Buckle Inc. Q4 Revenue, Earnings Results And Comps Down Badly

Written by StockNews.com

Buckle Inc. (NYSE: BKE) early Friday [Mar 10, 2017 | 7:03am ] posted worse than expected fourth quarter earnings results, as sales at established stores fell precipitously amid what it called a “challenging” retail environment.

The Kearney, NE-based apparel retailer reported Q4 earnings per share (EPS) of $0.74, which was $0.05 worse than the Wall Street consensus view of $0.79.

Revenues plunged 15.7% from last year to $280 million, also missing analysts’ view for $289.44 million. This also marked the fifth consecutive quarter of year-over-year sales declines.

Q4 comparable store net sales (“comps”) fell 16.1% in the latest period, while online sales decreased 8.8%. Comps are considered an important measure of a retailer’s health, since they only take into account year-over-year sales trends for stores open at least 12 months.

The company commented on its latest results via press release:

“Thank you to each of Buckle’s 8,000+ teammates for their dedication and efforts to managing our business in what has proven to be a challenging and evolving retail environment. While overall results for both the quarter and year were below expectations, we were able to maintain merchandise margins and finish the year with an operating margin of 15.7 percent. Our focus on running a profitable business also enabled us to maintain a strong balance sheet, ending the year with $264.6 million in cash and investments and no debt.”

Buckle Inc. shares were unchanged in premarket trading Friday. Year-to-date, BKE has declined -20.73%, versus a 5.96% rise in the benchmark S&P 500 index during the same period.

BKE currently has a StockNews.com POWR Rating of D (Sell), and is ranked #49 of 68 stocks in the Fashion & Luxury category.