The Buckle (BKE) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2024 was $39.3 million ($0.78 diluted EPS), down from $45.6 million ($0.92 diluted) in Q2 2023; year-to-date net income was $74.1 million, down from $88.6 million year-over-year.

• Net sales for Q2 2024 decreased 3.4% to $282.4 million; comparable store sales declined 6.6%, and online sales dropped 15.2% to $37.0 million.

• Gross margin for Q2 was 46.9%, down from 47.3% year-over-year, mainly due to higher occupancy, buying, and distribution costs.

• Operating margin for Q2 was 17.1%, down from 19.4% in Q2 2023, reflecting increased SG&A expenses.

• Year-to-date net sales fell 5.3% to $544.9 million; comparable store sales down 7.7%, and online sales down 14.2%.

Financial highlights

• Cash and investments at quarter-end totaled $336.1 million; cash and cash equivalents were $287.3 million as of August 3, 2024.

• Operating cash flow for the first two quarters was $77.5 million, down from $81.5 million year-over-year.

• Inventory at quarter-end was $131.4 million, down 3.4% year-over-year.

• Dividends paid year-to-date totaled $35.5 million ($0.70 per share).

• Stockholders' equity at August 3, 2024, was $458.6 million.

Segment performance

• The company operates as a single reportable segment, retailing casual apparel, footwear, and accessories.

• Women's merchandise sales for Q2 were down about 3% and represented 43.5% of total sales; men's sales were down 3.5% and represented 56.5%.

• Denim accounted for up to 39.1% of sales and outperformed the total business, down only 1.5% year-over-year.

• Accessory sales declined 4%, and footwear sales dropped 27% for the quarter.

• Online sales represented 13.1% of net sales in Q2 2024.