Buckle Inc (BKE) 2024 Q3 法說會逐字稿

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

早安.感謝您的耐心等待，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; and Brady Fritz, Senior Vice President, General Counsel and Corporate Secretary.

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；以及資深副總裁、總法律顧問兼公司秘書 Brady Fritz。

As they review operating results, 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 risk and uncertainties and are subject to be based on change factors, which may be beyond the company's control.

在審查經營業績時，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。1995 年私人證券訴訟改革法案下的安全港聲明。本公司所做的所有前瞻性陳述均涉及重大風險和不確定性，並可能基於變化因素，而這些因素可能超出本公司的控制範圍。

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, those described in company's filings with 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.

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 dissemination of transcripts or audio recordings of the company's quarterly conference calls without its expressed written consent. Any unauthorized reproductions or recordings of this call should not be relied upon as the information may be inaccurate.

此外，未經本公司明確書面同意，本公司不得授權複製或傳播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本次通話複製或錄音，因為該資訊可能不準確。

As a reminder, today's webcast is being recorded. And now I would like to turn the conference over to your host, Tom Heacock.

提醒一下，今天的網路廣播正在錄製中。現在我想把會議交給主持人湯姆希科克。

Good morning, and thanks for joining us this morning. Our November 22, 2024, press release reported that net income for the 13-week third quarter, which ended November 2, 2024, was $44.2 million or $0.88 per share on a diluted basis compared to net income of $51.8 million or $1.04 per share on a diluted basis for the prior year 13-week third quarter that ended October 28, 2023.

早安，感謝您今天早上加入我們。我們在2024 年11 月22 日發布的新聞稿稱，截至2024 年11 月2 日的為期13 週的第三季度攤薄後淨利潤為4,420 萬美元，即每股0.88 美元，而2024 年11 月22日的淨利潤為5,180 萬美元，即每股1.04 美元。

Year-to-date, net income for the 39-week period ended November 2, 2024, was $118.3 million or $2.35 per share on a diluted basis, which compares to net income of $140.3 million or $2.81 per share on a diluted basis for the prior year 39-week period ended October 28, 2023.

年初至今，截至 2024 年 11 月 2 日的 39 週期間的淨利潤為 1.183 億美元，或稀釋後每股 2.35 美元，而 2020 年同期的淨利潤為 1.403 億美元，或稀釋後每股 2.81 美元。上一年截至2023 年10 月28 日的39 週。

Net sales for the 13-week third quarter decreased 3.2% to $293.6 million compared to net sales of $303.5 million for the prior year 13-week third quarter. Comparable store sales for the 13-week fiscal quarter decreased 0.7% in comparison to the same 13-week period a year ago, and our online sales increased 1.1% to $46.6 million for the 13-week fiscal quarter, which compares to $46.1 million for the prior year 13-week fiscal quarter. Compared to the same 13 weeks a year ago, our online sales increased 1.7%.

為期 13 週的第三季淨銷售額下降 3.2%，至 2.936 億美元，而去年同期為期 13 週的第三季淨銷售額為 3.035 億美元。與去年同期的13 週相比，本財季13 週的可比商店銷售額下降了0.7%，而本財季13 週的在線銷售額增長了1.1%，達到4,660 萬美元，而去年同期的網上銷售額為4,610 萬美元。與去年同期的 13 週相比，我們的線上銷售額成長了 1.7%。

Year-to-date net sales decreased 4.6% to $838.5 million compared to net sales of $878.7 million for the prior year 39-week fiscal period. Comparable store sales for the year-to-date period decreased 5.4% in comparison to the same 39-week period in the prior year, and our online sales decreased 9.2% to $128 million for the year-to-date period, which compares to $141 million for the prior year 39-week fiscal period. Compared to the same 39 weeks a year ago, our online sales decreased 8.9%.

年初至今，淨銷售額下降 4.6%，至 8.385 億美元，而上一年 39 週會計期間的淨銷售額為 8.787 億美元。與去年同期 39 週相比，今年迄今的可比商店銷售額下降了 5.4%，而今年迄今的線上銷售額下降了 9.2%，至 1.28 億美元。 。與去年同期 39 週相比，我們的線上銷售額下降了 8.9%。

For the quarter, UPTs decreased approximately 1%, the average unit retail increased approximately 1.5% and the average transaction value increased about 0.5%. Year-to-date, UPTs decreased approximately 2.5%, the average unit retail increased approximately 3.5% and the average transaction value increased approximately 1%.

本季度，UPT 下降約 1%，平均單位零售量成長約 1.5%，平均交易價值成長約 0.5%。年初至今，UPT 下降了約 2.5%，平均單位零售量增加了約 3.5%，平均交易價值增加了約 1%。

Gross margin for the quarter was 47.7%, down 80 basis points from 48.5% in the third quarter of 2023, with the current quarter decline being the result of a 100 basis point decrease in -- or increase in occupancy costs, along with a 35 basis point increase in distribution and buying costs, which were partially offset by a 55 basis point improvement in merchandise margins.

本季毛利率為 47.7%，較 2023 年第三季的 48.5% 下降 80 個基點，本季毛利率下降的原因是入住成本下降 100 個基點，即入住成本增加 35 個基點。了一個基點，但商品利潤率提高了55 個基點，部分抵消了增加。

Year-to-date gross margin was 46.9%, also down 80 basis points from 47.7% in the prior year. The year-to-date decline was the result of a 110 basis point increase in occupancy costs, along with a 25 basis point increase in distribution and buying costs, which were partially offset by a 55 basis point improvement in merchandise margins.

年初至今的毛利率為 46.9%，也較前一年的 47.7% 下降 80 個基點。年初至今的下降是由於入住成本增加了 110 個基點，以及分銷和購買成本增加了 25 個基點，但商品利潤率提高了 55 個基點，部分抵消了這一影響。

Selling, general and administrative expenses for the quarter were 29.1% of net sales compared to 27.4% for the third quarter last year. And for the year-to-date, SG&A was 29.6% of net sales compared to 27.8% for the same period last year. The third quarter increase was due to a 90 basis point increase in store labor-related expenses, a 35 basis point increase related to digital commerce investments, a 30 basis point increase in G&A salaries and a 50 basis point increase in other SG&A expense categories. And these increases were partially offset by a 35 basis point decrease in incentive compensation accruals.

本季的銷售、一般和管理費用佔淨銷售額的 29.1%，而去年第三季為 27.4%。今年迄今為止，SG&A 佔淨銷售額的 29.6%，而去年同期為 27.8%。第三季的成長是由於商店勞動力相關費用增加了 90 個基點、與數位商務投資相關的費用增加了 35 個基點、G&A 工資增加了 30 個基點以及其他 SG&A 費用類別增加了 50 個基點。這些增長被應計激勵薪酬減少 35 個基點部分抵銷。

Our operating margin for the quarter was 18.6% compared to 21.1% for the third quarter of fiscal 2023. And for the year-to-date period, our operating margin was 17.3% compared to 19.9% for the same period last year.

我們本季的營業利益率為 18.6%，而 2023 財年第三季的營業利益率為 21.1%。今年迄今，我們的營業利益率為 17.3%，去年同期為 19.9%。

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 $44.2 million for fiscal 2024 compared to $51.8 million for fiscal 2023. 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 $118.3 million for fiscal 2024 compared to $140.3 million for fiscal 2023.

本財季和上一年財季的所得稅費用佔稅前淨收入的百分比均為 24.5%，使 2024 財年第三季淨收入達到 4,420 萬美元，而 2023 財年為 5,180 萬美元。所得稅費用佔本年和上年年初至今稅前淨收入的百分比也為 24.5%，使 2024 財年年初至今的淨收入達到 1.183 億美元，而 2023 財年為 1.403 億美元。

Our press release also included a balance sheet as of November 2, 2024, which included the following: inventory of $149.4 million which was down 1.9% from the same time a year ago and $352.7 million of total cash and investments. We ended the quarter with $143 million in fixed assets, net of accumulated depreciation. Our capital expenditures for the quarter were $10.2 million and depreciation expense was $5.5 million.

我們的新聞稿還包括截至 2024 年 11 月 2 日的資產負債表，其中包括以下內容：庫存為 1.494 億美元，比去年同期下降 1.9%；現金和投資總額為 3.527 億美元。截至本季末，扣除累計折舊後，我們的固定資產為 1.43 億美元。本季我們的資本支出為 1,020 萬美元，折舊費用為 550 萬美元。

For the year-to-date period, capital expenditures were $32.5 million and depreciation expense was $16.6 million. Year-to-date capital spending is broken down as follows: $31.7 million for new store construction, store remodels and technology upgrades and $0.8 million for capital spending at the corporate headquarters and distribution center.

年初至今，資本支出為 3,250 萬美元，折舊費用為 1,660 萬美元。今年迄今資本支出細分如下：3,170萬美元用於新店建設、商店改造和技術升級，80萬美元用於公司總部和配送中心的資本支出。

During the quarter, we opened five new stores and completed one full remodel, which brings our year-to-date counts to seven new stores, 13 full remodels and six store closures. For the remainder of the year, we plan on opening one additional new store and completing seven additional full remodel projects, six of which will be relocations into new outdoor shopping centers. Buckle ended the quarter with 445 retail stores in 42 states, which compares to 443 stores in 42 states at the end of the third quarter of fiscal 2023.

本季度，我們開設了 5 家新店並完成了 1 家全面改造，這使得我們年初至今的門市數量達到 7 家新店、13 家全面改造和 6 家關店。在今年剩下的時間裡，我們計劃再開設一家新店，並完成七個額外的全面改造項目，其中六個將搬遷到新的戶外購物中心。截至本季末，Buckle 在 42 個州擁有 445 家零售店，而截至 2023 財年第三季末，Buckle 在 42 個州擁有 443 家零售店。

And now I'll turn it over to Adam Akerson as President of Finance.

現在我將把它交給亞當·阿克森（Adam Akerson）擔任財務總裁。

Thanks, Tom, and good morning. Let me start by saying that we are pleased with the performance of the business during the quarter, especially considering the unseasonably warm start to the fall selling season across much of the country.

謝謝，湯姆，早安。首先我要說的是，我們對本季的業務表現感到滿意，特別是考慮到全國大部分地區秋季銷售旺季的異常溫暖開局。

Our women's merchandise sales for the quarter were down about 0.5% against the prior year fiscal quarter and represented approximately 47% of sales. On a 13-week comparable basis, women's merchandise sales increased approximately 3%. Highlighting the women's growth for the quarter was a 9% increase in denim. The strength in women's denim was most notable in our private brands, with private label denim growing mid-teens.

本季女裝商品銷售額比上一財季下降約 0.5%，約佔銷售額的 47%。在 13 週可比較基礎上，女性商品銷售額成長了約 3%。本季女裝成長的亮點是牛仔布的 9% 成長。女裝牛仔布的優勢在我們的自有品牌中最為顯著，自有品牌牛仔布的成長速度已達到十幾歲。

Average denim price points increased from $79.50 in the third quarter of fiscal 2023 to $81.15 in the third quarter of fiscal 2024, while average overall price points increased about 1% from $49.35 to $49.95. During the quarter, our women's business also saw nice increases in our knit tops, accessories and fashion bottoms.

牛仔布平均價格從 2023 財年第三季的 79.50 美元上漲至 2024 財年第三季的 81.15 美元，而平均整體價格從 49.35 美元上漲至 49.95 美元約 1%。本季度，我們的女裝業務在針織上衣、配件和時尚下裝方面也取得了不錯的成長。

On the men's side, merchandise sales for the quarter were down about 5.5% against the prior year fiscal quarter, representing approximately 53% of total sales. On a 13-week comparable basis, men's merchandise sales were down approximately 2.5%. Our men's business for the quarter was more impacted by warmer temperatures with a slower transition into cold weather categories. We continue to be pleased with the performance of short sleeve and graphic tees, along with our great assortment of hats, fragrance and other accessories.

男裝方面，本季商品銷售額比上一財季下降約 5.5%，約佔總銷售額的 53%。以 13 週可比計算，男士商品銷售額下降約 2.5%。我們本季的男裝業務受到氣溫升高的影響更大，轉向寒冷天氣類別的速度較慢。我們仍然對短袖和圖案 T 卹以及我們種類繁多的帽子、香水和其他配件的表現感到滿意。

While overall denim on the men's side was down about 1%, private label denim grew low single digits. Average denim price points increased from $87.95 in the third quarter of fiscal '23 to $88.10 in the third quarter of fiscal '24. For the quarter, overall average men's price points increased approximately 2.5% from $52.85 to $54.30.

雖然男裝牛仔布整體銷量下降了約 1%，但自有品牌牛仔布銷量卻出現了較低的個位數成長。牛仔布平均價格從 23 財年第三季的 87.95 美元上升到 24 財年第三季的 88.10 美元。本季度，男裝整體平均價格上漲約 2.5%，從 52.85 美元上漲至 54.30 美元。

On a combined basis, accessory sales for the 13-week quarter were up approximately 3% against the prior year 13-week comparable period, while footwear sales were down about 17%. These two categories accounted for approximately 10% and 5%, respectively, of third quarter net sales, which compares to 10% and 6% for each in the third quarter of fiscal '23. For the quarter, average accessory price points were down slightly, while average footwear price points were up about 7%.

綜合來看，本季 13 週的配件銷售額比去年同期 13 週同期成長了約 3%，而鞋類銷售額則下降了約 17%。這兩個類別分別佔第三季淨銷售額的約 10% 和 5%，而 23 財年第三季分別為 10% 和 6%。本季度，配件平均價格略有下降，而鞋類平均價格上漲約 7%。

Also on a combined basis, our youth business had a strong back-to-school selling season. Total youth sales increased approximately 2.5%, with strong performance in denim and graphics.

綜合來看，我們的青少年業務也迎來了強勁的返校銷售季。青少年總銷售額成長約 2.5%，牛仔布和圖案產品表現強勁。

For the quarter, denim accounted for approximately 46% of sales in tops accounted for approximately 29.5%, which compares to 43.5% and 30.5% for each in the third quarter of fiscal '23. Driven by the growth in private label denim, we continue to increase our private label penetration during the quarter, with private label representing 48.5% of sales versus 47% in the third quarter of 2023.

本季度，牛仔布銷量約佔 46%，上衣銷量約佔 29.5%，而 23 財年第三季的銷量分別為 43.5% 和 30.5%。在自有品牌牛仔布成長的推動下，我們在本季持續提高自有品牌滲透率，自有品牌佔銷售額的 48.5%，而 2023 年第三季為 47%。

And as Tom mentioned in his remarks, we continue to make investments in our digital channels during the quarter. We are excited to see these investments starting to impact the guest experience, along with several key metrics across the e-commerce channel, with a return to growth for the quarter.

正如湯姆在演講中提到的，我們在本季繼續對數位管道進行投資。我們很高興看到這些投資開始影響賓客體驗以及整個電子商務管道的幾個關鍵指標，並在本季恢復成長。

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. It's Mauricio Serna from UBS Research. Sorry, I think I missed this part when you were talking about the gross margin drivers. I think I heard that you mentioned the merchandise margins were up 55 basis points year-over-year. And I think that's a bit of a deceleration compared to what you had seen in the second quarter. So maybe first, I wanted to make sure that was the number, and maybe you could elaborate a little bit more on what drove that slowdown in terms of the merchandise margin?

偉大的。我是瑞銀研究部的毛里西奧·塞爾納。抱歉，當你談論毛利率驅動因素時，我想我錯過了這一部分。我想我聽說您提到商品利潤率年增了 55 個基點。我認為與第二季度相比，這有點減速。因此，也許首先，我想確保這是這個數字，也許您可以詳細說明是什麼導致商品利潤率放緩？

And also, I guess, that thing, it implies the buying occupancy and distribution costs, deleverage was a little bit higher than the prior quarter. So yes, a little bit of detail behind that will be very helpful.

而且，我想，這意味著購買佔用率和分銷成本、去槓桿化比上一季略高。所以，是的，背後的一些細節將會非常有幫助。

Thank you, Mauricio. Just walking through the numbers for gross margin for the quarter, it was 100 basis points of increase in occupancy costs, 35 basis points of increase in distribution and buying and then that was offset by 55 basis points of improvement in merchandise margins.

謝謝你，毛里西奧。只要瀏覽本季的毛利率數據，入住成本增加 100 個基點，分銷和購買增加 35 個基點，然後被商品利潤率提高 55 個基點所抵消。

And on the merchandise margin side, I mean, really, that number is consistent both quarter and year-to-date. So similar to the trend that we've seen through the first part of the year. Comparisons are a little bit different for each of the quarters last year. So I think that's a big driver if it did decelerate from Q2.

在商品利潤方面，我的意思是，實際上，這個數字在季度和年初至今都是一致的。與我們今年上半年看到的趨勢非常相似。去年每季的比較都略有不同。因此，我認為如果它確實比第二季減速，那將是一個很大的推動因素。

And really, the drivers of the growth there are similar to what it's been year-to-date as well that growth in private label, I mean really strong trends with our private label denim brands, given that private label up to 48.5% has been a big driver of margin improvements and then also a mix shift. Footwear's a little bit lower-margin categories. So as we've -- and that's a smaller part of our business that's been accretive to margins. I know Dennis has more to add, but those are the primary drivers.

事實上，成長的驅動力與今年迄今為止的成長動力相似，以及自有品牌的成長，我的意思是我們的自有品牌牛仔品牌的強勁趨勢，因為自有品牌高達 48.5%利潤率提高的一個重要推動因素，也是組合轉變的一個重要推手。鞋類是利潤率較低的類別。正如我們所做的那樣——這只是我們業務中一小部分增加了利潤的部分。我知道丹尼斯還有更多要補充的內容，但這些是主要驅動力。

Nothing to add.

沒什麼好補充的。

(Operator Instructions) Currently, there are no further questions in the queue. Mauricio, I see your raise your hand.

（操作員說明） 目前，佇列中沒有其他問題。毛里西奧，我看到你舉手了。

Yes. I just had a follow-up question on the store count. I think you -- just want to make sure I got this right. At the end the quarter with 445 stores, and you plan to open one. So I think that's from a net store opening for the year, that will take you to two openings? I just was wondering like how are you thinking about expansion in terms of like net store additions over the next couple of years just given where the retail landscape is right now?

是的。我剛剛有一個關於商店數量的後續問題。我想你只是想確保我做對了。本季末有 445 家商店，您計劃開設一家。所以我認為這是今年新開的網店的數據，這會讓你開兩家新店嗎？我只是想知道，鑑於目前的零售格局，您如何考慮在未來幾年內增加淨商店等擴張？

We are estimating seven or eight new stores next year. And we have some situations where there will be some store closings, so best guess at the moment would be net two or three added over 2025. And we plan to relocate and remodel probably another dozen stores this next year, and also we'll continue to have smaller updates and remodels in probably another 12 to 15 stores next year as well.

我們預計明年將開設七到八家新店。在某些情況下，我們會關閉一些商店，因此目前最好的猜測是 2025 年將淨增加 2 到 3 家商店。我們計劃明年重新安置和改造另外 12 家商店，並且明年我們還將繼續對另外 12 到 15 家商店進行較小的更新和改造。

(Operator Instructions) And now we have a question from Nancy.

（操作員說明）現在南希提出了一個問題。

Quick question on the remodels. What kind of lift are you seeing? Or what kind of benefit are you seeing that you can discuss post remodel and sort of how that -- the pace at which you're seeing, any kind of change in sales?

關於改造的快速問題。您看到的是什麼樣的電梯？或者你看到什麼樣的好處，你可以討論改造後的情況，以及如何——你看到的速度，銷售的任何變化？

Thank you, Nancy. It's a little difficult just to give a set number. We have several stores that are performing very well and just need an update to continue their performance on the what we call open store remodels to change out counter and fresh in the store. So kind of based on previous experience, it could be low double digits, give or take.

謝謝你，南希。僅僅給出一個固定的數字有點困難。我們有幾家商店表現非常好，只需要更新以繼續其在我們所謂的開放式商店改造中的表現，以更換櫃檯和商店中的新鮮物品。因此，根據先前的經驗，它可能是低兩位數，無論是給予還是接受。

When we move from an existing mall to an outdoor power center, we could see anywhere from low double digits or better. And here again, it kind of depends. We have a lot of these stores that we're putting in better positions for the future, although they are performing well presently. So there's no real set number that I could give you across the board.

當我們從現有的購物中心搬到戶外電力中心時，我們可以看到任何兩位數或更好的地方。再說一遍，這取決於情況。我們有很多這樣的商店，儘管它們目前表現良好，但我們正在為未來做更好的準備。因此，我無法為您全面提供真正的固定數字。

There are no further questions in the queue. (Operator Instructions) I see another question from Nancy.

隊列中沒有其他問題。（操作員說明）我看到 Nancy 提出的另一個問題。

I think that might be a mistake. I didn't -- I don't think I raised my hand, but --

我認為這可能是個錯誤。我沒有──我想我沒有舉手，但是--

Okay. Sorry about that.

好的。對此感到抱歉。

If there are no further questions, we can conclude the call early today. Thank you, everybody, for participating and enjoy the weekend and have a great holiday next week.

如果沒有其他問題，我們可以在今天早些時候結束通話。謝謝大家的參與，祝您週末愉快，下週假期愉快。