The Buckle, Inc.
) second-quarter fiscal 2014 earnings per share of 51 cents missed
the Zacks Consensus Estimate by a couple of cents and came in a
penny below the prior-year quarter.
The Buckle Inc - Earnings Surprise |
However, this Zacks Rank #2 (Buy) company's net sales climbed
1.4% year over year to $235.7 million, which surpassed the Zacks
Consensus Estimate of $234.0 million. Improving merchandise sales
at Men's categories was partly offset by declining women's
merchandise sales. Stock price rose nearly 3.6% on the index.
Comparable-store sales dipped 0.5% from the prior-year period.
However, online sales (not included in comparable store sales) grew
1.7% year over year to $17.1 million.
Total operating expenses came in at nearly $56.2 million, up 1.9%
year over year. Higher selling expenses were partly offset by lower
general and administrative expenses.
Buckle's gross profit inched up 0.5% to $94.9 million, while gross
margin contracted 30 basis points (bps) to 40.3%. The contraction
was due to deleveraged occupancy and distribution expenses stemming
from negative comps.
Operating income came in at $38.7 million, down 1.6% from the
prior-year quarter while operating margin contracted 50 bps to
Other Financial Aspects
Buckle ended the quarter with cash and cash equivalents of $169.5
million, receivables of $12.4 million and shareholder equity of
$406.7 million. Further, the company had accounts payable of $51.6
In the quarter, the company incurred capital expenditures of $12.6
million. For fiscal 2014, the company continues to expect capex to
be around $48-$53 million, to be deployed towards outlet
construction/remodel and technology upgrade.
As of Aug 2, 2014, Buckle operated 456 retail stores in 44 states.
A Glimpse at the First Half of Fiscal 2014
For the six months ended Aug 2, 2014, Buckle's earnings dropped
1.5% to $1.29 per share. Net sales to date came in at $507.4
million, up 1% from $502.2 million recorded last year. Also, the
company incurred capital expenditure of $22.7 million during the
first half of fiscal 2014.
Other Stocks to Consider
Other stocks in the industry looking attractive at current levels
include Citi Trends, Inc. (
) and The Men's Wearhouse, Inc. (
), each carrying a Zacks Rank #1 (Strong Buy) along with
Abercrombie & Fitch Co. (
), with a Zacks Rank #2 (Buy).
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