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Why Buckle's Stock Tumbled Post Comparable Sales Results

Shares of The Buckle, Inc. BKE dropped roughly 11.6% following a disappointing March comparable-store sales (comps) performance. Comps for the five-week period ended Apr 2, 2016, decreased 11.8% year over year, continuing the trend of decline – 8.9% in February and 11.3% in January.

Buckle, which carries a Zacks Rank #3 (Hold), generated net sales of $96.6 million in March, reflecting an 11% year-over-year decline. Net sales decreased 7.7% in February and 10.1% in January.

Sales at the company’s Men's category tumbled 5.5% year over year. The category contributed nearly 45.5% to Buckle’s March sales. Sales in the Women’s category, which represented 54.5% of the company’s monthly sales, declined 15% year over year. Buckle has not been able to turn the performance of its struggling Women’s business around.

On a combined basis, accessory sales, which constituted nearly 7.5% of the company’s March sales, dropped 7.5%, while footwear sales, which accounted for almost 6.5% of net sales, fell 8.5%.

Comps for the nine-week period ended Apr 2, 2016 were down 10.5%, while net sales over the same time frame dropped 9.5% to $178.4 million from $197.1 million recorded in the year-ago period.

As of Apr 7, 2016, Buckle operated 468 retail stores across 44 states.

Apart from Buckle, Zumiez, Inc. ZUMZ and The Gap, Inc. GPS recorded comps decline of 7.8% and 6%, respectively. On the other hand, L Brands, Inc. LB registered comps growth of 3%.

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ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
 
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BUCKLE INC (BKE): Free Stock Analysis Report
 
L BRANDS INC (LB): Free Stock Analysis Report
 
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