The Buckle saw a large gross margin gain during the third quarter ended October 29 cover ground lost on a slight comparable sales decrease and SG&A expense increase. The margins gain, coupled with a low-singles net sales increase, prompted a low double-digit income gain for the company during the third quarter.
Net sales for the third quarter increased 3.2% to $138.1 million compared to net sales of $133.7 million for the third quarter of 2004. Comparable store net sales, for stores open at least one year, were down 0.9% for the quarter, after a comp sales gain of 5.1% for the same quarter last year.
Gross margin increased 170 basis points as a percentage of sales to 40.7% from 39.0% last year. The gross margin gain was partially offset by a 40 basis point increase in SG&A expenses to 22.6% of sales.
Net income for the third quarter increased 11.5% to $16.6 million, or 82 cents per share on a diluted basis, compared to net income of $14.9 million, or 67 cents per share on a diluted basis for the third quarter of fiscal 2004.
