The Buckle, Inc. Q1 Earnings Report: A Closer Look

• The Buckle, Inc. reported Q1 earnings per share (EPS) of $0.69, missing the expected $0.74.
• Revenue for the period was $262.48 million, slightly below the forecasted $263.64 million.
• Despite a decrease in net sales and online sales, The Buckle, Inc. maintains a healthy financial position with a low price-to-earnings (P/E) ratio of approximately 8.64 and a strong liquidity current ratio of approximately 2.18.

On Friday, May 24, 2024, The Buckle, Inc. (NYSE:BKE), a prominent retailer known for its fashion apparel, footwear, and accessories for young men and women, reported its first-quarter earnings. The company disclosed earnings per share (EPS) of $0.69, which did not meet the anticipated $0.74. Additionally, BKE's revenue for the period was reported at $262.48 million, slightly missing the mark against the expected $263.64 million. This financial update provides a snapshot of the company's performance, reflecting challenges in meeting analyst expectations.

During the Q1 2024 Earnings Conference Call, key figures from The Buckle, Inc., including Tom Heacock, the Senior Vice President of Finance, Treasurer, and CFO; Adam Akerson, Vice President of Finance and Corporate Controller; and Dennis Nelson, President and CEO, discussed the company's financial outcomes and strategic directions. The call, which was attended by analysts such as Mauricio Serna from UBS and Alan Glenn from Concord & Main Ltd., highlighted the company's efforts to navigate its financial landscape. Despite the slight shortfall in EPS and revenue, the company reported a net income of $34.8 million, translating to earnings of $0.70 per share and $0.69 per share on a diluted basis.

The Buckle, Inc. experienced a decrease in net sales, which fell by 7.2 percent to $262.5 million from the previous year's $282.8 million for the same fiscal quarter. This decline was also evident in comparable store net sales, which dropped by 9.0 percent, and online sales, which saw a 13.4 percent decrease to $44.4 million. The adjustments made for the comparison of comparable store net sales due to the 53rd week in fiscal 2023, aligning the current quarter's performance against the 13-week period ended May 6, 2023, underscore the challenges faced by the retailer in maintaining its sales momentum.

Financially, The Buckle, Inc. maintains a relatively healthy position with a price-to-earnings (P/E) ratio of approximately 8.64, indicating a low valuation compared to earnings. The company's price-to-sales (P/S) ratio stands at about 1.50, suggesting that the stock is trading at 1.5 times its sales. Additionally, the enterprise value to sales (EV/Sales) ratio is slightly higher at approximately 1.55, reflecting the company's total valuation in relation to its sales. With an enterprise value to operating cash flow (EV/OCF) ratio of around 7.55, it showcases the company's valuation in terms of its operating cash flow.

The earnings yield is at about 11.57%, offering an attractive return on investment from an earnings perspective. The debt-to-equity (D/E) ratio is relatively low at 0.19, indicating a conservative use of debt in financing. Lastly, the current ratio, standing at approximately 2.18, indicates a strong liquidity position, with the company having more than twice its current liabilities covered by its current assets. These financial metrics suggest that despite the challenges in sales and earnings, The Buckle, Inc. remains in a stable financial condition, capable of navigating through market fluctuations.