Buckle Inc (BKE) 1st quarter earnings report overview of their 2021 fiscal year
Category: Buckle Inc (BKE)
Date: 25 May 2021 Stock Price of Buckle (BKE): $40.61 Market Capital Of Buckle (BKE): $2.02 billion We take a look at the 1st quarter earnings report of their 2021 fiscal year of Buckle Inc, an on-trend apparel retailer with 449 stores in 42 states across the USA. For the quarter the group reported sales of $299.1 million and net income of $57.27 million
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Results for fiscal 2020 were significantly impacted by the Company’s closure of all brick and mortar stores due to the COVID-19 pandemic beginning March 18, 2020. As a result of the impact of the store closures on prior year reported net sales, the Company will report total net sales compared to the past two years and does not plan to separately report comparable store sales for the periods most affected by the store closures. "
About Buckle Inc.
Offering a unique mix of high-quality, on-trend apparel, accessories, and footwear, Buckle caters to fashion-conscious young men and women. Known as a denim destination, each store carries a wide selection of fits, styles, and finishes from leading denim brands, including the Company’s exclusive brand, BKE. Headquartered in Kearney, Nebraska, Buckle currently operates 449 retail stores in 42 states. As of the end of the fiscal quarter, it operated 449 stores in 42 states compared with 453 stores in 43 states at the end of the third quarter of fiscal 2018.
Overview of Buckle's 1st quarter 2021 earnings report
Data below refers to the latest quarter's data unless specified otherwise:
- Net sales: $299.1 million (up from $115.4 million for the same quarter of the prior year)
- Net sales increased by 159% over the last 12 months
- Cost of sales : $1351.5 million (up from $88.6 million for the same quarter of the prior year)
- Cost of sales expenses increased by 48.4% over the last 12 months
- So margin gain for Buckle as revenue increased at a rate a lot faster than their cost of sales which is good for margins and profits
- Net income: $57.3 million (up from a loss of -$11 million for the same quarter of the prior year)
- Diluted earnings per share: $1.16 (up from -$0.24 for the same quarter of the prior year)
- Shares outstanding : 49.3 million (up from 48.9 million for the same quarter of the prior year)
- Cash and cash equivalents: $393.1 million
- Cash and cash equivalents per share: $7.97
- Cash and cash equivalents makes up 19.6% of Buckle's market capital
- Cash and cash equivalents makes up 42.9% of Buckle's total assets
- Merchandise inventories: $89 million
- Merchandise inventories makes up 9.7% of Buckle's total assets
- Stockholders equity in Buckle: $440.1 million
- Stockholders equity per Buckle stock: $8.93
- Buckle is trading at 4,5 times its stockholders equity per share which is just within the expected range of between 2 and 5 times that most firms tend to trade at
- Firms in the S&P 500 trades at an average price to book value of 4.5.
Buckle's management commentary on their 1st quarter 2021 earnings
KEARNEY, NE -- The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended May 1, 2021 was $57.3 million, or $1.17 per share ($1.16 per share on a diluted basis). Net sales for the 13-week fiscal quarter ended May 1, 2021 increased 159.2 percent to $299.1 million from net sales of $115.4 million for the prior year 13-week fiscal quarter ended May 2, 2020. Compared to the same 13-week period in fiscal 2019, net sales increased 48.6 percent from net sales of $201.3 million for the 13-week fiscal quarter ended May 4, 2019. Online sales increased 67.3 percent to $53.7 million for the 13-week period ended May 1, 2021, compared to net sales of $32.1 million for the 13-week period ended May 2, 2020. Compared to the same 13-week period in fiscal 2019, online sales increased 120.0 percent from net sales of $24.4 million for the 13-week fiscal period ended May 4, 2019.
Results for fiscal 2020 were significantly impacted by the Company’s closure of all brick and mortar stores due to the COVID-19 pandemic beginning March 18, 2020. As a result of the impact of the store closures on prior year reported net sales, the Company will report total net sales compared to the past two years and does not plan to separately report comparable store sales for the periods most affected by the store closures.
Buckle Inc. (BKE) stock price chart over the last 5 years
The image below shows the stock price history of Buckle Inc. (BKE) for the last 5 years, Its been a pretty good time for Buckle stockholders with the stock of Buckle increasing by 55.6% over the last 12 months.
The stock of Buckle is trading at a lost closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Buckle's stock is positive at this point in time.
The stock of Buckle is trading at a lost closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Buckle's stock is positive at this point in time.
Buckle (BKE) vs Abercrombie & Fitch (ANF) stock over the last 5 years
The image below shows the stock price performance of Buckle (BKE) vs Abercrombie & Fitch (ANF) stock over the last 5 years. Both are active in the on trend apparel sector. The summary below shows the stock price performance of these two firms over the last 5 years.
So the stock of Abercrombie & Fitch has easily outperformed that of Buckle over the last 5 years.
- Abercrombie & Fitch (ANF): 99.8%
- Buckle (BKE): 55.6%
So the stock of Abercrombie & Fitch has easily outperformed that of Buckle over the last 5 years.
Buckle Inc. (NYSE: BKE) stock valuation
So based on Buckle's latest earnings report what do we value the company's stock at? Based on Buckle's earnings report our valuation model we have a target (full value) price for Buckle's at $48.20 a stock (up from 3rd quarter 2020 earnings report valuation of Buckle). We therefore believe the stock of Buckle is fully valued.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $48.20. A good entry point into the stock of Buckle would therefore be at $44 or below.
Since the stock of Buckle's is trading at close our suggested entry point we rate Buckle as a hold
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $48.20. A good entry point into the stock of Buckle would therefore be at $44 or below.
Since the stock of Buckle's is trading at close our suggested entry point we rate Buckle as a hold
Next earnings release of Buckle Inc (NYSE: BKE)
It is expected that Buckle Inc. will release their 2nd quarter 2021 earnings report towards the middle of August 2021