Buckle (NYSE:BKE) Releases Earnings Results, Beats Estimates By $0.18 EPS

Buckle (NYSE:BKE) issued its quarterly earnings results on Friday. The company reported $0.92 EPS for the quarter, topping analysts’ consensus estimates of $0.74 by $0.18, Briefing.com reports. The company had revenue of $288.74 million for the quarter, compared to analyst estimates of $287.68 million. Buckle had a net margin of 16.16% and a return on equity of 45.18%. Buckle’s revenue was up 6.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.70 earnings per share.

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

• Buckle posted stronger first-quarter results, with net income rising to $46.9 million, or $0.92 per diluted share, and net sales increasing 6.1% to $288.7 million. Comparable store sales also grew 5.1%, while online sales rose 2.8%.
• Women’s and kids’ businesses were standout drivers of growth. Women’s merchandise sales increased 11% and kids’ sales jumped about 16%, while women’s denim, alternative pants, and tops all contributed meaningfully.
• Operating margin improved sharply to 20.6% from 16.0% a year ago, helped by the recognition of a $19.1 million interchange fee litigation settlement. Excluding that benefit, SG&A still rose, but management said much of the pressure was from compensation accruals and store-related costs.
• Gross margin held near high levels at 46.2%, down just 50 basis points year over year. Management attributed the decline mainly to modest merchandise margin pressure, including some tariff-related cost pressure, and higher buying, distribution, and occupancy expenses tied to store projects.
• The company maintained a healthy balance sheet and continued store expansion, ending the quarter with $323.8 million in cash and investments and inventory up 13.5% year over year. Buckle opened three new stores in the quarter and expects to add nine more locations and complete seven additional remodels this year.

Buckle Stock Down 9.0%

BKE stock opened at $45.94 on Friday. The firm has a market cap of $2.37 billion, a price-to-earnings ratio of 11.10 and a beta of 1.16. Buckle has a 12-month low of $42.09 and a 12-month high of $61.69. The company’s fifty day simple moving average is $51.67 and its 200 day simple moving average is $53.02.

Buckle Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 29th. Investors of record on Wednesday, April 15th were issued a $0.35 dividend. The ex-dividend date was Wednesday, April 15th. This represents a $1.40 annualized dividend and a yield of 3.0%. Buckle’s payout ratio is presently 33.82%.

Insider Buying and Selling at Buckle

In other news, EVP Kari G. Smith sold 48,860 shares of the company’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $50.39, for a total transaction of $2,462,055.40. Following the transaction, the executive vice president owned 76,754 shares in the company, valued at approximately $3,867,634.06. This represents a 38.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Michelle Hoffman sold 29,281 shares of the company’s stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $49.12, for a total transaction of $1,438,282.72. Following the transaction, the senior vice president owned 45,882 shares in the company, valued at $2,253,723.84. This represents a 38.96% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 126,200 shares of company stock worth $6,517,932. 39.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On Buckle

Institutional investors have recently made changes to their positions in the stock. Cerity Partners LLC raised its holdings in shares of Buckle by 44.8% during the fourth quarter. Cerity Partners LLC now owns 6,054 shares of the company’s stock valued at $323,000 after purchasing an additional 1,873 shares during the period. Voleon Capital Management LP acquired a new stake in shares of Buckle in the 2nd quarter worth about $256,000. Boothbay Fund Management LLC acquired a new stake in shares of Buckle in the 3rd quarter worth about $254,000. Freestone Grove Partners LP bought a new position in Buckle in the 4th quarter valued at about $249,000. Finally, CIBC Bancorp USA Inc. bought a new position in Buckle in the 3rd quarter valued at about $243,000. Institutional investors and hedge funds own 53.93% of the company’s stock.

Analyst Ratings Changes

BKE has been the topic of a number of recent research reports. UBS Group cut their price target on shares of Buckle from $53.00 to $52.00 and set a “neutral” rating on the stock in a report on Friday, May 22nd. Wall Street Zen lowered shares of Buckle from a “buy” rating to a “hold” rating in a report on Saturday, April 4th. Finally, Weiss Ratings upgraded shares of Buckle from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, March 20th. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $52.00.

Buckle Company Profile

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.