Buckle Inc. reports an over 100% increase in quarterly profit

The Buckle Inc. (NYSE: BKE) said on Friday that its profit for the fiscal second quarter came in over 100% higher on a year over year basis. The company attributed its hawkish quarterly performance to digital sales that it said surged sharply in Q2 amidst the Coronavirus pandemic that has so far infected more than 5.7 million people in the United States and caused over 177 thousand deaths.

Shares of the company were reported more than 15% up in premarket trading on Friday. The stock continued its rally and gained another 7% on market open. On a year to date basis, Buckle is still more than 20% down in the stock market at the moment. Investing online in the stock market is easier than you think. Here’s a simple guide to get you started.

Buckle’s Q2 financial results versus analysts’ estimates

In the quarter that concluded on 1^st August, the American fashion retailer reported £26.48 million of net profit that translates to 54.19 pence per share. In the comparable quarter of last year, its net profit was capped at £12.52 million or 25.95 pence a share. Buckle’s trading volume touched 1.04 million in the first week of August.

In terms of net sales returns and allowances, the Kearney-based company registered £164.85 million versus the year-ago figure of £155.54 million. At £35.11 million, Buckle’s online sales posted an unprecedented 99% increase in the recent quarter.

In comparison, analysts had anticipated the company to reveal 3.82 pence of earnings per share on revenue of £130.38 million.

Buckle has now reopened 431 of its stores for the public

The retailer has a total of 446 stores in the United States. Out of which, it said that 431 have now been reopened for the public after months of inactivity due to the ongoing health crisis. Its peer, Foot Locker, also published its quarterly financial results on Friday that highlighted an 18.6% jump in its Q2 comparable-store sales.

In the first and second quarter combined, Buckle’s net sales tanked to £252.93 million that marks an 18.2% decline from £309.18 million of net sales in the fiscal H1 of 2019. Its digital sales, on the other hand, were 64.3% high on a year over year basis in the first six months of the current fiscal year.

At the time of writing, the American fashion retailer is valued at £760 million and has a price to earnings ratio of 12.71.