Buckle's June Sales Up

The Buckle Inc. (BKE - Snapshot Report) reported net sales of $79.6 million in June 2011, which increased 15.2% from $69.2 million in June 2010.

The company’s comparable store sales also went up 10.8% in the same period.  

Total sales for the men’s side of business leaped 16.5% year over year and represented 43% of total sales for the month, versus approximately 42.5% in June last year.  Sales from the women side of business accounted for 57% of total sales, against 57.5% in the year-earlier month, reflecting a 14% increase. 

Pricing in the men's side of the business was steadier compared to women’s. Overall pricing was up 6% in the men’s side of business while the women’s side saw a 3% increment.

In June, the categories that performed well were denim, woven and knit tops, active apparel, accessories and footwear. Accessory sales for men's and women's categories together increased approximately 17% in comparison to the prior-year month while footwear sales increased approximately 34%.

Buckle ended the month of June with 425 retail stores in 41 states, compared with 415 stores in 41 states as of July 7, 2010. For fiscal 2011, the company plans to open 13 new stores. Additionally, the company anticipates completing 25 substantial remodels during fiscal 2011.

Buckle’s year-to-date total revenue was up 12.6% year over year at $387.8 million while same-store sales grew 8.8%. In the first quarter of 2011, the company’s total sales increased 11.8% year over year to $240.1 million, attributable to an 8.1% jump in same-store sales.

The Zacks Consensus Estimates for the second quarter and fiscal 2011 are pegged at 49 cents and $3.05, respectively. Following the solid monthly result, two analysts raised their estimates in the last seven days while none lowered.

Buckle currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. Buckle is expected to release its second quarter 2011 results on August 18, 2011.

One of its competitors, Cato Corp. (CATO - Snapshot Report) reported a 2.0% upside in total sales and a 1.0% rise in same-store sales in June.

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