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Buckle (BKE) Q4 Earnings Miss Estimates, Revenues in Line
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The Buckle, Inc. (BKE - Free Report) reported negative earnings surprise for the fourth consecutive quarter, when it posted fourth-quarter fiscal 2016 results. The company reported earnings per share of 74 cents that missed the Zacks Consensus Estimate of 78 cents and also declined 34.5% year over year.
The company’s net sales of $280 million were in line with the Zacks Consensus Estimate but declined 15.7% year over year.
Women’s merchandise sales slumped nearly 21% in the quarter, while Men’s merchandise sales dropped 9%. Women’s merchandise contributed 47% to total sales, while the Men’s business input was pegged at 53%.
Combined accessory sales fell nearly 12.5%, while footwear sales declined 20.5%. These two categories contributed nearly 10% and 5.5%, respectively, to fourth-quarter net sales.
Buckle, Inc. (The) Price, Consensus and EPS Surprise
Comparable-store sales dropped 16.1% from the prior-year quarter. Moreover, online sales (not included in comparable-store sales) declined 8.8% year over year to $32.2 million.
We observe that Buckle’s, net sales decreased 17.2% in Jan 2017, 15.1% in Dec 2016 and 15.9% in Nov 2016. While comparable sales declined 17.6% in January, 15.5% in December and 16.2% in November.
Dismal results have hampered the company’s share price movement. In the past six months, the company’s shares have declined 25.6%, underperforming the Zacks categorized Retail-Apparel/Shoe industry, which has witnessed a decrease of 13.3%.
Buckle’s gross profit declined 19.4% to $125.7 million, while gross margin contracted nearly 210 basis points (bps) to 44.9%. The contraction can be attributed to de-leveraged occupancy, buying and distribution expenditures cropping up from the decline in comparable-store sales. The drop in comparable sales impacted gross margin by 270 bps. Further, operating margin was at 19.8% compared with 25.1% in the prior-year quarter.
Other Financial Aspects
Buckle ended the quarter with cash and cash equivalents of $196.5 million, receivables of $8.2 million and shareholders’ equity of $430.5 million. Moreover, the company had accounts payable of $25.1 million. In the quarter under review, it incurred capital expenditures of $4.7 million totaling to $31.7 million for fiscal 2016.
As of Jan 28, 2017, Buckle operated 467 retail stores across 44 states. During the quarter, the company opened one store and closed four stores.
Central Garden & Pet has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 120.5% and also has an impressive long-term earnings growth rate of 10%.
The Children's Place shares have gained more than 30% in the past six months.
Prestige Brands Holdings stock has gained nearly 22% in the past six months and has long-term earnings growth rate of 9.8%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Buckle (BKE) Q4 Earnings Miss Estimates, Revenues in Line
The Buckle, Inc. (BKE - Free Report) reported negative earnings surprise for the fourth consecutive quarter, when it posted fourth-quarter fiscal 2016 results. The company reported earnings per share of 74 cents that missed the Zacks Consensus Estimate of 78 cents and also declined 34.5% year over year.
The company’s net sales of $280 million were in line with the Zacks Consensus Estimate but declined 15.7% year over year.
Women’s merchandise sales slumped nearly 21% in the quarter, while Men’s merchandise sales dropped 9%. Women’s merchandise contributed 47% to total sales, while the Men’s business input was pegged at 53%.
Combined accessory sales fell nearly 12.5%, while footwear sales declined 20.5%. These two categories contributed nearly 10% and 5.5%, respectively, to fourth-quarter net sales.
Buckle, Inc. (The) Price, Consensus and EPS Surprise
Buckle, Inc. (The) Price, Consensus and EPS Surprise | Buckle, Inc. (The) Quote
Comparable-store sales dropped 16.1% from the prior-year quarter. Moreover, online sales (not included in comparable-store sales) declined 8.8% year over year to $32.2 million.
We observe that Buckle’s, net sales decreased 17.2% in Jan 2017, 15.1% in Dec 2016 and 15.9% in Nov 2016. While comparable sales declined 17.6% in January, 15.5% in December and 16.2% in November.
Dismal results have hampered the company’s share price movement. In the past six months, the company’s shares have declined 25.6%, underperforming the Zacks categorized Retail-Apparel/Shoe industry, which has witnessed a decrease of 13.3%.
Buckle’s gross profit declined 19.4% to $125.7 million, while gross margin contracted nearly 210 basis points (bps) to 44.9%. The contraction can be attributed to de-leveraged occupancy, buying and distribution expenditures cropping up from the decline in comparable-store sales. The drop in comparable sales impacted gross margin by 270 bps. Further, operating margin was at 19.8% compared with 25.1% in the prior-year quarter.
Other Financial Aspects
Buckle ended the quarter with cash and cash equivalents of $196.5 million, receivables of $8.2 million and shareholders’ equity of $430.5 million. Moreover, the company had accounts payable of $25.1 million. In the quarter under review, it incurred capital expenditures of $4.7 million totaling to $31.7 million for fiscal 2016.
As of Jan 28, 2017, Buckle operated 467 retail stores across 44 states. During the quarter, the company opened one store and closed four stores.
Zacks Rank &Stocks to Consider
Buckle currently carries a Zacks rank #5 (Strong Buy). Some better-ranked stocks in the retail space include Central Garden & Pet Company (CENT - Free Report) , The Children's Place, Inc. (PLCE - Free Report) and Prestige Brands Holdings, Inc. (PBH - Free Report) . All of these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Central Garden & Pet has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 120.5% and also has an impressive long-term earnings growth rate of 10%.
The Children's Place shares have gained more than 30% in the past six months.
Prestige Brands Holdings stock has gained nearly 22% in the past six months and has long-term earnings growth rate of 9.8%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>