3&type=chunk)[6](index=6&type=chunk) - Net sales for the 13-week fiscal quarter increased **8.3 percent** to **$305.7 million**, with comparable store net sales up **7.3 percent** and online sales up **17.7 percent** to **$43.6 million**[4](index=4&type=chunk) YTD Fiscal 2025 (26-week) vs. YTD Fiscal 2024 Performance | Metric | YTD FY25 | YTD FY24 | Change (%) | | :-------------------------- | :-------- | :-------- | :--------- | | Net Income | $80.2 million | $74.1 million | +8.2% | | Basic EPS | $1.60 | $1.49 | +7.4% | | Diluted EPS | $1.59 | $1.48 | +7.4% | | Net Sales | $577.9 million | $544.9 million | +6.1% | | Comparable Store Net Sales | +5.2% | N/A | N/A | | Online Sales | $90.0 million | $81.4 million | +10.5% | - Net income for the 26-week fiscal period ended August 2, 2025, was **$80.2 million**, or **$1.60** per share (**$1.59** diluted), up from **$74.1 million**, or **$1.49** per share (**$1.48** diluted) in the prior year[7](index=7&type=chunk) - Net sales for the 26-week period increased **6.1 percent** to **$577.9 million**, with comparable store net sales up **5.2 percent** and online sales up **10.5 percent** to **$90.0 million**[5](index=5&type=chunk) [Investor Webcast Information](index=1&type=section&id=Investor%20Webcast%20Information) Management will host a live audio webcast to discuss the quarter's results, with registration details provided and a replay available on the investor relations website - A live audio webcast was scheduled for August 22, 2025, at 10:00 a.m. EDT to discuss the quarter's results, with a replay accessible through Buckle's investor relations website[8](index=8&type=chunk) [About Buckle](index=1&type=section&id=About%20Buckle) Buckle is a specialty retailer offering a curated mix of apparel, accessories, and footwear, known for its denim selection and operating 440 retail stores across 42 states - Buckle is a specialty retailer focused on delivering exceptional service and style through a curated mix of high-quality, on-trend apparel, accessories, and footwear[9](index=9&type=chunk) - The company is known as a denim destination, carrying a wide selection from leading brands, including its exclusive brand, BKE[9](index=9&type=chunk) - Buckle currently operates **440 retail stores** in **42 states**, maintaining the same store count as the end of the second quarter of fiscal 2024[9](index=9&type=chunk) [Safe Harbor Statement](index=2&type=section&id=SAFE%20HARBOR%20STATEMENT%20UNDER%20THE%20PRIVATE%20SECURITIES%20LITIGATION%20REFORM%20ACT%20OF%201995) The statement advises that all forward-looking statements are subject to material risks and uncertainties beyond the Company's control, and future performance may differ materially from projections. The Company does not commit to publicly update or revise these statements - All forward-looking statements involve material risks and uncertainties and are subject to change based on factors beyond the Company's control[10](index=10&type=chunk) - The Company's future performance and financial results may differ materially from those expressed or implied in any forward-looking statements[10](index=10&type=chunk) - The Company does not undertake to publicly update or revise any forward-looking statements, even if experience or future changes indicate that projected results will not be realized[10](index=10&type=chunk) Consolidated Financial Statements [Consolidated Statements of Income](index=3&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The consolidated statements of income show an increase in net sales, gross profit, and net income for both the second quarter and the 26-week period of fiscal 2025 compared to the prior year, despite higher operating expenses Consolidated Statements of Income - Key Figures (Thirteen Weeks Ended, Thousands) | Metric | August 2, 2025 | August 3, 2024 | | :----------------- | :------------- | :------------- | | SALES, Net | $305,737 | $282,392 | | COST OF SALES | $160,728 | $149,858 | | Gross profit | $145,009 | $132,534 | | OPERATING EXPENSES | $88,668 | $84,274 | | INCOME FROM OPERATIONS | $56,341 | $48,260 | | NET INCOME | $45,006 | $39,255 | | Basic EPS | $0.90 | $0.79 | | Diluted EPS | $0.89 | $0.78 | Consolidated Statements of Income - Key Figures (Twenty-Six Weeks Ended, Thousands) | Metric | August 2, 2025 | August 3, 2024 | | :----------------- | :------------- | :------------- | | SALES, Net | $577,858 | $544,872 | | COST OF SALES | $305,873 | $291,641 | | Gross profit | $271,985 | $253,231 | | OPERATING EXPENSES | $172,098 | $162,575 | | INCOME FROM OPERATIONS | $99,887 | $90,656 | | NET INCOME | $80,199 | $74,098 | | Basic EPS | $1.60 | $1.49 | | Diluted EPS | $1.59 | $1.48 | [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet shows an increase in total assets, driven by higher cash and cash equivalents, inventory, and operating lease right-of-use assets, alongside an increase in total liabilities and stockholders' equity as of August 2, 2025, compared to both February 1, 2025, and August 3, 2024 Consolidated Balance Sheets - Key Assets (Thousands) | Asset | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :------------------------ | :------------- | :--------------- | :------------- | | Cash and cash equivalents | $297,811 | $266,929 | $287,266 | | Short-term investments | $22,118 | $23,801 | $21,856 | | Inventory | $142,486 | $120,789 | $131,418 | | Total current assets | $493,302 | $439,209 | $469,200 | | Property and equipment, net | $158,783 | $145,752 | $139,333 | | Operating lease right-of-use assets | $334,703 | $289,793 | $292,194 | | Total assets | $1,028,632 | $913,173 | $940,271 | Consolidated Balance Sheets - Key Liabilities & Equity (Thousands) | Liability/Equity | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :--------------------------- | :------------- | :--------------- | :------------- | | Accounts payable | $72,630 | $45,982 | $62,820 | | Total current liabilities | $229,554 | $213,932 | $206,219 | | Non-current operating lease liabilities | $293,293 | $247,321 | $248,424 | | Total liabilities | $552,477 | $489,369 | $481,627 | | Total stockholders' equity | $476,155 | $423,804 | $458,644 | | Total liabilities and stockholders' equity | $1,028,632 | $913,173 | $940,271 |

Financial Data and Key Metrics Changes - Net income for the second quarter was $45 million or $0.89 per share, compared to $39.3 million or $0.78 per share in the prior year [4] - Year-to-date net income was $80.2 million or $1.59 per share, up from $74.1 million or $1.48 per share in the prior year [4] - Net sales for the second quarter increased by 8.3% to $305.7 million, compared to $282.4 million in the prior year [4] - Year-to-date net sales increased by 6.1% to $577.9 million, compared to $544.9 million in the prior year [4] Business Line Data and Key Metrics Changes - Women's merchandise sales increased by approximately 18.5%, representing about 47.5% of total sales, up from 43.5% last year [11] - Men's merchandise sales grew by about 1.5%, representing approximately 52.5% of total sales, down from 56.5% in the prior year [12] - Kids business increased approximately 23% year-over-year, growing to about 4.5% of total business for the quarter [14] - Overall average accessory sales increased by approximately 9.5%, while footwear sales were down about 0.5% [13] Market Data and Key Metrics Changes - Comparable store sales for the quarter increased by 7.3% compared to the same period last year [4] - Online sales increased by 17.7% to $43.6 million for the quarter [4] - Year-to-date comparable store sales increased by 5.2% compared to the same period last year [5] Company Strategy and Development Direction - The company continues to focus on customer-centric buying strategies, leading to double-digit growth in most categories [12] - There is an ongoing strategy to enhance the online shopping experience, with investments in digital commerce expected to continue benefiting future quarters [29] - The company plans to open four additional new stores and complete 12 more full remodeling projects for the remainder of the year [9] Management's Comments on Operating Environment and Future Outlook - Management noted that merchandise margin growth was strong, although the rate of growth decelerated compared to the previous quarter [20] - Tariff impacts on costs are currently low to mid-single digits, with some vendors experiencing higher costs [22] - The company is experiencing increased occupancy expenses due to new store openings and remodels, which is expected to continue [24] Other Important Information - Gross margin for the quarter was 47.4%, a 50 basis point increase from the previous year [5] - Selling, general, and administrative expenses for the quarter were 29% of sales, down from 29.8% in the prior year [6][7] - The company ended the quarter with $142.5 million in inventory, up 8.4% from the same time last year [8] Q&A Session Summary Question: Can you elaborate on the merchandise margin expansion? - Management indicated that the growth in merchandise margins was strong, but the rate of growth decelerated due to a decrease in private label mix [20][21] Question: What are the drivers behind the gross margin leverage? - The increase in occupancy expenses was identified as a key driver, with a 5.5% increase in Q2 compared to Q1 [24] Question: Is the 65 basis points from nonrecurring digital investments just for Q2? - Management confirmed that the impact of digital investments will also flow into Q3 [29]

Financial Data and Key Metrics Changes - Net income for Q2 2025 was $45 million or $0.89 per share, compared to $39.3 million or $0.78 per share in Q2 2024, representing a year-over-year increase of 14.3% in net income [4] - Year-to-date net income for the 26-week period ended August 2, 2025, was $80.2 million or $1.59 per share, up from $74.1 million or $1.48 per share in the prior year [4] - Net sales for Q2 2025 increased by 8.3% to $305.7 million compared to $282.4 million in Q2 2024 [4] - Year-to-date net sales increased by 6.1% to $577.9 million compared to $544.9 million in the prior year [4] Business Line Data and Key Metrics Changes - Women's merchandise sales increased by approximately 18.5%, representing about 47.5% of total sales, up from 43.5% last year [11] - Men's merchandise sales grew by about 1.5%, accounting for approximately 52.5% of total sales, down from 56.5% in the prior year [12] - Kids' business saw a significant increase of approximately 23% year-over-year, growing to about 4.5% of total business for the quarter [14] - Private label sales represented 43.5% of total sales, up from 43% in the prior year [14] Market Data and Key Metrics Changes - Online sales increased by 17.7% to $43.6 million in Q2 2025 [4] - Comparable store sales for the quarter increased by 7.3% compared to the same period last year [4] - Average unit retail (AUR) for women's products increased by about 5% from $43.15 to $45.35 [12] Company Strategy and Development Direction - The company continues to focus on customer-centric buying strategies, which have resulted in strong guest responses and double-digit growth in most categories [12] - The strategy includes evolving the denim category, which has been a significant driver of sales growth [11] - The company plans to open four additional new stores and complete 12 more full remodeling projects for the remainder of the year [9] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the growth in merchandise margins despite a deceleration compared to the previous quarter, attributing it to strong full-price selling [20] - The company is experiencing low to mid-single-digit cost increases due to tariffs, with some vendors showing no increase at all [22] - Management noted that occupancy expenses increased due to new store openings and remodels, impacting overall margins [24] Other Important Information - Gross margin for Q2 2025 was 47.4%, a 50 basis point increase from 46.9% in Q2 2024 [5] - Selling, general, and administrative expenses for the quarter were 29% of sales, down from 29.8% in the prior year [6] - The company ended the quarter with $142.5 million in inventory, up 8.4% from the same time last year [8] Q&A Session Summary Question: Can you elaborate on the merchandise margin expansion? - Management indicated that the growth in merchandise margins was due to strong full-price selling, although the rate of growth decelerated compared to Q1 [20] Question: What are the drivers behind the occupancy expense increase? - The increase in occupancy expense was attributed to new store openings and remodels, which led to higher base rent and percentage rent due to strong sales performance [24] Question: Is the 65 basis points from nonrecurring digital investments just a one-time effect? - Management confirmed that the impact from nonrecurring digital investments will also flow into Q3, as efforts to improve the online experience began in Q1 and continued into Q2 [29]

Group 1 - The article discusses the unpredictability of geopolitical events such as the war between Iran and Israel and the trade war, which have impacted market performance [1] - It highlights that markets are struggling with negative headlines, alongside rising rates and inflation [1] Group 2 - The article emphasizes the importance of in-depth research on various investment vehicles including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1]

Financial Performance - Net sales increased from $262.5 million in Q1 2024 to $272.1 million in Q1 2025, a 3.7% increase [55] - Comparable store net sales for the thirteen-week period ended May 3, 2025, increased by 3.0% compared to the prior year [55] - Gross profit was $127.0 million in Q1 2025, representing 46.7% of net sales, up from 46.0% in Q1 2024 [57] - Income from operations was $43.5 million, or 16.0% of net sales, for Q1 2025, compared to $42.4 million, or 16.2% of net sales, for Q1 2024 [59] - Cash flow from operations was $31.0 million in Q1 2025, compared to $29.9 million in Q1 2024 [60] Capital Expenditures and Investments - Total capital expenditures for fiscal 2025 are estimated to be approximately $50.0 to $55.0 million [63] - The company had total cash and investments of $320.0 million as of May 3, 2025 [63] - The company has an unsecured line of credit of $25.0 million with Wells Fargo Bank, N.A., expiring on July 31, 2025 [65] - The Company has an unsecured line of credit of $25.0 million, with $10.0 million available for letters of credit [73] Inventory and Obligations - As of May 3, 2025, the adjustment to inventory for markdowns and/or obsolescence was $9.7 million, compared to $9.2 million as of February 1, 2025 [71] - The total contractual obligations as of May 3, 2025, amounted to $499.486 million, with operating lease payments contributing $452.013 million [73] - The Company had outstanding letters of credit totaling $1.1 million as of May 3, 2025, down from $2.2 million as of February 1, 2025 [73] Business Strategy and Operations - The company plans to open 7 new stores and complete 16 full store remodels during fiscal 2025 [63] - The holiday and back-to-school seasons accounted for approximately 35% of the Company's fiscal year net sales for fiscal years 2024, 2023, and 2022 [74] - Store leases typically have an initial term of 10 years, with options to renew for an additional 1 to 5 years [71] - Management reviews inventory levels against estimated future demand and current market conditions, which could significantly impact net earnings [71] Financial Risks and Trends - A one-quarter percent decline in the interest/dividend rate earned on cash and investments would decrease the Company's net income by approximately $0.5 million [76] - The Company has no known trends or uncertainties that would materially affect its financial condition or results of operations [72] - The Company does not undertake to update any forward-looking statements made from time to time [75]

Financial Performance - Net income for the first quarter of fiscal 2025 was $35.2 million, or $0.70 per share, compared to $34.8 million, or $0.70 per share for the same period in fiscal 2024[2][4] - Net sales for the 13-week fiscal quarter ended May 3, 2025, increased by 3.7% to $272.1 million from $262.5 million in the prior year[3] - Comparable store net sales increased by 3.0% for the same period[3] - Online sales rose by 4.5% to $46.4 million compared to $44.4 million in the prior year[3] - Gross profit for the quarter was $127.0 million, up from $120.7 million in the previous year[9] Assets and Equity - Total assets as of May 3, 2025, were $977.3 million, compared to $906.1 million a year earlier[10] - Total stockholders' equity increased to $445.3 million from $433.8 million year-over-year[10] - The company reported an increase in cash and cash equivalents to $268.9 million from $267.4 million year-over-year[10] Store Operations - The company operated 439 retail stores in 42 states, a slight decrease from 440 stores in the previous year[6] Liabilities - Current liabilities totaled $217.7 million, compared to $205.3 million in the prior year[10]

Financial Data and Key Metrics Changes - Net income for Q1 2026 was $35.2 million or $0.70 per share, compared to $34.8 million or $0.69 per share in Q1 2025, reflecting a year-over-year increase [4] - Net sales increased by 3.7% to $272.1 million from $262.5 million in the prior year [4] - Gross margin improved to 46.7%, a 70 basis point increase from 46% in the previous year [4] Business Line Data and Key Metrics Changes - Women's merchandise sales increased by approximately 10.5%, representing about 50% of total sales, up from 47% last year [9] - Men's merchandise sales decreased by about 2.5%, accounting for approximately 50% of total sales, down from 53% [10] - Youth business saw an increase of approximately 11.5% year-over-year [12] Market Data and Key Metrics Changes - Comparable store sales increased by 3% compared to the same period last year [4] - Online sales rose by 4.5% to $46.4 million [4] Company Strategy and Development Direction - The company plans to open seven new stores and complete 16 additional full remodel projects for the remainder of the year [7] - Focus on enhancing private label offerings, which represented 47.5% of sales, up from 46% in the prior year [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in managing vendor relationships to mitigate tariff impacts, with some vendors maintaining stable costs [21] - Positive trends in women's business and strong sell-throughs in key categories were highlighted as encouraging signs for future performance [21] Other Important Information - Selling, general and administrative expenses were 30.7% of net sales, up from 29.8% in the previous year, driven by increases in incentive compensation and health insurance costs [5] - Inventory stood at $132.4 million, a 1.3% increase from the previous year [6] Q&A Session Summary Question: Impact of China tariffs on gross margin - Management indicated that they are managing tariffs effectively with vendors, with some costs remaining stable and others experiencing low to mid-single digit increases [16][21] Question: Increase in operating lease assets - The increase in operating lease assets was attributed to new stores and remodels over the past twelve months [17] Question: Drivers of merchandise margin increase - The increase in merchandise margin was driven by growth in private label and strong regular price selling [23] Question: Potential for SG&A leverage - Management noted that total SG&A dollars were up slightly, with store payroll flat as a percentage of sales, indicating potential for leverage if sales continue to improve [27]

Financial Data and Key Metrics Changes - Net income for Q1 2026 was $35.2 million or $0.70 per share, compared to $34.8 million or $0.69 per share in Q1 2025, reflecting a year-over-year increase [4] - Net sales increased by 3.7% to $272.1 million from $262.5 million in the prior year [4] - Gross margin improved to 46.7%, a 70 basis point increase from 46% in the previous year [4] - Selling, general and administrative (SG&A) expenses were 30.7% of net sales, up from 29.8% in the prior year [5] Business Line Data and Key Metrics Changes - Women's merchandise sales increased by approximately 10.5%, representing about 50% of total sales, up from 47% last year [7] - Men's merchandise sales decreased by about 2.5%, accounting for approximately 50% of total sales, down from 53% [8] - Accessory sales increased by approximately 3.5%, while footwear sales decreased by about 7% [9] - Private label sales represented 47.5% of total sales, up from 46% in the prior year [10] Market Data and Key Metrics Changes - Comparable store sales increased by 3% year-over-year [4] - Online sales rose by 4.5% to $46.4 million [4] - Average unit retail (AUR) for women's denim increased from $80.85 to $84.85, while men's denim price points increased from $88.65 to $89.7 [7][8] Company Strategy and Development Direction - The company plans to open seven new stores and complete 16 additional full remodel projects for the remainder of the year [6] - Focus on enhancing private label offerings and maintaining strong relationships with key vendors to manage costs effectively [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in managing tariff impacts, with some vendors maintaining stable costs while others have low to mid-single-digit increases [14] - Positive trends in women's business and strong sell-throughs in key categories were highlighted, indicating a favorable outlook [19] Other Important Information - Inventory as of May 3, 2025, was $132.4 million, up 1.3% from the previous year [6] - The company completed five full store remodels and closed two stores during the quarter [6] Q&A Session Summary Question: Impact of China tariffs on gross margin - Management indicated that they are managing tariffs effectively with vendors, resulting in minimal cost increases [14] Question: Increase in operating lease assets - The increase was attributed to new stores and remodels recognized on the balance sheet [15] Question: Drivers of merchandise margin increase - The increase in merchandise margin was driven by growth in private label and strong regular price selling [20] Question: SG&A expense leverage opportunities - SG&A expenses were up due to increased payroll and incentive compensation, but management noted potential for leverage with continued sales growth [26]

Financial Performance - Net sales for fiscal year 2024 decreased by 3.4% to $1.218 billion from $1.261 billion in fiscal year 2023[132] - Comparable store net sales decreased by 2.7% for the fiscal year 2024 compared to the prior year[132] - Gross profit decreased from $619.1 million in fiscal 2023 to $592.8 million in fiscal 2024, with a gross margin of 48.7%[134] - Income from operations decreased from $271.1 million in fiscal 2023 to $241.4 million in fiscal 2024, representing 19.8% of net sales[137] - Net income for fiscal 2024 was $195.5 million, down from $219.9 million in fiscal 2023[138] - Selling expenses increased to 24.1% of net sales in fiscal 2024 from 23.1% in fiscal 2023[135] - Cash flow from operations was $242.0 million in fiscal 2024, down from $254.6 million in fiscal 2023[140] Future Plans - The company plans to open 7 new stores and remodel 18-22 stores in fiscal 2025, with estimated capital expenditures of $50.0 to $55.0 million[142] Dividends and Credit - The company paid total cash dividends of $198.0 million in fiscal 2024, consistent with the previous year[145] - The company has an unsecured line of credit of $25.0 million, with no borrowings during fiscal 2024[144] - The Company has an unsecured line of credit of $25.0 million, with $10.0 million available for letters of credit[153] Liabilities and Obligations - The liability for unredeemed gift certificates and gift cards was $17.0 million as of February 1, 2025, compared to $16.7 million as of February 3, 2024[147] - The accrued liability for reserve for sales returns was $2.6 million as of both February 1, 2025, and February 3, 2024[151] - The adjustment to inventory for markdowns and/or obsolescence was $9.2 million as of February 1, 2025, compared to $9.1 million as of February 3, 2024[151] - Total contractual obligations amounted to $441.6 million as of February 1, 2025, with $108.3 million due in 2025[153] - A note receivable of $1.5 million from a life insurance trust fund controlled by the Company's Chairman was recorded as of both February 1, 2025, and February 3, 2024[155] - As of February 1, 2025, $10.3 million was included in accrued store operating expenses as a liability for estimated future rewards under the Buckle Rewards program[148] - The Company recorded operating lease payments totaling $395.2 million, with $96.4 million due in 2025[153] Revenue Recognition - The Company recognizes revenue from sales made under its layaway program upon delivery of the merchandise to the customer[146] Interest Rate Sensitivity - For each one-quarter percent decline in the interest/dividend rate, the Company's net income would decrease approximately $0.5 million[158]