Buckle (BKE) Queues Up for Earnings in Q2: What to Expect


The Buckle, Inc. (BKE Quick QuoteBKE ) is likely to register top-line growth when it reports second-quarter fiscal 2021 numbers on Aug 20 before market open. This is quite evident from the sales increases in all the three months of the quarter. The apparel, footwear and accessories retailer registered net sales growth of 33.8%, 17.8% and 75.4% in July, June and May, respectively.

However, the bottom line is expected to have declined on a year-over-year basis. For quarterly earnings, the Zacks Consensus Estimate of 56 cents indicates a decline of nearly 21% from the year-ago quarter’s tally. The consensus mark has been stable in the past 30 days.

A glance at this Kearney, NE-based company’s performance shows that its bottom line outperformed the Zacks Consensus Estimate in the preceding three quarters. In the last reported quarter, it delivered an earnings surprise of 118.9%.

Key Factors to Note

Strength in Buckle’s men’s and women’s divisions as well as its robust online business is most likely to have boosted the company’s sales in the fiscal second quarter. Categories like accessory, footwear and denim as well as its private label business have been performing quite well over time. No wonder, the company is focused on enhancing its omni-channel capabilities. It is also expanding its assortment offerings to meet the customers’ altering preferences. Moreover, the company’s store-expansion and remodeling efforts appear fruitful.

Buckle’s net sales for the 13-week fiscal second quarter ended Jul 31, 2021 surged 36.6% to $295.1 million from $216 million generated in the 13-week fiscal quarter ended Aug 1, 2020.

While the aforementioned factors raise optimism about the company’s quarterly results, increased shipping costs and escalated marketing-related expenses are concerning. The company is also battling several challenges in relation to the supply chain due to the coronavirus outbreak. These headwinds along with rising operating expenses might have weighed on the company’s profitability in the quarter under review.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Buckle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Buckle, Inc. The Price and EPS Surprise Buckle, Inc. The Price and EPS Surprise

Buckle, Inc. The price-eps-surprise | Buckle, Inc. The Quote

Although Buckle carries a Zacks Rank #2 at present, its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks With Favorable Combination

Here are some companies worth considering as our model shows that these have the right combination of elements to beat on earnings this season:

Tapestry (TPR Quick QuoteTPR ) currently has an Earnings ESP of +6.06% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Foot Locker (FL Quick QuoteFL )   presently has an Earnings ESP of +7.24% and a Zacks Rank #3.

Costco (COST Quick QuoteCOST ) currently has an Earnings ESP of +0.44% and is Zacks #3 Ranked.

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