Driven by higher sales from both the online business and the companys 407 retail locations, The Buckle increased fourth quarter earnings by 23% and capped the end of a profitable fiscal year. The companys fourth quarter sales ending January 30 exceeded company expectations by recording net income of $42.1 million, or 90 cents per diluted share, compared to net income of $34.3 million, or 74 cents per diluted share, in the prior-year period, an increase of 22.7% for the quarter.
Net sales for the quarter increased 9.2% to $274.4 million from net sales of $251.4 million for the fourth quarter in the prior year. Comps were up 3.8% for the quarter. Online sales, which are not included in the comp store sales results, increased 35.6% to $18.0 million for the 13-week period. Online sales for the year increased 45.2% to $52.3 million.
Gross margin for the quarter improved approximately 110 basis points to 47.2% of sales, driven primarily by an increase in merchandise margins, which had a 140 basis point impact, and a reduction in expense related to incentive bonus accrual, which had a 20 basis point impact. These improvements were partially offset by an increase in buying, distribution and occupancies, which had a 50 basis point impact.
Men’s merchandise sales for the quarter were up just slightly, on top of growth of 13.5% and 24.5% in the fourth quarter of each of the past two years. Positive categories on the men’s side were denim, woven shirts, outerwear and footwear. Women’s merchandise sales for the quarter increased approximately 16%, on top of growth of 28% and 13.5% in the fourth quarter of each of the past two years. Highlights were denim, woven and knit tops, sweaters, accessories and footwear.
For the quarter, combined accessory sales were up approximately 7.5%, and combined footwear sales were up approximately 14.5% for the period. The two categories account for approximately 8.5% and 4%, respectively, of fourth quarter sales in both 2009 and 2008. Average accessory price points were up approximately 2.5%, and average footwear price points were up approximately 12.5% for the period.
