Buckle Inc (BKE) 2023 Q3 法說會逐字稿

Good morning, and thank you for standing by. Welcome to Buckle's Third Quarter Earnings Release Webcast. (Operator Instructions)

早安，感謝您的支持。歡迎收看 Buckle 第三季財報發佈網路廣播。 （操作員說明）

Members of Buckle's management on the call today are Dennis Nelson, President and CEO; Tom Heacock, Senior Vice President of Finance, Treasurer and CFO; Adam Akerson, Vice President of Finance and Corporate Controller; Brady Fritz, Senior Vice President, General Counsel and Corporate Security.

今天參加電話會議的 Buckle 管理層成員包括總裁兼執行長 Dennis Nelson； Tom Heacock，財務資深副總裁、財務長兼財務長； Adam Akerson，財務副總裁兼公司財務長； Brady Fritz，資深副總裁，總法律顧問和企業安全。

As a review, operating results in the third quarter, which ended October 28, 2023, they would like to reiterate their policy of not giving future sales or earnings guidance and have the following safe harbor statement. Safe harbor statement under the Private Securities Litigation Reform Act of 1995. All forward-looking statements made by the company involve material risks and uncertainties and are subject to change based on factors which may be beyond the company's control. Accordingly, the company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, as described in the company's filings with the Securities and Exchange Commission. The company does not undertake to publicly update or revise any forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

作為對截至 2023 年 10 月 28 日的第三季營運業績的回顧，他們想重申不提供未來銷售或獲利指引的政策，並發表以下安全港聲明。根據 1995 年私人證券訴訟改革法案的安全港聲明。公司做出的所有前瞻性聲明均涉及重大風險和不確定性，並可能因公司無法控制的因素而發生變化。因此，本公司的未來業績和財務表現可能與任何此類前瞻性陳述中明示或暗示的業績和財務業績存在重大差異。這些因素包括但不限於公司向美國證券交易委員會提交的文件中所述的因素。該公司不承諾公開更新或修改任何前瞻性陳述，即使經驗或未來的變化明確表明其中明示或暗示的任何預期結果將無法實現。

Additionally, the company does not authorize the reproduction or determination of transcripts or audio recordings of the company's quarterly conference calls without its expressed written consent. Any unauthorized reproductions or recordings of the cause should not be relied upon as the information may be inaccurate. As a reminder, this webcast is being recorded.

此外，未經本公司明確書面同意，本公司不授權複製或確定公司季度電話會議的文字記錄或錄音。不應依賴任何未經授權的複製或記錄，因為該資訊可能不準確。提醒一下，此網路廣播正在錄製中。

And I'd now like to turn the conference over to your host, Tom Heacock.

現在我想把會議交給主持人湯姆希科克。

Good morning, and thanks for being with us this morning.

早上好，感謝您今天早上和我們在一起。

Our November 17, 2023 press release reported a net income for the 13-week third quarter, which ended October 28, 2023, was $51.8 million or $1.04 per share on a diluted basis, which compares to net income of $61.4 million or $1.24 per share on a diluted basis for the prior year 13-week third quarter, which ended October 29, 2022. Year-to-date, net income for the 39-week period ended October 28, 2023, was $140.3 million or $2.81 per share on a diluted basis compared to net income of $166.8 million or $3.37 per share on a diluted basis for the prior year 39-week period ended October 29, 2022.

我們在2023 年11 月17 日的新聞稿中報道，截至2023 年10 月28 日的為期13 週的第三季度淨利潤為5,180 萬美元，攤薄後每股收益1.04 美元，而淨利潤為6,140 萬美元，即每股1.24 美元根據截至2022 年10 月29 日的上一財年為期13 週的第三季度的稀釋數據計算。年初至今，截至2023 年10 月28 日的39 週期間的淨利潤為1.403 億美元，即每股2.81 美元。相較之下，截至 2022 年 10 月 29 日的上一年 39 週期間的攤薄淨利潤為 1.668 億美元，即每股 3.37 美元。

Net sales for the 13-week third quarter decreased 8.7% to $303.5 million compared to net sales of $332.3 million for the prior year 13-week third quarter. Comparable store sales for the quarter decreased 9.2% in comparison to the same 13-week period in the prior year, and our online sales decreased 16.2% to $46.1 million. Year-to-date net sales decreased 6.9% to $878.7 million for the 39-week fiscal period ended October 28, '23 compared to net sales of $943.4 million for the prior year 39-week fiscal period, which ended October 29, 2022. Comparable store sales for the year-to-date period were down 7.3% in comparison to the same 39-week period in the prior year and our online sales decreased 9.4% to $141 million.

為期 13 週的第三季淨銷售額下降 8.7%，至 3.035 億美元，而去年同期為期 13 週的第三季淨銷售額為 3.323 億美元。與去年同期 13 週相比，本季可比商店銷售額下降 9.2%，線上銷售額下降 16.2% 至 4,610 萬美元。截至2023年10月28日的39週財政期間，年初至今的淨銷售額下降了6.9%，至8.787億美元，而上一年截至2022年10月29日的39週財政期間的淨銷售額為9.434億美元。與去年同期 39 週相比，今年迄今的可比較商店銷售額下降了 7.3%，我們的線上銷售額下降了 9.4%，至 1.41 億美元。

For the quarter, UPTs decreased approximately 0.5%, the average unit retail increased about 0.5% and the average transaction value increased slightly. Year-to-date, our UPTs were flat. The average unit retail increased approximately 0.5% and the average transaction value increased also about 0.5%.

本季度，UPT 下降約 0.5%，平均單位零售量成長約 0.5%，平均交易價值略有成長。今年迄今為止，我們的 UPT 持平。平均單位零售量成長約0.5%，平均交易額也成長約0.5%。

Gross margin for the quarter was 48.5%, down 130 basis points from 49.8% in the third quarter of 2022. The current quarter decline is the result of deleverage buying, distribution and occupancy expense as merchandise margins were flat for the quarter. Year-to-date gross margin was 47.7%, down 140 basis points from 49.1% in the prior year, with the year-to-date decline being the result of 110 basis points of deleverage buying, distribution and occupancy expense along with a 30 basis point decline in merchandise margins.

本季毛利率為 48.5%，較 2022 年第三季的 49.8% 下降 130 個基點。本季毛利率下降是由於本季商品利潤率持平，導致購買、分銷和占用費用去槓桿化。年初至今的毛利率為 47.7%，比上年的 49.1% 下降 140 個基點，年初至今的毛利率下降是由於去槓桿化購買、分銷和占用費用 110 個基點以及 30 個基點的影響。商品利潤率下降基點。

Selling, general and administrative expenses for the quarter were 27.4% of net sales compared to 25.9% for the third quarter of 2022, and year-to-date, SG&A was 27.8% of sales compared to 26% for the same period last year. The third quarter increase was due to a 130 basis point increase in store labor-related expenses, a 30 basis point increase in G&A salaries, a 30 basis point increase in equity compensation expense and a 20 basis point increase in marketing spend. These increases were partially offset by a 50 basis point decrease in incentive compensation accruals and a 10 basis point decrease in certain other SG&A expense categories.

本季的銷售、一般及管理費用佔淨銷售額的 27.4%，而 2022 年第三季為 25.9%；年初至今，SG&A 佔銷售額的 27.8%，而去年同期為 26%。第三季的成長是由於商店人工相關費用增加 130 個基點、一般及行政費用增加 30 個基點、股權薪酬費用增加 30 個基點以及行銷支出增加 20 個基點。這些成長被應計激勵薪酬減少 50 個基點和某些其他 SG&A 費用類別減少 10 個基點部分抵銷。

Our operating margin for the quarter was 21.1% compared to 23.9% for the third quarter of fiscal 2022, and for the year-to-date period, our operating margin was 19.9% compared to 23.1% for the same period last year. Income tax expense as a percentage of pretax net income for both the current and prior year fiscal quarter was 24.5%, bringing third quarter net income to $51.8 million for 2023 compared to $61.4 million for 2022. Income tax expense as a percentage of pretax net income for both the current and prior year year-to-date periods was also 24.5%, bringing year-to-date net income to $140.3 million for fiscal 2023, compared to $166.8 million for fiscal 2022.

我們本季的營業利益率為 21.1%，而 2022 財年第三季為 23.9%；今年迄今，我們的營業利潤率為 19.9%，而去年同期為 23.1%。本財季和上一財季的所得稅費用佔稅前淨收入的百分比均為24.5%，使2023 年第三季淨利達到5,180 萬美元，而2022 年第三季淨利為6,140 萬美元。所得稅費用佔稅前淨收入的百分比本年和上一年年初至今的淨利潤也均為 24.5%，使 2023 財年年初至今的淨利潤達到 1.403 億美元，而 2022 財年為 1.668 億美元。

Our press release also included a balance sheet as of October 28, 2023, which included the following: inventory of $152.3 million which was essentially flat with inventory levels at the same time a year ago and $357.6 million of total cash and investments. We ended the quarter with $124.1 million in fixed assets, net of accumulated depreciation. Our capital expenditures for the quarter were $10.1 million and depreciation expense was $5 million. For the year-to-date period, capital expenditures were $28 million and depreciation expense was $14.9 million.

我們的新聞稿還包括截至 2023 年 10 月 28 日的資產負債表，其中包括以下內容：庫存為 1.523 億美元，與一年前同期的庫存水準基本持平；現金和投資總額為 3.576 億美元。截至本季末，扣除累計折舊後，我們的固定資產為 1.241 億美元。本季我們的資本支出為 1,010 萬美元，折舊費用為 500 萬美元。今年迄今，資本支出為 2,800 萬美元，折舊費用為 1,490 萬美元。

Our year-to-date capital spending was broken down as follows: $27 million for new store construction, store remodels and technology upgrades and $1 million for capital spending at the corporate headquarters and distribution center.

我們今年迄今的資本支出細分如下：2,700萬美元用於新店建設、商店改造和技術升級，100萬美元用於公司總部和配送中心的資本支出。

During the quarter, we opened 3 new stores and completed 4 full store remodels, 2 of which were relocations into new outdoor shopping centers. Additionally, we opened 2 new stores earlier this month in Park City, Utah, in Bristol, Tennessee and completed 1 additional full store remodel, which brings our year-to-date count to 7 new stores, 15 full remodels and 3 store closures. For the remainder of the year, we anticipate opening 2 additional new stores and completing 4 more full remodeling projects. Buckle ended the quarter with 443 retail stores in 42 states compared with 441 stores in 42 states at the end of the third quarter last year.

本季度，我們開設了 3 家新店，並完成了 4 次全店改造，其中 2 次搬遷至新的戶外購物中心。此外，我們本月早些時候在猶他州帕克城和田納西州布里斯托爾開設了2 家新店，並完成了1 家額外的全店改造，這使我們今年迄今為止的新店數量達到7 家、15家全面改造和3 家關閉。在今年剩餘時間內，我們預計將開設 2 家新店並完成 4 項全面改造項目。截至本季末，Buckle 在 42 個州擁有 443 家零售店，而去年第三季末在 42 個州擁有 441 家零售店。

And now I'll turn it over to Adam Akerson, our Vice President of Finance.

現在我將它交給我們的財務副總裁 Adam Akerson。

Thanks, and good morning.

謝謝，早安。

Women's merchandise sales for the quarter were down about 10.5% against the prior year and represented approximately 45.5% of sales compared to 46.5% in the prior year. Average denim price points increased from $78.55 in the third quarter of fiscal '22 to $79.50 in the third quarter of fiscal '23, while overall average women's price points increased about 1% from $48.80 to $49.35.

本季女裝商品銷售額比去年同期下降約 10.5%，佔銷售額的比例約為 45.5%，而去年同期為 46.5%。牛仔布平均價位從 22 財年第三季的 78.55 美元上漲至 23 財年第三季的 79.50 美元，而女裝整體平均價位從 48.80 美元上漲至 49.35 美元約 1%。

On the men's side, merchandise sales for the quarter were down about 7% against the prior year representing approximately 54.5% of total sales compared to 53.5% in the prior year. Average denim price points increased from $87.25 in the third quarter of fiscal '22 to $87.95 in the third quarter of fiscal '23. For the quarter, overall average men's price points increased approximately 2% from $51.80 to $52.85.

男裝方面，本季的商品銷售額比去年同期下降約 7%，佔總銷售額的比例約為 54.5%，而去年同期為 53.5%。牛仔布平均價格從 22 財年第三季的 87.25 美元上升到 23 財年第三季的 87.95 美元。本季度，男裝整體平均價格上漲約 2%，從 51.80 美元上漲至 52.85 美元。

On a combined basis, accessory sales for the quarter were down approximately 5% against the prior year, while footwear sales were down about 31%. These 2 categories accounted for approximately 10% and 6%, respectively, of third quarter net sales, which compares to 9.5% and 7.5% for each in the third quarter of fiscal '22. For the quarter, average accessory price points were up approximately 2.5%, and average footwear price points were up about 8.5%.

綜合來看，本季配件銷售額較上年同期下降約 5%，鞋類銷售額下降約 31%。這兩個類別分別佔第三季淨銷售額的約 10% 和 6%，而 22 財年第三季分別佔 9.5% 和 7.5%。本季，配件平均價格上漲約 2.5%，鞋類平均價格上漲約 8.5%。

Denim accounted for approximately 43.5% of sales and tops accounted for approximately 30.5%, which compares to 42.5% and 30.5% for each in the third quarter of fiscal '22.

牛仔布約佔銷售額的 43.5%，上衣約佔 30.5%，而 22 財年第三季分別為 42.5% 和 30.5%。

For both our men's and women's business, better performing categories included our short sleeve and shorts business, in addition to lightweight long sleeves as the weather remained unseasonably warm across much of the country. Given slower sell-throughs in some of our more traditional fall assortments, we were pleased with our ability to keep both inventory levels and merchandise margins flat year-over-year.

對於我們的男裝和女裝業務來說，表現較好的類別包括我們的短袖和短褲業務，以及輕盈長袖業務，因為全國大部分地區的天氣仍然異常溫暖。鑑於我們一些較傳統的秋季品種的銷售速度較慢，我們對保持庫存水準和商品利潤同比持平的能力感到滿意。

Our Q3 comparisons also continue to be challenged with declines in our Hey Dude volume particularly on the men's side. Third quarter net sales for our men's business without Hey Dude were down 4.1%.

我們的第三季比較也繼續受到「Hey Dude」銷量下降的挑戰，特別是在男子方面。剔除 Hey Dude 後，我們的男裝業務第三季淨銷售額下降了 4.1%。

We remain encouraged by the growth and performance in our youth business with the combined youth business growing approximately 2% for the quarter building on growth of 26.5% a year ago. We were also pleased with the continued growth in our private brands with private label representing 47% of sales versus 46% in the third quarter of fiscal '22.

我們仍對青年業務的成長和業績感到鼓舞，本季青年業務綜合成長率約為 2%，而去年同期成長率為 26.5%。我們也對自有品牌的持續成長感到高興，自有品牌佔銷售額的 47%，而 22 財年第三季為 46%。

And with that, we welcome your questions.

因此，我們歡迎您提出問題。

(Operator Instructions) Our first question is from Mauricio Serna.

（操作員說明）我們的第一個問題來自 Mauricio Serna。

Great. Hopefully, you can hear me. This is Mauricio Serna from UBS.

偉大的。希望你能聽到我的聲音。我是瑞銀集團的毛里西奧·塞爾納。

Just wanted to ask about -- I know that in Q4, I think you have an additional week in the quarter, so I just want to make sure like, I suppose there's a contribution to sales, but also wanted to understand if that tends to be historically good or bad for margins?

只是想問一下 - 我知道在第四季度，我認為該季度還有額外的一周，所以我只是想確保，我認為這對銷售有所貢獻，但也想了解這是否會傾向於從歷史上看，利潤率是好是壞？

And then on -- on the comp sales for this quarter, the 3Q, I noted that it deteriorated like every month was weaker than the previous one. So to ask if there's anything that you would call out maybe from a fashion standpoint that is -- you think this is causing this weakening performance? And I would probably think that it's also probably relatively weaker compared to peers.

然後，關於本季（第三季）的銷售情況，我注意到它的情況惡化了，就像每個月都比上個月弱一樣。那麼，從時尚的角度來看，您是否認為這會導致業績疲軟？我可能認為與同行相比，它也可能相對較弱。

Thank you. The fifth week, we would project sales of approximately $17 million for that week. And then for the comp sales, I mean, we're going against 2 of our best years ever. And I think as was mentioned in the script, the unseasonably warm weather probably had more of an effect on people getting out and just traffic in the stores. As we travel our stores, the teams seem very excited and the product is looking very good. And -- so I think from that standpoint, our fashion, we are on target and just looking to build the traffic.

謝謝。第五週，我們預計該週的銷售額約為 1700 萬美元。然後就比較​​銷售而言，我的意思是，我們正在經歷有史以來最好的兩年。我認為正如劇本中提到的，反常的溫暖天氣可能對人們外出和商店裡的交通產生了更大的影響。當我們巡視商店時，團隊似乎非常興奮，產品看起來非常好。所以我認為從這個角度來看，我們的時尚，我們已經達到了目標，只是希望增加流量。

Got it. And sorry, I don't know if you -- can you tell us like if the additional week, is that good for the margins? Or how does that affect the company's margins?

知道了。抱歉，我不知道您能否告訴我們，額外的一周是否對利潤有好處？或者說這對公司的利潤率有何影響？

Yes, that is a better margin week just without being fully loaded for some of the costs that are -- I mean, not allocated for that week. So like a rent or different things are not fully allocated. So it is a better margin week than a typical week for January.

是的，這是一個更好的利潤週，只是沒有滿載一些成本——我的意思是，沒有分配給那一周。所以像租金或不同的東西都沒有完全分配。因此，這是一個比一月份的典型一周更好的保證金週。

Our next question is from [John Bragg].

我們的下一個問題來自[約翰·布拉格]。

It looks like we have a follow-up question from Mauricio Serna.

看來我們有毛里西奧·塞爾納 (Mauricio Serna) 提出的後續問題。

Got it. Okay. Sorry. Yes, I just had a couple of follow-ups. I guess like if I look into the results, the selling expenses, I noted that it was down 5%. Just wanted to understand like what were the main drivers behind that?

知道了。好的。對不起。是的，我剛剛進行了幾次跟進。我想如果我查看結果、銷售費用，我發現它下降了 5%。只是想了解背後的主要驅動因素是什麼？

And then I know that you talked about the inventory being in good shape. Maybe you could elaborate a little bit more on that, like how do you feel about that, especially as we come into the holiday season, like -- now like December is a particularly important month for you. So how do you feel about inventory and I guess, the consumer at this point ahead of the holiday season?

然後我知道您談到庫存狀況良好。也許你可以詳細說明一下，例如你對此有何感受，尤其是當我們進入假期時，例如——現在 12 月對你來說是一個特別重要的月份。那麼，您對庫存有何看法，我想，消費者在假期季節到來之前的這一點上有何看法？

Mauricio, this is Tom. I'll take the first question and turn it over to Dennis for the second question.

毛里西奧，這是湯姆。我將回答第一個問題並將其交給丹尼斯回答第二個問題。

But really, the driver when you look at SG&A, a lot of those are people related, so compensation, benefits, costs, the decrease quarter-over-quarter for the selling expense really around accruals for incentive compensation, which is consistent with the trend that we've seen so far this year.

但實際上，當你看到SG&A時，驅動因素很多都與人相關，因此薪酬、福利、成本、銷售費用的環比下降實際上圍繞著激勵性薪酬的應計費用，這與趨勢是一致的這是我們今年到目前為止所看到的。

On the inventory, we feel pretty good about that. I would say we have normal markdown cadence right now, and we'll just be offering a few specials over the Black Friday weekend. The youth and gals has had some nice growth. So we have some of the increase there. But our selection and our private brands in denim, we feel really good about. And the fall/winter inventory, we are comfortable with as we go into holiday and expect to see a good season.

在庫存方面，我們對此感覺很好。我想說我們現在有正常的降價節奏，我們只會在黑色星期五週末提供一些特價商品。年輕人和女孩們都有了一些不錯的成長。所以我們有一些增長。但我們對牛仔布的選擇和自有品牌感覺非常好。至於秋冬庫存，我們對假期感到滿意，並期待看到一個好季節。

(Operator Instructions) There are no further questions. I will now turn the call back over to Buckle for any closing remarks.

（操作員說明）沒有其他問題。我現在將把電話轉回給巴克爾，讓他發表結束語。

We thank everyone for their participation today, and everybody, have a wonderful weekend and enjoy your week next week.

我們感謝大家今天的參與，祝大家週末愉快，下週愉快。