BUCKLE Q1 FY27 earnings call BKE

Comparable store sales rose 5.1% on total net sales of $288.7M (+6.1%). The comp was ticket-driven: average unit retail increased ~4.5% and average transaction value ~3.5%, while units per transaction fell ~1%. Online sales grew 2.8% to $47.7M. Management characterized February and March as strong — helped by Easter and spring-break timing, which meaningfully influences the business — while April was 'off a little.' Sell-throughs and inventory quality were described as good.

Women's merchandise sales rose 11%, on top of a 10.5% increase in Q1 2025, and reached ~52% of sales versus 50% a year ago. Women's denim (up 8%) was the leading revenue-growth contributor, with average denim price points rising from $84.85 to $92. The alternative-pant collection grew strongly on trend adoption and expanded brand offerings, women's tops benefited from growing private-label penetration and newness/color, and denim shorts saw a strong early spring/summer response. Kids delivered another standout with sales up ~16%, described as a continued growth opportunity to reach new guests earlier.

Men's merchandise sales rose 2% and slipped to ~48% of total sales from 50%. Men's denim declined ~1.5%, though private brands grew 0.5% and now represent over 75% of the men's denim business; average men's denim price points edged down from $89.70 to $89.10. Men's tops were a meaningful growth contributor, led by tees, polos and short-sleeve button-fronts, and both denim and athletic shorts performed well. Men's denim was cited as the specific category that pressured merchandise margin.

Gross margin was 46.2%, down 50 bps from 46.7%, comprising a 10 bps merchandise-margin reduction and a 40 bps increase from buying, distribution and occupancy costs. Management framed the 10 bps merchandise decline as strong given record prior-year margins, attributing it to some tariff cost pressure and to men's denim. Occupancy is where the growth sits: total occupancy expense rose 6.6%, driven by rent and depreciation on store projects, which this year are front-loaded into Q1 and May rather than weighted to the last three quarters as in the prior year.

SG&A was 25.6% of sales versus 30.7%, but the improvement was entirely a one-time^📎 $19.1M interchange fee litigation settlement recognized in the quarter (a 660 bps benefit, as disclosed in the 2025 Form 10-K). Excluding it, SG&A actually deleveraged 150 bps: +100 bps from incentive and equity compensation accruals (partly pulled forward^📎 into Q1 given the strong, profitable quarter), +30 bps store-related compensation, and +20 bps other. Reported operating margin was 20.6% versus 16%; the effective tax rate held at 24.5%.

Buckle ended the quarter with 442 stores in 42 states (up from 439 in 42 states). During Q1 it opened 3 new stores, completed 5 full remodels (4 of which were relocations into new outdoor shopping centers) and closed 1 store. In fiscal May to date it opened 3 more, completed 2 more remodels and closed 1, bringing year-to-date totals to 6 new stores, 7 remodels and 2 closures. Q1 capex was $14.7M ($13.5M for new stores/remodels/technology, $1.2M for corporate HQ and DC) against $6.5M depreciation.

Tariffs contributed a little cost pressure to merchandise margin, concentrated in men's denim. On freight, Buckle does not hedge fuel and has no lock agreements; it is seeing higher fuel surcharges on both inbound product freight and outbound/e-commerce shipping, described as manageable and not called out as a specific gross-margin or SG&A item. On tariffs specifically, the company filed a refund claim in Q1, received no funds during the quarter, received a small immaterial amount subsequent to quarter-end, and expects more later — with no impact yet reflected in the financials.