For Immediate Release: October 6, 2005
Contact: Karen B. Rhoads, Chief Financial Officer
The Buckle, Inc.
308/236–8491
Our October 6, 2005, press release reported that Net Sales for the five–week period ended October 1, 2005, increased 3.0 percent to $44.7 million from sales of $43.4 million in the corresponding five–week period ended October 2, 2004. Comparable store sales, for stores open at least one full year, for the five–week period ended October 1, 2005, decreased 1.4 percent in comparison to the five–week period ended October 2, 2004.
As mentioned in our press release, sales for the month were negatively affected by store closures related to both Hurricane Katrina and Hurricane Rita. Two stores were closed the entire fiscal month as a result of Hurricane Katrina and two additional stores have been closed since September 22nd as a result of Hurricane Rita. We estimate that these closures negatively impacted September comps by slightly less than 1.0 percent.
At this time I would like to briefly highlight some of the results from our various merchandise categories that led to fiscal September's 3.0 percent Net Sales increase.
On the guys' side of the business, total sales were down approximately 5.0 percent from the same five weeks in the prior year and represented approximately 42.0 percent of the total sales for the month versus approximately 45.5 percent in the prior fiscal September. The sales decrease on the guys' side was partially attributable to a planned reduction in inventory levels in certain key categories, including denim, throughout the month. Relative strength was, however, seen in guy's outerwear and knit shirts during the period. For the fiscal month, overall price points on the guys' side of the business were up approximately 1.0 percent.
On the gals' side of the business, total sales were up approximately 9.5 percent from the same five weeks in the prior year and represented approximately 58.0 percent of the total sales for the month versus approximately 54.5 percent in the prior fiscal September. Strong categories on the gals' side included denim and casual bottoms, outerwear and footwear (each of which experienced double digit sales growth from the same period in the prior year) and knit tops (which experienced growth in the high single digits). For the fiscal month, overall price points on the gals' side of the business were up approximately 11.0 percent.
Within the guys' and gals' categories combined, accessory sales declined approximately 3.5 percent, while footwear sales increased approximately 11.5 percent during the period. These two categories accounted for approximately 10.0 percent and 8.0 percent, respectively, of the current fiscal September's Net Sales. This compares with approximately 11.0 percent and 7.5 percent for each of these categories for the same period in the prior fiscal year. Both average accessory price points and average footwear price points were up slightly for fiscal September.
UPT's were up approximately 3.0 percent and average dollars per transaction were up approximately 7.0 percent for the five–week period ended October 1, 2005. For the fiscal month, merchandise margins were improved in comparison to the same period a year ago. As of the end of the period, inventory on a company total basis was up approximately 5.5 percent, and inventory on a comparable store basis was up approximately 2.0 percent. Total markdown inventory at the end of the period was up slightly compared to the prior year, with increases in terms of markdown dollars in the 20 percent off, one–third off and 75 percent off categories; partially offset by a decrease in the 50 percent off category. By department, markdown increases were primarily in guys' and gals' denim.
The Buckle currently operates 336 retail stores in 38 states compared to 327 stores in 38 states at this same time a year ago.
It is our Company policy to refrain from providing 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.
