Buckle shares slide despite strong Q3 results

By:
on Nov 19, 2021
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  • Buckle's earnings and revenue topped Wall Street estimates in fiscal Q3.
  • Shareholders were expecting more in terms of guidance for the holiday quarter.
  • The stock opened up on Friday but then fell more than 10% in the next hour.

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The Buckle Inc (NYSE: BKE) reported market-beating results for its fiscal third quarter on Friday that sent shares up in premarket trading. Weak guidance for the holiday quarter, however, saw the stock price slide more than 10% on market open.

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Third-quarter financial performance

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Buckle’s net income came in at $62.2 million that translates to $1.26 per share. This marked an increase from last year’s $41.6 million or 85 cents per share. On an adjusted basis, it earned $1.27 in the recent quarter.

The fashion retailer generated $319.4 million in sales, representing an annualised growth of 27%. In comparison, analysts had called for 80 cents of adjusted EPS on $269.22 million in revenue.

Other notable figures and future outlook

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According to the press release, Buckle noted an 18% year-over-year increase in cost of sales while operating expenses were up 26%. Same-store sales came in 27% higher than last year, with online sales climbing 9.0% in the recent quarter.

For the holiday quarter, Buckle forecasts a small sequential increase in sales to $331.98 million and a marginal growth in adjusted EPS to $1.28, as per the earnings press release.

The stock has had a fantastic run this year, with shares still up 80% year-to-date, including the slide this morning.

Results for the first three quarters combined

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Buckle also reported figures for the first three quarters of fiscal 2021 combined. Net sales over the same period were up 56.9% from the same period last year, with same-store sales up roughly the same. Digital sales grew 18.7%.

At $170.9 million or $3.49 per share, net income in the nine-month period also came in significantly higher than last year’s $64.5 million or $1.32 per share.

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