Apparel retailer Buckle
In similar fashion to specialty retailer Bed Bath & Beyond
Management's earnings conference call was brief but did shed some light on what drove the strong quarter. CEO Dennis Nelson cited successful inventory management, a positive shopper response to the company's merchandise mix, and a less promotional environment as sale items were cleared from store shelves in past quarters.
Buckle also kept a tight lid on expenses and was able to keep its net margin just above 10%. It ended the quarter with 353 stores, leaving ample room for it to reach 400 locations with its current operating infrastructure. And cash appears to be building up on the balance sheet again; during the earnings call, an analyst asked the company its intentions for any excess liquidity. Management didn't have any insight to offer, but did just pay a $3 special dividend late last year, on top of the current 2.1% dividend yield.
Other than that, it was business as usual at Buckle, and the stock reached another 52-week high, rising around 5% after the earnings release. At some point, the company will likely hit a fashion snag that will send comps into negative territory, but floundering apparel peers such as Pacific Sunwear
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Fool contributor Ryan Fuhrmann is long shares of Bed Bath & Beyond and PacSun but has no financial interest in any other company mentioned. The Fool has an ironclad disclosure policy. Feel free to email him with feedback or to discuss any companies mentioned further.