The Buckle, Inc.

For the 13-week second quarter ended 08/01/2026, net income was $44.4 million, or $0.87 per diluted share, versus $45.0 million, or $0.89 per diluted share, in the prior-year quarter. Net sales increased 4.6% to $320 million from $306 million, comparable store sales rose 2.1%, and online sales increased 2.3% to $44.6 million. Gross margin was 47.8%, up 40 basis points from 47.4%, while SG&A was 30.4% of net sales versus 29.0% last year; operating margin was 17.4% versus 18.4%. Year to date, net income was $91.3 million, or $1.79 per diluted share, versus $80.2 million, or $1.59 per diluted share, and net sales rose 5.3% to $609 million. The company did not provide future sales or earnings guidance, but said it expects 5 additional new stores and 4 more full remodels for the remainder of the year.

Dennis Nelson emphasized that the women’s business has been energized by new fashion and denim product, with strong collective outfitting in tops and dresses contributing to growth. He said men’s is a solid business but more consistent and somewhat weather-sensitive, and that footwear remains a small part of the business until the right fashion item drives it. His tone was upbeat about the assortment and product flow, but pragmatic about category differences and a difficult footwear environment.

Thomas Heacock said merchandise margin improved 110 basis points in the quarter, including 65 basis points from tariff refunds; excluding those refunds, merchandise margin was still up 45 basis points. He attributed the underlying improvement to higher private label mix, strong regular-price selling, lower markdowns, and broad-based sell-through, and noted all expected tariff refunds were received, totaling $2.5 million, with a little over $2 million recognized in Q2 and a small amount expected to flow into Q3. He also highlighted inventory of $161 million, up 13.3% year over year, total cash and investments of $323 million, capex of $29.8 million in the quarter, and year-to-date capex of $44.5 million, including $20.1 million at headquarters and the distribution center for a new corporate aircraft replacement.

Analysts focused on the drivers of merchandise margin, marketing spend, and category performance. Management said the 45 basis points of underlying merchandise margin expansion came from a combination of factors, especially stronger private label, clean markdowns, and solid sell-through, and that marketing investment was spread across CTV, Spotify, search, social creators, email, and analytics tools to drive acquisition and retention; they said response has been nice so far. They also said women’s strength reflects fashion momentum, men’s is more consistent, and footwear remains difficult across the industry, while back-to-school timing can create comp noise across states because school calendars and tax-free periods vary.