Buckle, Inc Q2 2009 Earnings Call Transcript

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2009-08-20 11:49:20.0

Tags: Call Transcript, Earnings, Friedman Billings Ramsey, Dollar Growth, Gender And Diversity, Sales Strategy, Human Resources, Sales, Seeking Alpha, Buckle Inc.

Question-and-Answer Session

Operator

(Operator Instructions). And our fist question comes from the line of [Adrienne Tennant]. Please go ahead. Adrienne Tennant, your line is open.

Adrienne Tennant - Friedman Billings Ramsey

Karen, can you talk a little bit about the SG&A dollar growth? It looks like you exhibited very, very good control on the G&A side and then on a dollar basis, it was lower than the first quarter sales. Without giving us numbers or anything, can you just help us think about how we should look at that for the back half of the year. Should we look at that similar to 2Q?

Karen Rhoads

Similar in what respect?

Adrienne Tennant - Friedman Billings Ramsey

In terms of dollar growth year-on-year. So, excluding this $3 million gain last year, it looks like the G&A was up about 2.6% on a dollar basis. I'm just wondering if that's the type of the dollar growth that we should expect in Q1, it was up 10%. So, it looks like you’re exhibiting some pretty tight G&A control, and I'm wondering if that's kind of a go-forward pattern that we should think about.

Karen Rhoads

I guess I really couldn't speak on that and the back half is a little bit different than the first half as far as the sale volume and so anything that comes in connection with that we have to take into consideration.

Adrienne Tennant - Friedman Billings Ramsey

Can you remind us last year kind of the build in Ed Hardy and Affliction and when it sort of peaked last year?

Dennis Nelson

I'm not sure, Adrienne. If I remember specifically, I think we were still selling Ed Hardy T-shirts in select stores through at least the early fall and probably at a lesser point Holiday. But to be specific, I couldn’t tell you.

Adrienne Tennant - Friedman Billings Ramsey

My final question is really, the denim newness. It looks like there's a lot more pocket treatment this year especially on the women's side. Do you think you can continue to drive the price points up by adding the embellishments that we are starting to see? Is that kind of something that’s more sustainable go forward for Holiday.

Dennis Nelson

Well, I think our selection that we have now will be pretty consistent through fall and holiday where we still have price points from the $60 range for the most part, all the way up through about $150 with a few exceptions over that. Based on selling the back-to-school and such will respond accordingly, but I would expect to see about the same type of price points and type of inventory through the holiday.

 

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