Buckle (NYSE:BKE) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Buckle (NYSE:BKE) announced its earnings results on Friday. The company reported $0.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.81 by $0.06, Briefing.com reports. Buckle had a return on equity of 47.35% and a net margin of 16.85%.The business had revenue of $319.82 million for the quarter, compared to analyst estimates of $319.80 million. During the same period in the previous year, the company earned $0.89 earnings per share. The company’s revenue for the quarter was up 4.6% compared to the same quarter last year.

Here are the key takeaways from Buckle’s conference call:

• Second-quarter net sales rose 4.6% to $319.8 million, with comparable-store sales up 2.1% and online sales up 2.3%. Year-to-date net income increased to $91.3 million, or $1.79 per diluted share, from $80.2 million, or $1.59, a year earlier.
• Gross margin improved 40 basis points to 47.8%, supported by stronger merchandise margins, higher private-label penetration, regular-price selling, and lower markdowns. However, the improvement included approximately 65 basis points from tariff refunds, most of which has already been recognized.
• The women’s business grew 9.5% and the kids business increased 11%, led by denim, alternative pants, tops, shorts, and casual bottoms. Men’s sales were essentially flat, with strength in tops and shorts offsetting a decline in men’s denim, particularly at higher-priced national brands.
• Quarterly operating margin declined to 17.4% from 18.4% as SG&A deleveraged, including higher marketing, store labor, health insurance, and supply costs. Management is increasing spending across acquisition and retention channels, but acknowledged that rising media costs are also contributing to the pressure.
• Buckle ended the quarter with 446 stores and plans five additional openings and four more full remodels during the remainder of the year. Inventory increased 13.3% year over year, while footwear remained a soft category and management said a major new men’s footwear brand or trend would likely be needed to drive meaningful growth.

Buckle Stock Performance

BKE opened at $43.80 on Friday. The company has a market capitalization of $2.26 billion, a P/E ratio of 10.09 and a beta of 1.10. The company has a 50-day moving average of $43.61 and a 200-day moving average of $48.38. Buckle has a 1-year low of $40.73 and a 1-year high of $61.69.

Buckle Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 29th. Stockholders of record on Wednesday, July 15th were given a $0.35 dividend. The ex-dividend date of this dividend was Wednesday, July 15th. This represents a $1.40 annualized dividend and a dividend yield of 3.2%. Buckle’s payout ratio is presently 32.11%.

Analysts Set New Price Targets

A number of brokerages recently commented on BKE. UBS Group reduced their price target on Buckle from $47.00 to $46.00 and set a “neutral” rating for the company in a report on Tuesday, August 11th. Weiss Ratings downgraded Buckle from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, August 14th. Two equities research analysts have rated the stock with a Hold rating, According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $46.00.

Insider Activity at Buckle

In other news, Director Bill L. Fairfield sold 2,500 shares of the stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $44.44, for a total transaction of $111,100.00. Following the transaction, the director owned 52,908 shares of the company’s stock, valued at approximately $2,351,231.52. This trade represents a 4.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 38.40% of the company’s stock.

Institutional Trading of Buckle

Several institutional investors and hedge funds have recently bought and sold shares of the company. Invesco Ltd. lifted its holdings in Buckle by 2.5% during the 4th quarter. Invesco Ltd. now owns 340,416 shares of the company’s stock worth $18,185,000 after buying an additional 8,249 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its position in shares of Buckle by 3.2% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 20,519 shares of the company’s stock worth $1,096,000 after acquiring an additional 635 shares in the last quarter. Summit Global Investments increased its holdings in shares of Buckle by 36.1% in the 4th quarter. Summit Global Investments now owns 23,874 shares of the company’s stock valued at $1,275,000 after acquiring an additional 6,335 shares during the last quarter. Vident Advisory LLC increased its holdings in shares of Buckle by 2.1% in the 4th quarter. Vident Advisory LLC now owns 14,982 shares of the company’s stock valued at $800,000 after acquiring an additional 315 shares during the last quarter. Finally, State of Tennessee Department of Treasury raised its position in shares of Buckle by 33.9% during the 4th quarter. State of Tennessee Department of Treasury now owns 29,981 shares of the company’s stock valued at $1,602,000 after acquiring an additional 7,592 shares in the last quarter. Institutional investors and hedge funds own 53.93% of the company’s stock.

About Buckle

Buckle, Inc is a retailer specializing in casual apparel, footwear and accessories for young men and women. The company is known for its denim-focused collections, offering both private-label lines and curated brand-name merchandise. Its product assortment includes jeans, tops, outerwear, shoes and a variety of accessories such as belts, jewelry and handbags, all aimed at blending contemporary style with everyday comfort.

Founded in 1948 in Kearney, Nebraska, Buckle began as a single clothing store and has since expanded into a nationwide chain.