Buckle (BKE) to Post Q3 Earnings: Factors to Impact Results

Buckle, Inc. BKE is scheduled to report third-quarter fiscal 2018 results on Nov 26. In the trailing four quarters, the company has outperformed the Zacks Consensus Estimate by average of 8.2%.

 

How Are Estimates Shaping Up?

 

Buckle is likely to record bottom-line growth of 2.4% in the fiscal third quarter. This is quite evident from the Zacks Consensus Estimate for the quarter under review, which is pegged at 42 cents compared with 41 cents reported in the year-ago quarter. We note that the Zacks Consensus Estimate has gone up by a penny in the past 30 days.

 

The Zacks Consensus Estimate for revenues is pegged at $215.1 million, down roughly 4.1% from the year-ago quarter. We note that Buckle’s total revenues increased 2.8% in the last reported quarter.

 

Let’s delve deeper and find out the factors impacting the results.

 

Buckle, Inc. (The) Price and EPS Surprise

 

Buckle, Inc. (The) Price and EPS Surprise | Buckle, Inc. (The) Quote

Factors at Play

Buckle’s robust gross margin performance is likely to favor its bottom line. In the last reported quarter, the company witnessed gross margin expansion of 130 basis points (bps), driven by lower occupancy, and buying and distribution costs coupled with rise in merchandise margin.

 

Further, the company witnessed strong performance in men’s merchandise sales, with growth of 9.5% in the last quarter. Additionally, men’s merchandise accounted for 53.5% of net sales, an increase from 50.5% in the year-ago quarter. All departments in men’s category saw significant growth. Accessory and footwear businesses also performed well. We hope that these upsides will aid the company’s top line in the near future as well.

 

Although comparable sales (comps) were up 1.4% in the second quarter, the company is grappling with soft comps for a while now. Also, the company’s comps for October dipped 1%, following a decline of 2.4% in the preceding month. In August and June, the company witnessed comps decline of 0.7% and 1.2%, respectively. Moreover, soft women’s merchandise sales remain a concern, declining 1.5% in the last reported quarter. Persistence of these trends may pose threats to the company’s top line.

 

What Does the Zacks Model Say?

 

Our proven model does not conclusively show that Buckle is likely to beat estimates this quarter. A stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

 

Buckle currently has a Zacks Rank #2 but an Earnings ESP of 0.00% makes surprise prediction difficult.

 

Stocks With Favourable Combination

 

Burlington Stores, Inc. BURL has an Earnings ESP of +2.83% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank.

 

DICK’S Sporting Goods, Inc. DKS has an Earnings ESP of +7.69% and a Zacks Rank #2.

 

Ross Stores ROST has an Earnings ESP of +2.22% and a Zacks Rank #2.

 

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Buckle, Inc. (The) (BKE) : Free Stock Analysis Report
 
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
 
Burlington Stores, Inc. (BURL) : Free Stock Analysis Report
 
DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
 
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