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Buckle (BKE) Queued Up for Q1 Earnings: What's in the Cards?

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The Buckle, Inc. (BKE - Free Report) is likely to register an increase in the top line from the year-ago quarter’s reported figure when it announces first-quarter fiscal 2022 earnings on May 26, before market open. The Zacks Consensus Estimate for quarterly sales is pegged at $339 million, indicating growth of 13.3% from the year-ago period’s tally.

BKE registered higher sales in all the three months of the quarter under review. The apparel, footwear and accessories retailer recorded net sales growth of 2.9% and 32.9%, respectively, for April, March and February. However, the metric decreased 10.4% in March.

However, the bottom line is likely to fall from the prior-year reported figure. The Zacks Consensus Estimate for quarterly earnings is pegged at $1.10, suggesting a decline of about 5% from the year-ago period’s tally. The consensus mark has been stable in the past 30 days.

This Kearney, NE-based player’s performance in the trailing four quarters shows that it has an earnings surprise of 45%, on average. In the last reported quarter, BKE delivered an earnings surprise of 14.2%.

Key Factors to Note

Strength in Buckle’s men’s and women’s divisions coupled with gains from online business is most likely to have boosted sales in the fiscal first quarter. Apart from BKE’s men’s and women’s business, the Youth business continues to yield well on solid denims and knits. Categories like accessory, footwear, dresses, tops and private label business have been performing well for a while. BKE is focused on enhancing its omni-channel capabilities. It is also steadily expanding its assortment offerings to meet consumers’ altering preferences. Moreover, BKE’s store-expansion and remodeling efforts appear fruitful.

These initiatives have been aiding Buckle’s comparable-store sales (comps) for a while now. The metric might have increased in all the three months of the quarter to be reported. Comps rose 2.8% and 33.3%, respectively, in April and February. However, the metric decreased 10.4% in March.

While the aforementioned factors raise optimism about the quarterly performance, any deleverage in selling, general and administrative expenses is concerning. Also, the ongoing supply-chain headwinds and higher freight expenses remain deterrents. These headwinds might have weighed on the bottom-line performance in the quarter under review.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Buckle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Buckle, Inc. The Price and EPS Surprise

Buckle, Inc. The Price and EPS Surprise

Buckle, Inc. The price-eps-surprise | Buckle, Inc. The Quote

Although Buckle carries a Zacks Rank #3, its Earnings ESP of 0.00% in the combination makes surprise prediction difficult.

Stocks With a Favorable Combination

Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings this season:

Costco (COST - Free Report) has an Earnings ESP of +1.90% and a Zacks Rank #3, currently. COST is likely to register an increase in the bottom line from the last fiscal year’s quarterly reading when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has increased a couple of cents to $3.04 per share in the past 30 days, indicating an improvement of 10.6% from the prior fiscal year’s quarterly tally. You can see the complete list of today’s Zacks #1 Rank stocks here.

Costco’s top line is expected to rise from the last fiscal year’s quarterly reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $51.8 billion, which suggests an increase of 14.3% from the figure reported in the prior fiscal year’s comparable period. COST delivered an earnings beat of 13.3%, on average, in the trailing four quarters.

Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +7.07% and a Zacks Rank of 3. CASY is anticipated to register a top-line increase from the last fiscal year’s quarterly reading when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for CASY’s revenues is pegged at $3,443 million, indicating a rise of 45% from the figure reported in the prior fiscal year’s quarter.

The Zacks Consensus Estimate for Casey's General Stores’ quarterly earnings is pegged at $1.49 per share, suggesting an improvement of 33% from the last fiscal year’s quarterly reported number. CASY delivered an earnings beat of 21.6%, on average, in the trailing four quarters.

lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.18% and a Zacks Rank of 3. LULU is likely to register an increase from the last fiscal year’s quarterly reading in the bottom line when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has moved 0.7% north to $1.43 per share, suggesting 23% growth from the earlier fiscal year’s quarterly reported number.

lululemon athletica’s top line is expected to rise from the prior fiscal year’s quarterly reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.55 billion, which suggests a rise of 26% from the figure reported in the prior fiscal year’s quarter. LULU delivered an earnings beat of 20.9%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.