What changed in this filing

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Item 1. Business

2023-03-29 compared with 2022-03-30 · 25 added, 26 removed, 290 unchanged (15% of the section changed)

16 unchanged sentences

All references herein to fiscal 2022 refer to the 52-week period ended January 28, 2023.

Fiscal 2020 refers to the 52-week period ended January 30, 2021 and fiscal 2019 refers to the 52-week period ended February 1, 2020.

Fiscal 2021 refers to the 52-week period ended January 29, 2022 and fiscal 2020 refers to the 52-week period ended January 30, 2021.

All references herein to the “Company”, “Buckle”, “we”, “us”, or similar terms refer to The Buckle, Inc.

16 unchanged sentences

Merchandising

The Company's merchandising strategy is designed to create customer loyalty by offering a wide selection of key brand name and private label merchandise and providing a broad range of value-added services.

The Company's merchandising strategy is designed to create loyalty by offering a wide selection of key brand name and private label merchandise and providing a broad range of value-added services.

The Company believes it provides a unique specialty apparel store experience with merchandise designed to appeal to the fashion-conscious 15 to 30-year old.

1 unchanged sentence

Denim is a significant contributor to total sales (39.3% of fiscal 2022 net sales) and is a key to the Company's merchandising strategy.

The Company believes it attracts customers with its wide selection of branded and private label denim and a wide variety of fits, finishes, and styles.

The Company believes it attracts guests with its wide selection of branded and private label denim and a wide variety of fits, finishes, and styles.

Tops are also significant contributors to total sales (29.7% of fiscal 2022 net sales).

4 unchanged sentences

2023 January 29,

2021 February 1,

2022 January 30,

Denims 39.3 % 39.6 % 40.1 %

Tops (including sweaters) 29.7 30.2 30.1

Footwear 9.7 10.2 8.0

Accessories 10.0 9.3 9.0

Footwear 9.2 9.7 10.2

Sportswear/fashions 5.5 5.9 5.8

3 unchanged sentences

Total 100.0 % 100.0 % 100.0 %

Brand name merchandise accounted for approximately 57% of the Company's sales during fiscal 2021.

The remaining balance is comprised of private label merchandise from exclusive brands including BKE, Buckle Black, Salvage, Red by BKE, Daytrip, Gimmicks, Gilded Intent, FITZ + EDDI, Willow & Root, Outpost Makers, Departwest, Reclaim, BKE Vintage, Nova Industries, J.B.

Holt, and Veece.

Brand name merchandise accounted for approximately 56% of the Company's net sales during fiscal 2022.

Holt, Modish Rebel, and Veece.

The Company's merchandisers continually work with manufacturers and vendors to produce brand name merchandise, the majority of which they believe is exclusive in terms of color, style, and fit.

While the brands offered by the Company change to meet current customer preferences, the Company currently offers denims from brands such as Miss Me, Rock Revival, KanCan, Bridge by GLY, Flying Monkey, Levi's, Preme, Smoke Rise, Vervet, and Wrangler.

Other key brands include Hurley, Billabong, Affliction, American Fighter, Sullen, Howitzer, Oakley, Fox, RVCA, Ariat, 7 Diamonds, Nixon, Free People, Z Supply, Salt Life, White Crow, Brew City, Modish Rebel, HYFVE, Versace, American Highway, Eight X, Kimes Ranch, SOREL, Hey Dude, Steve Madden, Dolce Vita, SAXX, Stance, Pura Vida, Ray-Ban, Wanakome, Guess, Fossil, Brixton, Dr.

Marten, Very G, Birkenstock, Bed Stu, and G-Shock.

While the brands offered by the Company change to meet current customer preferences, the Company currently offers denims from brands such as Miss Me, Rock Revival, KanCan, Hidden, Flying Monkey, Levi's, Preme, Smoke Rise, Ariat, Good American, and Wrangler.

Other key brands include Hurley, Billabong, Affliction, American Fighter, Sullen, Howitzer, Oakley, Fox, RVCA, 7 Diamonds, Nixon, Free People, Z Supply, Salt Life, White Crow, Brew City, Reef, Stance, Versace Cologne, American Highway, Eight X, Pendelton, Hooey, Goorin Bros., Old Row, Timberland, Teva, Kimes Ranch, SOREL, Hey Dude, Steve Madden, Dolce Vita, SAXX, Ray-Ban, Wanakome, Guess, Fossil, Brixton, Dr.

Martens, Very G, Birkenstock, Bed Stu, Palladium, Mia, K-Swiss, Myra, STS, and G-Shock.

The Company expects that brand name merchandise will continue to constitute the majority of sales.

16 unchanged sentences

The Company has been able to modify the store design for specialized venues including lifestyle centers and larger mall fronts.

Over the past two fiscal years, the Company has also developed updated storefront designs that enhance the exterior visibility for stores relocating from enclosed mall locations to outdoor power centers and lifestyle centers.

Over the past several fiscal years, the Company has also developed updated storefront designs that enhance the exterior visibility for stores relocating from enclosed mall locations to outdoor power centers and lifestyle centers.

Marketing and Advertising

19 unchanged sentences

Paid-search, organic-search, and affiliate marketing programs are individually managed to increase online and in-store traffic.

The Company launched its current website on a new e-Commerce platform on June 8, 2016 and has continually invested in enhancements to the site's features and functionality since that time, helping to both facilitate the increase in traffic and improve the overall digital experience for guests.

The Company continually invests in enhancements to the site's features and functionality, helping improve the overall digital guest experience and facilitate the growth in online traffic.

Store Operations

7 unchanged sentences

The Company also has electronic article surveillance systems in all of the Company’s stores as well as surveillance camera systems in approximately 99% of the stores.

As a result, the Company achieved a merchandise shrinkage rate of 0.3% of net sales in fiscal 2021, 0.4% of net sales in fiscal 2020, and 0.6% in fiscal 2019.

As a result, the Company achieved a merchandise shrinkage rate of 0.4% of net sales in fiscal 2022, 0.3% of net sales in fiscal 2021, and 0.4% of net sales in fiscal 2020.

The average store is approximately 5,300 square feet (of which the Company estimates an average of approximately 80% is selling space), and stores range in size from 1,937 square feet to 9,935 square feet.

9 unchanged sentences

The Company requires its vendors to sign and adhere to its Buckle Responsible Sourcing Standards & Code of Conduct, which addresses adherence to legal requirements regarding employment practices and health, safety, and environmental regulations.

In fiscal 2021, Axis Denim (which produces private label denim for the Company) accounted for 15.6% of net sales.

In fiscal 2022, Axis Denim (which produces private label denim for the Company) accounted for 15.2% of net sales and Rock Revival/Miss Me accounted for 10.7% of the Company’s net sales.

No other vendor accounted for more than 10% of the Company’s net sales.

11 unchanged sentences

This system is also designed to prevent an over-crowded look in the stores at the beginning of a season.

During fiscal 2010, the Company completed construction of a new 240,000 square foot distribution center in Kearney, Nebraska.

The Company transitioned to the new distribution center in September 2010 and the new facility is currently the Company’s only operating store distribution center.

The Company also owns two additional facilities as part of its home office campus in Kearney, Nebraska (one of which was was completed during the first quarter of fiscal 2015).

During fiscal 2010, the Company completed construction of a 240,000 square foot distribution center in Kearney, Nebraska, which currently serves as the Company’s only store distribution center.

The Company also owns two additional facilities as part of its home office campus in Kearney, Nebraska (one of which was completed during the first quarter of fiscal 2015).

These facilities serve as the Company's corporate headquarters and house its online fulfillment and customer service center.

21 unchanged sentences

Louisiana 11 Oklahoma 11

Over the past ten years, Buckle has grown its number of stores from 431 at the beginning of fiscal 2012 to 440 at the end of fiscal 2021.

Over the past ten years, Buckle has opened a total of 55 new stores and closed 54, with the number of openings and closings in a given year being based on local economic conditions and available opportunities.

The Company intends to open new stores only when management believes there is a reasonable expectation of satisfactory results.

25 unchanged sentences

The Company anticipates opening 6 new stores during fiscal 2023 and expects to complete approximately 12-17 full remodels.

Year-to-date through March 28, 2022, the Company has closed 1 store in fiscal 2022, with no other specific store closings currently planned for the remainder of the year.

Year-to-date through March 28, 2023, the Company has closed 3 stores in fiscal 2023, with no other specific store closings currently planned for the remainder of the year.

The construction costs for a full remodel are comparable to those of a new store.

6 unchanged sentences

The system includes PC based point-of-sale ("POS") registers in each store.

The registers trickle transactions to a central server using a virtual private network ("VPN") for collection of comprehensive data, including complete item-level sales information and employee time clocking.

The transactions are then swept into the central computer (IBM iSeries).

The registers trickle transactions to a central server using a virtual private network ("VPN") for collection of comprehensive data, including complete item-level sales information.

The transactions are then swept into the central database (IBM iSeries).

Price updates are sent daily for the price lookup (“PLU”) file maintained within the POS registers.

Each weekday morning, the Company initiates an electronic "sweep" of the individual store bank accounts to the Company's primary concentration account.

Twice a week, the Company initiates an electronic "sweep" of the individual store bank accounts to the Company's primary concentration account.

This allows the Company to meet its obligations and invest cash on a timely basis.

37 unchanged sentences

While the Company believes it is able to compete favorably with other merchandisers, including department stores and specialty retailers, with respect to each of these factors, the Company believes it competes mainly on the basis of customer service and merchandise selection.

In the men's merchandise area, the Company competes primarily with specialty retailers such as Abercrombie & Fitch, American Eagle Outfitters, Boot Barn, Express, Gap, Hollister, Pacific Sunwear, Scheels, and Tilly’s.

The men's market also competes with certain department stores, such as Dillards, Macy’s, Nordstrom, and certain local or regional department stores and small specialty stores, as well as with direct-to-consumer brands and online retailers.

In the women's merchandise area, the Company competes primarily with specialty retailers such as Abercrombie & Fitch, Altar'd State, American Eagle Outfitters, Boot Barn, Express, Forever 21, Free People, H&M, Hollister, Madewell, Maurices, Pacific Sunwear, Scheels, Tilly's, and Urban Outfitters.

In the women's merchandise area, the Company competes primarily with specialty retailers such as Abercrombie & Fitch, Altar'd State, American Eagle Outfitters, Anthropologie, Boot Barn, Express, Forever 21, Francesca's, Free People, H&M, Hollister, Journey's, Lulus, Madewell, Maurices, PacSun, Revolve, Scheels, Tilly's, Urban Outfitters, Zara, and Zumiez.

The women's market also competes with department stores, such as Dillards, Macy’s, Nordstrom, and certain local or regional department stores, and small specialty boutiques, as well as with direct-to-consumer brands and online retailers.

5 unchanged sentences

FAVORITE JEANS.", "BKE SPORT", "BKE RESERVE", "BUCKLE BELIEVES", "FADE BY BKE", "SOLELY BLACK BY BKE", "FITZ + EDDI", "BUCKLE SELECT", "IN THESE BLUES", "POETIC REBEL", "UNTAMED SOUL", "WILLOW & ROOT", "TWINE & STARK", "INDIE SPIRIT DESIGNS", "BKE CORE", "GILDED INTENT", "#BUCKLEDOUT", "QUINN & COPPER", "LEGACY COLLECTION BY BKE", "SWEET HARMONY BY BUCKLE", "DAYTRIP REFINED", "WHEREVER YOU WANDER BY BUCKLE", "RED BY BKE", "#INTHESEBLUES", "J.B.

HOLT", "OUTPOST MAKERS", "DEPARTWEST", "STONE REFINERY", "stylized G", "GREHY", "NOVA INDUSTRIES", "SAY YOU WILL", "BRILL BOUTIQUE" and “B” icon are federally registered trademarks of the Company.

HOLT", "OUTPOST MAKERS", "DEPARTWEST", "STONE REFINERY", "stylized G", "DEPARTWEST logo", "GREHY", "NOVA INDUSTRIES", "SAY YOU WILL", "BRILL BOUTIQUE", "BUCKLE B", "BUCKLE REWARDS", "BKE ESSENTIALS" and “B” icon are federally registered trademarks of the Company.

The Company also owns trademarks for certain product designs.

58 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business