The Buckle, Inc. Reports January 2024 Net Sales

Rhea-AI Summary

The Buckle, Inc. (NYSE: BKE) reported a decrease in comparable store net sales for the 5-week period ended February 3, 2024, by 17.4% compared to the same period in 2023. However, net sales for the 5-week fiscal month ended February 3, 2024, increased by 4.5% to $72.6 million from the prior year. The 14-week fiscal fourth quarter ended February 3, 2024, saw a decrease of 9.6% in comparable store net sales and a 4.8% decrease in net sales compared to the same period in 2023. Year-to-date, comparable store net sales for the 53-week period ended February 3, 2024, decreased by 8.0% from the same period in 2023, with net sales also decreasing by 6.3% to $1.261 billion compared to the prior year.

Positive

• None.

Negative

• Decrease in comparable store net sales for the 5-week and 14-week periods
• Decrease in net sales for the 14-week fiscal fourth quarter and year-to-date period

Insights

Market Research Analyst

The reported decrease in comparable store net sales by 17.4% for The Buckle, Inc. is a significant metric for investors and analysts to consider. Comparable store sales, often referred to as 'same-store sales', are a critical indicator of a retailer's health because they measure the performance of a company's established stores over time, eliminating the impact of recently opened or closed stores. A decline of this magnitude suggests that the company is facing challenges in driving traffic or sales in its existing locations, which could be due to a variety of factors such as changes in consumer preferences, increased competition, or broader economic issues.

While the overall net sales for the 5-week fiscal month saw an increase, this is likely due to the additional week in the fiscal month compared to the previous year. When analyzing retail performance, it's crucial to consider the context of the reporting period. A 53-week fiscal year can inflate annual sales figures and thus, year-over-year comparisons may not be entirely indicative of true performance trends. The reported decrease in net sales for the 14-week fourth quarter and the 53-week fiscal period further underscores potential underlying issues that may need to be addressed by the company's management.

Financial Analyst

From a financial perspective, the decline in year-to-date comparable store net sales by 8.0% and the overall 6.3% decrease in net sales for the 53-week fiscal period are red flags that could impact The Buckle's stock valuation. Comparable store sales are a key metric used by investors to gauge a company's effectiveness at generating additional revenue from its existing store base. A consistent decline in this metric can lead to a reassessment of the company's growth prospects and profitability, potentially leading to a decline in the stock price.

Moreover, the decrease in net sales during the critical fourth-quarter period, which often accounts for a significant portion of annual retail sales due to holiday shopping, may suggest that The Buckle is losing market share to competitors or failing to capitalize on peak shopping seasons. This could have implications for future earnings and dividend distributions and it may necessitate a strategic review of the company's operations, marketing strategies and product offerings.

Economist

An economist might interpret the reported sales figures in light of broader economic trends. A 17.4% decrease in comparable store net sales could be reflective of macroeconomic conditions such as a downturn in consumer spending, inflationary pressures, or shifts in the labor market affecting disposable income. The retail sector is often seen as a bellwether for the overall economy and such a pronounced decline might signal a cooling period. Additionally, the impact of a longer fiscal year on sales figures should be considered when evaluating the company's performance; it's important to differentiate between organic growth and growth resulting from calendar effects.

Long-term trends in sales data can also inform predictions about consumer confidence and spending power. If The Buckle's downturn is part of a wider trend in the retail industry, it could suggest a need for policy intervention or a reevaluation of economic forecasts. Conversely, if the company's performance is an outlier, it might indicate more company-specific issues rather than macroeconomic ones.

KEARNEY, Neb.--(BUSINESS WIRE)-- The Buckle, Inc. (NYSE: BKE) announced today that comparable store net sales, for stores open at least one year, for the 5-week period ended February 3, 2024 decreased 17.4 percent from comparable store net sales for the 5-week period ended February 4, 2023. Net sales for the 5-week fiscal month ended February 3, 2024 increased 4.5 percent to $72.6 million from net sales of $69.4 million for the prior year 4-week fiscal month ended January 28, 2023.

January 2024 was a 5-week fiscal period ending Buckle’s 53-week fiscal year. The prior January was a 4-week fiscal period ending a 52-week fiscal year. Comparable store net sales for the month, quarter, and year-to-date periods are compared to the 5-week, 14-week, and 53-week periods ended February 4, 2023.

Comparable store net sales for the 14-week fourth quarter ended February 3, 2024 decreased 9.6 percent from comparable store net sales for the 14-week period ended February 4, 2023. Net sales for the 14-week fiscal fourth quarter ended February 3, 2024 decreased 4.8 percent to $382.4 million compared to net sales of $401.8 million for the prior year 13-week fiscal fourth quarter ended January 28, 2023.

Comparable store net sales year-to-date for the 53-week period ended February 3, 2024 decreased 8.0 percent from comparable store net sales for the 53-week period ended February 4, 2023. Net sales for the 53-week fiscal period ended February 3, 2024 decreased 6.3 percent to $1.261 billion compared to net sales of $1.345 billion for the prior year 52-week fiscal period ended January 28, 2023.

About Buckle

Buckle is a specialty retailer focused on delivering exceptional service and style through unforgettable experiences. Offering a curated mix of high-quality, on-trend apparel, accessories, and footwear, Buckle is for those living the styled life. Known as a denim destination, each store carries a wide selection of fits, styles, and finishes from leading denim brands, including the Company’s exclusive brand, BKE. Headquartered in Kearney, Nebraska, Buckle currently operates 444 retail stores in 42 states, which includes the closing of three stores in fiscal January. The Company operated 440 stores in 42 states as of February 8, 2023. To listen to the Company’s recorded monthly sales commentary, please call (308) 238-2500.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors which may be beyond the Company's control. Accordingly, the Company’s future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

News releases and other information on The Buckle, Inc. can be accessed at www.buckle.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240208584353/en/

Thomas B. Heacock, Chief Financial Officer

The Buckle, Inc.

(308) 236-8491

Source: The Buckle, Inc.

FAQ

What is the ticker symbol for The Buckle, Inc.?

The ticker symbol for The Buckle, Inc. is BKE.

How much did net sales increase for the 5-week fiscal month ended February 3, 2024?

Net sales increased by 4.5% to $72.6 million from the prior year.

What was the percentage change in comparable store net sales for the 14-week fourth quarter ended February 3, 2024?

Comparable store net sales for the 14-week fourth quarter ended February 3, 2024, decreased by 9.6% compared to the same period in 2023.

What was the total net sales for the 53-week fiscal period ended February 3, 2024?

Net sales for the 53-week fiscal period ended February 3, 2024, decreased by 6.3% to $1.261 billion compared to the prior year.

How much did comparable store net sales decrease year-to-date for the 53-week period ended February 3, 2024?

Comparable store net sales for the 53-week period ended February 3, 2024, decreased by 8.0% from the same period in 2023.