It may not be as hip as Urban Outfitters
What analysts say:
- Buy, sell, or waffle? Three analysts currently follow The Buckle, with two offering a thumbs-up and one warning investors to sell. The Motley Fool CAPS community seems to side more with the sell ratings, offering the company only two out of five stars.
- Revenues. Analysts are projecting $124.3 million in second-quarter sales, or approximately 21% above last year's second-quarter sales.
- Earnings. Analysts see quarterly earnings of $0.32, for a 45% gain over last year's number.
What management says:
The Buckle's press releases tend to be short but sweet, with little mention of forward sales or earnings expectations. However, we do know that monthly same-store sales trends were up for the quarter, with May comps improving 8.8%, June comps up an impressive 13.3%, and July up a respectable 7.6%.
What management does:
The Buckle has had plenty of reason to boast, with solid trends in sales, earnings, and overall profitability. This has resulted in solid gains for shareholders, with the stock having more than tripled in the last four years. Better yet, the dividend yield stands at 2.3%, which is competitive with rival dividend-paying apparel retailers like Limited
|
01/06 |
04/06 |
07/06 |
10/06 |
02/07 |
05/07 |
|
|---|---|---|---|---|---|---|
|
Gross |
38.7% |
38.8% |
38.5% |
38.6% |
39.1% |
39.5% |
|
Operating |
15.2% |
15.4% |
15% |
15% |
14.9% |
15.4% |
|
Net |
10.4% |
10.4% |
10.3% |
10.4% |
10.5% |
10.8% |
One Fool says:
The Buckle is a best-in-class retailer because it's been able to combine a favorable dividend payment with steady growth. Top-line trends haven't been that impressive over the past five years, but sales growth has picked up recently, and management has a solid track record of posting much higher annual increases in net income and cash flow.
As with any retailer, there will likely be a quarterly fashion miss or other near-term negative development. But The Buckle has so far proven adept at keeping a tight lid on expenses while taking advantage of favorable denim trends and using relatively higher profit private-label merchandise to further boost margins.
For more related Foolishness:
Gap has been recommended by Motley Fool Stock Advisor and Motley Fool Inside Value. Limited is an Income Investor and Inside Value stock pick. You can browse those racks for free for the next 30 days with a free trial subscription.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
