Buckle Inc (NYSE: BKE) 3rd quarter earnings report overview of their 2019 fiscal year
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 3rd quarter 2019 earnings report
Data below refers to the latest quarter's data unless specified otherwise:
- Net sales: $224.121 million (up from $215.107 million for the same quarter of the prior year)
- Net sales increased by 4.1% over the last 12 months
- Cost of sales : $130.587 million (up from $128.925 million for the same quarter of the prior year)
- Cost of sales expenses increased by 1.2% over the last 12 months
- So margin increases being shown by Buckle as revenue grew at a rate a lot faster than their cost of sales, which is good for both gross and net profit margins.
- Net earnings: $25.984 million (up from $20.476 million for the same quarter of the prior year)
- Diluted earnings per share: $0.53 (up from $042 for the same quarter of the prior year)
- Shares outstanding : 48.809 million (up from 48.611 million for the same quarter of the prior year)
- Cash and cash equivalents: $213.836 million
- Cash and cash equivalents per share: $4.38
- Cash and cash equivalents makes up 16.4% of Buckle's market capital
- Cash and cash equivalents makes up 23.8% of Buckle's total assets
- Merchandise inventories: $138.879 million
- Merchandise inventories makes up 15.5% of Buckle's total assets
- Stockholders equity in Buckle: $417.338 million
- Stockholders equity per Buckle stock: $8.55
- Buckle is trading at 3.12 times its stockholders equity per share which is within the expected range of between 2 and 4 times that most firms tend to trade at
Buckle's management commentary on their 3rd quarter 2019 earnings
KEARNEY, NE -- The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended November 2, 2019 was $26.0 million, or $0.54 per share ($0.53 per share on a diluted basis).
Our November 7, 2019 press release reported that comparable store sales, for stores open at least one full year, for the four-week period ended November 2, 2019, increased 8.5 percent in comparison to the prior year four-week period ended November 3, 2018. Total net sales for the four-week fiscal month increased 8.0 percent to $69.6 million compared to net sales of $64.5 million in the prior year four-week fiscal month ended November 3, 2018.
On the men’s side of the business, total sales for the four-week fiscal period ended November 2, 2019 were up 8.5 percent in comparison to the prior year four-week period ended November 3, 2018. The men’s business represented approximately 51.0 percent of total sales for the fiscal month versus approximately 50.5 percent in the prior year fiscal October. For the fiscal month, overall price points on the men’s side of the business were down approximately 1.0 percent. On the women’s side of the business, total sales for the four-week fiscal period ended November 2, 2019 were up approximately 4.5 percent in comparison to the prior year fourweek period ended November 3, 2018.
The women’s business represented approximately 49.0 percent of total sales for the month versus approximately 49.5 percent in the prior year fiscal October. For the fiscal month, overall price points on the women’s side of the business were down about 1.5 percent. Within the men’s and women’s categories combined, accessory sales for the fiscal month were up approximately 9.5 percent in comparison to the prior year fiscal October, and footwear sales were up about 23.5 percent. These two categories accounted for approximately 7.5 percent and 9.0 percent, respectively, of the current fiscal October net sales. This compares with approximately 7.5 percent for each of these categories for the same period in the prior year.
Average accessory price points were down approximately 5.0 percent and average footwear price points were down about 7.5 percent for the fiscal month. For the month, UPT’s decreased approximately 0.5 percent and the average transaction value was up slightly compared to the prior year fiscal October. Buckle currently operates 449 retail stores in 42 states compared to 453 stores in 43 states as of November 7, 2018.
Our November 7, 2019 press release reported that comparable store sales, for stores open at least one full year, for the four-week period ended November 2, 2019, increased 8.5 percent in comparison to the prior year four-week period ended November 3, 2018. Total net sales for the four-week fiscal month increased 8.0 percent to $69.6 million compared to net sales of $64.5 million in the prior year four-week fiscal month ended November 3, 2018.
On the men’s side of the business, total sales for the four-week fiscal period ended November 2, 2019 were up 8.5 percent in comparison to the prior year four-week period ended November 3, 2018. The men’s business represented approximately 51.0 percent of total sales for the fiscal month versus approximately 50.5 percent in the prior year fiscal October. For the fiscal month, overall price points on the men’s side of the business were down approximately 1.0 percent. On the women’s side of the business, total sales for the four-week fiscal period ended November 2, 2019 were up approximately 4.5 percent in comparison to the prior year fourweek period ended November 3, 2018.
The women’s business represented approximately 49.0 percent of total sales for the month versus approximately 49.5 percent in the prior year fiscal October. For the fiscal month, overall price points on the women’s side of the business were down about 1.5 percent. Within the men’s and women’s categories combined, accessory sales for the fiscal month were up approximately 9.5 percent in comparison to the prior year fiscal October, and footwear sales were up about 23.5 percent. These two categories accounted for approximately 7.5 percent and 9.0 percent, respectively, of the current fiscal October net sales. This compares with approximately 7.5 percent for each of these categories for the same period in the prior year.
Average accessory price points were down approximately 5.0 percent and average footwear price points were down about 7.5 percent for the fiscal month. For the month, UPT’s decreased approximately 0.5 percent and the average transaction value was up slightly compared to the prior year fiscal October. Buckle currently operates 449 retail stores in 42 states compared to 453 stores in 43 states as of November 7, 2018.
It is our Company policy not to provide any guidance on current sales or to project results for the next quarter. Additionally, any forward-looking statements made during this commentary involve material risks and uncertainties and are subject to change based on factors which may be beyond the Company’s control. Accordingly, the Company’s future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company’s filings with the Securities and Exchange Commission.
Buckle Inc. (NYSE: BKE) stock price history
The image below obtained from Google, shows the stock price history of Buckle Inc. (NYSE: BKE) for the last 5 years, and its not been a good time for Buckle stockholders. 5 years ago the stock of Buckle was trading at around $51.20 and its currently trading at $26.71 a stock. That's significant loss of -47.8% suffered by Buckle Inc stockholders.
The stock of Buckle is trading at a lost closer to its 52 week high of $27.01 than it is to its 52 week low of $14.81 which to us is a clear indication that the short term sentiment and momentum of Buckle's stock is positive.
Buckle (NYSE: BKE) stock shot op on Friday 22 November following the release of their earnings report, with the stock jumping by $4.41 (or 19.8%) on the day. Reflecting the current positive sentiment surrounding the group's stock.
The stock of Buckle is trading at a lost closer to its 52 week high of $27.01 than it is to its 52 week low of $14.81 which to us is a clear indication that the short term sentiment and momentum of Buckle's stock is positive.
Buckle (NYSE: BKE) stock shot op on Friday 22 November following the release of their earnings report, with the stock jumping by $4.41 (or 19.8%) on the day. Reflecting the current positive sentiment surrounding the group's stock.
Recent coverage of Buckle Inc
The extract below covers the latest regarding Buckle as obtained from Zacks.com
Zacks Rank #1 (Strong Buy)-rated Buckle (BKE - Free Report) is also up big this morning following its Q3 earnings report: 53 cents per share beat the 47 cents expected (and 42 cents in the year-ago quarter), while its $224.12 million in quarterly revenues barely notched above the Zacks consensus. But with better online sales and higher expectations for its full-year, shares are up nearly 10% in today’s pre-market.
Zacks Rank #1 (Strong Buy)-rated Buckle (BKE - Free Report) is also up big this morning following its Q3 earnings report: 53 cents per share beat the 47 cents expected (and 42 cents in the year-ago quarter), while its $224.12 million in quarterly revenues barely notched above the Zacks consensus. But with better online sales and higher expectations for its full-year, shares are up nearly 10% in today’s pre-market.
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 $33.90 a stock. We therefore believe the stock of Buckle is undervalued
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price which in this case is $33.90.A good entry point into the stock of Buckle would therefore be at $30.50 or below. Since the stock of Buckle's is trading at well below our suggested entry point we rate Buckle as a buy
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price which in this case is $33.90.A good entry point into the stock of Buckle would therefore be at $30.50 or below. Since the stock of Buckle's is trading at well below our suggested entry point we rate Buckle as a buy
Next earnings release of Buckle Inc (NYSE: BKE)
It is expected that Buckle Inc. will release their 4th quarter and full fiscal 2019 earnings report towards the end of February 2020