Buckle(BKE)2024-12-12 19:56Financial Performance - Net sales decreased from $303.5 million in Q3 2023 to $293.6 million in Q3 2024, a 3.2% decrease [72] - Comparable store net sales for the thirteen-week period ended November 2, 2024 decreased 0.7% compared to the prior year [72] - Gross profit was $140.1 million in Q3 2024, representing 47.7% of net sales, down from 48.5% in Q3 2023 [77] - Year-to-date net sales decreased from $878.7 million in the first three quarters of fiscal 2023 to $838.5 million in fiscal 2024, a 4.6% decrease [73] - Income from operations was $54.5 million, or 18.6% of net sales, for Q3 2024, compared to $64.1 million, or 21.1% of net sales, for Q3 2023 [81] - Selling, general, and administrative expenses were 29.1% of net sales for Q3 2024, up from 27.4% in Q3 2023 [79] Cash Flow and Capital Expenditures - Cash flow from operations was $121.2 million for the first three quarters of fiscal 2024, down from $145.3 million in fiscal 2023 [83] - Total capital expenditures for fiscal 2024 are estimated to be approximately $36.0 to $40.0 million [87] Store Operations and Inventory - The company plans to complete 1 new store and 7 full store remodels during the remainder of fiscal 2024 [87] - The average retail price per piece of merchandise sold increased by $1.40, or 2.8%, in Q3 2024 compared to Q3 2023 [74] - The adjustment to inventory for markdowns and/or obsolescence was $11.2 million as of November 2, 2024, up from $9.1 million as of February 3, 2024 [95] Liabilities and Obligations - The liability for unredeemed gift cards and certificates was $12.6 million as of November 2, 2024, down from $16.7 million as of February 3, 2024 [91] - The accrued liability for sales returns was $3.6 million as of November 2, 2024, compared to $2.6 million as of February 3, 2024 [93] - Total contractual obligations amounted to $442.173 million as of November 2, 2024, with operating lease payments of $394.210 million included [103] - The Company had outstanding letters of credit totaling $3.1 million as of November 2, 2024, slightly down from $3.2 million as of February 3, 2024 [103] Seasonal Business and Interest Rates - The Company’s business is seasonal, with the holiday and back-to-school seasons historically contributing approximately 35% of annual net sales [104] - A one-quarter percent decline in interest/dividend rates would decrease the Company's net income by approximately $0.5 million [107] Credit and Borrowing - The Company has an unsecured line of credit of $25.0 million, with $10.0 million available for letters of credit, expiring on July 31, 2025 [89] - The Company has not made any bank borrowings during the first three quarters of fiscal 2024 or 2023 [89] - The Company believes it has sufficient credit available to open letters of credit for merchandise purchases [103]