Q1 2026 Buckle Inc Earnings Call

May 29, 2026

Speaker #2: Good morning. Thank you for standing by, and welcome to Buckle's first quarter earnings release webcast. As a reminder, all participants are currently in a listen-only mode.

Operator: Good morning. Thank you for standing by, and welcome to Buckle's Q1 earnings release webcast. As a reminder, all participants are currently in a listen-only mode. A question and answer session will be conducted following the company's prepared remarks with instructions given at that time. Members of Buckle's management on the call today are Dennis Nelson, President and CEO, Tom Heacock, Senior Vice President of Finance, Treasurer, and CFO, Adam Akerson, Vice President of Finance and Corporate Controller, and Brady Fritz, Senior Vice President, General Counsel, and Corporate Secretary.

Speaker #2: A question and answer session will be conducted following the company's prepared remarks, with instructions given at that time. Members of Buckle's management on the call today are Dennis Nelson, President and CEO; Tom Heacock, Senior Vice President of Finance, Treasurer, and CFO; Adam Akerson, Vice President of Finance and Corporate Controller; and Brady Fritz, Senior Vice President, General Counsel, and Corporate Secretary.

Speaker #2: Before beginning, the company would like to reiterate its policy of not providing future sales or earnings guidance. All forward-looking statements made on the call are pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

Operator: Before beginning, the company would like to reiterate its policy of not providing future sales or earnings guidance. All forward-looking statements made on the call are pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to risks and uncertainties described in the company's SEC filings.

Speaker #2: Actual results may differ materially due to risks and uncertainties described in the company's SEC filings. The company undertakes no obligation to publicly update or revise these statements except as required by law.

Operator: The company undertakes no obligation to publicly update or revise these statements except as required by law. Additionally, the company does not authorize the reproduction or dissemination of transcripts or audio recordings of the company's quarterly conference calls without its expressed written consent. Any unauthorized reproductions or recordings of the calls should not be relied upon, as the information may be inaccurate. As a reminder, today's webcast is being recorded. I'd now like to turn the conference over to your host, Tom Heacock.

Speaker #2: Additionally, the company does not authorize the reproduction or dissemination of transcripts or audio recordings of the company's quarterly conference calls without its express written consent.

Speaker #2: Any unauthorized reproductions or recordings of the calls should not be relied upon, as the information may be inaccurate. As a reminder, today's webcast is being recorded.

Speaker #2: And I'd now like to turn the conference over to your host, Tom Heacock.

Speaker #3: Good morning, and thanks for joining us this morning. Our May 29, 2026, press release reported that net income for the 13-week first quarter, which ended May 2, 2026, was $46.9 million, or $0.92 per share on a diluted basis. This compares to net income of $35.2 million, or $0.70 per share on a diluted basis, for the prior year 13-week first quarter, which ended May 3, 2025.

Thomas B. Heacock: Good morning, and thanks for joining us this morning. Our 29 May 2026 press release reported that net income for the 13-week Q1, which ended 2 May 2026, was $46.9 million or $0.92 per share on a diluted basis, which compares to net income of $35.2 million or $0.70 per share on a diluted basis for the prior year 13-week Q1, which ended 3 May 2025. Net sales for the quarter increased 6.1% to $288.7 million compared to net sales of $272.1 million for the prior year. Comparable store sales for the quarter increased 5.1% in comparison to the same 13-week period in the prior year, and our online sales increased 2.8% to $47.7 million.

Tom Heacock: Good morning, and thanks for joining us this morning. Our 29 May 2026 press release reported that net income for the 13-week Q1, which ended 2 May 2026, was $46.9 million or $0.92 per share on a diluted basis, which compares to net income of $35.2 million or $0.70 per share on a diluted basis for the prior year 13-week Q1, which ended 3 May 2025. Net sales for the quarter increased 6.1% to $288.7 million compared to net sales of $272.1 million for the prior year. Comparable store sales for the quarter increased 5.1% in comparison to the same 13-week period in the prior year, and our online sales increased 2.8% to $47.7 million.

Speaker #3: Net sales for the quarter increased 6.1% to $288.7 million, compared to net sales of $272.1 million for the prior year. Comparable store sales for the quarter increased 5.1% in comparison to the same 13-week period in the prior year, and our online sales increased 2.8% to $47.7 million.

Speaker #3: For the quarter, UPTs decreased approximately 1%. The average unit retail increased approximately 4.5%, and the average transaction value increased about 3.5%. Gross margin for the quarter was 46.2%, a decrease of 50 basis points from 46.7% in the first quarter of 2025, with the decrease being the result of a 10 basis point reduction in merchandise margins along with a 40 basis point impact from increased buying, distribution, and occupancy expenses.

Thomas B. Heacock: For Q1, UPTs decreased approximately 1%, the average unit retail increased approximately four and a half percent, and the average transaction value increased about three and a half percent. Gross margin for Q1 was 46.2%, a decrease of 50 basis points from 46.7% in Q1 2025, with the decrease being the result of a 10 basis point reduction in merchandise margins, along with a 40 basis point impact from increased buying distribution and occupancy expenses. Selling, General and Administrative Expenses for Q1 were 25.6% of net sales compared to 30.7% for Q1 2025.

Tom Heacock: For Q1, UPTs decreased approximately 1%, the average unit retail increased approximately four and a half percent, and the average transaction value increased about three and a half percent. Gross margin for Q1 was 46.2%, a decrease of 50 basis points from 46.7% in Q1 2025, with the decrease being the result of a 10 basis point reduction in merchandise margins, along with a 40 basis point impact from increased buying distribution and occupancy expenses. Selling, General and Administrative Expenses for Q1 were 25.6% of net sales compared to 30.7% for Q1 2025.

Speaker #3: Selling, general, and administrative expenses for the quarter were 25.6% of net sales, compared to 30.7% for the first quarter of 2025. The first quarter decrease was due to a 660 basis point impact from the recognition of a $19.1 million interchange fee litigation settlement during the first quarter of 2026, as disclosed in our 2025 Form 10-K.

Thomas B. Heacock: The Q1 decrease was due to a 660 basis point impact from the recognition of a $19.1 million interchange fee litigation settlement during Q1 2026, as disclosed in our 2025 Form 10-K. Absent the impact of this settlement, SG&A expenses were up 150 basis points for the quarter, which was driven by a 100 basis point increase in incentive and equity compensation accruals, a 30 basis point increase in store-related compensation expense, and a 20 basis point increase in other SG&A expense categories. As a result, our operating margin for the quarter was 20.6% compared to 16% for Q1 fiscal 2025. Income tax expense as a percentage of pre-tax net income for both the current and prior year Q1 was 24.5%.

Tom Heacock: The Q1 decrease was due to a 660 basis point impact from the recognition of a $19.1 million interchange fee litigation settlement during Q1 2026, as disclosed in our 2025 Form 10-K. Absent the impact of this settlement, SG&A expenses were up 150 basis points for the quarter, which was driven by a 100 basis point increase in incentive and equity compensation accruals, a 30 basis point increase in store-related compensation expense, and a 20 basis point increase in other SG&A expense categories. As a result, our operating margin for the quarter was 20.6% compared to 16% for Q1 fiscal 2025. Income tax expense as a percentage of pre-tax net income for both the current and prior year Q1 was 24.5%.

Speaker #3: Absent the impact of this settlement, SG&A expenses were up 150 basis points for the quarter, which was driven by a 100 basis point increase in incentive and equity compensation accruals, a 30 basis point increase in store-related compensation expense, and a 20 basis point increase in other SG&A expense categories.

Speaker #3: As a result, our operating margin for the quarter was 20.6%, compared to 16% for the first quarter of fiscal 2025. Income tax expense as a percentage of pre-tax net income for both the current and prior year first quarters was 24.5%.

Speaker #3: Our press release also included a balance sheet as of May 2nd, 2026, which included the following: inventory of 150.2 million, which was up 13.5% from the same time a year ago; and $323.8 million in total cash and investments.

Thomas B. Heacock: Our press release also included a balance sheet as of 2 May 2026, which included the following: inventory of $150.2 million, which was up 13.5% from the same time a year ago, and $323.8 million in total cash and investments. We ended the quarter with $169 million in fixed assets net of accumulated depreciation. Our capital expenditures for the quarter were $14.7 million, and depreciation expense was $6.5 million. Capital spending for the quarter included $13.5 million for new store construction, store remodels, and technology upgrades, and $1.2 million for capital spending at the corporate headquarters and distribution center.

Tom Heacock: Our press release also included a balance sheet as of 2 May 2026, which included the following: inventory of $150.2 million, which was up 13.5% from the same time a year ago, and $323.8 million in total cash and investments. We ended the quarter with $169 million in fixed assets net of accumulated depreciation. Our capital expenditures for the quarter were $14.7 million, and depreciation expense was $6.5 million. Capital spending for the quarter included $13.5 million for new store construction, store remodels, and technology upgrades, and $1.2 million for capital spending at the corporate headquarters and distribution center.

Speaker #3: We ended the quarter with $169 million in fixed assets, net of accumulated depreciation. Our capital expenditures for the quarter were $14.7 million, and depreciation expense was $6.5 million.

Speaker #3: Capital spending for the quarter included $13.5 million for new store construction, store remodels, and technology upgrades, and $1.2 million for capital spending at the corporate headquarters and distribution center.

Speaker #3: During the quarter, we opened three new stores completed five full store remodels, four of which were relocations into new outdoor shopping centers, and closed one store.

Thomas B. Heacock: During the quarter, we opened 3 new stores, completed 5 full store remodels, four of which were relocations into new outdoor shopping centers, and closed one store. Following the end of the quarter, we have opened 3 additional new stores, completed 2 more full store remodels, and closed one store so far during fiscal May, bringing our year-to-date counts to 6 new stores, 7 full store remodels, and 2 store closures. For the remainder of the year, we anticipate opening an additional 9 new stores and completing an additional 7 full remodeling projects. Buckle ended the quarter with 442 retail stores in 42 states, compared to 439 stores in 42 states as of the end of the Q1 of fiscal 2025. Now I'd like to turn the call over to Adam Akerson, Vice President of Finance.

Tom Heacock: During the quarter, we opened 3 new stores, completed 5 full store remodels, four of which were relocations into new outdoor shopping centers, and closed one store. Following the end of the quarter, we have opened 3 additional new stores, completed 2 more full store remodels, and closed one store so far during fiscal May, bringing our year-to-date counts to 6 new stores, 7 full store remodels, and 2 store closures.

Speaker #3: Following the end of the quarter, we have opened three additional new stores, completed two more full store remodels, and closed one store so far during fiscal May, bringing our year-to-date counts to six new stores, seven full store remodels, and two store closures.

Speaker #3: For the remainder of the year, we anticipate opening an additional nine new stores and completing an additional seven full remodeling projects. 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.

Tom Heacock: For the remainder of the year, we anticipate opening an additional 9 new stores and completing an additional 7 full remodeling projects. Buckle ended the quarter with 442 retail stores in 42 states, compared to 439 stores in 42 states as of the end of the Q1 of fiscal 2025. Now I'd like to turn the call over to Adam Akerson, Vice President of Finance.

Speaker #3: And now I'd like to turn the call over to Adam Akerson, vice president of finance.

Speaker #2: Thanks, Tom, and good morning. Our Women's Business carried a strong momentum into the first quarter of 2026, delivering another double-digit increase against the prior year and building on the consistent growth we saw throughout 2025.

Operator: Thanks, Tom, and good morning. Our women's business carried a strong momentum into Q1 2026, delivering another double-digit increase against the prior year and building on the consistent growth we saw throughout 2025. For Q1, women's merchandise sales were up 11%, which was on top of a 10.5% increase in Q1 2025 and represented approximately 52% of sales compared to 50% last year. Our women's denim category continued to be the leading contributor to revenue growth, with denim sales up 8% year over year.

Adam Akerson: Thanks, Tom, and good morning. Our women's business carried a strong momentum into Q1 2026, delivering another double-digit increase against the prior year and building on the consistent growth we saw throughout 2025. For Q1, women's merchandise sales were up 11%, which was on top of a 10.5% increase in Q1 2025 and represented approximately 52% of sales compared to 50% last year. Our women's denim category continued to be the leading contributor to revenue growth, with denim sales up 8% year over year.

Speaker #2: For the 11%, which was on top of a 10.5% increase in Q1 2025, and represented approximately 52% of sales, compared to 50% last year.

Speaker #2: Our women's denim category continued to be the leading contributor to revenue growth, with denim sales up 8% year over year, and average denim price points increasing from $84.85 in the first quarter of fiscal 2025 to $92.00 in the first quarter of fiscal 2026.

Adam Akerson: The average denim price points increased from $84.85 in Q1 of fiscal 2025 to $92 in Q1 of fiscal 2026. In addition to the strong denim performance, we saw great growth in our alternative pant collection, with strong trend adoption and expanded brand offerings. Our women's top business remained strong, highlighted by growing private label penetration and a favorable response to newness and color selections. We also had a great early response to our denim shorts business as we moved into the spring and summer selling seasons. On the men's side, merchandise sales increased 2% against the prior year, representing approximately 48% of total sales, compared to 50% last year. Our men's denim business was down about 1.5%. We continue to be pleased to see growth across our private brands, which were up 0.5% and represented over 75% of the men's denim business.

Speaker #2: In addition to the strong denim performance, we saw great growth in our alternative pant collection, with strong trend adoption and expanded brand offerings. Our women's top business remained strong, highlighted by growing private label penetration, and a favorable response to newness and color selections.

Speaker #2: We also had a great early response to our denim shorts business as we moved into the spring and summer selling seasons. On the men's side, merchandise sales increased 2% against the prior year, representing approximately 48% of total sales compared to 50% last year.

Adam Akerson: We also had a great early response to our denim shorts business as we moved into the spring and summer selling seasons. On the men's side, merchandise sales increased 2% against the prior year, representing approximately 48% of total sales, compared to 50% last year. Our men's denim business was down about 1.5%. We continue to be pleased to see growth across our private brands, which were up 0.5% and represented over 75% of the men's denim business.

Speaker #2: Our men's business was down about our men's denim business was down about 1.5%, but we continue to be pleased to see growth across our private brands, which were up 0.5% and represented over 75% of the men's denim business.

Speaker #2: Average denim price points decreased from $89.70 in the first quarter of fiscal 2025 to $89.10 in the first quarter of fiscal 2026. For the quarter, our men's tops business was a meaningful contributor to growth, led by strong performance in tees and polos, along with solid momentum in our short-sleeve button fronts, across a range of styles in both solids and prints.

Adam Akerson: Average denim price points decreased from $89.70 in Q1 of fiscal 2025 to $89.10 in Q1 of fiscal 2026. For the quarter, our men's tops business was a meaningful contributor to growth, led by strong performance in tees and polos, along with solid momentum in our short sleeve button fronts across a range of styles in both solids and prints. Our shorts business also performed well, with strength in both denim and athletic styles. On a combined basis, accessory sales for the quarter increased approximately 6% against the prior year. Footwear sales increased about a half a percent. These two categories accounted for approximately 11% and 5%, respectively, of Q1 net sales, which compares to 11% and 5.5% for each in Q1 of fiscal 2025.

Speaker #2: Our shorts business also performed well, with strength in both denim and athletic styles. On a combined basis, accessory sales for the quarter increased approximately 6% over the prior year, and footwear sales increased about half a percent.

Adam Akerson: Our shorts business also performed well, with strength in both denim and athletic styles. On a combined basis, accessory sales for the quarter increased approximately 6% against the prior year. Footwear sales increased about a half a percent. These two categories accounted for approximately 11% and 5%, respectively, of Q1 net sales, which compares to 11% and 5.5% for each in Q1 of fiscal 2025.

Speaker #2: These two categories accounted for approximately 11% and 5%, respectively, of first quarter net sales, which compares to 11% and 5.5% for each in the first quarter of fiscal 2025.

Speaker #2: For the quarter, average accessory price points were up approximately 5%, and average footwear price points were up 9%. Our kids' business turned in another standout performance in the first quarter of 2026, with sales up approximately 16% versus the prior year.

Adam Akerson: For the quarter, average accessory price points were up approximately 5%, and average footwear price points were up 9%. Our kids business turned in another standout performance in Q1 of 2026, with sales up approximately 16% versus the prior year. This category continues to represent a growth opportunity as we build the business and reach new guests earlier in their shopping journey. For the quarter, denim accounted for approximately 42.5% of sales, and tops accounted for approximately 28%, which compares to 43.5% and 27% for each in Q1 of fiscal 2025. With that, we welcome your questions.

Speaker #2: This category continues to represent a growth opportunity as we build the business and reach new guests earlier in their shopping journey. For the quarter, denim accounted for approximately 42.5% of sales and tops accounted for approximately 28%, which compares to 43.5% and 27% for each in the first quarter of fiscal 2025.

Speaker #2: Our private label business for the quarter represented 48% of sales, versus 47.5% in the first quarter of fiscal 2025. And with that, we welcome your questions.

Speaker #3: Thank you. As a reminder for participants, if you would like to ask a question, please raise your hand in the Zoom app. Prior to asking your questions, please state your name and firm affiliation.

Operator: Thank you. As a reminder for participants, if you would like to ask a question, please raise your hand in the Zoom app. Prior to asking your questions, please state your name and firm affiliation. Our first question is from Mauricio. Mauricio, I'll go ahead and prompt you to unmute at this time. Please remember to say your full name and your firm.

Speaker #3: Our first question is from Mauricio. Mauricio, go ahead; I’ll prompt you to unmute at this time. Please remember to state your full name and your firm.

Speaker #4: Yes. Good morning. It's Mauricio Serna from UBS Research. Just wanted to ask, on the margins, could you unpack a little bit, on the gross margin side, what caused the merchandise margin contraction?

Mauricio Serna: Yes, good morning. This is Mauricio Serna from UBS Research. Just wanted to ask on the margin. Could you unpack a little bit on the gross margin side, what caused the merchandise margin contraction? Then on the buying, occupancy, and distribution, the pressure from 40 basis points. What is that attributed to within those three buckets? Thank you.

Speaker #4: And then, on the buying, occupancy, and distribution, the pressure from 40 basis points—where is that? What is that attributed to within those three buckets?

Speaker #4: Thank you.

Speaker #2: On the merchant side, nice margin side, we'll start with that, Mauricio. Good morning and thank you for the question. I think we feel really strong about being down 10 basis points.

Adam Akerson: On the merchandise margins side, we'll start with that, Mauricio, and good morning, and thank you for the question. I think we feel really strong about being down 10 basis points. Remember from a year ago, we saw particular strength a year ago and really strong merchandise margins, and we're at record high levels. We still feel like we're maintaining a full, strong regular price business and pleased with margins where they are. In terms of what caused the decrease, probably a little bit of cost pressure from tariffs. By category, men's denim was the category that was down, but on the whole, really pleased with where margins are, again, on top of record levels a year ago. On the gross margin side breakdown between buying distribution and occupancy is really where the growth is.

Speaker #2: Remember, from a year ago, we saw a particular strength a year ago and really strong merchandise margins and were at record high levels. So we still feel like we're maintaining a full, strong regular price business, and pleased with margins where they are where they are.

Speaker #2: In terms of what caused the decrease, probably a little bit of cost pressure from tariffs, and then by category, men's denim was the category that was down.

Adam Akerson: In terms of what caused the decrease, probably a little bit of cost pressure from tariffs. By category, men's denim was the category that was down, but on the whole, really pleased with where margins are, again, on top of record levels a year ago. On the gross margin side breakdown between buying distribution and occupancy is really where the growth is.

Speaker #2: But on the whole, really pleased with where margins are—again, on top of record levels a year ago. On the gross margin side, breaking down between buying, distribution, and occupancy, occupancy is really where the growth is.

Speaker #2: Total occupancy expense for the quarter was up 6.6%. And really, the driver of that is rent and depreciation related to the store projects that we've been doing for the last several years.

Adam Akerson: Total occupancy expense for the quarter was up 6.6%. Really, the driver of that is rent and depreciation related to the store projects that we've been doing for the last several years. A year ago, our projects were weighted towards the last 3 quarters of the year. That's a little bit different this year. We have a pretty heavy schedule of projects for the first part of the year, opening both in Q1 and even so far in May. That's pushing that rent a little bit higher and also depreciation, and that's why that leverage point is higher.

Speaker #2: A year ago, our projects were weighted toward the last three quarters of the year. That's a little bit different this year. We have a pretty heavy schedule of projects for the first part of the year, opening both in Q1 and then even so far in May.

Speaker #2: So that's pushing that rent a little bit higher and also depreciation. And that's why that leverage point is higher.

Speaker #3: Tom, I think I'm unmuted. Can you still hear me? I don't know if I'm unmuted anymore. Oh, yeah.

Mauricio Serna: I think I'm on mute. Can you still hear me? I don't know if I'm on mute anymore. Oh, yeah.

Speaker #2: Yep, we can hear you. Yep.

Adam Akerson: Yep, we can hear you. Yep.

Speaker #3: Oh, great. Yeah, that was very helpful. Just a quick follow-up—maybe could you, on the margin side, just given all these headlines that we've been hearing about fuel costs, the Middle East situation—I just want to understand, what's your strategy in terms of fuel costs?

Mauricio Serna: Oh, great. Yeah, no, that was very helpful. Just a quick follow-up. Maybe could you, on the margin side, just given all these headlines that we've been hearing about fuel costs with the Middle East situation, just want to understand what's your strategy in terms of fuel costs? Do you hedge that? Do you have locked agreements with logistics providers, how should we think about that fuel cost impact on your inbound, outbound freight? Thank you.

Speaker #3: Do you hedge that? Do you have locked agreements with logistics providers? And how should we think about that fuel cost impact on your inbound, outbound freight?

Speaker #3: Thank you.

Speaker #2: We do not hedge fuel costs, so there are no contracts in place for any hedging. Where we are really seeing the increase is in fuel surcharges—both on LTL and inbound freight for new product—and then also with our carriers on outbound and e-comm.

Adam Akerson: We do not hedge fuel costs, so there's no contracts there to do any hedging. Really where we're seeing the increase is fuel surcharges both on LTL and inbound freight for new product and then also with our carriers outbound and e-com. We have seen a little bit of increase in terms of fuel surcharges on both ends, but so far it's manageable and was not something that we called out during the quarter in terms of the script or impact on either gross margin or SG&A. There are increases.

Speaker #2: So, we have seen a little bit of an increase in terms of fuel surcharges on both ends. But so far, it's manageable and was not something that we called out during the quarter in terms of the script or impact on either gross margin or SG&A.

Speaker #2: But there are increases.

Speaker #3: Okay, our next question is coming from John Brotz. John, go ahead and unmute at this time. Remember to say your full name and firm affiliation.

Operator: Okay, our next question is coming from John Botts. John, go ahead and unmute at this time, and remember to say your full name and firm affiliation.

Speaker #5: Tom, can you hear me?

John Botts: Tom, can you hear me?

[Analyst]: Tom, can you hear me?

Speaker #2: We can hear you, John. Good morning.

Thomas B. Heacock: We can hear you, John. Good morning.

Tom Heacock: We can hear you, John. Good morning.

Speaker #5: A lot of the big box retailers have been talking about pressures most recently because of fuel costs, and so on and so forth. How are you viewing your customer at this point?

John Botts: A lot of the big box retailers have been talking about pressures, most recently because of fuel costs and so on and so forth. How are you viewing your customer at this point? Are you seeing a little bit of weakness compared to what you might have seen earlier on this year because of the higher fuel costs and pressures on incomes?

[Analyst]: A lot of the big box retailers have been talking about pressures, most recently because of fuel costs and so on and so forth. How are you viewing your customer at this point? Are you seeing a little bit of weakness compared to what you might have seen earlier on this year because of the higher fuel costs and pressures on incomes?

Speaker #5: Are you seeing a little bit of weakness compared to what you might have seen earlier this year, because of higher fuel costs and pressures on incomes?

Speaker #4: Thank you, John. This is Dennis on the pressures on the guests. We had a strong February–March, and part of that was due to Easter and spring breaks, with spring breaks influencing our business a fair amount.

Dennis H. Nelson: Thank you, John. This is Dennis. On the pressures on the guests, we had a strong February, March, and part of that was due to Easter and spring breaks. Spring breaks influence our business a fair amount. April was off a little. We felt real good about the quarter. Our sell-throughs have been good. We feel really good about the inventory, and our sales teams have been doing an excellent job through the Q1. We're looking forward to the rest of the year and think that our offerings and value that we present in the stores will be well-received by our guests.

Dennis Nelson: Thank you, John. This is Dennis. On the pressures on the guests, we had a strong February, March, and part of that was due to Easter and spring breaks. Spring breaks influence our business a fair amount. April was off a little. We felt real good about the quarter. Our sell-throughs have been good. We feel really good about the inventory, and our sales teams have been doing an excellent job through the Q1. We're looking forward to the rest of the year and think that our offerings and value that we present in the stores will be well-received by our guests.

Speaker #4: And then April was off a little, but we felt real good about the quarter. Our sell-throughs have been good. We feel really good about the inventory.

Speaker #4: And our sales teams have been doing an excellent job through the first quarter. So we're looking forward to the rest of the year and think that our offerings and the value that we present in the stores will be well received by our guests.

Speaker #2: Okay. And Tom, two questions. The incentive comp—100 basis points in the quarter—is that something that we might see continue going forward? And secondly, any comments on tariff refunds?

John Botts: Okay. Tom, two questions. The incentive comp, 100 basis points in the quarter, is that something that we might see continue going forward? Secondly, any comments on tariff refunds?

[Analyst]: Okay. Tom, two questions. The incentive comp, 100 basis points in the quarter, is that something that we might see continue going forward? Secondly, any comments on tariff refunds?

Thomas B. Heacock: I'll take the first one first. On an incentive comp, there was a little bit of a pull-forward probably into Q1 from the normal recognition pattern. We look at what we think the incentive comp will be for the full year and then accrue ratably through the year based on profitability. With a really strong profitable quarter in Q1, we did pull forward a little bit. Some of that pressure should ease as we move through the rest of the year. On tariff refunds, we have filed for a refund claim in Q1. No funds were received during Q1. Actually, subsequent to the quarter, we received a small immaterial amount and are expecting more later. So far, no impact to the financials, but we have filed a claim.

Tom Heacock: I'll take the first one first. On an incentive comp, there was a little bit of a pull-forward probably into Q1 from the normal recognition pattern. We look at what we think the incentive comp will be for the full year and then accrue ratably through the year based on profitability. With a really strong profitable quarter in Q1, we did pull forward a little bit. Some of that pressure should ease as we move through the rest of the year. On tariff refunds, we have filed for a refund claim in Q1. No funds were received during Q1. Actually, subsequent to the quarter, we received a small immaterial amount and are expecting more later. So far, no impact to the financials, but we have filed a claim.

Speaker #3: Take the first one first. So, on incentive comp, there was a little bit of a pull forward probably into the first quarter from the normal recognition pattern.

Speaker #3: We look at what we think the incentive comp will be for the full year, and then accrue ratably through the year based on profitability.

Speaker #3: So, with a really strong, profitable quarter in the first quarter, we did pull forward a little bit. So some of that pressure should ease as we move through the rest of the year.

Speaker #3: And then on tariff refunds, we have filed for a refund claim in the first quarter. No funds were received during the first quarter. Actually, subsequent to the quarter, we received a small, immaterial amount and are expecting more later.

Speaker #3: But so far, no impact to the financials, but we have filed a claim.

Speaker #5: Okay. Thank you.

John Botts: Okay. Thank you.

[Analyst]: Okay. Thank you.

Speaker #3: Okay, there are no further questions in the queue, as a reminder. If you would like to ask a question, please raise your hand in the Zoom app.

Operator: Okay. There are no further questions in queue. As a reminder, if you would like to ask a question, please raise your hand in the Zoom app. Okay. It looks like there are no further questions. I will now turn the call back over to BUCKLE for any closing remarks.

Speaker #3: Okay, it looks like there are no further questions. I will now turn the call back over to Buckle for any closing remarks.

Speaker #2: There are no further questions. We'll wrap up the call and thank everybody for participating and enjoy the day and have a wonderful weekend.

Thomas B. Heacock: If there are no further questions, we'll wrap up the call and thank everybody for participating, and enjoy the day and have a wonderful weekend.

Tom Heacock: If there are no further questions, we'll wrap up the call and thank everybody for participating, and enjoy the day and have a wonderful weekend.

Thomas B. Heacock: Goodbye

Operator: Goodbye