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Category: Stock Market and Buckle Inc
Date: 14 March 2020 Stock Price: $15.22 We take a look at the 4th quarter earnings report of their 2019 fiscal year of Buckle Inc, an on-trend apparel retailer with 449 stores in 42 states across the USA.
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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 4th quarter 2019 earnings report
Data below refers to the latest quarter's data unless specified otherwise:
- Net sales: $271.003 million (up from $264.412 million for the same quarter of the prior year)
- Net sales increased by 2.49% over the last 12 months
- Cost of sales : $142.413 million (up from $143.118 million for the same quarter of the prior year)
- Cost of sales expenses decreased by -0.49% 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: $46.979 million (up from $41.135 million for the same quarter of the prior year)
- Diluted earnings per share: $0.96 (up from $0.84 for the same quarter of the prior year)
- Shares outstanding : 48.948 million (up from 48.703 million for the same quarter of the prior year)
- Cash and cash equivalents: $220.969 million
- Cash and cash equivalents per share: $4.51
- Cash and cash equivalents makes up 29.66% of Buckle's market capital
- Cash and cash equivalents makes up 25.46% of Buckle's total assets
- Merchandise inventories: $121.258 million
- Merchandise inventories makes up 13.9% of Buckle's total assets
- Stockholders equity in Buckle: $389.148 million
- Stockholders equity per Buckle stock: $7.95
- Buckle is trading at 1.91 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
- The S&P 500 trades at a price to book value of 3.34. Read more about the S&P500 here.
Buckle's management commentary on their 4th quarter 2019 earnings
KEARNEY, NE -- The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended February 1, 2020 was $47.0 million, or $0.96 per share ($0.96 per share on a diluted basis). Net income for the fiscal year ended February 1, 2020 was $104.4 million, or $2.15 per share ($2.14 per share on a diluted basis).
Net sales for the 13-week fiscal quarter ended February 1, 2020 increased 2.5 percent to $271.0 million from net sales of $264.4 million for the prior year 13-week fiscal quarter ended February 2, 2019. Comparable store net sales for the 13-week period ended February 1, 2020 increased 3.3 percent from comparable store net sales for the prior year 13-week period ended February 2, 2019. Online sales increased 7.5 percent to $36.4 million for the 13-week period ended February 1, 2020, compared to net sales of $33.9 million for the 13-week period ended February 2, 2019.
Net sales for the 52-week fiscal year ended February 1, 2020 increased 1.7 percent to $900.3 million from net sales of $885.5 million for the 52-week fiscal year ended February 2, 2019. Comparable store net sales for the 52-week period ended February 1, 2020 increased 2.2 percent from comparable store net sales for the prior year 52-week period ended February 2, 2019. Online sales increased 6.9 percent to $110.8 million for the 52-week period ended February 1, 2020, compared to net sales of $103.7 million for the 52-week period ended February 2, 2019.
Net sales for the 52-week fiscal year ended February 1, 2020 increased 1.7 percent to $900.3 million from net sales of $885.5 million for the 52-week fiscal year ended February 2, 2019. Comparable store net sales for the 52-week period ended February 1, 2020 increased 2.2 percent from comparable store net sales for the prior year 52-week period ended February 2, 2019. Online sales increased 6.9 percent to $110.8 million for the 52-week period ended February 1, 2020, compared to net sales of $103.7 million for the 52-week period ended February 2, 2019.
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 $51.00 and its currently trading at $15.22 a stock. That's significant loss of -70.2% suffered by Buckle Inc stockholders.
The stock of Buckle is trading at a lost closer to its 52 week low of $13.87 than it is to its 52 week high of $28.52 which to us is a clear indication that the short term sentiment and momentum of Buckle's stock is negative at this point in time, as is most stocks with the Coronavirus fears sending world markets into freefall, read more about this here.
The stock of Buckle is trading at a lost closer to its 52 week low of $13.87 than it is to its 52 week high of $28.52 which to us is a clear indication that the short term sentiment and momentum of Buckle's stock is negative at this point in time, as is most stocks with the Coronavirus fears sending world markets into freefall, read more about this here.
Recent coverage of Buckle Inc
The extract below covers the latest regarding Buckle as obtained from Yahoo Finance.
Buckle (BKE) came out with quarterly earnings of $0.96 per share, beating the Zacks Consensus Estimate of $0.88 per share. This compares to earnings of $0.84 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this teen clothing retailer would post earnings of $0.47 per share when it actually produced earnings of $0.53, delivering a surprise of 12.77%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times. Buckle, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $271 million for the quarter ended January 2020, in line with the Zacks Consensus Estimate. This compares to year-ago revenues of $264.41 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Buckle shares have lost about 46% since the beginning of the year versus the S&P 500's decline of -23.2%.
Read the full article here
Buckle (BKE) came out with quarterly earnings of $0.96 per share, beating the Zacks Consensus Estimate of $0.88 per share. This compares to earnings of $0.84 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this teen clothing retailer would post earnings of $0.47 per share when it actually produced earnings of $0.53, delivering a surprise of 12.77%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times. Buckle, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $271 million for the quarter ended January 2020, in line with the Zacks Consensus Estimate. This compares to year-ago revenues of $264.41 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Buckle shares have lost about 46% since the beginning of the year versus the S&P 500's decline of -23.2%.
Read the full article here
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 $32.90 a stock (down slightly from our 3rd quarter 2019 earnings report valuation of Buckle). 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 $32.90. A good entry point into the stock of Buckle would therefore be at $29.60 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 $32.90. A good entry point into the stock of Buckle would therefore be at $29.60 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 1st quarter 2020 earnings report towards the middle of June 2020