This Buckle Doesn't Buckle

Investors have been spooked by many retail stocks here lately, but judging by its latest quarter, Buckle (NYSE: BKE  ) hasn't come undone.

Fourth-quarter net income increased 31.7% to $29.1 million, or $0.94 per share. Sales jumped 18.3% to $207 million, and same-store sales increased 18.7%. That beat analysts' profit expectations by $0.09 per share, while revenue was right in line with expectations.

Improvement in the merchandise margin and leveraging buying occupancy and distribution costs allowed the gross margin to increase by 120 basis points to 44.4% of sales, vs. 43.2% this time last year.

Even more tantalizing, Buckle upped its cash by 10.4% to $167.2 million and put some of this cash to good work paying out a 2.19% dividend.

It might seem like other teen retailers such as Zumiez (Nasdaq: ZUMZ  ) may sound a lot more exciting (its recent fall in stock price notwithstanding), but it looks to me like Buckle has been reliably plugging along just like a favorite pair of old jeans, despite the volatility and choppy performance from many other teen retail names.

With just 370 locations, I'm not sure I've ever even noticed a Buckle while shopping. But apparently, its young clientele has responded well to it. Although it offers apparel, accessories, and footwear, denim's a key component of its merchandise.

Denim's admittedly been hot, but it's also available in so many places, from huge department store retailers like Macy's (NYSE: M  ) and Nordstrom (NYSE: JWN  ) to specialty retailers like American Eagle Outfitters (NYSE: AEO  ) and Abercrombie & Fitch (NYSE: ANF  ) . And Gap (NYSE: GPS  ) used to be a popular stop for denim, but as we all know, it hasn't managed to successfully lure customers over the last couple years. Still, even in the midst of what seems like a daunting competitive landscape, Buckle seems to be tightly fastened.

Of course, Buckle currently trades at 20 times trailing earnings, and that sounds pricey compared to many retail stocks' price-to-earnings ratios at the moment. Still, there's always the argument that you might pay a higher price for a company that's performing so well, despite difficult times, and pays out a dividend, too. Although Buckle seems like a well-run company that's still firing on all cylinders, I can see why value-minded investors might want to wait for temporary weakness in price to pick up some shares.

Buckle up for some news from Buckle last year:

• Back in August, shoppers were jonesin' at the Buckle.
• In May, Buckle had reason to boast.
• There were no signs of weakness in March, either.