Buckle Q4 Earnings Call Highlights
by Mitch Edgeman · The Markets DailyBuckle (NYSE:BKE) reported higher sales and earnings for its fourth quarter and full fiscal year ended January 31, 2026, supported by continued strength in the women’s business and higher average selling prices, according to management’s prepared remarks on the company’s earnings webcast.
Quarterly results
Senior Vice President of Finance, Treasurer and CFO Tom Heacock said net income for the 13-week fourth quarter was $80.8 million, or $1.59 per diluted share, compared with $77.2 million, or $1.53 per diluted share, in the prior-year quarter.
Net sales for the quarter increased 5.3% to $399.1 million, up from $379.2 million a year earlier. Comparable store sales rose 3.9%, and online sales increased 6.4% to $74.2 million.
Heacock said units per transaction (UPTs) decreased about 1.5% during the quarter, while the average unit retail increased about 5.5%. Average transaction value rose about 3.5%.
Full-year performance
For the 52-week fiscal year, Buckle posted net income of $209.7 million, or $4.14 per diluted share, compared with $195.5 million, or $3.89 per diluted share, in the prior year.
Total sales for the year increased 6.6% to $1.298 billion, versus $1.218 billion in the prior year. Comparable store sales increased 5.6%, and online sales grew 9.8% to $217.1 million.
For the full year, UPTs decreased about 1%, while average unit retail increased about 3.5% and average transaction value rose about 2.5%, management said.
Margins and expenses
Gross margin in the fourth quarter was 52.6%, consistent with the year-ago quarter. Heacock said merchandise margins increased 35 basis points but were offset by higher buying, distribution, and occupancy expenses.
For the full year, gross margin was 49%, up 30 basis points from 48.7% in the prior year. The company attributed the improvement to a 20-basis-point increase in merchandise margins and 10 basis points of leverage in buying, distribution, and occupancy expenses.
Selling, general and administrative (SG&A) expenses were 27.4% of sales in the fourth quarter, compared with 27.2% a year ago. Management said the increase was driven by a 30-basis-point rise in marketing spend and a 20-basis-point increase in G&A compensation-related expenses, partially offset by a 10-basis-point decrease in incentive compensation accruals and a 20-basis-point decrease in other SG&A categories.
Operating margin for the quarter was 25.2%, compared to 25.4% in the prior-year period. For the full year, operating margin improved to 20.2% from 19.8%.
Income tax expense as a percentage of pre-tax net income was 23.3% for the quarter, compared with 23.7% a year ago. For the full year, the rate was 24% versus 24.2% in the prior year.
Category trends: women’s growth, kids momentum
Vice President of Finance and Corporate Controller Adam Akerson said the fourth quarter marked the fifth consecutive quarter of double-digit growth for the women’s business, with merchandise sales increasing about 12%. Women’s represented approximately 46% of sales for the quarter, up from 43% last year.
Akerson said women’s denim continued to drive results, with denim sales up 10.5% year over year. He also highlighted higher price points, noting average women’s denim prices rose from $83.10 in the fourth quarter of fiscal 2024 to $90.20 in the fourth quarter of fiscal 2025. He attributed the average unit retail increase to the performance of Buckle’s Black label and momentum from higher-priced national brands.
Management said the company increased denim inventory during the quarter to support demand and improve availability across styles, fits, sizes, and inseams. Akerson added that women’s growth extended across top categories, with notable gains in knits and sweaters, as well as strong performance in outerwear and accessories. Overall average women’s price points rose about 6.5% from $51.55 to $54.95.
On the men’s side, Akerson said merchandise sales were down about 0.5% year over year and represented about 54% of total sales, compared with 57% a year earlier. Men’s denim was down about 3.5%, though the company saw “slight growth” in key private label brands. Average men’s denim price points increased about 0.5% to $86.95, and overall average men’s price points increased about 4.5% from $56.30 to $58.80, according to Akerson.
Accessory sales increased about 3.5% while footwear sales declined about 3%. Accessories and footwear accounted for approximately 11% and 5% of fourth-quarter net sales, respectively, consistent with the prior year. Average accessory and footwear price points rose about 8% and 8.5%.
Akerson also highlighted continued strength in kids, saying the kids business grew approximately 16% year over year during the quarter.
Denim accounted for approximately 44% of quarterly sales and tops about 29.5%, compared with 45% and 29% a year earlier. Private label represented 49.5% of sales in the quarter, versus 51% in the fourth quarter of 2024; for the full year, private label was 47.5% of sales, consistent with the prior year.
Balance sheet, capital allocation, and store plans
Heacock said inventory ended the year at $139.5 million, up 15.5% from a year ago. Buckle reported $306.6 million of total cash and investments after paying $225.1 million in dividends during the year. Fixed assets (net of accumulated depreciation) were $162.4 million at quarter end.
Capital expenditures were $10.9 million in the quarter and $45.4 million for the full year, while depreciation expense totaled $7.2 million for the quarter and $25.4 million for the year. The company said full-year capital spending included $40.7 million for new store construction, remodels, and technology upgrades, and $4.7 million for corporate headquarters and distribution center projects.
During the quarter, Buckle opened two new stores, completed five full remodels (including four relocations into new outdoor shopping centers), and closed four stores. For the full year, Buckle reported six new stores, 20 full remodels, and seven store closures.
Management said current plans for fiscal 2026 include opening 12 to 14 new stores and completing 12 to 14 full remodel projects, with at least half of the remodels expected to be relocations into outdoor centers. The company has closed one store year-to-date and said no additional closures are currently planned.
In response to an analyst question, President and CEO Dennis Nelson said Buckle has taken an “opportunity approach” to store openings, citing success with “premium and Tanger Outlets” and additional opportunities in select markets. He also noted plans for relocations to outdoor centers and improved locations within existing malls.
Buckle ended fiscal 2025 with 440 retail stores in 42 states, compared with 441 stores in 42 states at the end of fiscal 2024.
Nelson also addressed the kids assortment, saying the majority of stores carry youth product, though about 15% of stores do not due to space constraints. He said the company now has one separate youth store, after previously operating four youth-only locations and later expanding three and reintegrating youth product into the main stores.
During the Q&A, management reiterated that the company does not include cash flow information in its earnings press release, noting that cash flow details are typically found in SEC filings. The company also reiterated at the start of the call that it does not provide future sales or earnings guidance.
About Buckle (NYSE:BKE)
Buckle, Inc is a retailer specializing in casual apparel, footwear and accessories for young men and women. The company is known for its denim-focused collections, offering both private-label lines and curated brand-name merchandise. Its product assortment includes jeans, tops, outerwear, shoes and a variety of accessories such as belts, jewelry and handbags, all aimed at blending contemporary style with everyday comfort.
Founded in 1948 in Kearney, Nebraska, Buckle began as a single clothing store and has since expanded into a nationwide chain.