The Buckle, Inc. Q1 Earnings Report: A Closer Look
- The Buckle, Inc. reported Q1 earnings per share (EPS) of $0.69, missing the expected $0.74.
- Revenue for the period was $262.48 million, slightly below the forecasted $263.64 million.
- Despite a decrease in net sales and online sales, The Buckle, Inc. maintains a healthy financial position with a low price-to-earnings (P/E) ratio of approximately 8.64 and a strong liquidity current ratio of approximately 2.18.
On Friday, May 24, 2024, The Buckle, Inc. (NYSE:BKE), a prominent retailer known for its fashion apparel, footwear, and accessories for young men and women, reported its first-quarter earnings. The company disclosed earnings per share (EPS) of $0.69, which did not meet the anticipated $0.74. Additionally, BKE's revenue for the period was reported at $262.48 million, slightly missing the mark against the expected $263.64 million. This financial update provides a snapshot of the company's performance, reflecting challenges in meeting analyst expectations.
During the Q1 2024 Earnings Conference Call, key figures from The Buckle, Inc., including Tom Heacock, the Senior Vice President of Finance, Treasurer, and CFO; Adam Akerson, Vice President of Finance and Corporate Controller; and Dennis Nelson, President and CEO, discussed the company's financial outcomes and strategic directions. The call, which was attended by analysts such as Mauricio Serna from UBS and Alan Glenn from Concord & Main Ltd., highlighted the company's efforts to navigate its financial landscape. Despite the slight shortfall in EPS and revenue, the company reported a net income of $34.8 million, translating to earnings of $0.70 per share and $0.69 per share on a diluted basis.
The Buckle, Inc. experienced a decrease in net sales, which fell by 7.2 percent to $262.5 million from the previous year's $282.8 million for the same fiscal quarter. This decline was also evident in comparable store net sales, which dropped by 9.0 percent, and online sales, which saw a 13.4 percent decrease to $44.4 million. The adjustments made for the comparison of comparable store net sales due to the 53rd week in fiscal 2023, aligning the current quarter's performance against the 13-week period ended May 6, 2023, underscore the challenges faced by the retailer in maintaining its sales momentum.
Financially, The Buckle, Inc. maintains a relatively healthy position with a price-to-earnings (P/E) ratio of approximately 8.64, indicating a low valuation compared to earnings. The company's price-to-sales (P/S) ratio stands at about 1.50, suggesting that the stock is trading at 1.5 times its sales. Additionally, the enterprise value to sales (EV/Sales) ratio is slightly higher at approximately 1.55, reflecting the company's total valuation in relation to its sales. With an enterprise value to operating cash flow (EV/OCF) ratio of around 7.55, it showcases the company's valuation in terms of its operating cash flow.
The earnings yield is at about 11.57%, offering an attractive return on investment from an earnings perspective. The debt-to-equity (D/E) ratio is relatively low at 0.19, indicating a conservative use of debt in financing. Lastly, the current ratio, standing at approximately 2.18, indicates a strong liquidity position, with the company having more than twice its current liabilities covered by its current assets. These financial metrics suggest that despite the challenges in sales and earnings, The Buckle, Inc. remains in a stable financial condition, capable of navigating through market fluctuations.
| Symbol | Price | %chg |
|---|---|---|
| 9983.T | 46740 | -0.9 |
| TRENT.BO | 5392.05 | -0.26 |
| TRENT.NS | 5410 | 0.04 |
| BABY.JK | 304 | 1.32 |
The Buckle, Inc. (NYSE:BKE) Sees Upward Trend in Price Target Amid Mixed Financial Performance
- The average price target for The Buckle, Inc. (NYSE:BKE) has increased from $37.33 to $46, reflecting growing optimism among analysts.
- Institutional investors have significantly increased their stakes in The Buckle, showcasing confidence in the company's potential.
- The Buckle reported quarterly earnings of $1.59 per share, with a net margin of 17.44% and a return on equity of 50.88%.
The Buckle, Inc. (NYSE:BKE) has experienced a notable shift in its consensus price target over the past year. The current average price target is $46, a significant increase from $37.33 a year ago. This upward trend indicates growing optimism among analysts about the company's stock performance. The Buckle operates 440 retail stores across 42 states and has an online presence through buckle.com, specializing in casual apparel, footwear, and accessories for young men and women.
Despite the positive sentiment reflected in the increased price target, The Buckle faces challenges. The company is trading near its 52-week highs, showing resilience in a tough retail environment. In Q2 2024, The Buckle reported a revenue beat but missed on earnings, with declines in both comparable store sales and digital sales. This mixed performance suggests that the stock may be best considered a hold, as highlighted by UBS analyst Mauricio Serna, who set a price target of $32.
Institutional investors have shown growing interest in The Buckle. Panagora Asset Management Inc. increased its investment by 119.2% in the fourth quarter, while Quadrant Capital Group LLC boosted its holdings by 527.4%. Dimensional Fund Advisors LP also expanded its stake by 1.1%, now owning over 1.26 million shares valued at $60.18 million. Overall, institutional investors and hedge funds own 53.93% of Buckle's stock, indicating confidence in the company's potential.
In terms of financial performance, The Buckle reported quarterly earnings of $1.59 per share, surpassing analysts' expectations of $1.44. Despite a 4.8% decline in revenue compared to the previous year, the company maintained a strong net margin of 17.44% and a return on equity of 50.88%. The Buckle also announced a quarterly dividend of $0.35 per share, resulting in an annualized dividend of $1.40 and a yield of 3.79%, with a payout ratio of 31.75%.
Analyst ratings for The Buckle are mixed. StockNews.com upgraded the shares from a "hold" to a "buy" rating, while UBS Group lowered its price target from $34.00 to $32.00, assigning a "sell" rating. Investors should consider these ratings, along with the company's financial performance and market position, when evaluating The Buckle's stock.
The Buckle, Inc. (NYSE:BKE) Sees Upward Trend in Price Target Amid Mixed Financial Performance
- The average price target for The Buckle, Inc. (NYSE:BKE) has increased from $37.33 to $46, reflecting growing optimism among analysts.
- Institutional investors have significantly increased their stakes in The Buckle, showcasing confidence in the company's potential.
- The Buckle reported quarterly earnings of $1.59 per share, with a net margin of 17.44% and a return on equity of 50.88%.
The Buckle, Inc. (NYSE:BKE) has experienced a notable shift in its consensus price target over the past year. The current average price target is $46, a significant increase from $37.33 a year ago. This upward trend indicates growing optimism among analysts about the company's stock performance. The Buckle operates 440 retail stores across 42 states and has an online presence through buckle.com, specializing in casual apparel, footwear, and accessories for young men and women.
Despite the positive sentiment reflected in the increased price target, The Buckle faces challenges. The company is trading near its 52-week highs, showing resilience in a tough retail environment. In Q2 2024, The Buckle reported a revenue beat but missed on earnings, with declines in both comparable store sales and digital sales. This mixed performance suggests that the stock may be best considered a hold, as highlighted by UBS analyst Mauricio Serna, who set a price target of $32.
Institutional investors have shown growing interest in The Buckle. Panagora Asset Management Inc. increased its investment by 119.2% in the fourth quarter, while Quadrant Capital Group LLC boosted its holdings by 527.4%. Dimensional Fund Advisors LP also expanded its stake by 1.1%, now owning over 1.26 million shares valued at $60.18 million. Overall, institutional investors and hedge funds own 53.93% of Buckle's stock, indicating confidence in the company's potential.
In terms of financial performance, The Buckle reported quarterly earnings of $1.59 per share, surpassing analysts' expectations of $1.44. Despite a 4.8% decline in revenue compared to the previous year, the company maintained a strong net margin of 17.44% and a return on equity of 50.88%. The Buckle also announced a quarterly dividend of $0.35 per share, resulting in an annualized dividend of $1.40 and a yield of 3.79%, with a payout ratio of 31.75%.
Analyst ratings for The Buckle are mixed. StockNews.com upgraded the shares from a "hold" to a "buy" rating, while UBS Group lowered its price target from $34.00 to $32.00, assigning a "sell" rating. Investors should consider these ratings, along with the company's financial performance and market position, when evaluating The Buckle's stock.
