GICS Sector : Consumer Cyclical
The Buckle, Inc.operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States.It markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear, as well as private label merchandise primarily comprising BKE, Buckle Black, Salvage, Red by BKE, Daytrip, Gimmicks, Gilded Intent, FITZ + EDDI, Willow & Root, Outpost Makers, Departwest, Reclaim, BKE Vintage, Nova Industries, J.B. Holt, and Veece.
The company's third-quarter earnings report presented a mixed bag, with net sales increasing 9.3% to $320.8 million, driven by an 8.3% rise in comparable store sales and a 13.6% jump in online sales to $53 million. However, earnings per share (EPS) came in at $0.96, falling short of estimates of $1.58. Gross margin expanded 30 basis points to 48%, while operating margin improved to 19% from 18.6% in the prior year. Selling, general, and administrative expenses as a percentage of net sales decreased to 29% from 29.1%.
Publication Date: Nov -25
The women's business continued to drive growth, with merchandise sales rising about 19% year-over-year, led by a 17.5% increase in women's denim sales. Average denim price points rose from $81.15 to $86.95. In contrast, men's merchandise sales grew a modest 1%, with denim sales up 1% and average price points relatively flat at $88.15. Accessory sales increased 7.5%, while footwear sales were essentially flat. As management noted, "our women's business continued its acceleration in year-over-year growth rate during the quarter," highlighting the strength of their denim offerings.
Given the company's current valuation metrics, including a P/E Ratio of 13.1 and an EV/EBITDA ratio of 10.18, the market appears to be pricing in moderate growth expectations. Analysts estimate revenue growth of 7.0% for next year, which is slightly below this quarter's 9.3% increase. With a Return on Equity (ROE) of 44.42% and a Return on Invested Capital (ROIC) of 21.25%, the company has demonstrated its ability to generate strong returns. As the company navigates the competitive retail landscape, its ability to sustain growth in women's denim and revive men's sales will be crucial to meeting investor expectations.
Management attributed the shift in merchandise margin to a slight decrease in private label business and an increase in costs due to tariffs and other flow-throughs. The gross margin expansion to 48% is a positive sign, but investors will be watching to see if this can be sustained. The 50 basis point increase in year-to-date gross margin to 47.4% is also encouraging. As Thomas Heacock noted, "the biggest drivers are really the decrease slightly in private label business with some of the brands performing really well, especially in women's denim."
The Buckle, Inc. Reports November 2025 Net Sales
Dec -04
The Buckle, Inc. (BKE) Q3 2026 Earnings Call Transcript
Nov -21
First Look: AI selloff, jobs jitters, and big corporate shifts
Nov -21
The Buckle, Inc. Reports Third Quarter Net Income
Nov -21
Bank of New York Mellon Corp Increases Stock Holdings in Buckle, Inc. (The) $BKE
Nov -16
The Buckle Now Fits Value Investors (Rating Upgrade)
Nov -16
Buckle, Inc. (The) $BKE Shares Sold by Aviva PLC
Nov -14
The Buckle, Inc. (BKE) Period Ending/ Trading Statement Call Prepared Remarks Transcript
Nov -11
The 4.65% growth in Denims from The Buckle, Inc. is driven by increasing demand for fashion-forward and comfortable clothing, particularly among Gen Z and millennials. Additionally, the company's focus on private label brands, effective inventory management, and strategic pricing strategies have contributed to the growth.
The 4.65% growth in Tops (including Sweaters) from The Buckle, Inc. is driven by increasing demand for casual wear, rising popularity of athleisure, and effective marketing strategies. Additionally, the company's focus on providing high-quality, fashion-forward products at affordable prices has contributed to its growth. Furthermore, the expansion of online shopping channels and strategic partnerships have also boosted sales.
The Buckle, Inc.'s accessories segment growth of 4.83% is driven by increasing demand for fashion-forward and trendy accessories, particularly among Gen Z and millennials. Strong brand recognition, effective marketing strategies, and a wide range of products at affordable prices also contribute to this growth.
The Buckle, Inc.'s footwear segment growth of 4.83% is driven by increasing demand for fashion-forward and comfortable footwear, particularly among younger generations. Strong brand recognition, effective marketing strategies, and a wide range of styles at affordable prices also contribute to this growth.
The Buckle, Inc.'s 4.83% growth in Sportswear/Fashion is driven by increasing demand for casual, comfortable clothing, particularly among Gen Z and millennials. Strong brand recognition, effective marketing strategies, and a focus on omnichannel retailing also contribute to growth. Additionally, the company's ability to stay on-trend with fashion cycles and offer affordable prices has helped to attract and retain customers.
Youth from The Buckle, Inc. achieved 4.83% growth driven by increasing demand for trendy and affordable fashion, effective social media marketing, and strategic partnerships with popular influencers. Additionally, the company's focus on experiential retail and loyalty programs contributed to the growth, as well as its ability to adapt to changing consumer preferences.
The Buckle's Outerwear segment growth of 4.83% is driven by increasing demand for fashion-forward and functional outerwear, particularly among younger demographics. Strong brand recognition, effective marketing strategies, and a wide range of styles at affordable prices also contribute to this growth.
The Buckle's Casual Bottoms segment growth of 4.83% is driven by increasing demand for fashion-forward denim, successful marketing campaigns targeting younger demographics, and strategic store expansions in high-traffic locations. Additionally, the company's focus on private label brands and competitive pricing strategies have contributed to the segment's growth.
The Buckle, Inc. offers a wide range of denim products including jeans, shorts, and jackets from popular brands like BKE, Buckle Black, and ReRock.
The Buckle, Inc. sells a variety of tops including graphic tees, blouses, and sweaters from brands like Fossil, Hurley, and Oakley.
The Buckle, Inc. offers a range of dresses including maxi dresses, mini dresses, and bodycon dresses from brands like Free People and Billabong.
The Buckle, Inc. sells a wide range of shoes including boots, sneakers, and sandals from brands like Dr. Martens, Vans, and Steve Madden.
The Buckle, Inc. offers a range of accessories including hats, belts, and jewelry from brands like Fossil and The Sak.
The threat of substitutes for The Buckle, Inc. is medium due to the presence of alternative fashion retailers and online shopping platforms.
The bargaining power of customers is high due to the availability of numerous fashion retailers and online shopping platforms, giving customers a wide range of options.
The bargaining power of suppliers is low due to the company's large scale of operations and ability to negotiate better prices with suppliers.
The threat of new entrants is medium due to the moderate barriers to entry in the fashion retail industry, including the need for significant capital investment and establishment of a strong brand reputation.
The intensity of rivalry is high due to the presence of numerous fashion retailers and online shopping platforms, leading to intense competition for market share.
| Value | |
|---|---|
| Debt Weight | 43.29% |
| Debt Cost | 3.95% |
| Equity Weight | 56.71% |
| Equity Cost | 9.87% |
| WACC | 7.31% |
| Leverage | 76.33% |
Value: 4.5
Growth: 3.9
Quality: 7.5
Yield: 10.0
Momentum: 8.0
Volatility: 7.0
1-Year Total Return ->
Value: 7.2
Growth: 5.0
Quality: 4.9
Yield: 5.0
Momentum: 0.5
Volatility: 3.3
1-Year Total Return ->
Value: 8.7
Growth: 4.0
Quality: 6.3
Yield: 2.0
Momentum: 0.5
Volatility: 4.0
1-Year Total Return ->
Value: 9.8
Growth: 2.8
Quality: 3.8
Yield: 6.0
Momentum: 1.5
Volatility: 1.3
1-Year Total Return ->
Value: 9.8
Growth: 1.1
Quality: 4.5
Yield: 5.0
Momentum: 1.5
Volatility: 1.7
1-Year Total Return ->
Value: 1.9
Growth: 2.1
Quality: 5.1
Yield: 1.0
Momentum: 5.0
Volatility: 2.0
1-Year Total Return ->