Buckle Inc (BKE) Reports Decline in Q3 Net Income and Sales
Net income for Q3 decreased to $51.8 million, or $1.05 per share, compared to $61.4 million, or $1.25 per share in the same quarter last year.
Net sales fell by 8.7% to $303.5 million in the 13-week fiscal quarter ended October 28, 2023.
Comparable store net sales and online sales also saw a decrease of 9.2% and 16.2%, respectively.
On November 17, 2023, Buckle Inc (NYSE:BKE) released its 8-K filing, revealing a downturn in net income and sales for the third quarter ended October 28, 2023. The company, a specialty retailer known for its denim and fashion apparel, reported a net income of $51.8 million, or $1.05 per share, a decrease from the $61.4 million, or $1.25 per share, recorded in the same quarter of the previous fiscal year.
Financial Performance Overview
Buckle Inc's net sales for the 13-week fiscal quarter ended October 28, 2023, were $303.5 million, marking an 8.7% decrease from the $332.3 million reported in the corresponding quarter of the previous year. The company's comparable store net sales also declined by 9.2%, while online sales dropped significantly by 16.2% to $46.1 million. Over the 39-week fiscal period, net sales decreased by 6.9% to $878.7 million, with comparable store net sales falling by 7.3% and online sales by 9.4%.
Income Statement Highlights
The consolidated statements of income indicate that gross profit for the quarter was $147.2 million, compared to $165.4 million in the prior year, reflecting a tighter margin environment. Operating expenses, including selling and general and administrative costs, totaled $83.1 million, slightly down from $85.9 million in the previous year. Income from operations was $64.1 million, a decrease from $79.4 million reported in the third quarter of the previous fiscal year. Other income, net, increased to $4.5 million from $1.9 million.
Balance Sheet and Cash Flow Position
Buckle Inc's balance sheet as of October 28, 2023, shows that the company has a strong cash and cash equivalents position of $311.7 million, up from $302.2 million in the same period last year. Inventory levels were relatively stable at $152.3 million, while total assets increased to $921.2 million from $884.1 million. The company's total liabilities stood at $447.2 million, slightly lower than the previous year's $448.5 million, maintaining a solid equity position.
Management Commentary and Future Outlook
Management's live audio webcast to discuss the quarter's results indicates a focus on navigating the current retail environment. While the company did not provide specific forward-looking statements, the overall tone suggests a strategic approach to challenges ahead. Buckle Inc continues to emphasize its commitment to exceptional service and style, as evidenced by the opening of two new stores during the fiscal period.
Investor Considerations
For value investors, Buckle Inc's stable balance sheet, consistent store expansion, and strong cash position may present a compelling case for investment, despite the current downturn in sales and net income. The company's ability to maintain a robust financial foundation in a challenging retail landscape could be a sign of resilience and potential for long-term value creation.
For more detailed information and to access the full earnings report, investors and interested parties can view Buckle Inc's 8-K filing.
Explore the complete 8-K earnings release (here) from Buckle Inc for further details.
This article first appeared on GuruFocus.
