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BUCKLE INC (BKE)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 2025 net sales were $379.2M, down 0.8% YoY against a 14-week prior-year quarter, while comparable store sales rose 3.9%; diluted EPS was $1.53, slightly below last year’s $1.59, with gross margin expansion to 52.6% and operating margin at 25.4% .
  • Digital execution improved meaningfully: online sales reached $69.7M (+6.4% YoY vs prior-year 14-week quarter; +12% vs comparable 13-week period), aided by site enhancements and free shipping for loyalty members .
  • Inventory management and private label strength supported merchandise margins; inventory ended Q4 at $120.8M (down 4.4% YoY), with private label mix at 51% of sales in the quarter .
  • No revenue/EPS guidance (policy); operational plans call for 7 new stores and 18–22 remodels in FY25, plus a $0.35 quarterly dividend declared on March 24, 2025 .
  • Estimate comparison: S&P Global Wall Street consensus for Q4 2025 was unavailable via our data feed; thus beat/miss vs Street cannot be determined from S&P data this quarter (see Estimates Context) [GetEstimates error].

What Went Well and What Went Wrong

What Went Well

  • Private label penetration rose to 51% (from 50% LY) and drove merchandise margin gains; women’s denim sales up 15% with private label women’s jeans growing over 20% .
  • Gross margin expanded 30 bps YoY (to 52.6%) on 40 bps merchandise margin improvement and lower distribution/buying costs; operating margin ticked up to 25.4% .
  • E-commerce strengthened materially in Q4, with targeted site improvements, marketing mix shifts, and free shipping for loyalty members boosting conversion, AOV, and traffic late in the quarter .

What Went Wrong

  • Total net sales declined 0.8% YoY due to prior-year having 14 weeks; diluted EPS slipped to $1.53 from $1.59 despite margin progress .
  • Men’s merchandise sales were down ~4% against the prior-year 14-week quarter; footwear remained a drag with sales down ~7% for Q4 .
  • SG&A ratio rose modestly to 27.2% (vs 27.1% LY) on higher incentive accruals, e-commerce shipping, and G&A salaries; effective tax rate increased to 23.7% (vs 23.0% LY) .

Financial Results

Core P&L Metrics by Quarter

MetricQ2 2025Q3 2025Q4 2025
Revenue ($USD Millions)$282.392 $293.618 $379.199
Diluted EPS ($USD)$0.78 $0.88 $1.53
Gross Margin (%)46.9% 47.7% 52.6%
Operating Margin (%)17.1% 18.6% 25.4%

Q4 YoY vs Prior-Year Quarter

MetricQ4 2024 (14 wks)Q4 2025 (13 wks)
Revenue ($USD Millions)$382.383 $379.199
Diluted EPS ($USD)$1.59 $1.53
Gross Margin (%)52.3% 52.6%
Operating Margin (%)25.2% 25.4%

KPIs and Operating Metrics

KPIQ2 2025Q3 2025Q4 2025
Comparable Store Sales (%)-6.6% -0.7% +3.9%
Online Sales ($USD Millions)$37.0 $46.6 $69.7
Online Sales YoY (%)-15.2% +1.1% +6.4% vs 14-week prior; +12% vs comparable 13-week period
Ending Inventory ($USD Millions)$131.418 $149.351 $120.789
Inventory YoY (%)-3.4% -1.9% -4.4%

Category and Mix Breakdown

MetricQ2 2025Q3 2025Q4 2025
Women’s % of Sales43.5% 47% 43%
Men’s % of Sales56.5% 53% 57%
Denim % of Sales35.5% 46% 45%
Tops % of Sales30% 29.5% 29%
Accessories % of Sales11.5% 10% 11%
Footwear % of Sales5.5% 5% 5%
Private Label Mix (%)43% 48.5% 51%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue/EPS GuidanceOngoingCompany does not provide forward sales/earnings guidanceCompany does not provide forward sales/earnings guidanceMaintained policy
New Store OpeningsFY 2025N/A7 plannedOperational plan
Full Remodels (incl. relocations)FY 2025N/A18–22 (≥ half relocations to outdoor centers)Operational plan
Store ClosuresFY 2025 YTD1 closed YTDNo additional closures currently plannedMaintained
DividendQ2 CY2025N/A$0.35 per share; record 4/15/2025; pay 4/29/2025Declared
E-comm Shipping OfferQ4 2025N/AFree shipping for loyalty members (added October)Introduced

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2025, Q3 2025)Current Period (Q4 2025)Trend
E-commerce/digital initiativesQ2: Site overhaul, shoppability, analytics; traffic a challenge . Q3: Return to online growth; balanced acquisition/retention .Q4: Strong digital performance; loyalty free shipping; improved conversion/AOV; traffic improved late Improving sequentially
Private label & merchandise marginsQ2: Margin +70 bps; private label 43% . Q3: Margin +55 bps; private label 48.5% .Q4: Merchandise margin +40 bps; private label 51% Mix/merch margins trending up
Store relocations to outdoor centersQ2/Q3: Ongoing remodels and relocations .Q4: 51 of 74 remodels over 4 years were relocations; FY25 plan 18–22 remodels (≥ half relocations) Continued emphasis
Footwear vs accessoriesQ2: Footwear down ~27%; accessories flat/up slightly . Q3: Footwear down ~17%; accessories up ~3% .Q4: Footwear down ~7%; accessories up ~7.5% Footwear less negative; accessories stronger
Inventory disciplineQ2: Inventory -3.4% YoY . Q3: -1.9% YoY .Q4: -4.4% YoY; balanced across categories Tightening
Tariffs/sourcing/macroLimited prior commentary.Q4: Predominantly China sourcing; vendors can relocate; confident in cost management amid tariff uncertainty Heightened focus

Management Commentary

  • “Over the last 4 years, 51 of our 74 remodels have been relocations into new outdoor centers.”
  • “For the fourth quarter, total e-commerce sales grew 12% against the same period a year ago.”
  • “Gross margin for the quarter was 52.6%, up 30 basis points… the result of a 40 basis point increase in merchandise margins… partially offset by… occupancy.”
  • “Inventory of $120.8 million… down 4.4% from the same time a year ago… $318.8 million of total cash and investments after $198 million in dividends during the year.”
  • “Women’s denim sales increasing 15%, driven by continued outperformance in our private branded jeans… private label represented 51% of sales.”

Q&A Highlights

  • Merchandise margins: Gains driven by higher private label mix and stronger regular-price sell-through with fewer markdowns; distribution/buying costs leveraged in Q4 .
  • Tariffs/sourcing: Predominantly China sourcing with Vietnam and Bangladesh; vendors prepared to relocate capacity if needed; focus remains on quality and fashion over lowest price .
  • Traffic/macro: No traffic counters; February sales down ~1% implying flat traffic; weather played a role historically .
  • Digital initiatives: Comprehensive site improvements improved conversion/AOV; Q4 free shipping for loyalty members boosted performance; marketing shifted toward balanced acquisition/retention .

Estimates Context

  • S&P Global Wall Street consensus for BKE’s Q4 2025 EPS and Revenue was unavailable via our feed due to data access limits; as a result, we cannot determine a beat/miss versus Street for this quarter from S&P data [GetEstimates error].
  • Note: The company does not provide forward sales or EPS guidance, consistent with stated policy .

Key Takeaways for Investors

  • Mix-driven margin resilience: Private label penetration reached 51%, underpinning merchandise margin gains despite modest top-line decline; this supports near-term gross margin durability .
  • Digital momentum is real: Sequential improvements culminated in a strong Q4 e-commerce performance, with loyalty free shipping and site upgrades likely to carry into 2025 .
  • Inventory discipline reduces risk: Ending inventory -4.4% YoY with balanced category positioning lowers markdown risk ahead of tariff/macro uncertainties .
  • Category dynamics: Women’s denim strength offsets softness in men’s and ongoing footwear pressure; accessories are a relative bright spot .
  • Store strategy: Continued relocations to outdoor centers and targeted remodels/openings should sustain traffic and productivity, aiding medium-term comp trajectory .
  • Capital returns: Ongoing dividends, including $0.35 quarterly declared post-Q4, reflect strong cash position despite investment needs .
  • Estimates gap: With S&P consensus unavailable for Q4, traders should focus on internal momentum (comps inflection, margins, digital execution) and watch monthly sales cadence for near-term signals .