Buckle, Inc. Aktie

Good morning. Thank you for standing by, and welcome to Buckle's First Quarter Earnings Release Webcast. [Operator Instructions] 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.

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.

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.

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

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, which 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.

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. 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. 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. 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 the first quarter of fiscal 2025. Income tax expense as a percentage of pretax net income for both the current and prior year first quarter was 24.5%. Our press release also included a balance sheet as of May 2, 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.

During the quarter, we opened 3 new stores, completed 5 full store remodels, 4 of which were relocations into new outdoor shopping centers and closed 1 store. Following the end of the quarter, we have opened 3 additional new stores, completed 2 more full store remodels and closed 1 store so far during fiscal May, bringing our year-to-date count 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 first quarter of fiscal 2025. And now I'd like to turn the call over to Adam Akerson, Vice President of Finance.

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. For the quarter, 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, and average denim price points increased from $84.85 in the first quarter of fiscal 2025 to $92 in the first quarter of fiscal '26.

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 move 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 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.

Average denim price points decreased from $89.70 in the first quarter of fiscal '25 to $89.10 in the first quarter of fiscal '26. 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 and footwear sales increased about 0.5%. These 2 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.

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 '26 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 the first quarter of fiscal '25. Our private label business for the quarter represented 48% of sales versus 47.5% in the first quarter of fiscal '25.

And with that, we welcome your questions.

[Operator Instructions] Our first question is from Mauricio.

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? And then on the buying occupancy and distribution, the pressure from 40 basis points. Where is that -- like what is that attributed to within those 3 buckets?

On the merchandise margin side, we'll start with that, Mauricio, thank you for the question. I think we feel really strong about being down 10 basis points. Remember, from a year ago, we saw a particular strength a year ago and really strong merchandise margins and we're 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. 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. But on the whole, really pleased with where margins are again on top of record levels a year ago.

On the gross margin side, right now between buying distribution and occupancy, occupancy is really where the growth is. 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. 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 then even so far in May. So that's pushing that rent a little bit higher and also depreciation, and that's why that leverage point is higher.

No, that's 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 like what's your strategy in terms of fuel cost? Do you hedge that? Do you have locked-in agreements with logistics providers? And how should we think about that fuel cost impact on your inbound, outbound freight?

We do not hedge fuel costs, so there's no contracts there to do any hedging. I mean 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. So we have seen a little bit of increase in terms of fuel surcharges on both ends. But so far, it's manageable and it was not something that we called out during the quarter in terms of the script or impact on either gross margin or SG&A, but there are increases.

Our next question is coming from Jon Braatz.

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 higher fuel costs and pressures on incomes?

Thank you, Jon. This is Dennis. On the pressures on the guest, we had a strong February, March and part of that was due to Easter and spring breaks. The spring breaks influence our business a fair amount. 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, 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 value that we present in the stores will be well received by our guests.

Okay. And Tom, 2 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?

I'll 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. 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. 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.

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

There are no further questions in queue. [Operator Instructions]. Okay. It looks like there are no further questions. I will now turn the call back over to Buckle for any closing remarks.

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.

Hi, this is Adam Akerson with Buckle, and this is a recording of Buckle's commentary regarding the company's April 2026 Sales Press Release.

Our May 7, 2026 press release reported the comparable store sales for stores open at least 1 full year for the 4-week period ended May 2, 2026, increased 0.2% in comparison to the prior year 4-week period ended May 3, 2025. Total net sales for the 4-week fiscal month increased 0.9% to $86.3 million compared to net sales of $85.5 million in the prior year 4-week fiscal month ended May 3, 2025.

On the men's side of the business, total sales for the 4-week fiscal period ended May 2, 2026 decreased 5% in comparison to the prior year 4-week period ended May 3, 2025. Men's business represented approximately 48% of total sales for the month versus approximately 51.5% for the same period in the prior year. For the fiscal month, overall price points on the men's side of the business were up about 3.5%.

On the women's side of the business, total sales for the 4-week fiscal period ended May 2, 2026 increased 9.5% in comparison to the prior year 4-week period ended May 3, 2025. The women's business represented approximately 52% of total sales for the month versus approximately 48.5% in the same period a year ago. For the fiscal month, overall price points on the women's side of the business increased about 7%.

Within the men's and women's categories combined, accessory sales for the fiscal month decreased approximately 1% in comparison to the prior year 4-week period ended May 3, 2025, and footwear sales decreased about 5%. These two categories accounted for approximately 11% and 5.5%, respectively, of the current fiscal April net sales. This compares with approximately 11% and 6% for each in the prior year.

Average accessory price points for the month were up about 6% and average footwear price points increased approximately 11%. For the month, UPTs decreased approximately 1%, while the average transaction value increased about 4% compared to the prior year 4-week period ended May 3, 2025.

Buckle currently operates 443 retail stores in 42 states compared to 439 stores in 42 states as of May 7, 2025. It is our company policy not to provide any guidance on current sales or to project results for the next quarter. Additionally, any forward-looking statements made during this commentary involve material risks and uncertainties and are subject to change based on factors which may be beyond the company's control.

Accordingly, the company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the company's filings with the Securities and Exchange Commission.

I hope this brief commentary has answered your questions. If, however, you have any further questions, please call Tom Heacock at (308) 238-2443 or myself at (308) 338-2779. Thanks.

This is Adam Akerson with Buckle, and this is a recording of Buckle's commentary regarding the company's March 2026 sales press release.

Our April 9, 2026, press release reported that comparable store sales for stores opened at least 1 full year for the 5-week period ended April 4, 2026, increased 7% in comparison to the prior year 5-week period ended April 5, 2025.

Total net sales for the 5-week fiscal month increased 8.2% to $118 million compared to net sales of $109.1 million in the prior year 5-week fiscal month ended April 5, 2025. On the men's side of the business, total sales for the 5-week fiscal period ended April 4, 2026, increased 4.5% in comparison to the prior year 5-week period ended April 5, 2025.

The men's business represented approximately 48% of total sales for the month versus approximately 49.5% for the same period in the prior year. For the fiscal month, overall price points on the men's side of the business were up about 1%. On the women's side of the business, total sales for the 5-week fiscal period ended April 4, 2026, increased 12% in comparison to the prior year 5-week period ended April 5, 2025. The women's business represented approximately 52% of total sales for the month versus approximately 50.5% in the same period a year ago.

For the fiscal month, overall price points on the women's side of the business increased about 5%. Within the men's and women's categories combined, accessory sales for the fiscal month increased approximately 7.5% in comparison to the prior year 5-week period ended April 5, 2025, and footwear sales increased about 4%. These 2 categories accounted for approximately 10.5% and 5%, respectively, of both the current and prior year fiscal March net sales.

Average accessory price points for the month were up about 3% and average footwear price points increased approximately 6.5%. For the month, UPTs decreased approximately 0.5%, while the average transaction value increased about 3.5% compared to the prior year 5-week period ended April 5, 2025.

Buckle currently operates 441 retail stores in 42 states compared to 440 stores in 42 states as of April 9, 2025. It is our company policy not to provide any guidance on current sales or to project results for the next quarter. Additionally, any forward-looking statements made during this commentary involve material risks and uncertainties and are subject to change based on factors which may be beyond the company's control.

Accordingly, the company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the company's filings with the Securities and Exchange Commission. I hope this brief commentary has answered your questions. If, however, you have any further questions, please call Tom Heacock at (308) 238-2443 or myself at (308) 338-2779. Thanks.

Good morning. Thank you for standing by, and welcome to Buckle's Fourth Quarter Earnings Release Webcast. [Operator Instructions] Members of Buckle's management on the call are Dennis Nelson, President and CEO; Tom Heacock, Senior Vice President and Finance Treasurer and CFO; Adam Akerson, Vice President of Finance and Corporate Controller; and Brady Fritz, Senior Vice President, General Counsel and Corporate Secretary.

Before beginning, the company would like to reiterate its policy of not providing future sales or earnings guidance. All following statements made on the call are pursuant to the safe harbor provisions of the Private Securities Legislation Reform Act of 1995. 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. 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. Any unauthorized reproductions or recordings of the calls should not be relied upon as the information may not be accurate.

As a reminder, today's webcast is recorded, and I would now like to turn the call over to Tom Heacock.

Good morning, and thanks for joining us this morning. Our March 13, 2026, press release reported that net income for the 13-week fourth quarter, which ended January 31, 2026, was $80.8 million or $1.59 per share on a diluted basis, which compares to net income of $77.2 million or $1.53 per share on a diluted basis for the prior year 13-week fourth quarter, which ended February 1, 2025.

Net income for the 52-week fiscal year ended January 31, 2026, was $209.7 million or $4.14 per share on a diluted basis, which compares to net income of $195.5 million or $3.89 per share on a diluted basis for the prior year 52-week fiscal year, which ended February 1, 2025.

Net sales for the quarter increased 5.3% to $399.1 million compared to net sales of $379.2 million for the prior year. Comparable store sales for the quarter increased 3.9% in comparison to the same 13-week period in the prior year, and our online sales increased 6.4% to $74.2 million.

Total sales for the full fiscal year increased 6.6% to $1.298 billion compared to net sales of $1.218 billion for the prior year. Comparable store sales for the year increased 5.6% in comparison to the same 52-week period in the prior year, and online sales increased 9.8% to $217.1 million.

For the quarter, UPTs decreased approximately 1.5%, the average unit retail increased approximately 5.5% and the average transaction value increased about 3.5%. For the full year, UPTs decreased approximately 1%, the average unit retail increased approximately 3.5%, and the average transaction value increased about 2.5%.

Gross margin for the quarter was 52.6%, consistent with the fourth quarter of 2024. And for the quarter, merchandise margins increased 35 basis points, which was offset by increased buying, distribution and occupancy expenses, which was down 35 basis points.

Full year gross margin was 49%, up 30 basis points from 48.7% for the prior year. And the increase was the result of a 20-basis-point increase in merchandise margins, along with 10 basis points of leverage buying, distribution and occupancy expenses.

Selling, general and administrative expenses for the quarter were 27.4% of sales compared to 27.2% for the fourth quarter of 2024. And for the full year, SG&A was 28.8% of net sales compared to 28.9% in the prior year. The fourth quarter increase was due to a 30-basis-point increase in marketing spend and a 20-basis-point increase in G&A compensation-related expenses, which were partially offset by a 10-basis-point decrease in incentive compensation accruals and a 20-basis-point decrease in other SG&A expense categories.

Our operating margin for the quarter was 25.2% compared to 25.4% for the fourth quarter of fiscal 2024. And for the full year, our operating margin was 20.2% compared to 19.8% for the same period last year.

Income tax expense as a percentage of pretax net income for the quarter was 23.3% compared to 23.7% for the fourth quarter of 2024. And for the full year, income tax expense as a percentage of pretax net income was 24% compared to 24.2% in the prior year. Our press release also included the balance sheet as of January 31, 2026, which included the following: inventory of $139.5 million, which was up 15.5% from the same time a year ago, and $306.6 million of total cash and investments, which was after the payment of $225.1 million in dividends during the year.

We ended the quarter with $162.4 million in fixed assets net of accumulated depreciation. Our capital expenditures for the quarter were $10.9 million and depreciation expense was $7.2 million. For the full year, capital expenditures were $45.4 million and depreciation expense was $25.4 million.

Full year capital spending was broken down as follows: $40.7 million for new store construction, store remodels and technology upgrades, and $4.7 million for capital spending at the corporate headquarters and distribution center.

During the quarter, we opened 2 new stores, completed 5 full store remodels, 4 of which were relocations into new outdoor shopping centers, and closed 4 stores, which brings our full year count for last year to 6 new stores, 20 full remodels and 7 store closures. Current plans for fiscal 2026 include the opening of 12 to 14 new stores and completing 12 to 14 full remodel projects with at least half of the planned remodels being relocations into new outdoor centers. We have also closed 1 store so far year-to-date with no additional store closures currently planned.

Buckle ended the year with 440 retail stores in 42 states compared with 441 stores in 42 states at the end of fiscal 2024.

And now I'll turn it over to Adam Akerson, our Vice President of Finance.

Thanks, Tom, and good morning. Q4 2025 marked the 5th consecutive quarter of double-digit growth for our women's business, with merchandise sales increasing about 12% for the quarter. For the quarter, our women's business represented approximately 46% of sales, which compares to 43% last year.

The women's denim category continued to be the driver of results, with the denim up 10.5% year-over-year and average denim price points increasing from $83.10 in the fourth quarter of fiscal '24 to $90.20 in the fourth quarter of fiscal '25. The rise in AUR reflects the exceptional performance of our Buckle Black Label, which exceeded the growth of the overall denim category, together with notable momentum from other higher price point national brands.

We continue to be -- we continued with planned increases to our denim inventory throughout the quarter to ensure we could support the heightened demand and service our guests, not only in style and fits, but also in sizes and in seams. We ended the quarter with a strong selection going into the new year.

Building on our strong women's denim offering, our team continued to deliver a fresh assortment for our guests. Our casual pant selection continued to provide a strong alternative bottom in a variety of prints and colors. We achieved growth across all women's top categories with most notable growth in knits and sweaters. We also had strong performance in our outerwear and accessories business. And in total, average women's price points for the quarter increased approximately 6.5% from $51.55 to $54.95.

On the men's side, merchandise sales were down about 0.5% against the prior year, representing approximately 54% of total sales compared to 57% a year ago. Our men's denim business was down about 3.5%, but was highlighted by slight growth in our key private label brands. Average denim price points increased about 0.5% from $86.30 in the fourth quarter of fiscal '24 to $86.95 in the fourth quarter of fiscal '25.

In other categories, we saw growth in our knits and tees business along with outerwear and accessories. For the quarter, overall average men's price points increased approximately 4.5% from $56.30 to $58.80.

On a combined basis, accessory sales for the quarter increased approximately 3.5% against the prior year, while footwear sales were down about 3%. These 2 categories accounted for approximately 11% and 5%, respectively, of fourth quarter net sales, which is consistent with the same period a year ago. For the quarter, average accessory price points were up approximately 8% and average footwear price points were up 8.5%.

Together, our kids business delivered another standout quarter, growing approximately 16% year-over-year. This remains a key area of opportunity for growth in building the business and earning new guests from a young age.

For the quarter, denim accounted for approximately 44% of sales and tops accounted for approximately 29.5%, which compares to 45% and 29% for each in the fourth quarter of fiscal '24.

Our private label business for the quarter represented 49.5% of sales versus 51% in the fourth quarter of '24. And this brings our full year private label business to 47.5% of sales, which is consistent with a year ago.

And with that, we welcome your questions.

[Operator Instructions] And we have a question from [ John ].

It looks like you're accelerating your store expansion plan, I think I heard 12 to 14 stores. Can you tell us a little bit about the strategy behind that?

Yes. We've always taken an opportunity approach to our opening of stores. And we've been very successful with some of the premium and Tanger outlets. And so we've looked at new opportunities there where, a few years ago, we weren't as aggressive on outlets, but we found them to work very well for us. And so as the right ones come up, we've added that as well as a few select markets. So just with our success in several of the markets that's opened new opportunities for us. So we look forward to those as well as several of our relocations to outdoor centers and improvements in location in current malls that we're in now where we can expand as well.

Okay. Adam, I keep reading reports about the -- how strong the denim category is across the board and our office fashionista sort of confirms that. What's driving the category? And is there something in particular that consumers are looking for?

I might take that again, John. Well, as our ladies and women's denim has grown, there's a lot of new fashion. We've had a lot of different bottom openings over the last couple of years that have been great, different rises, finishes and now the wide leg is added to it. So it just gives us another fashion item to work with our -- more of our traditional fits. And we continue to build our private brands along with our branded partners and just have a great selection of product, and we've expanded some of our sizes and seams. So we've just been aggressive on continuing to build that business and the stores are really excited about the selection.

Okay. One last question, Dennis. The kids category, the youth category is doing very strong. Do all your stores have youth products? And I know you had a couple of stores that were maybe totally dedicated to youth sales. Do you still have those? And then going back to the original question, how many -- do all your stores have youth product?

The majority stores have a good selection of the youth. We have a small group that has mainly denim jeans and T-shirts. And then we have maybe 15% of the stores, we do not have youth usually because they don't have enough room in their stores to hold their selection of men's, women's and youth. So -- and then -- let's see, what was the other part of the question?

Do you still...

Yes. We used to have -- we had 4 youth stores at 1 time because we just needed more space for the product in those stores. They were very strong stores. And so since then, we've expanded 3 of those stores and then put the youth back in with our regular store. So we just have 1 separate youth store right now.

And we now have a question from, is it Henrik Nielsen?

Yes, that's right. Can you hear me?

Yes.

Okay. Is it -- can you provide some information about your net cash flows as well? Or you don't do that in the updates here, the net cash flow from the operating, investing and financing activities.

We do not -- this is Tom. We do not include cash flow in our press release. That's typically just in our SEC filings.

At this time, there are no further questions.

There are no further questions, we can conclude the call. So thank you, everybody, for joining and participating, and have a great rest of the day and wonderful weekend.

Hi. This is Adam Akerson, with Buckle, and this is a recording of Buckle's commentary regarding the company's February 2026 sales press release.

Our March 5, 2026 press release reported that comparable store sales for stores opened at least one full year for the 4-week period ended February 28, 2026, increased 8% in comparison to the prior year 4-week period ended March 1, 2025.

Total net sales for the 4-week fiscal month increased 8.8% to $84.4 million compared to net sales of $77.6 million in the prior year 4-week fiscal month ended March 1, 2025.

On the men's side of the business, total sales for the 4-week fiscal period ended February 28, 2026, increased 6.5% in comparison to the prior year 4-week period ended March 1, 2025. The men's business represented approximately 48.5% of total sales for the month versus approximately 49.5% for the same period in the prior year. For the fiscal month, overall price points on the men's side of the business were up about 3%.

On the women's side of the business, total sales for the 4-week fiscal period ended February 28, 2026, increased 11.5% in comparison to the prior year 4-week period ended March 1, 2025. The women's business represented approximately 51.5% of total sales for the month versus approximately 50.5% for the same period a year ago. For the fiscal month, overall price points on the women's side of the business increased about 5%.

Within the men's and women's categories combined, accessory sales for the fiscal month increased approximately 12% in comparison to the prior year 4-week fiscal period ended March 1, 2025, and footwear sales increased about 3%. These 2 categories accounted for approximately 11% and 4.5%, respectively, of both the current and prior year fiscal February net sales.

Average accessory price points for the month were up about 7.5% and average footwear price points increased approximately 10%. For the month, UPTs decreased approximately 1%, while the average transaction value increased about 3% compared to the prior year 4-week period ended March 1, 2025.

Buckle currently operates 440 retail stores in 42 states, which is consistent with the store count as of March 5, 2025. It is our company policy not to provide any guidance on current sales or to project results for the next quarter.

Additionally, any forward-looking statements made during this commentary involve material risks and uncertainties and are subject to change based on factors which may be beyond the company's control. Accordingly, the company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the company's filings with the Securities and Exchange Commission.

I hope this brief commentary has answered your questions. If, however, you have any further questions, please call Tom Heacock at (308) 238-2443 or myself at (308) 338-2779. Thanks.

This is Adam Ake, with Buckle, and this is a recording of Buckle's commentary regarding the company's January 2026 sales press release.

Our February 5, 2026, press release reported the comparable store sales for stores opened at least 1 full year for the 4-week period ended January 31, 2026, increased 1.7% in comparison to the prior year 4-week period ended February 1, 2025.

Total net sales for the 4-week fiscal month increased 3.7% to $61.8 million compared to net sales of $59.5 million in the prior year 4-week fiscal month ended February 1, 2025. On the men's side of the business, total sales for the 4-week fiscal period ended January 31, 2026, decreased 2.5% in comparison to the prior year 4-week period ended February 1, 2025. The men's business represented approximately 44% of total sales for the month versus approximately 46.5% for the same period in the prior year. For the fiscal month, overall price points on the men's side of the business were up about 4%.

On the women's side of the business, total sales for the 4-week fiscal period ended January 31, 2026, increased 6.5% in comparison to the prior year 4-week period ended February 1, 2025. The women's business represented approximately 58% of total sales for the month versus approximately 53.5% in the same period a year ago. For the fiscal month, overall price points on the women's side of the business increased about 6.5%.

Within the men's and women's categories combined, accessory sales for the fiscal month increased approximately 1% in comparison to the prior year 4-week period ended February 1, 2025, while footwear sales decreased about 7.5%. These 2 categories accounted for approximately 10% and 4%, respectively, of the current fiscal January net sales. This compares with approximately 10% and 4.5%, respectively, for each in the prior year.

Average accessory price points for the month were up about 7.5% and average footwear price points increased approximately 10.5%. For the month, UPT decreased approximately 1.5%, while the average transaction value increased about 4% compared to the prior year 4-week period ended February 1, 2025.

Buckle currently operates 440 retail stores in 42 states, which is consistent with the store count as of February 5, 2025. It is our company's policy not to provide any guidance on current sales or to project results for the next quarter.

Additionally, any forward-looking statements made during this commentary involve material risks and uncertainties and are subject to change based on factors which may be beyond the company's control. Accordingly, the company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the company's filings with the Securities and Exchange Commission.

I hope this brief commentary has answered your questions. If, however, you have any further questions, please call Tom Heacock at (308) 238-2443 or myself at (308) 338-2779. Thanks.

Good morning. Thank you for standing by, and welcome to Buckle's Third Quarter Earnings Release Webcast. [Operator Instructions].

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.

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

Good morning, and thanks for being with us this morning. Our November 21, 2025, press release reported that net income for the 13-week third quarter ended November 1, 2025, was $48.7 million or $0.96 per share on a diluted basis compared to net income of $44.2 million or $0.88 per share on a diluted basis for the prior year 13-week third quarter, which ended November 2, 2024.

Year-to-date net income for the 39-week period ended November 1, 2025, was $128.9 million or $2.55 per share on a diluted basis, compared to net income of $118.3 million or $2.35 per share on a diluted basis for the prior year 39-week period ended November 2, 2024.

Net sales for the 13-week third quarter increased 9.3% to $320.8 million compared to net sales of $293.6 million for the prior year 13-week third quarter. Comparable store sales for the quarter increased 8.3% in comparison to the same 13-week period in the prior year, and our online sales increased 13.6% to $53 million.

Year-to-date net sales increased 7.2% to $898.7 million compared to net sales of $838.5 million for the prior year 39-week fiscal period. Comparable store sales for the year-to-date period increased 6.3% in comparison to the same 39-week period in the prior year, and our online sales increased 11.6% to $142.9 million.

For the quarter, UPTs decreased approximately 1.5%, the average unit retail increased approximately 4% and the average transaction value increased about 2.5%. Year-to-date, UPTs decreased approximately 1%, the average unit retail increased approximately 3% and the average transaction value increased approximately 2%.

Our gross margin for the quarter was 48%, a 30 basis point increase from 47.7% in the third quarter of 2024. The current quarter margin expansion was a result of 40 basis points of leverage buying, distribution and occupancy expenses, partially offset by a 10 basis point reduction in merchandise margins.

Our year-to-date gross margin was 47.4%, up 50 basis points from 46.9% for the same period last year. The year-to-date increase was the result of a 20 basis point increase in merchandise margin, along with 30 basis points of leverage buying, distribution and occupancy expenses.

Selling, general and administrative expenses for the quarter were 29% of net sales compared to 29.1% for the third quarter last year. And year-to-date, SG&A was 29.5% of net sales compared to 29.6% for the same period in the prior year. The third quarter decrease was due to a 35 basis point reduction related to nonrecurring digital commerce investments made a year ago, a 35 basis point decrease in store labor-related expenses and a 5 basis point decrease in certain other SG&A expense categories. These decreases were partially offset by a 50 basis point increase in incentive compensation accruals and a 15 basis point increase in G&A compensation-related expenses.

Our operating margin for the quarter was 19% compared to 18.6% for the third quarter of fiscal 2024. And for the year-to-date period, our operating margin was 17.9% compared to 17.3% for the same period last year. Income tax expense as a percentage of pretax net income for both the current and prior year fiscal quarter was 24.5%, bringing third quarter net income to $48.7 million for fiscal 2025 compared to 44.2% -- $44.2 million for fiscal 2024.

Income tax expense as a percentage of pretax net income for both the current and prior year, year-to-date periods was also 24.5% bringing year-to-date net income to $128.9 million for fiscal 2025 compared to $118.3 million in fiscal 2024.

Our press release also included a balance sheet as of November 1, 2025, which included the following: Inventory of $165.8 million, which was up 11% from the same time a year ago and $371.3 million of total cash and investments. We ended the quarter with $162.3 million in fixed assets net of accumulated depreciation.

Our capital expenditures for the quarter were $11.1 million and depreciation expense was $6.2 million. For the year-to-date period, capital expenditures were $34.5 million and depreciation expense was $18.2 million.

Year-to-date capital spending is broken down as follows: $30.4 million for new store construction, store remodels and technology upgrades and $4.1 million for capital spending at the corporate headquarters and distribution center. During the quarter, we opened 2 new stores and completed 6 full store remodels, 3 of which were relocations in new outdoor shopping centers.

Additionally, post quarter end and during November, we have opened 2 new stores and completed 2 store relocation projects in advance of the holiday selling season, which brings our year-to-date count through today to 6 new stores, 17 full remodels and 3 store closures.

For the remainder of the year, we anticipate completing 4 additional full remodeling projects. Buckle ended the quarter with 442 retail stores in 42 states compared to 445 stores in 42 states as of the end of the third quarter last year.

And now I'll turn it over to Adam Akerson, Vice President of Finance.

Thanks, Tom, and good morning. Our women's business continued its acceleration in year-over-year growth rate during the quarter, with merchandise sales increasing about 19%, which was on top of 3% same week growth a year ago.

For the quarter, our women's business represented approximately 51% of sales, which compares to 47% last year. This growth continued to be led by the performance of our denim category with women's denim increasing approximately 17.5% and average denim price points increasing from $81.15 in the third quarter of fiscal 2024 to $86.95 in the third quarter of fiscal '25. This AUR increase continues to be primarily the result of strong growth in our Buckle Black Label, which has outperformed the total denim business, along with strong growth of other higher price point national brands.

Complementing our strong women's denim selection, our team continued delivering compelling trends and fashions for our guests, 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 $53.05.

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 the prior year, representing 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 $88.10 in the third quarter of fiscal '24 to $88.15 in the third quarter of fiscal '25.

In other categories, we saw nice performance in both our short and long sleeve tees business in a variety of lifestyles as well as strong selling of our vests, jackets and accessories. For the quarter, overall average men's price points increased approximately 2.5% from $54.30 to $55.70.

On a combined basis, accessory sales for the quarter increased approximately 7.5% against the prior year, while footwear sales were essentially flat. These 2 categories accounted for approximately 10% and 4.5%, respectively, of third quarter net sales, which compares to 10% and 5% for each in the third quarter of fiscal '24. For the quarter, average accessory price points were up approximately 3.5% and average footwear price points were up 4.5%.

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 and 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 '24.

As previously mentioned, with strong selling and trends in many of our brand 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.

[Operator Instructions]. Our first question comes from Mauricio.

This is Mauricio Serna from UBS Research. First, maybe could you speak on a high level what you're seeing on the health of the U.S. consumer coming into the holiday season. There's been some talks about maybe some pressure on the lower income consumer. So I was interested in hearing from your side, what have you been seeing?

And then also, could you speak about the denim business? I think you talked about the momentum in women's being up 17%. What do you -- how do you -- how are you thinking about the sustainability of this growth? And maybe could you talk about what you saw in men's denim demand over the quarter?

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. There's probably a slight caution in some as our units per sale are off very slightly. But overall, we feel good about it. And if the guest is excited about the product and the quality we have, it's been going pretty well.

The ladies denim business continues to be excellent. There's still a lot of variety of styles and fits. We've added some of our branded sources to the mix, which has added some higher price points, have been good for the business. And our fashion brands and our private brands continue to sell well. So we're optimistic about the gal's denim business throughout the rest of the year.

On the men's denim, our private label brands are consistent and doing well, having good sell-throughs. We haven't seen as much from other brands adding to the private brands mix, but feel our denim business is solid in men's as well.

There are no further questions in queue. [Operator Instructions]. Okay. It looks like we have another question from Mauricio.

Great. Just on the other thing that I wanted to ask was the merchandise margin. It was down 10 basis points. Maybe could you elaborate on what were the puts and takes behind the merchandise margin trend in this quarter?

Thank you, Mauricio. This is Tom. Yes, merchandise margins were down 10 basis points for Q3 and up 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. And we've been operating at a high level of merchandise margins for a long time and have continued to improve that. So both Q1 and Q2 were all-time highs merchandise margins and we were off just a little bit in Q3. So I feel really good about where we're at.

The biggest drivers are really -- Adam called out the decrease slightly in private label business with some of the brands performing really well, especially in women's denim. That's the biggest driver probably of the shift this year and especially Q2 compared to Q3 and then a slight increase in costs with tariffs and other flow-throughs.

There are no further questions in queue. [Operator Instructions]. Okay. It looks like 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 will be a quick call, but I wish everyone a wonderful weekend and a wonderful holiday season. So thank you for joining us today.

Hi. This is Adam Akerson with Buckle, and this is a recording of Buckle's commentary regarding the company's October 2025 sales press release. Our November 6, 2025, press release reported the comparable store sales for stores opened at least 1 full year for the 4-week period ended November 1, 2025, increased 5.1% in comparison to the prior year 4-week period ended November 2, 2024. Total net sales for the 4-week fiscal month increased 6% to $93.2 million compared to net sales of $87.9 million in the prior year 4-week fiscal month ended November 2, 2024.

On the men's side of the business, total sales for the 4-week fiscal period ended November 1, 2025, decreased 1% in comparison to the prior year 4-week period ended November 2, 2024. The men's business represented approximately 49.5% of total sales for the month versus approximately 53% for the same period in the prior year. For the fiscal month, overall price points on the men's side of the business were up about 4.5%.

On the women's side of the business, total sales for the 4-week fiscal period ended November 1, 2025, increased 14% in comparison to the prior year 4-week period ended November 2, 2024. The women's business represented approximately 50.5% of total sales for the month versus approximately 47% in the same period a year ago. For the fiscal month, overall price points on the women's side of the business increased about 5%.

Within the men's and women's categories combined, accessory sales for the fiscal month increased approximately 6% in comparison to prior year 4-week period ended November 2, 2024, while footwear sales decreased about 2%. These 2 categories accounted for approximately 9.5% and 5%, respectively, of both the current and prior year fiscal October net sales. Average accessory price points for the month were up about 6% and average footwear price points were also up about 6% for the month.

For the month, UPTs decreased approximately 2%, while the average transaction value increased about 2% compared to the prior year 4-week period ended November 2, 2024.

Buckle currently operates 443 retail stores in 42 states, compared to 445 stores in 42 states as of November 6, 2024. It is our Company policy not to provide any guidance on current sales or to project results for the next quarter.

Additionally, any forward-looking statements made during this commentary involve material risks and uncertainties and are subject to change based on factors which may be beyond the company's control. Accordingly, the company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the company's filings with the Securities and Exchange Commission.

I hope this brief commentary has answered your questions. If, however, you have any further questions, please call Tom Heacock at (308) 238-2443 or myself at (308) 338-2779. Thanks.

Hi. This is Adam Akerson with Buckle, and this is a recording of Buckle's commentary regarding the company's August 2025 sales press release. Our September 4, 2025, press release reported that comparable store sales for stores opened at least 1 full year for the 4-week period ended August 30, 2025, increased 12.2% in comparison to the prior year 4-week period ended August 31, 2024.

Total net sales for the 4-week fiscal month increased 13.4% to $119.2 million compared to net sales of $105.1 million in the prior year 4-week fiscal month ended August 31, 2024. On the men's side of the business, total sales for the 4-week fiscal period ended August 30, 2025, increased 4% in comparison to the prior year 4-week period ended August 31, 2024. The men's business represented approximately 49.5% of total sales for the month versus approximately 54% for the same period in the prior year.

For the fiscal month, overall price points on the men's side of the business were up about 1.5%. On the women's side of the business, total sales for the 4-week fiscal period ended August 30, 2025, increased 25.5% in comparison to the prior year 4-week period ended August 31, 2024. The women's business represented approximately 50.5% of total sales for the month versus approximately 46% in the same period a year ago. For the fiscal month, overall price points on the women's side of the business increased about 7%.

Within the men's and women's categories combined, accessory sales for the fiscal month increased approximately 10% in comparison to the prior year 4-week period ended August 31, 2024, while footwear sales decreased about 0.5%. These 2 categories accounted for approximately 9.5% and 4%, respectively, of the current fiscal August net sales. This compares with approximately 10% and 4.5%, respectively, for each in the prior year.

Average accessory price points for the month were up about 3% and average footwear price points increased approximately 4.5%. For the month, UPTs decreased approximately 1.5%, while the average transaction value increased about 2.5% compared to the prior year 4-week period ended August 31, 2024. Buckle currently operates 441 retail stores in 42 states, consistent with the store count as of September 4, 2024. It is our company policy not to provide any guidance on current sales or to project results for the next quarter.

Additionally, any forward-looking statements made during this commentary involve material risks and uncertainties and are subject to change based on factors which may be beyond the company's control. Accordingly, the company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the company's filings with the Securities and Exchange Commission.

I hope this brief commentary has answered your questions. If, however, you have any further questions, please call Tom Heacock at (308) 238-2443 or myself at (308) 338-2779. Thanks.

Good morning and thank you for standing by, and welcome to Buckle's Second Quarter Earnings Release Webcast. [Operator Instructions] 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. 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. 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 cause should not be relied upon as the information may be inaccurate. As a reminder, today's webcast is being recorded. And I'd now like to turn the conference over to your host, Tom Heacock.

Good morning, and thanks for joining us this morning. Our August 22, 2025 press release reported that net income for the 13-week second quarter ended August 2, 2025, was $45 million or $0.89 per share on a diluted basis, which compares to net income of $39.3 million or $0.78 per share on a diluted basis for the prior year 13-week second quarter which ended August 3, 2024. Year-to-date net income for the 26-week period ended August 2, 2025, was $80.2 million or $1.59 per share on a diluted basis which compares to net income of $74.1 million or $1.48 per share on a diluted basis for the prior year 26-week period ended August 3, 2024.

Net sales for the 13-week second quarter increased 8.3% to $305.7 million compared to net sales of $282.4 million for the prior year 13-week second quarter. Comparable store sales for the quarter increased 7.3% in comparison to the same 13-week period in the prior year, and online sales increased 17.7% to $43.6 million. Year-to-date, net sales increased 6.1% to $577.9 million compared to net sales of $544.9 million for the prior year 26-week fiscal period. Comparable store sales for the year-to-date period increased 5.2% in comparison to the same 26-week period in the prior year, and our online sales increased 10.5% to $90 million.

For the quarter, UPTs decreased approximately 1.5%. The average unit retail increased approximately 3% and the average transaction value increased about 1.5%. Year-to-date, UPTs decreased approximately 1%, the average unit retail increased approximately 2% and the average transaction value increased approximately 1.5%. Gross margin for the quarter was 47.4%, a 50 basis point increase from 46.9% in the second quarter of 2024. The current quarter margin expansion was the result of a 10 basis point increase in merchandise margin, along with 40 basis points of leverage buying, distribution and occupancy expenses. Year-to-date, gross margin was 47.1%, up 60 basis points from 46.5% for the same period in the prior year, and the year-to-date increase was the result of a 30 basis point increase in merchandise margin along with 30 basis points of leverage buying, distribution and occupancy expenses.

Selling, general and administrative expenses for the quarter were 29% of sales compared to 29.8% for the second quarter of 2024, and year-to-date SG&A was 29.8% of sales compared to 29.9% for the same period in the prior year. The second quarter decrease was due to a 65 basis point reduction related to nonrecurring digital commerce investments made a year ago, a 45 basis point decrease in store labor related expenses and a 55 basis point decrease in other SG&A expense categories. And these increases were partially offset by an 85 basis point increase in incentive compensation accruals.

Our operating margin for the quarter was 18.4% compared to 17.1% for the second quarter of fiscal 2024 and for the year-to-date period, our operating margin was 17.3% compared to 16.6% for the same period last year. Income tax expense as a percentage of pretax net income for both the current and prior year fiscal quarter, was 24.5%, bringing second quarter net income to $45 million for fiscal 2025 compared to $39.3 million for fiscal 2024. Income tax expense as a percentage of pretax net income for both the current and prior year year-to-date periods was also 24.5%, bringing year-to-date net income to $80.2 million for fiscal 2025 and compared to $74.1 million for fiscal 2024. Our press release also included a balance sheet as of August 2, 2025, which included the following: inventory of $142.5 million which was up 8.4% from the same time a year ago and $349.6 million of total cash and investments. We ended the quarter with $158.8 million in fixed assets, net of accumulated depreciation.

Our capital expenditures for the quarter were $12 million, and depreciation expense was $6.1 million. For the year-to-date period, capital expenditures were $23.4 million, and depreciation expense was $12 million. Year-to-date capital spending is broken down as follows: $20.2 million for new store construction, store remodels and technology upgrades and $3.2 million for capital spending at the corporate headquarters and distribution center.

During the quarter, we opened 2 new stores, completed 4 full store remodels, one of which was a relocation into a new outdoor shopping center and closed one store, which brings our year-to-date count to 2 new stores, 9 full remodels and 3 store closures. For the remainder of the year, we now anticipate opening 4 additional new stores and completing 12 more full remodeling projects. Buckle ended the quarter with 440 retail stores in 42 states which is consistent with the store count as of a year ago.

And now I'll turn it over to Adam Akerson, Vice President of Finance.

Thanks, Tom, and good morning. Our women's business growth accelerated from the prior quarter with merchandise sales increasing about 18.5% against the prior year, representing approximately 47.5% of sales, which compares to 43.5% last year. Growth in the women's business continues to be anchored in the performance of our denim category. For the quarter, women's denim increased approximately 20.5% with average denim price points increasing from $80.60 in the second quarter of fiscal 2024 to $85.35 in the second quarter of fiscal 2025. This AUR increase continues to be the result of strong growth in our Buckle Black Label, which has outperformed the total denim business, along with strong growth of other higher price point national brands.

Through the second quarter, there have been minimal AUR impact as a result of tariffs. Complementing our strong women's denim selection, our merchandising team continued to evolve our strategy of customer-centric buying sharpening their focus on key styles, brands and trends, which has resulted in strong guest response. This strategy delivered double-digit growth in every category with the exception of Shorts, which still saw nice growth for the quarter. In total, average women's price points increased about 5% from $43.15 to $45.35.

On the men's side, we were pleased to see the business return to growth for the quarter with merchandise sales up about 1.5% against the prior year, representing approximately 52.5% of total sales, which compares to 56.5% in the prior year. This growth was led by our men's denim category, which was up about 4.5% for the quarter. Average denim price points increased from $89.20 in the second quarter of fiscal 2024 to $89.30 in the second quarter of fiscal 2025. In other categories, we saw strong performance in our short sleeve wovens, Polos, denim shorts, hats and fragrance selections.

For the quarter, overall average [indiscernible] price points increased approximately 2% from $50.20 to $51.20. On a combined basis, accessory sales for the quarter increased approximately 9.5% against the prior year while footwear sales were down about 0.5%. These 2 categories accounted for approximately 11.5% and 5%, respectively, of the second quarter net sales which compares to 11.5% and 5.5% for each in the second quarter of fiscal 2024.

For the quarter, average accessory price points were up approximately 3% and average footwear price points were up about 8%. Also on a combined basis, our kids business had an outstanding summer and start to the back-to-the-school season increasing approximately 23% year-over-year. We are excited to see the increased awareness and continued growth for our kids selection, which grew to approximately 4.5% of our total business for the quarter. For the quarter, Denim accounted for approximately 36% of sales, and tops accounted for approximately 29.5%, which compares to 35.5% and 30% for each in the second quarter of fiscal 2024.

And for the tenth consecutive quarter, private label continued to grow as an overall percentage of our mix. For the quarter, private label represented 43.5% of sales versus 43% in the second quarter of 2024. And with that, we welcome your questions.

[Operator Instructions] Our first question is from [ Mauricio ]

Great. Can you hear me okay?

Yes.

I guess just on the merchandise margin expansion. Can you elaborate a little bit more on the drivers behind it? It seems think relative to the prior quarter, it decelerated. So just wondering if there's any impact that you're seeing from tariffs already in your margins?

Mauricio. Thanks for the question. This is Tom. I'll take the first part and then let Dennis talk a little bit more about kind of vendors and how we're dealing with tariffs. But I mean any time you look at the first quarter, second quarter a year ago and the comparisons were up against any time you can grow merchandise margins up of record levels. We're certainly pleased with that. The team did a really nice job of maintaining really strong full regular price selling. And so again, pleased to be able to grow that even if not at the same rate in Q2 as it was in Q1.

I think the biggest driver of why we didn't see that same growth rate in Q2 compared to Q1 is really probably tied to private label. Private label as -- I mean, a percentage of the mix was down in Q1 -- Q2 compared to Q1, which is kind of the natural cycle and then looking at the year-over-year growth and the percentage of the mix that's private label slowed a little bit as well, just with the strong selling of some of our nationally branded products. So we'll let Dennis talk about tariffs.

On the tariffs, we continue to see kind of the same as earlier, at least as of today, where we're seeing low to mid-single digits on average on cost increase -- we have several vendors. We have such a wide range of vendors, but several we're not seeing any increase. We have -- starting to see with select brands a few higher single-digit increase on cost. But probably the average overall is in the low to mid-single-digit cost increase that we're seeing going forward.

Got it. Very helpful. Just one, if I could elaborate on the other part of the gross margin where you had basis points of leverage on mine occupancy and distribution. Just wondering like I would have maybe thought that there would be like a higher leverage just given how the how strong the comps were in the quarter? Any particular line item within buying occupancy or distribution where maybe there's been a little bit of more expense happening that maybe didn't let that leverage flow through?

Thank you, Mauricio. Really, the driver there is occupancy expense. And so we saw the growth in occupancy expense tick up in Q2 compared to Q1. So increased about 5.5% for occupancy expense compared to about 3.5% in Q1. And really, that's related to the store projects we're doing, the new store openings, the remodels where we're moving out of a lot of malls and into better locations off mall. So that's driven base rent up. And then with the strong sales performance in Q2, we also saw an uptick in percentage rent with several of our stores.

[Operator Instructions] Okay. Looks like we have another question from Mauricio.

Great. I guess just a quick follow-up on the SG&A when you were breaking down the components of the changing as a percentage of sales. I just wanted to make sure the 65 basis points from nonrecurring digital investments. Is this just like a -- so it's lapping from last year, I suppose, is this just happened on the second quarter? Or just as a reminder, this could that be like maybe like another quarter that we're also lapping that in 3 years new [indiscernible]

That does slow into the third quarter as well. So we talked a lot about our focus on digital, focus on growing e-com a year ago. And so brought in consultants and third-parties and really put a lot of effort around improving the buckle.com experience, and that started late in Q1, but really picked up in Q2 and into Q3. So we'll continue to see some benefit there in Q3 as well. Thank you so much.

Okay. There are no further questions. I will now turn the call back over to Buckle for any closing remarks.

There are no questions -- further questions. We'll wrap it up quick today, and thanks, everyone, for participation -- for your participation today, and have a great day and enjoy your weekend.