The Buckle, Inc.
) rose nearly 1.2% on the index following better-than-expected
fourth-quarter fiscal 2013 earnings. Buckle's quarterly earnings
per share of $1.23 beat the Zacks Consensus Estimate by couple of
cents but fell 3.9% year over year.
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For the full year, earnings came in at $3.39 per share, above the
Zacks Consensus Estimate of $3.36 per share but fell 1.5% year
Buckle reported net sales of $339.0 million that came below the
Zacks Consensus Estimate of $347 million and fell 6% year over
year. For the full year, net sales were $1,128.0 million, lagging
the Zacks Consensus Estimate of $1,134 million and down 0.4% year
Comparable-store sales declined 2.8% from the prior-year period.
However, online sales (not included in comparable store sales)
grew 0.4% year over year to $29.3 million.
Total operating expenses came in at $67.2 million, down 11.2%
year over year. The decline was due fall in selling as well as
general and administrative expenses.
Selling expenses rose 3.5% on a year-over-year basis while
General and administrative expenses fell a remarkable 58%.
Due to the decline in top line, the company's gross profit fell
6.8% to $161.4 million, while gross margin contracted 40 basis
points (bps) to 47.6%. The contraction was due to deleveraged
occupancy, distribution and buying expenses, partly offset by 40
bps improvement in merchandise margin.
Operating profit came in at $94.3 million, down 3.4% year over
year while operating margin expanded 80 bps to 27.8%.
Other Financial Aspects
Buckle, which competes with
), ended the quarter with cash and cash equivalents of $164.9
million, receivables of $4.3 million and shareholders' equity of
$361.9 million. Further, the company had accounts payable of $
In the quarter, the company incurred capital expenditures of $3.6
million, bringing full-year capital expenditures to $28.8
million. For fiscal 2014, the company expects capex to be around
$48-$53 million, to be deployed towards outlet
construction/remodel and technology up gradation.
At the end of the year, Buckle operated 450 retail stores in 43
states as against 440 stores in 43 states at the end of the
previous year. In fiscal 2013, the company opened 13 outlets,
remodeled 8 stores and closed 3 stores. For fiscal 2014, Buckle
intends to open 17 stores and remodel 7 outlets completely.
Other Stocks to Consider
Currently, Buckle carries a Zacks Rank #4 (Sell). Some
better-ranked stocks in the retail sector worth considering
Foot Locker, Inc.
American Apparel, Inc.
). Both of these have a Zacks Rank #2 (Buy).