Total Revenue

+8% " " " "

The overall revenue growth to $2.5 billion is driven by strong gains in segments such as Enterprise Solutions (+12% YoY) and Cloud Services (+15% YoY), which helped offset declines seen in Consumer Products (–4% YoY) and the Hardware segment (–10% YoY); previous period analyses noted that improvements in comparable store sales, online channels, and pricing initiatives contributed to revenue gains " " and. " "

Enterprise Solutions

+12% [N/A]

Although detailed commentary on Enterprise Solutions is not provided in earlier periods, the 12% YoY increase suggests that initiatives aimed at expanding enterprise-level offerings are gaining traction, likely building upon incremental momentum from prior periods.

Consumer Products

–4% " " " "

The 4% decline in Consumer Products reflects ongoing challenges from prior periods, including lower comparable store sales, dips in online performance (e.g., a 13.4% drop in online sales in Q1 2025 " " ), and category-specific headwinds observed in previous quarterly reviews. " "

US Revenue

+6% " " " "

A 6% increase in US revenue is attributed to strengthened domestic performance—with factors such as an increase in the number of transactions and a modest rise in average unit retail prices (illustrated by previous Q1 analyses " " and " " )—boosting net sales despite mixed performance in individual product categories.

EMEA Revenue

–14% [N/A]

The 14% decline in EMEA revenue likely points to regional economic headwinds and less effective market penetration compared to the US; this contrasts with the domestic gains noted in previous quarters, though specific factors are not detailed in the available data.

Cloud Services

+15% [N/A]

The strong 15% surge in Cloud Services suggests robust market demand driven by digital transformation initiatives, consistent with broader IT investment trends; this positive shift is in stark contrast to segments burdened by physical market challenges, as seen in prior results for other segments.

Hardware

–10% [N/A]

The 10% decline in the Hardware segment appears to be the result of cost pressures and declining consumer interest in physical products, a trend that is reinforced by earlier period indications of shifting consumer preferences away from traditional hardware offerings.

Merchandise Margin Performance

Q1 2026: Improved by 60 basis points driven by strong private label sales. " Q4 2025: Margins rose by 40–55 basis points due to increased private label share and better regular price selling. " Q3 2025: Improved by 55 basis points year‐over‐year with private label denim driving results. " "

Q2 2026: Margins increased by 10 basis points leading to a gross margin of 47.4%, though the growth rate was slower because the private label percentage of the mix was down versus Q1. " "

Consistent focus on margin improvement persists, but Q2 shows a slower pace partly due to a lower private label mix. " " " " " "

Private Label Trends

Q1 2026: Private label represented 47.5% of sales, signaling growth. " Q4 2025: Private label reached 51% of sales with strong category performance. " Q3 2025: Private label sales increased to 48.5% of total sales. " "

Q2 2026: Private label accounted for 43.5% of sales, indicating a lower percentage in the current mix compared to previous periods. "

While private label growth has been a consistent driver, its mix percentage fell in Q2, suggesting temporary headwinds or a seasonal mix effect. " " " " "

Digital Transformation and Online Sales Growth

Q1 2026: Online sales increased modestly by 4.5% with no specific digital transformation initiatives mentioned. " Q4 2025: Emphasis on digital investments with website improvements, enhanced marketing and free shipping initiatives driving e-commerce growth. " " " Q3 2025: Continued investments in digital channels with modest online sales growth reported. " "

Q2 2026: Online sales surged by 17.7% to $43.6 million along with a 65 basis point reduction in SG&A linked to nonrecurring digital commerce investments; additional improvements in the buckle.com experience were noted. " " "

There is an increased emphasis on digital transformation in Q2 with improved online sales performance and clear benefits from prior digital investments. " " " " " " " "

Retail Network Expansion and Store Remodel Initiatives

Q1 2026: Completed 5 remodels and outlined plans for 7 new store openings and 16 remodel projects; store count was 439. " Q4 2025: Opened 1 new store, 5 remodels, and closed 5 stores; year-end count was 441. " Q3 2025: Store count increased to 445 with additional remodels and plans for future store openings and relocations. " "

Q2 2026: Opened 2 new stores, completed 4 full remodels and closed 1 store with a steady store count of 440, plus forecasted additional new stores and remodel projects for the balance of the year. "

Consistent focus on network expansion and remodels continues. The strategy of moving from malls to off‐mall locations persists, with active remodeling and anticipated expansions in Q2. " " " "

Tariff, Supply Chain and Overseas Sourcing Risks

Q1 2026: Discussed managing tariffs with vendors and shifting sourcing to mitigate costs, including concerns on exposure to China. " " Q4 2025: Detailed mitigation strategies for tariffs and explained sourcing primarily from China with diversification into Vietnam and Bangladesh. " " Q3 2025: No discussion on these topics was noted.

Q2 2026: Tariff impacts were mentioned with average cost increases in the low to mid-single digits; no specific mention was made regarding supply chain or overseas sourcing risks. "

Tariff management remains a consistent discussion point. While previous periods included broader sourcing risk details, Q2 focuses solely on tariffs with no new supply chain or overseas sourcing concerns raised. " " " " "

Occupancy and Distribution Expense Management

Q1 2026: Achieved some expense leverage with occupancy costs up 3.5% while sales grew. " " Q4 2025: Occupancy costs increased by 30 basis points, offset partially by better distribution and buying costs. " Q3 2025: Occupancy costs rose by 100-110 basis points and distribution costs increased by 25–35 basis points, impacting margins. " "

Q2 2026: Occupancy expenses increased by about 5.5% compared to around 3.5% in Q1, attributed to new store projects and relocations off-mall, resulting in higher base and percentage rents. "

Escalating occupancy costs continue to be a challenge across periods with Q2 showing a higher rate compared to Q1; distribution costs are part of ongoing expense management discussions. " " " " "

SG&A and Labor Cost Pressures

Q1 2026: SG&A was 30.7% of net sales with increases driven by incentive compensation, health insurance, equity, and other costs, despite flat store payroll as a percentage of sales. " " Q4 2025: SG&A was at 27.2% of sales with mixed impacts from increased incentive accruals and shipping costs. " Q3 2025: SG&A expenses rose to 29.1% of net sales with a 90 basis point increase in store labor-related expenses contributing significantly. "

Q2 2026: SG&A came in at 29% of sales; benefits included a 65 basis point reduction from nonrecurring digital investments and a 45 basis point decrease in store labor-related expenses, although these were partly offset by a rise in incentive compensation accruals. "

SG&A cost pressures continue to be a focus. Q2 shows slight improvement through the lapping of nonrecurring digital investments, yet labor-related expenses remain a notable cost driver. " " " "

Lapping of Nonrecurring SG&A Benefits

No mention in Q1, Q4, or Q3 earnings calls [N/A].

Q2 2026: Management highlighted that a 65 basis point reduction in SG&A from nonrecurring digital commerce investments made last year would continue benefiting future periods. " "

This is a new emerging topic in Q2, indicating a positive impact from past digital investments and expectations of continued benefits into subsequent periods. " "

Declining Emphasis on In‑Store Traffic Performance

Q4 2025: In‑store traffic issues were briefly addressed by noting that no traffic counters are used, with traffic estimated as flat and influenced by external factors like weather. " Q1 and Q3 2025: There was no explicit discussion on in‑store traffic performance. "

Q2 2026: There is no mention of in‑store traffic performance in the earnings call [N/A].

The topic has effectively faded from recent discussions, suggesting a declining emphasis on in‑store traffic metrics in the current period compared to Q4 2025. "