Part I [Business](index=5&type=section&id=Item%201.%20Business) The Buckle, Inc. is a U.S.-based retailer of casual apparel, footwear, and accessories, operating 444 stores across 42 states - The company operates **444 retail stores** in 42 states under the names "Buckle" and "Buckle Youth" as of February 3, 2024[60](index=60&type=chunk) Fiscal 2023 Net Sales by Merchandise Group | Merchandise Group | Percentage of Net Sales (FY 2023) | | :--- | :--- | | Denims | 40.9% | | Tops (including sweaters) | 29.3% | | Accessories | 10.8% | | Footwear | 6.7% | | Other Categories | 12.3% | - Brand name merchandise accounted for approximately **54% of net sales** in fiscal 2023, with the remaining **46% from private label brands**[94](index=94&type=chunk)[124](index=124&type=chunk) - For fiscal 2024, the company anticipates opening **8 new stores**, completing **15-19 full remodels**, and projects capital spending of approximately **$32.0 M to $38.0 M**[135](index=135&type=chunk) [Merchandising](index=6&type=section&id=Merchandising) The merchandising strategy focuses on offering a wide selection of brand name and private label goods, with denim as a key sales driver - Denim is a significant contributor to total sales, representing **40.9% of fiscal 2023 net sales**, followed by tops at **29.3%**[65](index=65&type=chunk)[66](index=66&type=chunk) - Key private label brands include **BKE, Buckle Black, and Daytrip**, while featured external brands include **Miss Me, Rock Revival, and Hurley**[94](index=94&type=chunk) [Store Locations and Expansion Strategies](index=9&type=section&id=Store%20Locations%20and%20Expansion%20Strategies) The company operated 444 stores as of February 3, 2024, with plans to open 8 new stores and remodel 15-19 in fiscal 2024 Store Count Activity (FY 2014-2023) | Fiscal Year | Open at start | Opened | Closed | Open at end | | :--- | :--- | :--- | :--- | :--- | | 2022 | 440 | 4 | 3 | 441 | | 2023 | 441 | 9 | 6 | 444 | - The projected cost of opening a new store is approximately **$1.5 M**, which includes **$1.3 M for construction** and **$0.2 M for inventory**[80](index=80&type=chunk) - The company plans to open **8 new stores** and complete **15-19 full remodels** during fiscal 2024[135](index=135&type=chunk) [Employees and Human Capital](index=11&type=section&id=Employees%20and%20Human%20Capital) The company employed approximately 8,000 teammates as of February 3, 2024, emphasizing an entrepreneurial culture with performance-based compensation - The company had approximately **8,000 teammates** as of February 3, 2024, with about **2,800 full-time employees**[113](index=113&type=chunk) - Compensation for most store teammates is a base plus commission structure, aligning with an entrepreneurial culture and motivating service improvements[141](index=141&type=chunk) [Executive Officers of the Company](index=13&type=section&id=Executive%20Officers%20of%20the%20Company) The report lists the company's executive officers, including Daniel J. Hirschfeld, Dennis H. Nelson, and Thomas B. Heacock, who possess extensive industry experience - Daniel J. Hirschfeld, age 82, serves as Chairman of the Board and has been in this role since 1991[120](index=120&type=chunk) - Dennis H. Nelson, age 74, is the President and Chief Executive Officer, having started with the company in 1970[150](index=150&type=chunk) - Thomas B. Heacock, age 46, is the Senior Vice President of Finance, Treasurer, and Chief Financial Officer[121](index=121&type=chunk) [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces material business, operational, and general risks, including dependence on fashion trends, system vulnerabilities, and global economic disruptions - Business and Industry Risks: The company's success is highly dependent on its ability to anticipate fashion trends, manage its private label merchandise mix (**46% of FY2023 sales**), and compete in a crowded retail environment[154](index=154&type=chunk)[124](index=124&type=chunk)[157](index=157&type=chunk) - Operational Risks: The company relies on complex IT systems for all major operations and a single distribution facility in Kearney, Nebraska, making it vulnerable to system failures, cyber-attacks, or physical disruptions[130](index=130&type=chunk)[126](index=126&type=chunk) - Cybersecurity Risks: Unauthorized access to customer or employee data could result in significant expenses, litigation, and reputational damage[186](index=186&type=chunk) - General Risks: The business is susceptible to declines in consumer spending, changes in tax laws, and disruptions from global events such as pandemics that could impact facilities, stores, and the supply chain[157](index=157&type=chunk)[129](index=129&type=chunk)[162](index=162&type=chunk) [Cybersecurity](index=20&type=section&id=Item%201C.%20Cybersecurity) The company's cybersecurity strategy, managed by a Senior Director and overseen by the Audit Committee, follows the NIST Framework and includes incident response planning - Cybersecurity risk management is led by the Senior Director of Information Security, with oversight from the Audit Committee, which receives at least quarterly updates[164](index=164&type=chunk)[165](index=165&type=chunk) - The company's incident response plan is based on the NIST Framework and is executed by the Buckle Incident Response Team (BIRT)[164](index=164&type=chunk)[166](index=166&type=chunk) - While the company has faced cybersecurity threats, they have not materially affected its operations, business strategy, results of operations, or financial condition[167](index=167&type=chunk) [Properties](index=21&type=section&id=Item%202.%20Properties) All 444 retail stores are leased, while the corporate headquarters, distribution center, and online fulfillment center are company-owned in Kearney, Nebraska - All **444 store locations** are leased facilities, and the company owns its corporate headquarters and distribution center in Kearney, Nebraska[195](index=195&type=chunk)[196](index=196&type=chunk) Lease Expiration Schedule | Year | Number of Expiring Leases | | :--- | :--- | | 2025 | 140 | | 2026 | 77 | | 2027 | 78 | | 2028 | 41 | | 2029 and later | 108 | Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=22&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE, with regular and special cash dividends paid in fiscal 2023 and no share repurchases during the year Dividend Payments Per Share | Fiscal Year | Quarterly Dividend | Special Dividend | | :--- | :--- | :--- | | 2021 | $0.33-$0.35 | $5.65 | | 2022 | $0.35 | $2.65 | | 2023 | $0.35 | $2.50 | - The company did not repurchase any of its common stock during the fourth quarter of fiscal 2023, with **410,655 shares** remaining available for repurchase under the existing plan as of February 3, 2024[171](index=171&type=chunk)[231](index=231&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2023, net sales decreased by 6.3% to $1.261 billion, with comparable store sales down 8.0%, resulting in a 13.6% net income decline to $219.9 million Key Financial Results (Fiscal Year 2023 vs. 2022) | Metric | FY 2023 (53 weeks) | FY 2022 (52 weeks) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $1.261 B | $1.345 B | (6.3)% | | Gross Profit | $619.1 M | $676.0 M | (8.4)% | | Income from Operations | $271.1 M | $328.1 M | (17.4)% | | Net Income | $219.9 M | $254.6 M | (13.6)% | - Comparable store net sales for the 53-week fiscal year decreased **8.0%** compared to the prior year 53-week period[209](index=209&type=chunk) - Online sales decreased **10.3%** to **$206.5 M** for fiscal 2023[209](index=209&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company ended fiscal 2023 with strong liquidity, holding $268.2 million in cash and no debt, with projected capital expenditures of $32.0-$38.0 million for fiscal 2024 - As of February 3, 2024, the company had working capital of **$222.8 M**, including **$268.2 M in cash and cash equivalents**[245](index=245&type=chunk) Cash Flow from Operations | Fiscal Year | Net Cash Flow from Operations | | :--- | :--- | | 2023 | $254.6 M | | 2022 | $242.4 M | | 2021 | $311.8 M | - The company has a **$25.0 M** unsecured line of credit with Wells Fargo, with no borrowings outstanding as of February 3, 2024[217](index=217&type=chunk) [Critical Accounting Policies and Estimates](index=27&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) Management identifies critical accounting policies requiring significant judgment, including revenue recognition, inventory valuation, income taxes, and lease accounting - Inventory is valued at the lower of cost or net realizable value, with an adjustment for markdowns and obsolescence of **$9.1 M** as of February 3, 2024[253](index=253&type=chunk) - A liability of **$10.4 M** was recorded for estimated future rewards under the Buckle Rewards loyalty program as of February 3, 2024[221](index=221&type=chunk) [Financial Statements and Supplementary Data](index=31&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal year ended February 3, 2024, which received an unqualified opinion from Deloitte & Touche LLP - The independent registered public accounting firm, Deloitte & Touche LLP, issued an unqualified opinion on the financial statements, stating they present fairly, in all material respects, the financial position of the company[230](index=230&type=chunk) - The auditor identified the adjustment to inventory for markdowns and obsolescence as a Critical Audit Matter due to the significant management judgments involved[263](index=263&type=chunk)[291](index=291&type=chunk)[292](index=292&type=chunk) [Consolidated Balance Sheets](index=33&type=section&id=Consolidated%20Balance%20Sheets) As of February 3, 2024, total assets were $889.8 million, total liabilities $476.6 million, and total stockholders' equity $413.2 million Balance Sheet Summary (in thousands) | Account | Feb 3, 2024 | Jan 28, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $444,256 | $423,336 | | **Total Assets** | $889,810 | $837,579 | | **Total Current Liabilities** | $221,456 | $226,043 | | **Total Liabilities** | $476,590 | $461,265 | | **Total Stockholders' Equity** | $413,220 | $376,314 | [Consolidated Statements of Income](index=34&type=section&id=Consolidated%20Statements%20of%20Income) For fiscal 2023, net sales were $1.261 billion, and net income was $219.9 million, or $4.40 per diluted share, reflecting a decline from the prior year Income Statement Highlights (in thousands, except EPS) | Metric | FY 2023 | FY 2022 | FY 2021 | | :--- | :--- | :--- | :--- | | Net Sales | $1,261,102 | $1,345,187 | $1,294,607 | | Gross Profit | $619,065 | $676,003 | $653,009 | | Income from Operations | $271,059 | $328,132 | $335,499 | | Net Income | $219,919 | $254,626 | $254,820 | | Diluted EPS | $4.40 | $5.13 | $5.16 | [Consolidated Statements of Cash Flows](index=36&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $254.6 million in fiscal 2023, with cash used in investing and financing activities, resulting in a $16.1 million increase in cash Cash Flow Summary (in thousands) | Activity | FY 2023 | FY 2022 | FY 2021 | | :--- | :--- | :--- | :--- | | Net Cash from Operating | $254,644 | $242,382 | $311,754 | | Net Cash from Investing | $(41,770) | $(41,399) | $(28,775) | | Net Cash from Financing | $(196,738) | $(202,876) | $(347,798) | | **Net Change in Cash** | **$16,136** | **$(1,893)** | **$(64,819)** | [Notes to Consolidated Financial Statements](index=37&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed information on significant accounting policies, including revenue recognition, inventory valuation, lease accounting, and stock-based compensation - The company's lease portfolio has a weighted-average remaining lease term of **5.4 years** and a weighted-average discount rate of **5.7%** as of February 3, 2024[324](index=324&type=chunk) - Stock-based compensation expense was **$13.7 M** in fiscal 2023, up from **$11.6 M** in fiscal 2022, with **$11.7 M** of unrecognized expense at year-end[14](index=14&type=chunk)[384](index=384&type=chunk) - Online sales accounted for **16.4%** of total net sales in fiscal 2023, compared to **17.1%** in both fiscal 2022 and 2021[359](index=359&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of February 3, 2024, a conclusion affirmed by the independent auditor - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the fiscal year[361](index=361&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of February 3, 2024, based on the COSO framework[21](index=21&type=chunk) - The independent registered public accounting firm issued an unqualified opinion, stating the company maintained effective internal control over financial reporting[22](index=22&type=chunk) Part III [Directors, Executive Compensation, and Corporate Governance](index=50&type=section&id=Items%2010-14) Information for Items 10-14, covering directors, executive compensation, and corporate governance, is incorporated by reference from the company's 2024 Proxy Statement - Information regarding Directors, Executive Officers, and Corporate Governance (Item 10) is incorporated by reference from the 2024 Proxy Statement[26](index=26&type=chunk)[397](index=397&type=chunk) - Details on Executive Compensation (Item 11), Security Ownership (Item 12), Certain Relationships and Related Transactions (Item 13), and Principal Accountant Fees (Item 14) are also incorporated by reference from the 2024 Proxy Statement[38](index=38&type=chunk)[39](index=39&type=chunk)[406](index=406&type=chunk) Part IV [Exhibits and Financial Statement Schedule](index=51&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedule) This section lists all exhibits filed with the Form 10-K, including corporate governance documents, material contracts, and Schedule II detailing valuation and qualifying accounts - The report includes Schedule II - Valuation and Qualifying Accounts, which shows the reserve for sales returns was **$2.55 M** at the end of fiscal 2023, down from **$2.98 M** at the end of fiscal 2022[32](index=32&type=chunk)[407](index=407&type=chunk) - Exhibits filed include the company's Articles of Incorporation, By-Laws, credit agreements, and various stock and incentive plans[34](index=34&type=chunk)[411](index=411&type=chunk)[412](index=412&type=chunk)

P.O. Box 1480 Kearney, NE 68848-1480 For Immediate Release: March 15, 2024 web: www.buckle.com KEARNEY, NE -- (BUSINESS WIRE) -- The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended February 3, 2024 was $79.6 million, or $1.60 per share ($1.59 per share on a diluted basis). Net income for the fiscal year ended February 3, 2024 was $219.9 million, or $4.44 per share ($4.40 per share on a diluted basis). Net income for the fiscal year ended February 3, 2024 was $219.9 mill ...

Financial Data and Key Metrics Changes - Net income for Q4 2023 was $79.6 million, or $1.59 per share, down from $87.8 million, or $1.76 per share in Q4 2022 [27] - For the full fiscal year, net income decreased to $219.9 million, or $4.40 per share, compared to $254.6 million, or $5.13 per share in the prior year [27][30] - Gross margin for Q4 was 52.3%, down 70 basis points from 53% in Q4 2022, while the full year gross margin was 49.1%, down 120 basis points from 50.3% [5][28] - Selling general administrative expenses for Q4 were 27.1% of net sales, up from 25.6% in Q4 2022 [29] Business Line Data and Key Metrics Changes - Online sales for the fiscal year decreased by 10.3% to $206.5 million, with a 16.6% decline compared to the same 14-week period a year ago [4][28] - Men's merchandise sales for Q4 were down about 2%, while women's merchandise sales decreased by 8% [33][51] - Accessory sales were down approximately 7.5%, and footwear sales were down about 41% for the quarter [9] Market Data and Key Metrics Changes - Comparable store sales for the fiscal year decreased by 8% compared to the prior year [28] - The company ended the year with 444 retail stores, compared to 441 stores at the end of fiscal 2022 [50] Company Strategy and Development Direction - The company plans to open eight new stores and complete 15 to 19 full remodels in 2024, with half of the remodels being relocations to new outdoor centers [50] - The strategy includes relocating stores to better shopping environments, with 42 of the 56 full remodels in the last three years being relocations [7] Management's Comments on Operating Environment and Future Outlook - Management noted challenges in February with less excitement for new spring products and a decline in traffic patterns [38] - The company has seen consistent performance in private label products, which represented approximately 50% of Q4 sales, an all-time high [53] - Management expressed optimism about the ongoing strategy of relocating stores to outdoor centers, which has shown positive results [64] Other Important Information - Capital expenditures for Q4 were $9.3 million, with full-year capital expenditures totaling $37.3 million [49] - The company does not provide future sales or earnings guidance, citing material risks and uncertainties [45] Q&A Session Summary Question: What is driving the increase in new store locations? - Management indicated that the relationship with outlet partners has provided more options and opportunities for new store locations [13] Question: What were the main drivers behind the February comp sales decline? - Management noted less excitement for new spring products and a decline in traffic patterns as contributing factors [38] Question: Can you elaborate on the challenges in the footwear category? - Management acknowledged ongoing challenges in footwear sales, particularly related to the Hey Dude brand, which significantly impacted overall performance [21][40] Question: What is the current mall versus off-mall exposure? - Management stated that approximately 70% of their locations are still mall-based, with ongoing efforts to evaluate and improve store locations [15][40]

KEARNEY, Neb.--(BUSINESS WIRE)--The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended February 3, 2024 was $79.6 million, or $1.60 per share ($1.59 per share on a diluted basis). Net income for the fiscal year ended February 3, 2024 was $219.9 million, or $4.44 per share ($4.40 per share on a diluted basis). Net sales for the 14-week fiscal quarter ended February 3, 2024 decreased 4.8 percent to $382.4 million from net sales of $401.8 million for the prior year 13-week f ...

KEARNEY, Neb.--(BUSINESS WIRE)--The Buckle, Inc. (NYSE: BKE) announced today that comparable store net sales, for stores open at least one year, for the 4-week period ended March 2, 2024 decreased 11.5 percent from comparable store net sales for the 4-week period ended March 4, 2023. Net sales for the 4-week fiscal month ended March 2, 2024 decreased 5.2 percent to $78.2 million from net sales of $82.5 million for the prior year 4-week fiscal month ended February 25, 2023. Due to the 53rd week in fiscal 20 ...

KEARNEY, Neb.--(BUSINESS WIRE)--The Buckle, Inc. (NYSE: BKE) announced today that comparable store net sales, for stores open at least one year, for the 5-week period ended February 3, 2024 decreased 17.4 percent from comparable store net sales for the 5-week period ended February 4, 2023. Net sales for the 5-week fiscal month ended February 3, 2024 increased 4.5 percent to $72.6 million from net sales of $69.4 million for the prior year 4-week fiscal month ended January 28, 2023. January 2024 was a 5-week ...

I last wrote about dividend stocks yielding 5% and included it in the headline in August 2019. Interest rates were considerably lower then, so 5% was considered a high-yield dividend stock. Fast forward to January 2024. While it’s still a high yield, income investors have more options. For example, a one-year Treasury bill yields about 4.76%, fully guaranteed by the U.S. Treasury. Looking at the names from my 2019 article, I’m not sure I’d consider any of them. I’ll throw my net a little wider, opting to fi ...

KEARNEY, Neb.--(BUSINESS WIRE)--The Buckle, Inc. (NYSE: BKE) announced today that comparable store net sales, for stores open at least one year, for the 5-week period ended December 30, 2023 decreased 5.8 percent from comparable store net sales for the 5-week period ended December 31, 2022. Net sales for the 5-week fiscal month ended December 30, 2023 decreased 5.0 percent to $203.8 million from net sales of $214.5 million for the prior year 5-week fiscal month ended December 31, 2022. Comparable store net ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-12951 Nebraska 47-0366193 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Registrant's telephone number, including area code: (308) 236-8491 Securities registered pursuant to Sect ...

The Buckle, Inc. (NYSE:BKE) Q3 2023 Earnings Call Transcript November 15, 2023 10:00 AM ET Company Participants Tom Heacock - SVP, Finance, Treasurer & CFO Adam Akerson - VP, Finance & Corporate Controller Dennis Nelson - President & CEO Conference Call Participants Mauricio Serna - UBS Operator Good morning, and thank you for standing by. Welcome to Buckle's third quarter earnings release webcast. As a reminder, all participants are currently in a listen-only mode. A question-and-answer session will be con ...