The Buckle, Inc.'
) first quarter fiscal 2014 earnings per share of 78 cents came in
line with the Zacks Consensus Estimate as well as the year ago
quarter figure. Stock price rose nearly 1.6% on the index.
Buckle reported net sales of $271.7 million which came almost in
line with the Zacks Consensus Estimate of $272.0 million and
increased 0.7% year over year.
Comparable-store sales declined 0.9% from the prior-year period.
However, online sales (not included in comparable store sales) grew
2.5% year over year to $21.4 million.
Total operating expenses came in at nearly $58.0 million, up 0.4%
year over year. Higher selling expenses were partly offset by lower
general and administrative expenses.
Buckle's gross profit inched up 0.1% to $117.2 million, while gross
margin contracted 30 basis points (bps) to 43.1%. The contraction
was due to deleveraged occupancy, distribution and buying expenses
and flat merchandise margins.
Operating profit came in at $59.2 million, almost in line with the
prior year quarter while operating margin contracted 20 bps to
Other Financial Aspects
Buckle, which competes with
Citi Trends, Inc.
), ended the quarter with cash and cash equivalents of $169.7
million, receivables of $4.8 million and shareholder equity of
$390.9 million. Further, the company had accounts payable of $ 36.4
In the quarter, the company incurred capital expenditures of $10.1
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 upgradation.
As of May 22, 2014, Buckle operated 452 retail stores in 43 states.
Other Stocks to Consider
Currently, Buckle carries a Zacks Rank #4 (Sell). Some
better-ranked stocks in the retail sector include
Foot Locker, Inc.
American Apparel, Inc
). Both of these have a Zacks Rank #2 (Buy).
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