Q3 2025 Buckle Inc Earnings Call
For the quarter, we achieved growth across all women's merchandise categories with the most notable growth in knits and sweaters casual and fashion bottoms and accessories.
In total average women's price points increased about 6% from $49 95 to $53 five.
On the men's side, we were pleased to see growth for the second consecutive quarter with men's merchandise sales up about 1% against prior year represented approximately 49% of total sales compared to 53% in the prior year.
This growth was also led by our men's denim category, which was up about 1% for the quarter.
Average denim price points increased from $88 <unk> in the third quarter of fiscal 'twenty four to $88 15 in the third quarter of fiscal 'twenty five.
The other categories, we saw nice performance in both our short and long sleeved Tees business and a variety of lifestyles as well as strong selling of our first jackets and accessories.
For the quarter overall average men's price points increased approximately two 5% from $54 30 to $55 70.
On a combined basis accessory sales for the quarter increased approximately seven 5% against the prior year, while footwear sales were essentially flat.
These two categories accounted for approximately 10% and four 5% respectively of third quarter net sales, which compares to 10% and 5% for each in the third quarter of fiscal 'twenty four.
For the quarter average accessory price points were up approximately three 5% and average footwear price points were up four 5%.
Also on a combined basis, our kids business continued its strong growth trend, increasing approximately 22% year over year.
This continues to be a category, where our teams are excited to keep building the business into selection for our guests.
For the quarter denim accounted for approximately 46% of sales and tops accounted for approximately 29%, which compares to 46% and 29, 5% for each in the third quarter of fiscal 'twenty four.
As previously mentioned with strong selling in trends in many of our brands styles, our private label business decreased as a percentage of our total mix for the quarter.
For the quarter private label represented 47, 5% of sales versus 48, 5% for the third quarter of fiscal 2024.
And with that we welcome your questions.
Thank you as a reminder from participants if you would like to ask a question. Please raise your hand and the zoom App alright.
Sorry to ask your questions. Please state your name and firm affiliation.
Our first question comes from Mauricio Mauricio go ahead.
Due to our new at this time.
Hi, Good morning, this is mortgages from UBS.
Research. Thank you for taking my questions.
First maybe could you speak on a high level, what you're seeing on behalf of all the U S consumer coming into the holiday season Theres been some talks about maybe some pressure on our lower income consumers who was interested in hearing from from your side what have you even seen.
And then.
So could you speak about the denim business I think you've talked about momentum in women's being up 17%.
Do you think how are you how are you thinking about.
The sustainability of this growth and then maybe could you talk about what you saw in men's denim demand over the quarter. Thank you.
Good morning, and thank you for the question.
On the consumer.
We haven't seen a big change in our stores I mean the.
Team and guests seem excited about our product response.
Theres probably.
A slight.
Caution in some as our units per sale are up very slightly.
But overall, we feel good about it and let's see.
Guest is excited about the product and the quality we have.
Then going pretty well.
The ladies denim businesses continues to be.
Excellent Theres still a lot of variety of styles and fits we've added some of our.
Brandon.
Sources to the mix switches added.
Some higher price points have been good for the business.
And our <unk>.
Fashion brands and R. R.
Our private brands.
Continue to sell well so we're optimistic about.
The gals denim business through throughout the rest of the year on.
On the men's denim.
Our private label brands are consistent in doing well, having good sell throughs.
Well, we haven't seen as much from other brands, adding to the private brands mix, but fill our denim business is solid and men's as well.
Thank you.
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Okay. It looks like we have another question from Marcio. Michelle go ahead and ask you to at this time.
Great. Thanks for the follow up.
Just on <unk> and the other thing that I wanted to ask was on merchandise margin. It was down 10 basis points, maybe could you elaborate on what were the puts and takes behind <unk>.
Our merchandise margin trend in this quarter.
Thank you.
Yeah. Thank you Mario this is Tom.
Merchandise margins were down 10 for 10 basis points for Q3, and up 10 10 basis points for Q2. So I think if you look year to date with everything going on with tariffs, we feel really strong about where we're at from a merchandise margin perspective.
We've been operating it at a high level of merchandize margins for a long time and have continued to improve that so both Q1 and Q2 were all time highs merchandize margins and were off just a little bit in Q3, so feel really good about where we're at the biggest drivers are really you know Adam called out the the decreased slightly and private label business, where for some of the <unk>.
<unk> is performing really well, especially in women's denim.
That's the biggest driver probably of the of the shift this year, and especially Q2 compare compared to Q3, and then slight increase in cost with with tariffs and other flow throughs.
Thank you very much.
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Okay, Let's say there are no further questions I will now turn the call back over to buckle for any closing remarks.
Thank you for your participation today, it'll be a quick call, but wish everyone, a wonderful weekend and a wonderful holiday season. So thank you for joining us today.