August Sales Up at The Buckle

The Buckle Inc. (BKE - Snapshot Report) reported net sales of $95.3 million in August 2011, up 11.9% from $85.2 million in August 2010. The company’s comparable store sales also rose 8.3% in the same period. 

Total sales for the men’s side of business leaped 10.0% year over year and represented 38% of total sales for the month versus approximately 38.5% in August last year. Sales from the women’s side of business accounted for 62% of total sales as against 61.5% in the year-earlier month, reflecting a 12.5% increase.          

Pricing in the men's side of the business was steadier compared to women’s. Overall pricing was up 8.5% in the men’s side of business while the women’s side saw a 4% increment.

In August, 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 9% in comparison to the prior-year month while footwear sales increased approximately 11.5%.

Buckle ended August  with 428 retail stores in 42 states compared with 420 stores in 41 states as of September 1, 2010. For fiscal 2011, the company expects to open 13 new stores out of which three are planned for the holiday season. Additionally, the company anticipates remodeling 25 stores in fiscal 2011.

Buckle’s year-to-date total revenue was up 12.1% year over year at $547.8 million while same-store sales grew 8.5%. In the second quarter of 2011, the company’s total sales increased 12.6% year over year to $212.4 million attributable to an 8.9% jump in same-store sales.

The company also remains committed to enhance shareholder value with repurchasing 8,600 shares of its common stock at an average price of $34.45 per share in August.

The Zacks Consensus earnings estimates for the third quarter and fiscal 2011 are pegged at 77 cents and $3.06, respectively. Following the solid monthly results, we expect most of analysts to raise their estimates.

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. One of its competitors, Cato Corp. (CATO - Snapshot Report) reported a 2.0% downside in total sales and a 3.0% decrease in same-store sales in August. Hurricane Irene had minimal impact on Cato’s sales for the month.

Read the full analyst report on BKE

Read the full analyst report on CATO