Buckle reported Q1 EPS of $0.92 boosted by a $19.1M settlement; excluding the windfall SG&A rose 150bps and gross margin fell to 46.2%. Comparable store sales climbed 5.1% driven by an 11% jump in women’s merchandise, yet inventory swelled 13.5% versus 6.1% sales growth, flagging clearance risk.
Buckle delivered Q1 EPS of $0.92, topping estimates largely due to a $19.1M interchange-fee litigation settlement. Without this one-time gain, earnings would have underscored rising operating costs.
The women’s merchandise business saw an 11% sales increase, driving a 5.1% comparable store sales gain and demonstrating continued consumer demand in key categories.
SG&A expenses climbed 150 basis points as higher compensation costs weighed on profitability, while gross margin contracted to 46.2% versus prior year levels.
Inventory rose 13.5% year-over-year, more than double the 6.1% sales growth, raising concerns that excess stock will require clearance markdowns and further pressure margins.
