Lighthouse Films The Buckle, Inc. (NYSE:BKE) is another specialty retail stock that we have traded quite a few times over the years. This stock tends to trade with some volatility, making it great for quick scalp trades. That said, for the patient trader/investor, we have rated it a quality hold, as shares have slowly crept higher over time with a rising market. Today, the stock is taking a leg higher, approaching 52-week highs. All of this comes with a tough macro environment for retailers. Consumers' wall ...

The Buckle, Inc. (NYSE:BKE) Q2 2024 Earnings Conference Call August 23, 2024 10:00 AM ET Company Participants Tom Heacock - Senior Vice President of Finance, Treasurer and Chief Financial Officer Adam Akerson - Vice President of Finance and Corporate Controller Dennis Nelson - President and Chief Executive Officer Conference Call Participants Mauricio Serna - UBS Alan Glenn - Concord & Main Ltd Operator Good morning and thank you for standing by. Welcome to Buckle's Second Quarter Earnings Release Webcast. ...

Group 1 - The electric vehicle (EV) industry has faced significant challenges over the past 12 months, with Lucid Group experiencing particularly severe difficulties, as its stock price fell from over $50 in 2021 to $3.18 by July 9, 2024 [1] - Lucid Group's delivery expectations for 2024 were set at 90,000 vehicles, but actual deliveries in the first half of 2024 were only 4,361, representing a 91.11% underperformance compared to initial forecasts [1] - Despite weak delivery numbers compared to 2021 predictions, Lucid Group achieved a record delivery of 2,394 EVs in Q2 2024, surpassing its previous record of 1,967 vehicles in Q1 2023, indicating a potential return of optimism [2] Group 2 - Lucid Group's stock performance has shown improvement recently, with a 16.48% increase over the last 30 days and a 10.10% surge in the last full week of trading, although it remains down year-to-date [3]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited condensed consolidated financial statements for Q1 2024 detail balance sheets, income, equity, and cash flows [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$906.1 million** as of May 4, 2024, with stockholders' equity growing to **$433.8 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | May 4, 2024 | February 3, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $267,427 | $268,213 | | Inventory | $130,661 | $126,290 | | Total current assets | $446,829 | $444,256 | | Total assets | $906,070 | $889,810 | | Accounts payable | $54,811 | $45,958 | | Total current liabilities | $205,280 | $221,456 | | Total liabilities | $472,255 | $476,590 | | Total stockholders' equity | $433,815 | $413,220 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net sales decreased to **$262.5 million** for Q1 2024, with net income declining to **$34.8 million** Condensed Consolidated Statement of Income (in thousands, except per share data) | Metric | Thirteen Weeks Ended May 4, 2024 | Thirteen Weeks Ended April 29, 2023 | | :--- | :--- | :--- | | Net Sales | $262,480 | $282,834 | | Gross Profit | $120,697 | $133,257 | | Income from Operations | $42,396 | $53,730 | | Net Income | $34,843 | $42,936 | | Diluted EPS | $0.69 | $0.86 | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity increased to **$433.8 million** as of May 4, 2024, driven by net income and offset by dividends - Dividends paid on common stock were **$0.35** per share for the first quarter of both fiscal **2024** and **2023**, totaling **$17.8 million** and **$17.7 million**, respectively[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to **$29.9 million** for Q1 2024, resulting in a slight decrease in cash Cash Flow Summary (in thousands) | Cash Flow Activity | Thirteen Weeks Ended May 4, 2024 | Thirteen Weeks Ended April 29, 2023 | | :--- | :--- | :--- | | Net cash flows from operating activities | $29,884 | $33,295 | | Net cash flows from investing activities | ($12,896) | ($13,279) | | Net cash flows from financing activities | ($17,774) | ($17,660) | | Net (decrease) increase in cash | ($786) | $2,356 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes provide details on accounting policies, including revenue recognition, lease obligations, and stock-based compensation, with online sales at **16.9%** - The company operates as a single reportable segment with **440** stores in **42** states as of May 4, 2024. During the quarter, the company opened no new stores, remodeled **5**, and closed **4**[26](index=26&type=chunk) - Online revenues accounted for **16.9%** of net sales for the thirteen weeks ended May 4, 2024, down from **18.1%** in the same period of the prior year[46](index=46&type=chunk) Net Sales by Merchandise Group (Q1 2024 vs Q1 2023) | Merchandise Group | % of Net Sales (Q1 2024) | % of Net Sales (Q1 2023) | | :--- | :--- | :--- | | Denims | 43.2% | 41.7% | | Tops | 27.3% | 27.1% | | Accessories | 10.8% | 10.8% | | Footwear | 5.8% | 8.1% | - As of May 4, 2024, the company had **$21.3 million** of unrecognized compensation expense related to non-vested shares, expected to be recognized over a weighted average period of approximately **2.2 years**[90](index=90&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 net sales decrease of **7.2%**, gross profit margin decline, and **$241.5 million** in working capital [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Net sales for Q1 2024 decreased by **7.2%** to **$262.5 million**, with gross profit margin falling to **46.0%** Key Operational Metrics (% of Net Sales) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net sales | 100.0% | 100.0% | | Gross profit | 46.0% | 47.1% | | Income from operations | 16.2% | 19.0% | | Net income | 13.3% | 15.2% | - The decrease in total sales was caused by an **8.0%** drop in transactions and a **5.5%** decrease in units per transaction, partially offset by a **6.0%** increase in average unit retail price[96](index=96&type=chunk) - Online sales decreased **13.4%** to **$44.4 million** for the quarter[96](index=96&type=chunk) [Liquidity and Capital Resources](index=17&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$241.5 million** working capital, planning **$32.0 to $38.0 million** in capital expenditures - As of May 4, 2024, the Company had working capital of **$241.5 million**, including **$267.4 million** of cash and cash equivalents[73](index=73&type=chunk) - Capital expenditures for fiscal **2024** are estimated to be between **$32.0 to $38.0 million**, covering planned store projects and technology investments[126](index=126&type=chunk) - The company has an available unsecured line of credit of **$25.0 million**, with no borrowings during the first quarter of fiscal **2024** or **2023**[100](index=100&type=chunk) [Critical Accounting Policies and Estimates](index=18&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Key accounting policies and estimates, including revenue recognition and inventory valuation, remain materially unchanged from the **2023** Form 10-K - The liability for unredeemed gift cards was **$14.4 million** as of May 4, 2024[102](index=102&type=chunk) - The liability for estimated future rewards under the Buckle Rewards program was **$10.4 million** as of May 4, 2024[103](index=103&type=chunk) - The adjustment to inventory for markdowns and/or obsolescence was **$10.4 million** as of May 4, 2024, up from **$9.1 million** as of February 3, 2024[104](index=104&type=chunk) [Seasonality](index=20&type=section&id=Seasonality) The company's business is seasonal, with holiday and back-to-school periods driving significant sales - The holiday and back-to-school seasons historically accounted for approximately **35%** of the Company's annual net sales in fiscal years **2023**, **2022**, and **2021**[1](index=1&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk, with a **0.25%** decline potentially decreasing net income by **$0.5 million** - A one-quarter percent (**0.25%**) decline in the interest/dividend rate earned on cash and investments would decrease the Company's net income by approximately **$0.5 million**[111](index=111&type=chunk) [Item 4. Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of the end of the reporting period[112](index=112&type=chunk) - No changes occurred in the Company's internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, these controls[113](index=113&type=chunk) [Part II. Other Information](index=22&type=section&id=Part%20II.%20Other%20Information) [Item 1A. Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported from the risk factors disclosed in the Company's fiscal **2024** Annual Report on Form 10-K - No material changes from the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended February 3, 2024, were reported[142](index=142&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=22&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock during Q1 2024, with **410,655** shares remaining under authorization - The Company has **410,655** shares remaining to be repurchased under its **1,000,000** share repurchase plan authorized in **2008**[143](index=143&type=chunk) Share Repurchase Activity (Quarter Ended May 4, 2024) | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Remaining Under Plan | | :--- | :--- | :--- | :--- | | Feb 4 - Mar 2, 2024 | - | - | 410,655 | | Mar 3 - Apr 6, 2024 | - | - | 410,655 | | Apr 7 - May 4, 2024 | - | - | 410,655 | [Item 5. Other Information](index=22&type=section&id=Item%205.%20Other%20Information) CEO Dennis H. Nelson adopted a Rule 10b5-1 trading plan to sell up to **450,000** shares starting July **2024** - President and CEO Dennis H. Nelson adopted a **10b5-1** Trading Plan on April 24, 2024, for the sale of up to **450,000** shares of Company stock, with sales to begin in July **2024**[115](index=115&type=chunk) [Item 6. Exhibits](index=23&type=section&id=Item%206.%20Exhibits) Exhibits filed with Form 10-Q include CEO and CFO certifications and financial statements in XBRL format - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections **302** and **906**, and financial data in XBRL format[12](index=12&type=chunk)[145](index=145&type=chunk) [Signatures](index=24&type=section&id=Signatures) [Signatures](index=24&type=section&id=Signatures_summary) The report was signed on June **13**, **2024**, by the President and CEO, and the CFO - The Form 10-Q was signed on June **13**, **2024**, by the company's principal executive officer and principal accounting officer[146](index=146&type=chunk)[147](index=147&type=chunk)[151](index=151&type=chunk)

[The Buckle, Inc. First Quarter 2024 Earnings Release](index=1&type=section&id=The%20Buckle%2C%20Inc.%20First%20Quarter%202024%20Earnings%20Release) This report details The Buckle, Inc.'s financial performance for the first quarter of fiscal 2024, highlighting declines in profitability and sales, alongside a stable operational footprint and key financial statement data [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Buckle, Inc. reported a decline in profitability for the first quarter of fiscal 2024, with net income decreasing to $34.8 million from $42.9 million in the prior year, leading to a fall in diluted earnings per share to $0.69 from $0.86 year-over-year Q1 2024 vs Q1 2023 Profitability | Metric | Q1 Fiscal 2024 (ended May 4, 2024) | Q1 Fiscal 2023 (ended April 29, 2023) | Change | | :--- | :--- | :--- | :--- | | Net Income | $34.8 million | $42.9 million | -18.9% | | Basic EPS | $0.70 | $0.87 | -19.5% | | Diluted EPS | $0.69 | $0.86 | -19.8% | [Sales Performance](index=1&type=section&id=Sales%20Performance) The company experienced a broad-based sales decline in the first quarter of fiscal 2024, with total net sales decreasing by 7.2% to $262.5 million, and comparable store sales falling by 9.0% while online sales dropped by 13.4% Q1 2024 Sales Performance (YoY) | Sales Metric | Q1 Fiscal 2024 | YoY Change | | :--- | :--- | :--- | | Net Sales | $262.5 million | -7.2% | | Comparable Store Net Sales | N/A | -9.0% | | Online Sales | $44.4 million | -13.4% | - Due to a 53rd week in fiscal 2023, comparable store net sales for the quarter are compared against the 13-week period ended May 6, 2023[3](index=3&type=chunk) [Company Profile and Store Operations](index=1&type=section&id=Company%20Profile%20and%20Store%20Operations) The Buckle is a specialty retailer focused on on-trend apparel, accessories, and footwear, with a particular strength in denim, maintaining a stable retail footprint of 440 stores across 42 states at the end of the first quarter - The company operates as a specialty retailer known as a **denim destination**, offering leading brands and its exclusive BKE brand[5](index=5&type=chunk) - As of the end of the fiscal quarter, the company operated **440 retail stores** in **42 states**, the same number as the prior year's first quarter[5](index=5&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) The financial statements for the first quarter of fiscal 2024 reflect a decline in profitability and sales, while the balance sheet indicates a healthy asset position and increased stockholders' equity [Consolidated Statements of Income](index=3&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The unaudited income statement for the first quarter shows a decline in gross profit to $120.7 million from $133.3 million year-over-year, with income from operations falling to $42.4 million from $53.7 million due to lower sales Q1 Income Statement Highlights (in thousands) | Account | Thirteen Weeks Ended May 4, 2024 | Thirteen Weeks Ended April 29, 2023 | | :--- | :--- | :--- | | Net Sales | $262,480 | $282,834 | | Gross Profit | $120,697 | $133,257 | | Income from Operations | $42,396 | $53,730 | | Net Income | $34,843 | $42,936 | [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of May 4, 2024, The Buckle's balance sheet remained healthy with total assets of $906.1 million, cash and cash equivalents at $267.4 million, and total stockholders' equity increasing to $433.8 million from $405.2 million year-over-year Key Balance Sheet Items (in thousands) | Account | May 4, 2024 | February 3, 2024 | April 29, 2023 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $267,427 | $268,213 | $254,433 | | Inventory | $130,661 | $126,290 | $137,735 | | Total current assets | $446,829 | $444,256 | $433,915 | | Total assets | $906,070 | $889,810 | $848,860 | | Total current liabilities | $205,280 | $221,456 | $206,804 | | Total liabilities | $472,255 | $476,590 | $443,686 | | Total stockholders' equity | $433,815 | $413,220 | $405,174 | [Additional Information](index=1&type=section&id=Additional%20Information) This section provides details on the investor webcast for quarterly results and includes a standard safe harbor statement regarding forward-looking information [Investor Webcast](index=1&type=section&id=Investor%20Webcast) The company announced it would hold a live audio webcast for investors at 10:00 a.m. EDT on the day of the earnings release to discuss the quarterly results, with a replay made available on its investor relations website - Management scheduled a live audio webcast to discuss the quarterly results, with a replay to be made available within twenty-four hours after its conclusion[4](index=4&type=chunk) [Safe Harbor Statement](index=2&type=section&id=SAFE%20HARBOR%20STATEMENT) The report includes a standard Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995, cautioning that forward-looking statements involve material risks and uncertainties and that future performance may differ materially from what is expressed - The company's forward-looking statements are subject to material risks and uncertainties, and actual financial results may differ materially from those expressed[15](index=15&type=chunk)

Financial Data and Key Metrics Changes - Net income for the first quarter ended May 4, 2024, was $34.8 million or $0.69 per share, down from $42.9 million or $0.86 per share in the prior year [13] - Net sales decreased by 7.2% to $262.5 million compared to $282.8 million in the prior year [13] - Gross margin for the quarter was 46%, down 110 basis points from 47.1% in the first quarter of 2023 [27] - Operating margin for the quarter was 16.2%, compared to 19% for the first quarter of fiscal 2023 [28] Business Line Data and Key Metrics Changes - Men's merchandise sales were down about 5.5%, representing approximately 53% of total sales [17] - Women's merchandise sales decreased by about 8.5%, accounting for approximately 47% of sales [30] - Average denim price points for men's decreased slightly from $88.80 to $88.65, while women's increased from $79.80 to $80.85 [17][30] - Private label sales represented 46% of total sales, up from 44% in the first quarter of 2023 [8] Market Data and Key Metrics Changes - Comparable store sales for the 13-week fiscal quarter decreased by 9% compared to the same period last year [3] - Online sales decreased by 13.4% to $44.4 million, down from $51.3 million in the prior year [3] Company Strategy and Development Direction - The company plans to open seven new stores and complete 14 additional full remodeling projects for the remainder of the year [29] - The strategy includes relocating stores from mid-market malls to power centers or better locations [24] - The company continues to focus on developing private brands and introducing new labels to its assortment [8] Management's Comments on Operating Environment and Future Outlook - Management reiterated a policy of not providing future sales or earnings guidance, citing material risks and uncertainties [11] - The management expressed satisfaction with merchandise margin growth despite challenging top-line results [8] - The company is managing inventory levels effectively and is optimistic about the response to new product offerings [39] Other Important Information - Selling, general, and administrative expenses for the quarter were 29.8% of net sales, up from 28.1% in the prior year [14] - Inventory was reported at $130.7 million, down 5.1% from the same time a year ago [15] Q&A Session Summary Question: What is driving the expansion in merchandise margins? - Management noted that the BKE brand is strong, and newness in key brands is contributing positively to margins [21] Question: What is the outlook for the denim category? - Management highlighted a variety of styles and strong sell-through in private brands, indicating a positive response to new trends [38] Question: What is driving the increase in general and administrative expenses despite declining sales? - The increase was attributed to accruals for additional paid time off, which is more of a timing issue rather than a permanent increase in expenses [41] Question: Any updates on store plans for the rest of the year? - Management confirmed plans for 19 remodels and seven new stores, continuing to evaluate real estate opportunities [24]

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Kwangmoozaa/iStock via Getty Images Buckle (NYSE:BKE) is a specialty clothing retailer generally focused on a college age market segment (defined by the company as 15- to 30-year-olds) with a significant market presence in the central United States. We've long followed Buckle and written previously about the company, particularly when market sentiment became glaringly inconsistent with the company's fundamental value in the years immediately preceding the pandemic. The company's performance since has been e ...

banjongseal324 Buckle (NYSE:BKE) is a denim-focused apparel retailer. The company is a slow grower with tremendous profitability and capital return metrics for its category, with long-standing shareholder-aligned management. Buckle suffered challenges from 2015 until the pandemic: e-commerce competition, mall stores' secular decline, transitioning to a lower price range, and the fashion cycle. It survived, although losing sales and generated industry-record returns even during this period. Now, the company ...

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)