The Buckle, Inc. (NYSE:BKE) Q4 2023 Earnings Call Transcript

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Dennis Nelson: Yes. And on the Hey Dudes, last year $40 million of our business was down in Hey Dude footwear. It was close to half of our total loss for the year. And I think the team did a good job of managing inventories to the right level. We still had some good sell-throughs there, but at much different inventory levels. As far as new footwear going forward, we’re starting to see a little bit of excitement in the gal’s product and stuff, but nothing that’s going to replace the Hey Dude volume at the present time.

Operator: Our next question is from Nancy Frohna. Nancy, I’m going to go ahead and allow you to unmute yourself.

Nancy Frohna: Good morning. This is Nancy Frohna with 1492 Capital Management. Just a quick question. Have you seen any meaningful change in the way your customers are paying for their purchases, whether it’s sort of the buy now, pay later mode or any meaningful differences over time?

Dennis Nelson: Good morning, Nancy. Thanks for the question. I don’t think we’ve seen real meaningful shifts. I think it’s been pretty consistent. We do offer buy now, pay later services, which we have for several years, and it’s really small in store and obviously much bigger online. But I don’t think that we’ve seen meaningful shifts in payment methods this year.

Operator: Our next question is from Alan Glenn. Alan, I’m going to go ahead and prompt you to unmute yourself.

Alan Glenn: Good. Thank you and congratulations on another excellent quarter. My question relates to the store refreshes that are ongoing and can you share with us the kind of success that the refresh store generates in terms of maybe average sales increase?

Dennis Nelson: Well, thank you Alan for the question. It’s a little difficult to say because we’ve come off such record years, but we’re finding that the outdoor centers we’re going to is about 30% larger, and we’re finding the guest is staying longer in the store, enjoying the ability to see more presentations and such there. And in cases where stores maybe have been in an older mall that has not kept up, when we move it we’re seeing some very nice gains on those locations. Other locations might be a very solid store, but we’re improving the location in the future set up and so you don’t see as big a gain. But as I mentioned, we’re coming off a couple of record years and doing these changes. We feel very good that this is the path to take, but I can’t give you a clear growth number to put down.

Operator: There are no further questions in queue. [Operator Instructions] It looks like there are no further questions at this time. I will now turn the call back over to Buckle for any closing remarks.

Dennis Nelson: Thank you everybody for your participation in joining us today. We hope you have a wonderful day and enjoy your weekend. Thank you.

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