Buckle, Inc. (BKE) saw its shares rise on Friday following the release of its second-quarter earnings report. Despite missing analyst expectations for earnings per share, the company exceeded revenue estimates. However, the report also revealed some challenges for the retailer.
Buckle reported earnings per share of 78 cents, falling short of the anticipated 80 cents. However, its quarterly revenue reached $282.4 million, surpassing the analyst consensus of $272.4 million. Despite the positive revenue figure, comparable store net sales declined by 6.6%, and online sales dropped by 15.2% to $37.0 million. This indicates a potential struggle for Buckle to maintain sales in a competitive retail environment.
The company’s net income for the second quarter came in at $39.3 million, down from $45.6 million a year ago. Gross profit also took a hit, falling to $132.534 million from $138.412 million in the previous year. Operating income declined as well, reaching $48.26 million compared to $56.76 million in the same period last year.
Despite the mixed results, Buckle ended the quarter with a strong cash position, holding $309.12 million in cash and equivalents. Inventory at the end of the quarter stood at $131.418 million.
According to Benzinga Pro, BKE stock has gained 22% in the past year. Investors interested in exposure to Buckle can consider the ProShares Online Retail ETF (ONLN) and The Acquirers Fund (ZIG).
As of Friday’s close, BKE shares were trading up 7.37% at $44.74.
