The Buckle Inc. reported second-quarter 2026 earnings that exceeded Wall Street expectations, with diluted EPS of $0.87 and net sales of $319.8 million.
The company’s adjusted diluted EPS of $0.88 surpassed the consensus estimate of $0.81, representing an 8.6% surprise. Net revenue rose 4.6% year-over-year to $319.8 million, beating the $314.1 million estimate by $5.7 million. Comparable store sales increased 2.1% for the quarter and 3.5% year-to-date, while online sales grew 2.3% to $44.6 million.
Gross margin expanded to 47.8%, up 40 basis points from the prior year, driven by a 110-basis-point improvement in merchandise margin—partially supported by 65 basis points from tariff refunds. Private label penetration rose by 100 basis points to 44.5% of total sales. Operating margin declined to 17.4% from 18.4% a year earlier, while SG&A expenses increased to 30.4% of net sales.
Women’s apparel sales surged 9.5%, accounting for half of total revenue, with denim up 11% and alternative pants growing nearly 50%. Men’s apparel sales were flat, though tops rose 3.5%. Kids’ apparel increased 11%, and accessories grew 2.5%. Inventory rose 13.3% year-over-year to $161.4 million.
The Buckle ended the quarter with 446 stores, having opened five new locations and completed five remodels. Capital expenditures totaled $29.8 million for the quarter, including spending on new stores, technology upgrades, and a corporate aircraft. Cash and investments stood at $322.9 million.
Shares rose 3.7% to $44.24 in premarket trading, following a prior close of $42.64. The stock remains 28.3% below its 52-week high of $61.69 and 7.7% above its low of $40.73.
CEO Dennis Nelson highlighted strong performance in women’s apparel, attributing growth to new product launches and denim demand. CFO Tom Heacock noted margin improvements from private label expansion and lower markdowns. The company does not provide formal forward guidance.
