KEARNEY, Neb. - The Buckle, Inc. (NYSE: NYSE:BKE), a specialty retailer known for its denim, reported a decrease in comparable store net sales for both the 5-week and 22-week periods ended July 6, 2024.
The company, which operates 439 retail stores across 42 states, disclosed that comparable store sales fell by 5.7% for the 5-week period when compared to the same period in 2023. Net sales also dropped 5.8% to $101.7 million, down from $108.0 million for the same fiscal month last year.
Year-to-date figures also showed a downturn, with comparable store net sales declining 8.0% for the 22-week period ended July 6, 2024, compared to the same period in the previous year. Overall net sales for this period decreased by 7.1% to $446.2 million, a fall from $480.2 million in the prior year.
The comparison of sales figures was slightly complicated by an additional week in the fiscal calendar of 2023, which included a 53rd week. Therefore, the sales for the current month and year-to-date periods were matched against the 5-week and 22-week periods ending July 8, 2023, respectively.
Buckle's recent activities included the opening of a new store in San Marcos, Texas, during fiscal June and the closure of two stores earlier this week, following the end of the reported fiscal month. As of today, the company operated one less store than it did on July 11, 2023.
The company's statement also contained a standard safe harbor disclaimer, noting that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from projected results. Factors that could affect the company's performance include those outlined in its filings with the Securities and Exchange Commission.
In other recent news, Buckle Inc. reported disappointing first-quarter earnings and revenue that fell short of Wall Street expectations. The company's earnings per share (EPS) was $0.69, lower than the anticipated $0.75, and revenue came in at $262.48 million, missing the projected $264.16 million. The specialty retailer also disclosed a 7.2% decrease in net sales compared to the same quarter last year.
In addition, Buckle declared a quarterly dividend of $0.35 per share, reflecting its ongoing financial strategies and performance outlook. This dividend announcement follows a decrease in comparable store net sales for both the month and year-to-date periods ending on June 1, 2024.
In analyst news, UBS reaffirmed its sell rating on Buckle, maintaining a steadfast price target of $32.00. The firm predicts a continuation of Buckle's negative sales trend through fiscal year 2024, leading to increased fixed cost deleverage and margin pressures. UBS also projects a 15% year-over-year decrease in EPS for fiscal year 2024, following a 14% drop in the previous fiscal year.
These are recent developments for Buckle, which operates 440 retail stores across 42 states. The company remains committed to providing high-quality, on-trend apparel, accessories, and footwear despite the reported decreases in sales and revenue.
InvestingPro Insights
In light of The Buckle, Inc.'s (NYSE: BKE) reported decline in comparable store net sales, InvestingPro data provides additional context to the company's financial health and market position. As of the last twelve months up to Q1 2023, The Buckle's market capitalization stands at $1.83 billion, with a Price/Earnings (P/E) ratio of 8.52, reflecting investor sentiment on the company's earnings capacity. The company's Price/Book ratio, which compares the market's valuation of the company to its book value, is relatively high at 4.22, suggesting that investors may be expecting future growth or that the company's assets are valued highly in the market.
Despite the reported sales downturn, The Buckle's gross profit margin remains impressive at 58.87%, which is a testament to the company's ability to maintain profitability in the face of declining sales. Additionally, The Buckle has been consistent in rewarding its shareholders, boasting a significant dividend yield of 10.62% and maintaining dividend payments for 22 consecutive years. This consistency in dividend payments, as highlighted by one of the InvestingPro Tips, underscores the company's commitment to returning value to its shareholders.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights into The Buckle's performance and future outlook. There are currently 9 more InvestingPro Tips available that can provide a deeper understanding of the company's financial metrics and analyst predictions. These tips include observations on the company's debt levels, profitability, and stock return over the past five years. Interested investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes access to these valuable tips.
It's worth noting that while two analysts have revised their earnings downwards for the upcoming period, The Buckle is still expected to be profitable this year. With a solid track record of profitability over the last twelve months and a strong return over the last five years, The Buckle's financial resilience may be an important factor for investors to consider amidst the current sales challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.