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BKE
Earnings call · Aug 2026 (Q2 FY27)

BUCKLE Q2 FY27 earnings call BKE

Aug 21, 2026 Source

Executive summary

The Buckle, Inc. Q2 FY27 — Strong Women's Business and Merchandise Margin Expansion

The Buckle reported a mixed second quarter with strong sales growth driven by its women's and kids' businesses, alongside significant merchandise margin expansion partly due to tariff refunds. However, profitability was impacted by increased SG&A expenses, particularly in marketing and store labor. The company continues to invest in store expansion and remodels, while navigating a challenging retail environment for certain categories like men's denim and footwear.

Highlights

5

  • Net sales increased 4.6% to $319.8 million for the quarter.

  • Comparable store sales increased 2.1% for the quarter.

  • Women's business sales increased 9.5% year-over-year, representing 50% of total sales.

  • Merchandise margins improved by 110 basis points, including 65 basis points from tariff refunds.

  • Kids business sales increased 11% year-over-year.

Concerns

5

  • Net income for the quarter decreased to $44.4 million ($0.87 per share) from $45 million ($0.89 per share) in the prior year.

  • SG&A expenses increased to 30.4% of net sales, up from 29.0% in Q2 FY26, driven by a 45 bps increase in marketing and 35 bps in store labor.

  • Operating margin for the quarter decreased to 17.4% from 18.4% in Q2 FY26.

  • Men's denim sales declined approximately 3.5% year-over-year.

  • Inventory increased 13.3% to $161.4 million from the prior year.

Guidance & targets

CategoryTargetConfidence
Future sales or earnings guidance
Not provided
high materiality
Low

Segment performance

SegmentRevenueYoYQoQMargin
Women's Business
Continued strong performance, building on an 18.5% increase in Q2 FY26. Broad-based strength across key categories, with strong guest response to denim depth and versatility.
% of total sales: 50%Women's denim growth: 11% YoYAlternative pants growth: almost 50% YoYWomen's tops growth: 10.5% YoYAverage denim price points: $92.50 (up from $85.35)
—9.5%——
Men's Business
Delivered consistent performance. Softness in men's denim concentrated in higher price point national brands. Tops continued to be a bright spot.
% of total sales: 50% (down from 52.5%)Men's denim sales decline: approximately 3.5% YoYPrivate label denim performance: outperformed categoryAverage denim price points: $89.20 (vs $89.30 last year)Men's tops growth: 3.5% YoY
—essentially flat——
Kids Business
Outstanding quarter, building on a 23% increase in Q2 FY26. Growth was broad-based, led by denim, shorts, casual bottoms, and tees, with 'Mini Me' styling driving demand.
Denim % of sales: 35.5% (vs 36% in Q2 FY26)Tops % of sales: 30.5% (vs 29.5% in Q2 FY26)
—11%——
Accessories
Combined accessory sales increased against the prior year.
% of net sales: 11.5%Average accessory price points: up approximately 5%
—approximately 2.5%——
Footwear
Footwear sales saw slight growth. Men's footwear needs a strong brand to drive volume, and the overall footwear business is difficult.
% of net sales: 5%Average footwear price points: up 10%
—about 0.5%——
Private Label
Private label business showed increased penetration in sales.
% of sales: 44.5% (vs 43.5% in Q2 FY26)
————

BKE operating KPIs by quarter

BKE operating KPIs stated on its earnings calls, by fiscal quarter
KPI May 2026 Q1 FY27This call Aug 2026 Q2 FY27Change vs prior quarter
New stores opened
3 During the quarter, we opened 3 new stores, completed 5 full store remodels, 4 of which were relocations into new outdoor shopping centers and closed 1 store. Source transcript
5 During the quarter, we opened 5 new stores, completed 5 full store remodels, 4 of which were relocations into new outdoor shopping centers and closed 1 store. Source transcript
+66.7%
Stores remodelled
5 During the quarter, we opened 3 new stores, completed 5 full store remodels, 4 of which were relocations into new outdoor shopping centers and closed 1 store. Source transcript
5 During the quarter, we opened 5 new stores, completed 5 full store remodels, 4 of which were relocations into new outdoor shopping centers and closed 1 store. Source transcript
0%
Stores closed
1 During the quarter, we opened 3 new stores, completed 5 full store remodels, 4 of which were relocations into new outdoor shopping centers and closed 1 store. Source transcript
1 During the quarter, we opened 5 new stores, completed 5 full store remodels, 4 of which were relocations into new outdoor shopping centers and closed 1 store. Source transcript
0%
Stores
442 Buckle ended the quarter with 442 retail stores in 42 states compared to 439 stores in 42 states as of the end of the first quarter of fiscal 2025. Source transcript
446 Buckle ended the quarter with 446 retail stores in 42 states compared with 440 stores in 42 states at the end of the second quarter of 2025. Source transcript
+0.9%

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Risks & headwinds

Men's Denim Decline Q2 FY27

Men's denim sales declined approximately 3.5% year-over-year.

Mitigation:Private label denim outperformed the category, offsetting some softness in higher price point national brands.

Footwear Weakness Long-term

Footwear volumes have seen 50 consecutive months of year-over-year declines. The overall footwear business is difficult for most companies.

Mitigation:Waiting for a strong new fashion item to drive men's footwear volume.

Increased SG&A Expenses Q2 FY27

SG&A as a percentage of net sales increased by 140 bps YoY to 30.4%, driven by a 45 bps increase in marketing, 35 bps in store labor, 30 bps in health insurance, 20 bps in store supplies, and 45 bps in other SG&A categories.

Mitigation:Investing in marketing tooling and data analytics to drive programs and focusing on guest acquisition and retention.

Operating Margin Contraction Q2 FY27

Operating margin decreased to 17.4% from 18.4% in the prior year quarter.

Inventory Growth YoY

Inventory increased 13.3% to $161.4 million from the same time a year ago.

What to watch in Q3 FY27

Merchandise Margin Drivers (excluding tariff refunds)

Next quarter (Q3 FY27)
Current 45 bps expansion (Q2 FY27)
Target Continued expansion or stability

Why it matters

To assess the underlying profitability improvements independent of one-time tariff refunds.

On the merchandise margins, the numbers that we gave, total merchandise margins for the quarter were up 110 basis points, offset by about 65 basis points of tariff refund impact. So absolute, they were up 45% without -- or 45 basis points without the impact of tariff refunds.

Q&A highlights

What drove the 45 bps merchandise margin expansion (excluding tariff refunds)? Are more tariff refunds expected, and how are they accounted for?

The 45 bps expansion was driven by a slight increase in private label (up 100 bps), strong regular price selling, reduced markdowns, and strong sell-throughs across men's and women's. No further tariff refunds are expected; $2.5 million was received in Q2, with most impacting Q2 COGS and a small amount flowing into Q3.

“On the merchandise margins, the numbers that we gave, total merchandise margins for the quarter were up 110 basis points, offset by about 65 basis points of tariff refund impact. So absolute, they were up 45% without -- or 45 basis points without the impact of tariff refunds.”

asked by Mauricio Serna Vega · answered by Thomas Heacock

2 min read 5 chapters

Detailed narrative

Women's Business Performance

The women's business continued its strong performance, increasing 9.5% year-over-year, representing 50% of total sales. This growth was broad-based, with women's denim growing 11% and alternative pants increasing almost 50%. Average denim price points rose from $85.35 to $92.50, reflecting strong guest response to the depth and versatility of the assortment.

Men's Business Performance

The men's business delivered consistent performance, remaining essentially flat to last year and accounting for 50% of total sales. Men's denim sales declined approximately 3.5%, primarily in higher price point national brands, though private label denim outperformed. Men's tops were a bright spot, growing 3.5%, showcasing the strength and breadth of the assortment.

Kids Business and Private Label

The kids business had an outstanding quarter, increasing 11% year-over-year, building on a 23% increase in the prior year. Growth was broad-based across the category, led by strong performance in denim, shorts, casual bottoms, and tees. 'Mini Me' styling remained a significant driver of demand, resonating well with kids and parents alike. Private label represented 44.5% of sales for the quarter, up from 43.5% in the prior year.

Store Expansion and Capital Expenditures

The company opened 5 new stores and completed 5 remodels (4 relocations) during the quarter, closing 1 store. Year-to-date, 9 new stores have opened, 10 remodels completed, and 2 stores closed. For the remainder of the year, 5 additional new stores and 4 remodels are planned. Capital expenditures for the quarter were $29.8 million, with year-to-date spending of $44.5 million, including $24.4 million for store construction/remodels/tech and $20.1 million for corporate/DC, which included a new corporate aircraft.

Marketing Investment

SG&A expenses increased due to a 45 basis point increase in marketing expenses, reflecting increased investments in initiatives aimed at driving guest acquisition and strengthening long-term brand momentum. These investments were spread across various channels including CTV, Spotify, search, social creators, and email, with management noting a positive response and plans for continued review and build-out, alongside rising costs from providers and investment in marketing data/analytics tooling.

AI-generated summary of the company's earnings call. Not investment advice.