Education
About Us
Working with TipRanks
Follow Us
Buckle (BKE)
NYSE:BKE
Top Page
Buckle
(NYSE:BKE)73Outperform
Buckle (BKE) vs. S&P 500 (SPY)
Market Cap
$1.95B
Dividend Yield3.65%
Average Volume (3M)459.51K
Price to Earnings (P/E)9.7
Beta (1Y)0.76
Revenue Growth-4.66%
EPS Growth-13.89%
CountryUS
Employees8,000
SectorConsumer Cyclical
Sector Strength53
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)3.94
Shares Outstanding50,773,796
10 Day Avg. Volume489,045
30 Day Avg. Volume459,508
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.59
Price to Cash Flow (P/CF)11.10
P/FCF Ratio14.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$43.00Price Target Upside12.13% Upside
Rating ConsensusHold
Number of Analyst Covering1
Buckle Business Overview & Revenue Model
Company DescriptionBuckle (BKE) is an American fashion retailer that operates a chain of retail stores across the United States. The company primarily focuses on casual apparel, footwear, and accessories catering to fashion-conscious young men and women. Buckle is known for its curated selection of on-trend denim, tops, outerwear, and activewear, alongside an array of footwear and accessory options. The company offers a personalized shopping experience, with an emphasis on customer service, aiming to create a unique and engaging retail environment.
How the Company Makes MoneyBuckle makes money through its retail operations, selling a variety of casual clothing, footwear, and accessories. The company's revenue model is predominantly based on the sales of merchandise through its physical retail stores and its online platform. Key revenue streams include the sale of branded and private-label apparel, which often includes popular denim brands. Buckle invests in creating a personalized shopping experience, which helps drive customer loyalty and repeat purchases. The company also utilizes strategic marketing efforts and promotions to attract and retain customers. Additionally, Buckle benefits from partnerships with well-known brands, which enhance its product offerings and appeal to a broad customer base.
Buckle Financial Statement Overview
Summary
Buckle maintains strong profitability with high margins and a stable balance sheet, despite declining revenue. Efficient cash management supports a robust financial position, though revenue challenges persist.Income Statement
The income statement for Buckle shows a declining revenue trend from the previous year, with TTM (Trailing-Twelve-Months) revenue at $1.22 billion compared to $1.34 billion in 2023. Despite this, the company maintains strong profitability with a net profit margin of 16.2% and an EBIT margin of 19.8% in the TTM period. Gross profit margin is robust at 48.6%. The revenue growth rate is negative due to the decline in sales, presenting a challenge in revenue generation.72
Positive
Balance Sheet
Buckle's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.66 and an equity ratio of 50.0% in the TTM period. The return on equity is impressive at 40.5%, indicating efficient use of equity capital. The company has managed to keep its debt levels in check, supporting its financial stability and reducing leverage-related risks.75
Positive
Cash Flow
The cash flow statement reveals a strong operating cash flow to net income ratio of 1.16, demonstrating solid cash generation capabilities. However, the free cash flow growth rate is negative due to lower free cash flow in the TTM period compared to previous periods. Nonetheless, the free cash flow to net income ratio remains healthy at 0.95, indicating efficient cash management.78
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.22B | 1.26B | 1.35B | 1.29B | 901.28M | 900.25M | Gross Profit |
| 593.48M | 619.07M | 676.00M | 653.01M | 400.67M | 377.47M | EBIT |
| 241.64M | 271.06M | 328.13M | 335.50M | 168.02M | 131.50M | EBITDA |
| 258.71M | 291.89M | 346.99M | 354.19M | 188.88M | 155.29M | Net Income Common Stockholders |
| 197.85M | 219.92M | 254.63M | 254.82M | 130.14M | 104.43M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 220.02M | 290.42M | 273.07M | 266.90M | 322.15M | 233.50M | Total Assets |
| 527.30M | 889.81M | 837.58M | 780.88M | 845.81M | 867.89M | Total Debt |
| 0.00 | 315.41M | 303.79M | 288.34M | 306.27M | 377.55M | Net Debt |
| -168.47M | 47.19M | 51.71M | 34.37M | -12.52M | 156.58M | Total Liabilities |
| 133.43M | 476.59M | 461.26M | 467.96M | 449.19M | 478.74M | Stockholders Equity |
| 393.88M | 413.22M | 376.31M | 312.92M | 396.63M | 389.15M |
| Cash Flow | Free Cash Flow | ||||
| 188.78M | 217.37M | 212.02M | 292.65M | 219.76M | 123.34M | Operating Cash Flow |
| 230.55M | 254.64M | 242.38M | 311.75M | 227.42M | 130.66M | Investing Cash Flow |
| -43.16M | -41.77M | -41.40M | -28.77M | -768.00K | 34.76M | Financing Cash Flow |
| -197.08M | -196.74M | -202.88M | -347.80M | -128.83M | -112.92M |
Buckle Technical Analysis
Negative
38.35
Price Trends
45.16
Negative
45.08
Negative
41.20
Negative
Market Momentum
-2.13
Positive
27.50
Positive
22.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKE, the sentiment is Negative. The current price of 38.35 is below the 20-day moving average (MA) of 41.07, below the 50-day MA of 45.16, and below the 200-day MA of 41.20, indicating a bearish trend. The MACD of -2.13 indicates Positive momentum. The RSI at 27.50 is Positive, neither overbought nor oversold. The STOCH value of 22.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BKE.
Buckle Risk Analysis
Buckle disclosed 18 risk factors in its most recent earnings report. Buckle reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Buckle Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.94B | 12.55 | 17.56% | ― | 7.71% | 40.01% | |
78 Outperform | $134.08B | 28.00 | 61.98% | 1.26% | 3.95% | ― | |
74 Outperform | $4.33B | 8.04 | 47.77% | ― | 19.59% | 154.53% | |
73 Outperform | $1.95B | 9.73 | 41.12% | 3.65% | -4.66% | -13.89% | |
72 Outperform | $44.86B | 21.51 | 40.28% | 1.08% | 8.54% | 25.99% | |
69 Neutral | $2.46B | 10.99 | 13.28% | 3.90% | 6.38% | 6.08% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% |
* Consumer Cyclical Sector Average
Performance Comparison
BKE
Buckle
38.35
3.51
10.07%
ANF
Abercrombie Fitch
86.03
-30.51
-26.18%
AEO
American Eagle
12.83
-9.13
-41.58%
ROST
Ross Stores
135.96
-8.48
-5.87%
TJX
TJX Companies
119.27
24.08
25.30%
URBN
Urban Outfitters
53.56
12.80
31.40%
Buckle Earnings Call Summary
Earnings Call Date: Nov 22, 2024 | % Change Since: -14.82% | Next Earnings Date: Mar 14, 2025
Earnings Call Sentiment Neutral
The earnings call showed a mix of positive and negative trends. While there was growth in the youth business and private label sales, the company faced declines in net income, sales, and gross margin, along with increased SG&A expenses. The sentiment is balanced by the company's efforts in store expansions and remodels.Highlights
Youth Business Growth
The youth business grew approximately 2% for the quarter, building on a 26.5% growth a year ago.
Private Brand Strength
Private label sales increased, representing 47% of sales compared to 46% in the third quarter of fiscal '22.
Store Expansion and Remodels
During the quarter, 3 new stores were opened, and 4 full store remodels were completed. Year-to-date, 7 new stores and 15 full remodels have been completed.
Lowlights
Decline in Net Income and Sales
Net income for the third quarter was $51.8 million, down from $61.4 million in the previous year. Net sales decreased 8.7% to $303.5 million compared to the prior year.
Decrease in Comparable Store and Online Sales
Comparable store sales decreased 9.2%, and online sales decreased 16.2% for the quarter compared to the previous year.
Gross Margin Decline
Gross margin decreased to 48.5% from 49.8% in the third quarter of 2022, mainly due to deleverage buying, distribution, and occupancy expenses.
Footwear Sales Drop
Footwear sales decreased by about 31% for the quarter.
Increased SG&A Expenses
Selling, general, and administrative expenses increased to 27.4% of net sales from 25.9% in the third quarter of 2022.
Company Guidance
During Buckle's third-quarter earnings call for 2024, the company refrained from providing future sales or earnings guidance, adhering to its policy and emphasizing the associated risks and uncertainties under the safe harbor statement. Key financial metrics were detailed: net income for the quarter was $51.8 million or $1.04 per diluted share, down from $61.4 million or $1.24 per diluted share in the prior year. Net sales decreased by 8.7% to $303.5 million, with comparable store sales down 9.2% and online sales dropping 16.2%. The gross margin declined to 48.5% from 49.8% in the previous year, primarily due to deleverage in buying, distribution, and occupancy expenses, although merchandise margins remained flat. Selling, general, and administrative expenses rose to 27.4% of net sales from 25.9% in the prior year, driven by increased store labor, G&A salaries, equity compensation, and marketing spend. Operating margin for the quarter was 21.1%, compared to 23.9% in the previous year. Inventory levels were stable at $152.3 million, with $357.6 million in total cash and investments. The company opened three new stores and completed four full remodels during the quarter, ending with 443 retail stores in 42 states, and planned further store openings and remodels for the remainder of the year.Buckle Corporate Events
Executive/Board Changes
Buckle Approves 2025 Executive Compensation Program
Neutral
Feb 3, 2025
On January 30, 2025, the Compensation Committee of The Buckle, Inc.’s Board of Directors approved the executive compensation program for the 2025 fiscal year, maintaining consistency with the previous year. The compensation includes a competitive base salary, performance-based incentive cash bonuses, benefits, and non-vested stock grants. The 2025 Incentive Plan aims to motivate key employees by linking their compensation to the company’s financial performance through a bonus pool determined by pre-bonus net income. The plan includes both performance-based and non-performance-based stock awards, with vesting criteria tied to fiscal performance targets.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.