Buckle(BKE)2025-06-12 18:24Financial Performance - Net sales increased from $262.5 million in Q1 2024 to $272.1 million in Q1 2025, a 3.7% increase [55] - Comparable store net sales for the thirteen-week period ended May 3, 2025, increased by 3.0% compared to the prior year [55] - Gross profit was $127.0 million in Q1 2025, representing 46.7% of net sales, up from 46.0% in Q1 2024 [57] - Income from operations was $43.5 million, or 16.0% of net sales, for Q1 2025, compared to $42.4 million, or 16.2% of net sales, for Q1 2024 [59] - Cash flow from operations was $31.0 million in Q1 2025, compared to $29.9 million in Q1 2024 [60] Capital Expenditures and Investments - Total capital expenditures for fiscal 2025 are estimated to be approximately $50.0 to $55.0 million [63] - The company had total cash and investments of $320.0 million as of May 3, 2025 [63] - The company has an unsecured line of credit of $25.0 million with Wells Fargo Bank, N.A., expiring on July 31, 2025 [65] - The Company has an unsecured line of credit of $25.0 million, with $10.0 million available for letters of credit [73] Inventory and Obligations - As of May 3, 2025, the adjustment to inventory for markdowns and/or obsolescence was $9.7 million, compared to $9.2 million as of February 1, 2025 [71] - The total contractual obligations as of May 3, 2025, amounted to $499.486 million, with operating lease payments contributing $452.013 million [73] - The Company had outstanding letters of credit totaling $1.1 million as of May 3, 2025, down from $2.2 million as of February 1, 2025 [73] Business Strategy and Operations - The company plans to open 7 new stores and complete 16 full store remodels during fiscal 2025 [63] - The holiday and back-to-school seasons accounted for approximately 35% of the Company's fiscal year net sales for fiscal years 2024, 2023, and 2022 [74] - Store leases typically have an initial term of 10 years, with options to renew for an additional 1 to 5 years [71] - Management reviews inventory levels against estimated future demand and current market conditions, which could significantly impact net earnings [71] Financial Risks and Trends - A one-quarter percent decline in the interest/dividend rate earned on cash and investments would decrease the Company's net income by approximately $0.5 million [76] - The Company has no known trends or uncertainties that would materially affect its financial condition or results of operations [72] - The Company does not undertake to update any forward-looking statements made from time to time [75]