The Buckle, Inc.
) posted lower-than-expected third-quarter fiscal 2013 results
due to sluggish consumer demand. Buckle's quarterly earnings per
share of 85 cents missed the Zacks Consensus Estimate of 90 cents
and fell 3.4% year over year.
Buckle reported net sales of $286.8 million that rose marginally
by 0.9% on a year-over-year basis but came below of the Zacks
Consensus Estimate of $292 million.
Comparable store sales declined 0.5% from the prior year period.
However, online sales (not included in comparable store sales)
grew 11.9% year over year to $22.0 million.
Total operating expenses came in at $62.2 million, up 4.9% year
over year. The rise was due increases in both selling, and
general and administrative expenses.
Selling expenses rose 5.6% on a year-over-year basis while
General and administrative expenses rose 1.8%.
On account of top-line improvement, the company's gross profit
rose 0.6% to $126.2 million, while gross margin contracted 10
basis points (bps) to 44.0%. The contraction was due to 40 bps
increase as a percentage of net sales in occupancy, distribution
and buying expenses, partly offset by 30 bps improvement in
Operating profit came in at $64.1 million, falling 3.2% year over
year, whereas operating margin contracted 100 bps to 22.3%.
Other Financial Aspects
Buckle, which competes with
), ended the quarter with cash and cash equivalents of $130.8
million, receivables of $7.9 million and shareholders' equity of
$371.9 million. Further, the company has accounts payable of $
In the quarter, the company incurred capital expenditures of $6.3
million, bringing the year-to-date capital expenditures to $25.2
million. For fiscal 2013, the company expects capex to be around
At the end of the quarter, Buckle operated 452 retail stores in
43 states as against 440 stores in 43 states at the end of the
prior year period. For fiscal 2013, the company intends to
remodel 8 stores. So far in 2013, the company has opened 13
stores. For fiscal 2014, Buckle intends to open 16 new stores and
14 -16 full remodels.
Other Stocks to Consider
Currently, Buckle carries a Zacks Rank #4 (Sell). Apart from
Buckle, other better ranked stocks in the retail sector worth
Finish Line Inc.
Fossil Group, Inc.
). Both these carry a Zacks Rank #2 (Buy)
BUCKLE INC (BKE): Free Stock Analysis Report
DSW INC CL-A (DSW): Free Stock Analysis
FINISH LINE-CLA (FINL): Free Stock Analysis
FOSSIL GRP INC (FOSL): Free Stock Analysis
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