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Buckle (BKE)
NYSE:BKE

Buckle (BKE) AI Stock Analysis

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BK

Buckle

(NYSE:BKE)

Rating:78Outperform
Price Target:
$52.00
▲(9.11%Upside)
Buckle's stock is favorably positioned with strong financial performance, attractive valuation, and positive corporate events. While technical indicators are bullish, the near-overbought RSI and operational challenges such as rising expenses and declining men's sales are factors to monitor.

Buckle (BKE) vs. SPDR S&P 500 ETF (SPY)

Buckle Business Overview & Revenue Model

Company DescriptionBuckle, Inc. (BKE) is an American fashion retailer known for its wide range of casual apparel, footwear, and accessories for men and women. Established in 1948 and headquartered in Kearney, Nebraska, Buckle operates over 400 retail stores across the United States. The company targets fashion-conscious young adults and offers a variety of private label and brand name merchandise, aiming to provide personalized shopping experiences through its customer-centric service approach.
How the Company Makes MoneyBuckle generates revenue primarily through the sale of apparel, footwear, and accessories in its retail stores and online platform. The company's key revenue streams are derived from its diverse product offerings, which include both private label items and well-known third-party brands. Buckle's strategic focus on maintaining a curated selection of high-quality merchandise, alongside personalized service and loyalty programs, helps sustain customer engagement and repeat purchases. Additionally, the company's online sales channel contributes significantly to its revenue, offering an expanded reach beyond physical store locations. Factors such as effective inventory management, trend awareness, and strategic marketing partnerships also play a critical role in Buckle's financial performance.

Buckle Earnings Call Summary

Earnings Call Date:May 23, 2025
(Q1-2025)
|
% Change Since: 15.12%|
Next Earnings Date:Aug 15, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted positive trends in net income, net sales, and women's merchandise performance, as well as improvements in gross margin and private label growth. However, challenges remain with increased SG&A expenses, declining men's merchandise sales, and a drop in footwear sales.
Q1-2025 Updates
Positive Updates
Increase in Net Income
Net income for the first quarter increased to $35.2 million or $0.70 per share, up from $34.8 million or $0.69 per share in the previous year.
Growth in Net Sales
Net sales rose by 3.7% to $272.1 million compared to $262.5 million last year. Comparable store sales increased by 3%, and online sales grew by 4.5%.
Women's Merchandise Performance
Women's merchandise sales increased by 10.5%, with the denim category seeing an 11% rise. This segment now represents 50% of total sales, up from 47% last year.
Improvement in Gross Margin
Gross margin increased to 46.7%, a 70 basis point improvement from the previous year, driven by a 60 basis point increase in merchandise margins.
Strong Private Label Growth
Private label sales represented 47.5% of total sales, up from 46% last year.
Negative Updates
Increase in SG&A Expenses
Selling, general and administrative expenses increased to 30.7% of net sales, up from 29.8% last year, driven by higher incentive compensation, health insurance, and equity compensation expenses.
Men's Merchandise Sales Decline
Men's merchandise sales decreased by 2.5%, and men's denim was down by 0.5% compared to the previous year.
Decrease in Footwear Sales
Footwear sales declined by 7%, representing 5.5% of first-quarter net sales compared to 6% last year.
Company Guidance
During Buckle's first-quarter earnings call for fiscal year 2025, the company reported a net income of $35.2 million, or $0.70 per share on a diluted basis, marking a slight increase from the previous year's $34.8 million, or $0.69 per share. Net sales rose by 3.7% to $272.1 million, with comparable store sales increasing by 3% and online sales growing by 4.5% to $46.4 million. The gross margin improved to 46.7%, driven by a 60 basis point increase in merchandise margins and a 10 basis point reduction in buying, distribution, and occupancy expenses. SG&A expenses increased to 30.7% of net sales, influenced by higher incentive compensation and health insurance costs, though partially offset by decreased e-commerce shipping and marketing expenses. The operating margin stood at 16%, slightly down from the previous year's 16.2%. The balance sheet showed inventory at $132.4 million, a 1.3% increase, and $320 million in total cash and investments. Capital expenditures for the quarter totaled $11.4 million, with $10 million allocated to store construction and remodels. The company completed five full store remodels, closed two stores, and plans to open seven new stores and complete 16 additional remodels later in the year.

Buckle Financial Statement Overview

Summary
Buckle demonstrates strong profitability with a high gross profit margin of 48.8% and a net profit margin of 15.9%. Despite a slight revenue decline, the company's EBIT margin is robust at 19.8%, indicating operational efficiency. The balance sheet is healthy with moderate leverage and a strong return on equity of 44%. Cash flow metrics are solid, supporting financial health and operational resilience.
Income Statement
75
Positive
The company shows strong profitability with a TTM gross profit margin of 48.8% and a net profit margin of 15.9%. However, revenue has slightly decreased by 1.5% from the previous annual report, indicating a challenge in sustaining growth. The EBIT margin remains robust at 19.8%, consistent with industry standards.
Balance Sheet
70
Positive
Buckle maintains a healthy balance sheet with a debt-to-equity ratio of 0.83, indicating moderate leverage. The equity ratio is 45.6%, showing a stable capital structure. Return on equity is strong at 44.0%, reflecting efficient use of shareholder funds.
Cash Flow
80
Positive
The company exhibits solid cash flow metrics with a stable operating cash flow to net income ratio of 1.24, and a free cash flow to net income ratio of 1.02, indicating strong cash generation relative to earnings. Free cash flow has grown by 0.3% from the previous period, showing resilience and efficient capital expenditure management.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.23B1.22B1.26B1.35B1.29B901.28M
Gross Profit599.07M592.79M619.07M676.00M653.01M400.67M
EBITDA259.55M263.50M291.89M346.99M354.19M188.88M
Net Income195.82M195.47M219.92M254.63M254.82M130.14M
Balance Sheet
Total Assets977.33M913.17M889.81M837.58M780.88M845.81M
Cash, Cash Equivalents and Short-Term Investments291.77M290.73M290.42M273.07M266.90M322.15M
Total Debt369.69M326.26M315.41M303.79M288.34M306.27M
Total Liabilities532.06M489.37M476.59M461.26M467.96M449.19M
Stockholders Equity445.27M423.80M413.22M376.31M312.92M396.63M
Cash Flow
Free Cash Flow200.26M199.74M217.37M212.02M292.65M219.76M
Operating Cash Flow243.11M242.01M254.64M242.38M311.75M227.42M
Investing Cash Flow-43.50M-45.28M-41.77M-41.40M-28.77M-768.00K
Financing Cash Flow-198.15M-198.02M-196.74M-202.88M-347.80M-128.83M

Buckle Technical Analysis

Technical Analysis Sentiment
Positive
Last Price47.66
Price Trends
50DMA
41.25
Positive
100DMA
39.62
Positive
200DMA
42.07
Positive
Market Momentum
MACD
1.52
Negative
RSI
75.13
Negative
STOCH
92.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKE, the sentiment is Positive. The current price of 47.66 is above the 20-day moving average (MA) of 44.72, above the 50-day MA of 41.25, and above the 200-day MA of 42.07, indicating a bullish trend. The MACD of 1.52 indicates Negative momentum. The RSI at 75.13 is Negative, neither overbought nor oversold. The STOCH value of 92.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKE.

Buckle Risk Analysis

Buckle disclosed 18 risk factors in its most recent earnings report. Buckle reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Buckle Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ANANF
79
Outperform
$4.36B9.0246.98%12.54%25.47%
BKBKE
78
Outperform
$2.44B12.2744.55%2.94%-1.08%-8.20%
AEAEO
69
Neutral
$1.78B10.5212.19%4.86%-0.95%-10.51%
64
Neutral
$1.64B10.3331.35%1.45%59.09%
62
Neutral
$16.85B11.50-7.38%2.96%1.59%-23.36%
FLFL
55
Neutral
$2.36B194.63-12.85%-2.62%0.93%
47
Neutral
$52.16M-47.54%-8.79%-15.17%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BKE
Buckle
47.66
14.26
42.69%
ANF
Abercrombie Fitch
91.60
-86.93
-48.69%
AEO
American Eagle
10.28
-8.93
-46.49%
FL
Foot Locker
24.73
1.48
6.37%
TLYS
Tilly's
1.73
-3.76
-68.49%
VSCO
Victoria's Secret
20.57
2.77
15.56%

Buckle Corporate Events

Shareholder MeetingsDividends
Buckle Announces Quarterly Dividend for Shareholders
Positive
Jun 3, 2025

On June 2, 2025, The Buckle, Inc. held its Annual Meeting of Stockholders, where the election of the Board of Directors took place, and the selection of Deloitte & Touche LLP as the independent registered public accounting firm was ratified. The following day, June 3, 2025, Buckle announced a quarterly dividend of $0.35 per share, to be paid on July 29, 2025, to shareholders of record as of July 15, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (BKE) stock is a Hold with a $46.00 price target. To see the full list of analyst forecasts on Buckle stock, see the BKE Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025