KEARNEY, Neb. - The Buckle, Inc. (NYSE: NYSE:BKE), a specialty retailer known for its denim and apparel, has reported a decrease in comparable store net sales for the month ending on June 1, 2024. The company disclosed an 8.2% drop in net sales for the 4-week fiscal month, down to $82.0 million from $89.3 million during the same period last year.
The retailer also noted a year-to-date decrease of 8.6% in comparable store net sales for the 17-week period ending on June 1, 2024, compared to the same period in the previous year. Net sales for this period fell by 7.4%, totaling $344.5 million compared to $372.1 million in the prior year.
Buckle attributes these declines to the extra week in the fiscal year 2023, which has affected the comparability of store net sales. The 53rd week in the previous fiscal year means that sales figures are being compared to a longer period than usual.
Operating 440 retail stores across 42 states, Buckle emphasizes its commitment to providing high-quality, on-trend apparel, accessories, and footwear. Despite the reported decreases, the company maintains its focus on delivering exceptional service and style.
The information provided is based on a press release statement, and it should be noted that forward-looking statements from the company involve risks and uncertainties that may cause actual results to differ materially. These factors are detailed in the company's filings with the Securities and Exchange Commission.
In other recent news, Buckle Inc. has declared a quarterly dividend of $0.35 per share, a move reflecting its ongoing financial strategies and performance outlook. However, the company's first-quarter earnings and revenue fell short of Wall Street expectations, with an earnings per share (EPS) of $0.69, compared to the anticipated $0.75, and a revenue of $262.48 million against the projected $264.16 million. This disappointing performance was marked by a 7.2% decrease in net sales compared to the same quarter last year.
Adding to these developments, financial institution UBS has reaffirmed its sell rating on Buckle, maintaining a steadfast price target of $32.00. UBS analysts predict a continuation of Buckle's negative sales trend through fiscal year 2024, leading to increased fixed cost deleverage and margin pressures. The firm also projects a 15% year-over-year decrease in EPS for fiscal year 2024, following a 14% drop in the previous fiscal year.
InvestingPro Insights
The Buckle, Inc. (NYSE: BKE) has faced challenges as evidenced by its recent report of decreased comparable store net sales, but a deeper dive into the company's financials via InvestingPro provides a more nuanced picture. The company's market capitalization stands at a robust $1.92 billion, with a Price to Earnings (P/E) ratio of 8.61, suggesting that the company is potentially undervalued compared to earnings. Additionally, the P/E ratio for the last twelve months as of Q1 2025 is 9.06, reflecting a stable earnings outlook.
Despite recent sales declines, Buckle boasts an impressive gross profit margin of 58.83% for the last twelve months as of Q1 2025, highlighting its ability to maintain profitability in a challenging retail environment. Furthermore, the company has a strong track record of returning value to shareholders, with a significant dividend yield of 10.19% and a history of maintaining dividend payments for 22 consecutive years. This commitment to shareholders is further reinforced by the fact that analysts predict the company will be profitable this year.
InvestingPro Tips indicate that Buckle operates with a moderate level of debt and has liquid assets that exceed short-term obligations, which may provide financial flexibility and stability. Moreover, the company has been profitable over the last twelve months and has delivered a strong return over the last five years. However, it's important to note that two analysts have revised their earnings downwards for the upcoming period, which investors should consider.
For those interested in further analysis and additional insights, there are 9 more InvestingPro Tips available on Buckle, which can be accessed by visiting the InvestingPro site. To make the most of these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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