Sluggish sales and higher costs dropped second quarter earnings for The Buckle more than 17%, significantly worse than most analysts had predicted. Management for the Kearney, NE-based teen retailer said same-store sales for the quarter dropped 7.3%. In July, SEW reported that same-store sales for The Buckle were down 9.3%, the worst performance of any of the reporting retailers within the finicky Teen segment.
In a conference call with analysts, management for The Buckle said sales for men’s merchandise, which accounted for about 41% of total sales, revenues were down about 1% despite growth from denim, woven shirts and active apparel. Management noted that the Affliction and Reclaim labels have been performing well for the male customer. Average denim price points for the quarter decreased from $87.60 in the second quarter of fiscal 2009 to $86.20 in the second quarter of fiscal 2010.
Combined accessory sales for the period were up approximately 5.5% while combined footwear sales were down approximately 5.5%. Management said these two categories accounted for approximately 9% and 5%, respectively, of second quarter net sales, which compares to approximately 8.5% and 5.0% for each in Q2 2009.
Average accessory price points were up nearly 7% and average footwear price points were up approximately 4.5%.
Denim accounted for close to 38% of sales for the quarter and tops accounted for approximately 36.5%, which compares to 35.5% and 39.0% for each in the second quarter of last year.
The Buckle’s private label business was “up slightly” as a percentage of net sales for the quarter and represented approximately 26% of sales.
