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 ...

FORM 10-Q For the Quarterly Period Ended July 29, 2023 For the Transition Period from ____________ to ____________ THE BUCKLE, INC. (Exact name of Registrant as specified in its charter) 2407 West 24th Street, Kearney, Nebraska 68845-4915 (Address of principal executive offices) (Zip Code) ____________________________________________________________________ (Former name, former address, and former fiscal year if changed since last report) Title of Each Class Trading Symbol(s) Name of Each Exchange on Which ...

Financial Data and Key Metrics Changes - Net income for the second quarter ended July 29, 2023, was $45.6 million or $0.92 per share, down from $50.1 million or $1.01 per share in the prior year [2] - Year-to-date net income for the 26-week period was $88.6 million or $1.78 per share, compared to $105.4 million or $2.13 per share for the same period last year [2][4] - Gross margin for the quarter was 47.3%, down 90 basis points from 48.2% in the second quarter of 2022 [31] - Operating margin for the quarter was 19.4%, compared to 21.8% for the second quarter of fiscal 2022 [32] Business Line Data and Key Metrics Changes - Women's merchandise sales decreased by about 6%, representing approximately 43.5% of total sales [6] - Men's merchandise sales were down about 1%, accounting for approximately 56.5% of total sales [35] - Accessory sales increased approximately 3.5%, while footwear sales decreased by about 13.5% [36] - Private label brands in women's denim showed strength, while branded styles were off due to planned inventory decreases [34] Market Data and Key Metrics Changes - Net sales for the second quarter decreased 3.2% to $292.4 million compared to $302 million in the prior year [10] - Comparable store sales decreased 3.3% for the quarter [10] - Online sales decreased 5.6% to $43.6 million for the quarter [10] - Year-to-date net sales decreased 5.9% to $575.3 million [10] Company Strategy and Development Direction - The company plans to open five additional new stores and complete eight more full remodeling projects for the remainder of the year [5] - The focus is on driving growth in private brands, which represented 41% of sales compared to 40% in the prior year [7] - Management emphasized a cautious approach to inventory, feeling comfortable with the selection heading into the back-to-school season [16] Management's Comments on Operating Environment and Future Outlook - Management noted challenges in the women's side due to weather affecting early sell-throughs and sourcing new styles [14] - The company expressed confidence in its inventory positioning for the back-to-school and fall selling season [20] - Management did not provide future sales or earnings guidance, maintaining a cautious outlook [8] Other Important Information - Capital expenditures for the year-to-date period were $17.9 million, with $17.2 million allocated for new store construction and technology upgrades [5] - The company ended the quarter with inventory of $136.1 million, up 5.9% from the previous year [33] Q&A Session Summary Question: What were the drivers behind the merchandise margin contraction of 30 basis points? - Management indicated that the margin decrease was largely due to last year's footwear performance and challenges in the women's category due to weather [14] Question: How does the company feel about inventory composition heading into the second half of the year? - Management provided historical context on inventory levels and expressed confidence in the current selection and response from stores [16] Question: How relevant is newness to overall business growth? - Management acknowledged the importance of newness but faced challenges in sourcing enough new products for growth [22]

Part I. Financial Information [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) For the thirteen weeks ended April 29, 2023, The Buckle, Inc. reported a decrease in net sales to $282.8 million from $309.1 million year-over-year, with net income declining to $42.9 million from $55.3 million. Total assets grew slightly to $848.9 million, while stockholders' equity increased to $405.2 million. The company generated $33.3 million in cash from operations, ending the quarter with a cash balance of $254.4 million [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of April 29, 2023, total assets were $848.9 million, a slight increase from $837.6 million at the end of the previous fiscal year. The increase was driven by higher cash and inventory levels. Total liabilities decreased to $443.7 million from $461.3 million, primarily due to a reduction in accrued employee compensation. Consequently, total stockholders' equity rose to $405.2 million from $376.3 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | April 29, 2023 | January 28, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $433,915 | $423,336 | | **Total Assets** | **$848,860** | **$837,579** | | **Total Current Liabilities** | $206,804 | $226,043 | | **Total Liabilities** | $443,686 | $461,265 | | **Total Stockholders' Equity** | **$405,174** | **$376,314** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the thirteen weeks ended April 29, 2023, net sales decreased by 8.5% to $282.8 million compared to $309.1 million in the prior-year period. Gross profit fell to $133.3 million from $152.2 million. Net income saw a significant decline to $42.9 million, or $0.86 per diluted share, down from $55.3 million, or $1.12 per diluted share, in the first quarter of 2022 Q1 2023 vs. Q1 2022 Income Statement (in thousands, except per share data) | Metric | Thirteen Weeks Ended April 29, 2023 | Thirteen Weeks Ended April 30, 2022 | | :--- | :--- | :--- | | **Net Sales** | $282,834 | $309,064 | | **Gross Profit** | $133,257 | $152,160 | | **Income from Operations** | $53,730 | $73,059 | | **Net Income** | **$42,936** | **$55,254** | | **Diluted EPS** | **$0.86** | **$1.12** | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) During the first quarter of fiscal 2023, total stockholders' equity increased from $376.3 million to $405.2 million. The growth was primarily driven by net income of $42.9 million, which was partially offset by the payment of dividends totaling $17.7 million ($0.35 per share) - **Stockholders' equity increased to $405.2 million**, reflecting **net income of $42.9 million** less **dividends of $17.7 million**[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2023, the company generated $33.3 million in net cash from operating activities, a notable increase from $21.5 million in the prior-year period. Net cash used in investing activities was $13.3 million, while financing activities used $17.7 million for dividend payments. This resulted in a net increase in cash and cash equivalents of $2.4 million, bringing the quarter-end balance to $254.4 million Q1 2023 vs. Q1 2022 Cash Flow Summary (in thousands) | Activity | Thirteen Weeks Ended April 29, 2023 | Thirteen Weeks Ended April 30, 2022 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $33,295 | $21,503 | | **Net Cash from Investing Activities** | ($13,279) | ($7,867) | | **Net Cash from Financing Activities** | ($17,660) | ($17,533) | | **Net Increase (Decrease) in Cash** | $2,356 | ($3,897) | | **Cash and Cash Equivalents, End of Period** | **$254,433** | **$250,073** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies and provide further context on financial results. Key details include the company's operation as a single reportable segment with 440 stores, online sales constituting 18.1% of net sales, and a breakdown of sales by merchandise category. The notes also cover investments, fair value measurements, lease obligations, and stock-based compensation expenses - The company operated **440 stores in 42 states** as of April 29, 2023, an increase of **one store** from the prior year[24](index=24&type=chunk) - **Online revenues accounted for 18.1% of net sales** for the thirteen weeks ended April 29, 2023, up from **17.6%** in the prior year[48](index=48&type=chunk) Net Sales by Merchandise Group | Merchandise Group | Q1 2023 % of Sales | Q1 2022 % of Sales | | :--- | :--- | :--- | | Denims | 41.7% | 40.0% | | Tops | 27.1% | 27.8% | | Accessories | 10.8% | 8.9% | | Footwear | 8.1% | 11.9% | | Other | 12.3% | 11.4% | - As of April 29, 2023, the company had **$21.9 million of unrecognized compensation expense** related to non-vested stock grants, expected to be recognized over a weighted average period of approximately **2.2 years**[65](index=65&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 attributes the 8.5% decrease in Q1 2023 net sales to a 9.2% decline in comparable store sales, driven by fewer transactions. Gross profit margin fell from 49.2% to 47.1% due to deleveraged occupancy costs and lower merchandise margins. The company maintains a strong liquidity position with $300.0 million in cash and investments and no bank borrowings. Capital expenditure for fiscal 2023 is projected to be between $24.0 and $30.0 million [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Net sales for Q1 2023 decreased 8.5% to $282.8 million, with comparable store sales down 9.2%. The sales decline resulted from a 10.0% decrease in transactions, partially offset by a 2.3% increase in units per transaction. Gross profit as a percentage of sales was 47.1%, down 210 basis points from the prior year, primarily due to 140 basis points of deleveraged costs and a 70 basis point decline in merchandise margins. Operating income fell 26.5% to $53.7 million - **Net sales decreased 8.5%** in Q1 2023, driven by a **9.2% decrease in comparable store net sales**[71](index=71&type=chunk) - **Online sales decreased 5.6% to $51.3 million** for the quarter[71](index=71&type=chunk) - **Gross profit margin declined to 47.1% from 49.2%** in the prior year, attributed to deleveraged buying, distribution, and occupancy expenses (**140 bps**) and lower merchandise margins (**70 bps**)[98](index=98&type=chunk) - **Selling, general, and administrative expenses increased as a percentage of sales to 28.1% from 25.6%**, mainly due to higher store labor-related expenses[72](index=72&type=chunk) [Liquidity and Capital Resources](index=17&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended Q1 2023 with strong liquidity, holding $254.4 million in cash and cash equivalents and $23.1 million in short-term investments. Working capital stood at $227.1 million. Cash flow from operations was $33.3 million. Capital expenditures for the quarter were $9.3 million. For the remainder of fiscal 2023, the company plans to open 7 new stores and complete 13 remodels, with total capital expenditures estimated between $24.0 to $30.0 million - The company ended the quarter with **working capital of $227.1 million**, including **$254.4 million in cash and cash equivalents**[128](index=128&type=chunk) - **Total capital expenditures for fiscal 2023 are estimated to be approximately $24.0 to $30.0 million**, covering new stores, remodels, and technology investments[129](index=129&type=chunk) - The company has a **$25.0 million unsecured line of credit** available, with no borrowings outstanding during the quarter[130](index=130&type=chunk) [Critical Accounting Policies and Estimates](index=18&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management confirms that the critical accounting policies and estimates used in preparing the Q1 2023 financial statements have not materially changed from those disclosed in the 2022 Annual Report on Form 10-K. Key policies highlighted include revenue recognition, inventory valuation (lower of cost or net realizable value), income taxes, leases, and investments - **Revenue from retail stores is recognized at the point of sale**, net of expected returns. **Online sales are recognized when merchandise is tendered for delivery**[103](index=103&type=chunk) - **Inventory is valued at the lower of cost (average cost method) or net realizable value**, with adjustments made for obsolescence and markdowns. The **markdown adjustment was $7.0 million** as of April 29, 2023[106](index=106&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's primary market risk exposure is related to interest rate fluctuations on its cash and investment portfolio. Management estimates that a 0.25% decline in the interest/dividend rate would decrease net income by approximately $0.5 million, or less than $0.01 per share - The company is exposed to **interest rate risk** on its cash and investments. A **one-quarter percent decline in interest rates would reduce net income by about $0.5 million**[143](index=143&type=chunk) [Item 4. Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation as of April 29, 2023, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective. There were no material changes in the company's internal control over financial reporting during the first fiscal quarter - The CEO and CFO concluded that the Company's **disclosure controls and procedures were effective** as of the end of the reporting period[115](index=115&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[116](index=116&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=22&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings for the period - **Item 1. Legal Proceedings: None**[1](index=1&type=chunk) [Item 1A. Risk Factors](index=22&type=page&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended January 28, 2023 - **No material changes from the risk factors disclosed** in the Company's Annual Report on Form 10-K for the fiscal year ended January 28, 2023[152](index=152&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 any of its common stock during the fiscal quarter ended April 29, 2023. As of the quarter-end, 410,655 shares remained available for repurchase under the publicly announced plan Issuer Purchases of Equity Securities | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Shares Purchased as Part of Publicly Announced Plans | Maximum Shares Remaining for Purchase Under Plans | | :--- | :--- | :--- | :--- | :--- | | Jan. 29 - Feb. 25, 2023 | - | - | - | 410,655 | | Feb. 26 - Apr. 1, 2023 | - | - | - | 410,655 | | Apr. 2 - Apr. 29, 2023 | - | - | - | 410,655 | - The company has **410,655 shares remaining** to complete its **1,000,000 share repurchase plan** authorized on November 20, 2008[153](index=153&type=chunk) [Item 3. Defaults Upon Senior Securities](index=22&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - **Item 3. Defaults Upon Senior Securities: None**[148](index=148&type=chunk) [Item 4. Mine Safety Disclosures](index=22&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Item 4. Mine Safety Disclosures: None**[1](index=1&type=chunk) [Item 5. Other Information](index=22&type=section&id=Item%205.%20Other%20Information) The company reported no other information for the period - **Item 5. Other Information: None**[120](index=120&type=chunk) [Item 6. Exhibits](index=23&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the certifications by the CEO and CFO as required by the Sarbanes-Oxley Act of 2002, and the financial statements formatted in XBRL - **Exhibits filed include CEO and CFO certifications** under Sections 302 and 906 of the Sarbanes-Oxley Act, and **financial data in XBRL format**[2](index=2&type=chunk)[123](index=123&type=chunk)

The Buckle, Inc. (NYSE:BKE) Q1 2023 Earnings Conference Call May 26, 2023 10:00 AM ET Company Participants Dennis Nelson - President and CEO Tom Heacock - Senior Vice President, Finance, Treasurer and CFO Adam Akerson - Vice President, Finance and Corporate Controller Conference Call Participants Jon Braatz - Kansas City Capital Associates Mauricio Serna - UBS Carlton Getz - Winter Harbor Capital Alan Glenn - Concord & Main Operator Well, good morning, and thank you for standing by. And welcome to Buckle’s ...

PART I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) The Buckle, Inc. is a retailer of casual apparel, footwear, and accessories for young men and women, operating 441 stores in 42 states as of January 28, 2023 Company Overview - The Buckle, Inc. is a retailer of medium to better-priced casual apparel, footwear, and accessories for fashion-conscious young men and women, operating **441 retail stores in 42 states** as of January 28, 2023[8](index=8&type=chunk) - The Company emphasizes personalized customer attention and provides services such as free hemming, free gift-packaging, easy layaways, a private label credit card, and a guest loyalty program[8](index=8&type=chunk) Available Information - The Company's annual reports on Form 10-K, other SEC filings, corporate governance policies, ethics code, and Board of Directors' committee charters are publicly available free of charge on the Investor Information section of www.buckle.com[359](index=359&type=chunk) Special Note Regarding Forward-Looking Statements - Forward-looking statements, including anticipated store openings and revenue growth, are based on currently available information and are subject to various risks and uncertainties, meaning actual future results may differ materially[11](index=11&type=chunk) - The Company is under no obligation to update or revise any forward-looking statements[375](index=375&type=chunk) Merchandising Strategy - The Company's merchandising strategy aims to create loyalty by offering a wide selection of key brand name and private label merchandise, appealing to fashion-conscious 15 to 30-year olds[12](index=12&type=chunk) Merchandise Group Sales Percentage | Merchandise Group | January 28, 2023 | Fiscal Years Ended January 29, 2022 | January 30, 2021 | | :-------------------------- | :--------------- | :---------------------------------- | :--------------- | | Denims | 39.3 % | 39.6 % | 40.1 % | | Tops (including sweaters) | 29.7 | 30.2 | 30.1 | | Accessories | 10.0 | 9.3 | 9.0 | | Footwear | 9.2 | 9.7 | 10.2 | | Sportswear/fashions | 5.5 | 5.9 | 5.8 | | Outerwear | 2.1 | 1.9 | 1.9 | | Casual bottoms | 1.1 | 0.9 | 0.9 | | Youth | 3.1 | 2.5 | 2.0 | | Total | 100.0 % | 100.0 % | 100.0 % | - Brand name merchandise accounted for approximately **56% of the Company's net sales** during fiscal 2022, with the remainder comprised of private label merchandise from exclusive brands[33](index=33&type=chunk) Marketing and Advertising - In fiscal 2022, the Company spent **$19.2 million, or 1.4% of net sales**, on targeted seasonal marketing campaigns, digital marketing efforts, and in-store point-of-sale materials[34](index=34&type=chunk) - The Company's website, www.buckle.com, serves as an interactive platform for shopping, discovery, learning, and engagement, with continuous investment in site enhancements[35](index=35&type=chunk) - The Buckle Rewards program, combining loyalty and private label credit card rewards, offers tiered benefits and exclusive offers to loyal guests and cardholders[379](index=379&type=chunk) Store Operations - The Company provides a unique store environment with a high level of personalized service, employing highly motivated employees who offer specialized services like free hemming and gift-packaging[377](index=377&type=chunk) - Store design features warm wood fixtures and floors, real brick finishes, and an appealing ceiling and lighting layout, with the signature Buckle-B icon reinforcing brand identity[378](index=378&type=chunk) - The Company maintains a comprehensive program to prevent and control shrinkage losses, achieving a merchandise shrinkage rate of **0.4% of net sales** in fiscal 2022[381](index=381&type=chunk) Purchasing and Distribution - The Company purchases products from manufacturers within the United States and from agents sourcing goods from foreign manufacturers, with merchandisers continually monitoring fashion trends, quality, and delivery schedules[37](index=37&type=chunk) - A centralized receiving and distribution center in Kearney, Nebraska, serves as the Company's only store distribution center, aiming to ship the majority of merchandise to stores within one to two business days of receipt[38](index=38&type=chunk)[383](index=383&type=chunk) - The Company utilizes a transfer program to shift merchandise to locations where it is selling best, which helps maintain customer satisfaction and reduces the need for markdowns[360](index=360&type=chunk) Store Locations and Expansion Strategies - As of January 28, 2023, the Company operated **441 stores in 42 states**, with locations in downtown, strip centers, lifestyle centers, and shopping malls[20](index=20&type=chunk) - The Company anticipates opening **6 new stores** and completing approximately **12-17 full remodels in fiscal 2023**, with estimated capital spending of **$24.0 million to $30.0 million** for store projects and technology investments[43](index=43&type=chunk) Store Count by Fiscal Year | Fiscal Year | Open at start of year | Opened in Current Year | Closed in Current Year | Open at end of year | | :---------- | :-------------------- | :--------------------- | :--------------------- | :------------------ | | 2013 | 440 | 13 | 3 | 450 | | 2014 | 450 | 16 | 6 | 460 | | 2015 | 460 | 9 | 1 | 468 | | 2016 | 468 | 5 | 6 | 467 | | 2017 | 467 | 2 | 12 | 457 | | 2018 | 457 | — | 7 | 450 | | 2019 | 450 | 2 | 4 | 448 | | 2020 | 448 | 3 | 8 | 443 | | 2021 | 443 | 1 | 4 | 440 | | 2022 | 440 | 4 | 3 | 441 | Information Technology - The Company's information technology systems include PC-based point-of-sale (POS) registers that transmit item-level sales data to a central server via a virtual private network (VPN)[24](index=24&type=chunk)[362](index=362&type=chunk) - The PLU system allows central control over merchandise pricing, enabling faster and more accurate sales processing and monitoring of pricing decisions across all stores[26](index=26&type=chunk) - The Company's intranet site, supported by the VPN, provides stores with various tools for product search, inventory management, scheduling, performance tracking, and communication with the corporate office[352](index=352&type=chunk) Employees and Human Capital - As of January 28, 2023, the Company had approximately **9,100 teammates**, with about **3,100 full-time**, and **830 employed at corporate offices and the distribution center**[48](index=48&type=chunk) - The Company invests heavily in the education, training, and leadership development of its teammates, offering sales training, Leadership Academy programs, and manager meetings[29](index=29&type=chunk) - Buckle's entrepreneurial culture is supported by competitive base pay, benefits, and incentive compensation tied to individual and overall Company performance, with a base-plus-commission structure for most store teammates[363](index=363&type=chunk) Competition - The men's and women's apparel industries are highly competitive, with fashion, selection, quality, price, location, store environment, and service being the principal competitive factors[30](index=30&type=chunk) - The Company believes it competes mainly on the basis of customer service and merchandise selection against department stores and specialty retailers[30](index=30&type=chunk) - Many competitors are considerably larger with substantially greater financial, marketing, and other resources, and competition for prime site locations is intense[50](index=50&type=chunk) Trademarks - The Company owns numerous federally registered trademarks, including "**BUCKLE**" and "**BKE**," which are considered of considerable value to its business and marketing efforts[52](index=52&type=chunk) Regulation - The Company and its merchandise are subject to regulation by various federal, state, local, and foreign authorities, including trade laws, customs regulations, and international trade agreements for imported goods[53](index=53&type=chunk) - Compliance with these laws and regulations has not had, and is not expected to have, a material effect on the Company's capital expenditures, results of operations, or competitive position[53](index=53&type=chunk) Seasonality - The Company's business is seasonal, with the holiday season (approximately November 15 to December 30) and the back-to-school season (approximately July 15 to September 1) historically contributing the greatest volume of net sales, accounting for about **35% of annual net sales**[364](index=364&type=chunk) Executive Officers of the Company - Key executive officers include Dennis H. Nelson (President and Chief Executive Officer), Daniel J. Hirschfeld (Chairman of the Board), and Thomas B. Heacock (Senior Vice President of Finance, Treasurer, and Chief Financial Officer)[55](index=55&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) - The Company's management team, from store managers through senior management, is experienced, with most having started their careers on the sales floor[48](index=48&type=chunk) [Item 1A. Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The Company faces

Financial Data and Key Metrics Changes - Net income for Q4 2022 was $87.8 million or $1.76 per share, compared to $83.9 million or $1.69 per share in Q4 2021, reflecting an increase in net income [8] - For the full fiscal year 2022, net income was $254.6 million or $5.13 per share, slightly down from $254.8 million or $5.16 per share in the previous year [8] - Net sales for Q4 2022 increased by 5.5% to $401.8 million, compared to $380.9 million in Q4 2021 [9] - Full-year net sales rose by 3.9% to $1.345 billion, up from $1.295 billion in the prior year [9] - Operating margin for Q4 2022 was 27.4%, down from 28.8% in Q4 2021, while the full-year operating margin was 24.4%, down from 25.9% [12] Business Line Data and Key Metrics Changes - Men's merchandise sales for Q4 2022 increased by 8.5%, representing approximately 57.5% of total sales, up from 55.5% in the prior year [17] - Women's merchandise sales decreased by 0.5%, accounting for approximately 42.5% of sales, down from 44.5% in the prior year [23] - Youth business grew by 16.5% in Q4 and approximately 27% for the full year, representing 3% of total sales [18] Market Data and Key Metrics Changes - Online sales for Q4 2022 increased by 2.3% to $74.8 million, while full-year online sales rose by 4.3% to $230.4 million [9] - Inventory as of January 28, 2023, was $125.1 million, up 22.5% year-over-year [13] Company Strategy and Development Direction - The company aims to maintain long-term profitability while optimizing its store base and enhancing multi-channel business operations [5][6] - Plans for fiscal 2023 include opening six new stores and completing 12 to 17 full remodeling projects [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a tough comparison for February sales, which showed a 6% decline, primarily due to a strong performance in the previous year [28] - The company feels confident about its inventory levels and expects new deliveries to generate excitement in stores [35] Other Important Information - The company ended the year debt-free with total cash and investments of $293.7 million, after paying $202.9 million in dividends [6][13] - The company has a consistent practice of paying quarterly dividends and has paid a special dividend for the 15th consecutive year [6] Q&A Session Summary Question: February sales numbers showed a 6% decline. What insights can you provide? - Management indicated that the decline was primarily due to tough comparisons from the previous year, where sales were up 33% [28] Question: How are you thinking about inventory levels and consumer caution? - Management expressed confidence in inventory levels, noting that while dollar amounts are up, units are down approximately 4% from 2019, indicating a comfortable position [35] Question: Is the comparison to 2019 a guideline for normalized performance? - Management confirmed that comparisons to 2019 are a guideline some investors prefer, highlighting that e-commerce business is up over 100% from 2019 [36]

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 October 29, 2022 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 ...

Financial Data and Key Metrics Changes - Net income for Q3 2022 was $61.4 million or $1.24 per share, a slight decrease from $62.2 million or $1.26 per share in Q3 2021 [6] - Year-to-date net income for the 39-week period was $166.8 million or $3.37 per share, down from $170.9 million or $3.46 per share in the prior year [7] - Net sales for Q3 2022 increased by 4% to $332.3 million compared to $319.4 million in Q3 2021 [8] - Year-to-date net sales increased by 3.3% to $943.4 million compared to $913.7 million in the prior year [9] - Gross margin for Q3 2022 was 49.8%, down 60 basis points from 50.4% in Q3 2021 [11] - Operating margin for Q3 2022 was 23.9%, compared to 25.7% in Q3 2021 [13] Business Line Data and Key Metrics Changes - Women's merchandise sales were up slightly, accounting for approximately 46.5% of sales compared to 48% in the prior year [20] - Men's merchandise sales increased by 6%, representing approximately 53.5% of total sales compared to 52% in the prior year [22] - Accessory sales were up approximately 15.5%, while footwear sales were down about 17% [23] - Denim accounted for approximately 42.5% of sales, while tops accounted for approximately 30.5% [24] - Private label sales represented 46% of total sales for the quarter, up from 44% in Q3 2021 [27] Market Data and Key Metrics Changes - Online sales increased by 8.8% to $55 million in Q3 2022 [8] - Comparable store sales for Q3 2022 increased by 3% compared to the same period in the prior year [8] Company Strategy and Development Direction - The company plans to complete eight additional full remodel projects and open one new store by the end of the year [18] - Capital expenditures for the year are expected to be in the range of $26 million to $30 million, including store projects and IT investments [18] - The company is focusing on expanding its private label business and improving inventory positioning [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in inventory levels, noting that inventory is up 10% over 2019 but sales were nearly 50% higher than in 2019 [29] - The company is comfortable with its inventory strategy, having brought in products early to avoid potential supply chain disruptions [32] Other Important Information - The company ended the quarter with 441 retail stores in 42 states, consistent with the store count from the previous year [18] - Capital expenditures for Q3 2022 were $7.5 million, with year-to-date capital expenditures totaling $22.4 million [16] Q&A Session Summary Question: Can you define what you mean by "clean" inventory? - Management indicated that inventory is up 10% over 2019, with a portion attributed to cost increases and inventory in transit, but they are comfortable with the levels given the sales performance [29][30] Question: Will a potential rail strike affect your supply chain? - Management confirmed that they do not use rail for freight, so a rail strike would not impact their supply chain [34]