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Buckle (BKE) Lined Up for Q2 Earnings: What's in the Offing?

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The Buckle, Inc. (BKE - Free Report) is likely to register an increase in the top line from the year-ago fiscal quarter’s reported figure when it announces second-quarter fiscal 2022 earnings on Aug 19, before market open. The Zacks Consensus Estimate for quarterly sales is pegged at $299.7 million, indicating growth of 1.6% from the year-ago fiscal period’s tally.

BKE registered higher sales in two of the three months during the fiscal quarter under review. This apparel, footwear and accessories retailer recorded net sales growth of 4.2% and 5.1%, respectively, for July and May. However, the metric decreased 1.5% in June.

The bottom line is likely to fall from the prior-year fiscal quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings is pegged at 93 cents a share, suggesting a decline of 10.6% from the year-ago fiscal 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 15.7%, on average. In the last reported quarter, BKE delivered an earnings surprise of 1.8%.

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 second quarter. Apart from men’s and women’s businesses, BKE’s is benefiting from denims and knits categories. Categories like accessory, tops and private label business have been performing well for a while now. BKE is focused on enhancing its omni-channel capabilities. It is also steadily expanding its assortment offerings to meet consumers’ altering preferences. BKE’s store-expansion efforts appear fruitful as well.

We note that Buckle’s comparable-store sales (comps) increased in two of the three months of the fiscal second quarter. Comps rose 1.8% and 5.3%, respectively, in July and May. However, the metric decreased 1.7% in June.

While the aforementioned factors raise optimism about the quarterly performance, any deleverage in selling, general and administrative expenses is concerning. Higher store labor-related expenses and elevated marketing costs persist. Also, supply-chain headwinds and steep 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.

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

Stocks With Favorable Combination

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

Chewy (CHWY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 1. CHWY is likely to register a bottom-line decrease year over year when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly loss per share is pegged at 12 cents. The year-earlier quarter witnessed a loss of 4 cents per share.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Chewy's top line is expected to rise from the year-ago fiscal quarter’s reading. The Zacks Consensus Estimate for quarterly revenues stands at $2.50 billion, which indicates an improvement of 16% from the figure reported in the prior-year fiscal quarter. CHWY has a trailing four-quarter earnings surprise of 4.1%, on average.

Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +2.37% and a Zacks Rank #2. ULTA is likely to register a bottom-line improvement year over year when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.86 suggests an improvement of 6.6% from the year-ago fiscal quarter’s actuals.

Ulta Beauty's top line is expected to rise from the year-earlier fiscal quarter’s finals. The Zacks Consensus Estimate for quarterly revenues stands at $2.20 billion, implying an improvement of 11.7% from the figure reported in the prior-year fiscal quarter. ULTA has a trailing four-quarter earnings surprise of 49.8%, on average.

Dollar General (DG - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank of 2. DG is likely to register an increase year over year in the bottom line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has dipped a penny over the past seven days to $2.91 per share. The consensus mark for DG’s earnings per share suggests 8.2% growth from the year-ago fiscal quarter’s reported number.

Dollar General’s top line is expected to have risen from the year-earlier fiscal quarter’s tally. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.38 billion, suggesting a rise of 8.4% from the figure reported in the prior-year fiscal quarter. DG delivered an earnings beat of 2.8%, on average, in the trailing four quarters.

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


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Dollar General Corporation (DG) - free report >>

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Buckle, Inc. The (BKE) - free report >>

Chewy (CHWY) - free report >>

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