Financial Data and Key Metrics Changes - Net income for Q2 2022 was 50.1million,or1.01 per diluted share, compared to 51.4million,or1.04 per diluted share in Q2 2021, reflecting a decrease of 2.5% in net income [6] - Year-to-date net income for the 26-week period ended July 30, 2022, was 105.4million,or2.13 per diluted share, down from 108.7million,or2.20 per diluted share for the same period in 2021 [6] - Net sales for Q2 2022 increased by 2.3% to 302millioncomparedto295.1 million in Q2 2021 [7] - Year-to-date net sales increased by 2.8% to 611millionforthe26−weekperiodendedJuly30,2022,comparedto594.2 million in the prior year [7] Business Line Data and Key Metrics Changes - Women's merchandise sales increased approximately 1% in Q2 2022, accounting for 44.5% of total sales, down from 45% in the prior year [17] - Men's merchandise sales were up 2%, representing 55.5% of total sales, compared to 55% in the prior year [18] - Accessory sales increased approximately 8.5%, and footwear sales were up about 5%, accounting for approximately 11% and 8.5% of net sales, respectively [19] - Youth merchandise was the fastest-growing category with approximately 37% year-over-year growth, representing about 3% of total sales for the quarter [20] Market Data and Key Metrics Changes - Comparable store sales for Q2 2022 increased by 1.6% compared to the same period in the prior year [7] - Online sales increased by 6.5% to 46.2millioninQ22022[7]−Averagetransactionvalueincreasedbyabout422 million to 27million,includingplannedstoreprojectsandITinvestments[16]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceininventorylevels,statingthatdollarinventoryisup35128.5 million and total cash and investments of $304.8 million [13] Q&A Session Summary Question: Can you comment on inventories that year-over-year increase? - Management noted that dollar inventory is up 35%, but at the same level as 2019, with units of inventory up about 18% [22] Question: Do you see any opportunity to get some operating leverage in the back half of the year? - Management stated they won't project additional operating leverage, as operating margins are already high [24] Question: What is driving the youth initiative and what age range are you targeting? - Management indicated improvements in denim selection and expanded girls' tops are driving the youth initiative, targeting ages 7 to 14, with a sweet spot of 8 to 12 years old [28][29]
Buckle(BKE)2022-08-19 15:54