Buckle (NYSE:BKE) Announces Earnings Results, Beats Estimates By $0.06 EPS

Buckle (NYSE:BKE) released its earnings results on Friday. The company reported $0.87 EPS for the quarter, beating the consensus estimate of $0.81 by $0.06, Briefing.com reports. The firm had revenue of $319.82 million for the quarter, compared to analysts’ expectations of $319.80 million. Buckle had a net margin of 16.85% and a return on equity of 47.35%. Buckle’s quarterly revenue was up 4.6% on a year-over-year basis. During the same quarter last year, the company earned $0.89 EPS.

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 Trading Up 2.7%

BKE stock opened at $43.80 on Friday. Buckle has a one year low of $40.73 and a one year high of $61.69. The firm has a 50-day moving average of $43.61 and a two-hundred day moving average of $48.38. The firm has a market capitalization of $2.26 billion, a PE ratio of 10.05 and a beta of 1.10.

Buckle Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 29th. Shareholders of record on Wednesday, July 15th were paid a dividend of $0.35 per share. The ex-dividend date of this dividend was Wednesday, July 15th. This represents a $1.40 dividend on an annualized basis and a yield of 3.2%. Buckle’s dividend payout ratio is currently 32.11%.

Insider Buying and Selling at Buckle

In other news, Director Bill L. Fairfield sold 2,500 shares of the business’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $44.44, for a total transaction of $111,100.00. Following the sale, the director owned 52,908 shares in the company, valued at $2,351,231.52. The trade was a 4.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 38.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Buckle

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Charles Schwab Investment Management Inc. raised its stake in Buckle by 0.4% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,370,398 shares of the company’s stock valued at $73,207,000 after purchasing an additional 5,784 shares during the period. State Street Corp boosted its position in shares of Buckle by 4.3% in the fourth quarter. State Street Corp now owns 1,321,675 shares of the company’s stock worth $70,604,000 after buying an additional 54,826 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of Buckle by 0.6% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,311,917 shares of the company’s stock valued at $70,084,000 after buying an additional 8,311 shares in the last quarter. Morgan Stanley grew its holdings in shares of Buckle by 26.8% during the fourth quarter. Morgan Stanley now owns 1,244,389 shares of the company’s stock valued at $66,475,000 after buying an additional 263,338 shares in the last quarter. Finally, Goldman Sachs Group Inc. raised its position in Buckle by 44.9% during the fourth quarter. Goldman Sachs Group Inc. now owns 1,043,548 shares of the company’s stock valued at $55,746,000 after buying an additional 323,361 shares during the period. 53.93% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on BKE. Weiss Ratings cut Buckle from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, August 14th. UBS Group cut their price objective on Buckle from $47.00 to $46.00 and set a “neutral” rating for the company in a report on Tuesday, August 11th. Two investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $46.00.

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.