Buckle (BKE) Q1 Earnings Beat Estimates, Online Sales Robust
Zacks Investment Research | May 24, 2021 01:04AM ET
The Buckle (NYSE:BKE), Inc. Buckle, Inc. The Quote
We note that the company’s women’s and men’s merchandise categories are doing well. Management stated that owing to the pandemic-led economic disruptions in the prior year, sales comparisons will be made with the first quarter of 2019. Apparently, women's merchandise sales improved 46.5% from the first-quarter fiscal 2019-level and that of men's rose 48.5%. While the women's business contributed about 49% to the company’s overall quarterly sales, the men’s unit accounted for nearly 51%. On combining the men’s and women’s categories, accessory sales for the quarter increased about 50% while footwear sales climbed up 118.5% from the comparable quarter’s reported levels in 2019. Both accessory and footwear categories represented 8.5% and 11%, respectively, of overall sales in the fiscal first quarter. On a combined basis, denim represented nearly 42% of the quarterly sales while tops accounted for about 26%. Moreover, the company’s private label business represented roughly 38% of its quarterly sales. Gross profit increased significantly to $147.6 million from $26.8 million delivered in the year-earlier quarter. Also, gross margin expanded to 49.3% from the year-ago quarter’s tally of 23.2% owing to higher sales as well as a 315-basis point (bps) rise in merchandise margins, and leveraged occupancy buying and distribution costs. Further, selling, general and administrative (SG&A) expenses as a rate of sales fell considerably to 24% from 37.2% witnessed in the year-ago quarter. This decline was owing to improved store labor-related expenses, leveraged other SG&A costs and lower travel spend. These savings were somewhat offset by elevated shipping costs on strong e-commerce performance as well as higher incentive compensation accruals and marketing-related expenses. The company reported an operating income of $75.8 million against an operating loss of $16.2 million recorded in the year-ago quarter.
Shares of this currently Zacks Rank #2 (Buy) company have gained 41.3% in the past six months, outperforming the TPR presently has a long-term earnings growth rate of 10% and a Zacks Rank #2.
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