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Why Buckle's Stock Plunged Post Comparable Sales Results

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Shares of The Buckle, Inc.BKE declined roughly 9.2% following a disappointing April comparable-store sales (comps) performance. Comps for the four-week period ended Apr 30, 2016, fell 13.2% year over year, continuing the trend of decline - 11.8% in March, 8.9% in February and 11.3% in January.

This Zacks Rank #4 (Sell) company generated net sales of $65.2 million in April, down 12.3% year over year. Net sales decreased 11% in March, 7.7% in February and 10.1% in January.

Sales at the company's Men's category tumbled 3% year over year. The category contributed nearly 45.5% to Buckle's April sales. Sales in the Women's category, which represented 54.5% of the company's monthly sales, declined 12.5% year over year. Buckle has not been able to turn the performance of its struggling Women's business around.

On a combined basis, accessory sales, which constituted nearly 8.5% of the company's April sales, dropped 1.5%, while footwear sales, which accounted for almost 7% of net sales, fell 3%.

Comps for the thirteen-week period ended Apr 30, 2016, went down 11.1%, while net sales over the same time frame fell 10.2% to $243.5 million from $271.3 million recorded in the year-ago period.

As of May 5, 2016, Buckle operated 467 retail stores across 44 states.

Apart from Buckle, Zumiez, Inc. ZUMZ and The Cato Corporation CATO recorded comps decline of 6% and 3%, respectively. On the other hand, L Brands, Inc. LB registered comps growth of 1%.

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


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

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