Buckle(US:BKE)2024-03-15 15:34Financial 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]