BI
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
Q4 YoY vs Prior-Year Quarter
KPIs and Operating Metrics
Category and Mix Breakdown
Guidance Changes
Earnings Call Themes & Trends
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 .