Buckle Reports Second Consecutive Month of Comps Growth - Analyst Blog

By Zacks Equity Research,

Shutterstock photo

The Buckle, Inc. ( BKE ), retailer of casual apparel, footwear and accessories for men and women, reported comparable-store sales (comps) growth for the second consecutive month. Comps for July (four weeks ended Aug 2, 2014) increased 0.5% year over year following a 0.7% rise in June comps. Share price rose 1.2% on the index after the announcement.

Apart from June & July, Buckle has reported positive comps only once over the last 7 months, which was in Apr 2014, when comps grew 0.8% year over year. Prior to that, comps declined 3.1% in May 2014, 1.8% in Mar 2014, 1.4% in Feb 2014, 6.6% in Jan 2014, 2.8% in Dec 2013 and 0.6% in Nov 2013. Weakness in the Women's category remains a persistent problem for Buckle.

Apart from Buckle, other retailers like Rite Aid Corp. ( RAD ), The Cato Corp. ( CATO ) and Walgreen Co. ( WAG ) saw their comparable-store sales increase 4.6%, 4% and 5.2% respectively, during July. Retailers benefited during the month under review due to increasing consumer confidence, improving job prospects and aggressive promotional strategies.

Coming back to Buckle, net sales for July totaled $79 million, registering a 2.3% rise from the prior-year four-week period ended Aug 3, 2013.

Sales in Buckle's Men's category rose 7.5% year over year in July, driven mainly by strong performance of denim, casual bottoms, footwear, knit shirts and accessories. The Men's category contributed nearly 42.5% to July 2014 sales. Sales in the Women's category were down 1% year over year and contributed 57.5% to the month's sale.

On a combined basis, accessories sales which constituted nearly 9% of July's net sales decreased 2%, while footwear sales which constituted nearly 5.5% of the net sales increased 4.5%.

However, comps for the 26-week period, ended Aug 2, 2014, fell 0.7% year over year, whereas net sales inched up 1% to $507.4 million from the prior-year 26-week period ended Aug 3, 2013.  

Buckle also came out with its second-quarter fiscal 2014 sales results. Comps decreased 0.5% year over year whereas net sales of $237.5 million grew 1.4% from the prior-year quarter.

Buckle is scheduled to announce second-quarter 2014 earnings on Aug 21. Our proven model does not conclusively show Buckle as likely to beat the Zacks Consensus Estimate this quarter. This is because Buckle carries a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00% (as both the Zacks Consensus Estimate and the Most Accurate Estimate stand at 53 cents).

In order to outperform, a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3. The combination of Buckle's Zacks Rank #3 and 0.0% ESP makes surprise prediction difficult.

As of Aug 6, 2014, this Kearney NE-based company operated 456 retail stores across 44 states.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BUCKLE INC (BKE): Free Stock Analysis Report

RITE AID CORP (RAD): Free Stock Analysis Report

WALGREEN CO (WAG): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: BKE , RAD , WAG , CATO

More from Zacks.com




Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com