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Buckle's (BKE) Shares Rally on Impressive Sales Numbers

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The Buckle, Inc. BKE stock has been gaining on sturdy sales performance. Moreover, Buckle’s online business remains sturdy. Markedly, the company’s sales have registered sixth straight monthly increase in November. Also, its comparable store net sales (comps) performance has been noteworthy. Over the past six months, the stock has gained 72.9% compared with the industry’s rally of 75%.

In fact, shares of this Zacks Rank #2 (Buy) company have jumped 9.9% since it released impressive sales metrics for November.

Coming to Buckle’s sales figures, net sales for the four-week fiscal month ended Nov 28, 2020, jumped 8.1% to $86.3 million compared to net sales of $79.8 million recorded in the four-week fiscal month ended Nov 30, 2019. We note that the company registered increases of 12.1%, 22.7%, 1.2%, 3.8% and 26.8%, respectively, in October, September, August, July and June.

Moreover, Buckle’s comps grew 8.4% year over year for the four-week period ended Nov 28, 2020. This follows comps growth of 12.4%, 22.9% and 1.7%, respectively, in the preceding three months.

The company’s women’s and men’s merchandise categories are impressive. Also, it is witnessing momentum in its youth business owing to the evolution of the Mini Me assortment, which offers little versions of adult key articles. Denim and knit-tops have been driving the majority of the youth business.

For the month under review, total sales at the men’s unit increased 5.5% year over year, whereas the metric at the women’s business grew nearly 10.5%. While the men’s category contributed 54.5% to the company’s overall monthly sales, the women’s unit accounted for nearly 45.5%. Combining the men’s and women’s categories, accessory sales in November increased about 11% while footwear sales climbed 40.5% from the year-ago period’s figure. Both the accessory and footwear categories accounted for roughly 8.5% and 11.5%, respectively, of total sales.

However, net sales year to date for the 43-week fiscal period ended Nov 28, 2020, dipped 5.7% to $668.8 million compared to net sales of $709.1 million reported in the year-ago 43-week fiscal period. In addition, comps during the aforementioned fiscal period declined 5.4%. This soft performance was probably due to the adverse impacts of the coronavirus pandemic. We note that this casual apparel, footwear and accessories retailer initiated the process of reopening outlets during the week of Apr 26, 2020. Buckle presently operates 446 retail stores across 42 states versus 449 outlets as of Dec 3, 2019.

Key Picks in Retail

Tapestry TPR has a long-term earnings-growth rate of 10% and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

L Brands LB, also a Zacks Rank #1 stock, has a long-term earnings-growth rate of 13%.

Target TGT has an expected long-term earnings growth rate of 8.5% and currently has a Zacks Rank #2.

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