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Buckle's (BKE) Shares Rally on Stellar Sales Performance

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Shares of The Buckle, Inc. BKE have skyrocketed 121.9% over the past six months, thanks to strength in its online business and robust strategies. In addition, the company is witnessing momentum in its youth business owing to the evolution of the Mini Me assortment.

Much of the stock’s momentum is driven by the company’s stellar sales performance. Beating coronavirus blues, Buckle managed to deliver the eighth straight monthly sales rise and sixth consecutive comparable store net sales (comps) increase in January 2021. Buoyed by the strengths, the Zacks Rank #3 (Hold) stock has outperformed the industry’s rally of 106.5% in the said time frame.

Robust Sales Numbers

For the month under review, comps grew 35.3% year over year for the four-week period ended Jan 30, 2021. This follows comps growth of 17.9%, 8.4%, 12.4%, 22.9% and 1.7%, respectively, in the preceding five months. Impressively, Buckle’s net sales for the four-week fiscal month ended Jan 30, 2021, jumped 33.6% to $63.1 million versus net sales of $47.2 million recorded in the four-week fiscal month ended Feb 1, 2020. We note that the company registered increases of 17.7%, 8.1%, 12.1%, 22.7%, 1.2%, 3.8% and 26.8%, respectively, for December, November, October, September, August, July and June.


We note that the company’s women’s and men’s merchandise categories are doing well. For the month under review, total sales at the men’s unit increased 30% year over year, whereas the metric at the women’s business grew nearly 38%. While the men’s category contributed 47.5% to the company’s overall monthly sales, the women’s unit accounted for nearly 52.5%. On combining the men’s and women’s categories, accessory sales in January increased about 26% while footwear sales climbed 75.5% from the year-ago period’s figure. Both the accessory and footwear categories accounted for roughly 7.5% and 10.5%, respectively, of the overall sales. In the year-ago period, sales were up 8% for both these categories.

Coming to the 13-week fiscal fourth quarter ended Jan 30, 2021, comps increased 18% year over year while net sales climbed 17.7% to $318.8 million. For the 52-week period ended Jan 30, 2021, comps rose 0.4% year over year whereas net sales inched up 0.1% to $901.3 million. 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 442 retail outlets across 42 states versus 448 outlets as of Feb 4, 2020.

Key Picks in Retail

Tapestry TPR has a long-term earnings-growth rate of 11.7% and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Ross Stores ROST, also a Zacks Rank #2 stock, has a long-term earnings growth rate of 10%.

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