September Sales Soar at The Buckle

The Buckle Inc. (BKE - Snapshot Report) reported net sales of $98.4 million in September 2011, up 13.0% from $87.1 million in September 2010. The company’s comparable store sales also rose 10.3% in the same period. Monthly results were also better sequentially.

Total sales for the men’s side of business leaped 12.0% year over year and represented 37.5% of total sales for the month versus approximately 38.0% in September last year. Sales from the women’s side of business accounted for 62.5% of total sales as against 62.0% in the year-earlier month, reflecting a 13.5% increase.       

Pricing in the men's side of the business was steadier compared to women’s. Overall pricing was up 7.5% in the men’s side of business while the women’s side saw a 5.5% increment. Average accessory price points were down slightly, but average footwear price points were up approximately 6.5% for the month.

In September, the categories that performed well were denim, woven and knit tops, sweaters, outerwear, accessories, and footwear. Accessory sales for men's and women's categories together increased approximately 6.0% in comparison to the prior-year month while footwear sales increased approximately 10.5%.

Buckle ended the September with 428 retail stores in 42 states compared with 421 stores in 41 states as of October 6, 2010. For fiscal 2011, the company expects to open 13 new stores out of which a few are planned for the holiday season. Additionally, the company anticipates remodeling 25 stores in fiscal 2011.

Buckle’s year-to-date net sales was up 12.2% year over year at $646.2 million while same-store sales grew 8.7%. 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 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. Nice performance in September gives hope for a strong holiday season at Buckle.

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 September.

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