Shares of The Buckle, Inc. BKE have increased 7.4% since the company released robust sales numbers for July on Aug 6. Moreover, the company’s online business, which has been open throughout amid the COVID-19 crisis, is performing outstandingly. Coming to sales data, total net sales for the four-week fiscal month ended Aug 1, 2020 grew 3.8% to $70 million from net sales of $67.5 million recorded in the four-week fiscal month ended Aug 3, 2019. This marks the second-straight sales increase on a monthly basis.
We note that the company had seen an increase of 26.8% for June, following a sales decline of 16.8%, 80.8% and 50.2%, respectively, in the preceding three months. Further, net sales for the 13-week fiscal quarter ended Aug 1, 2020 rose 6% to $216 million compared to net sales of $203.8 million recorded in the year-earlier 13-week fiscal quarter. Moreover, online sales for the same quarter surged 99% to $46 million from $23.1 million reported in the 13-week period ended Aug 3, 2019.
However, net sales for the 26-week fiscal period ended Aug 1, 2020 plunged 18.2% to $331.4 million compared with net sales of $405.1 million in the 26-week fiscal period ended Aug 3, 2019. This can be attributed to the adverse impacts of the pandemic that forced retailers to shut stores and witness consequent losses in sales. Likewise, Buckle had temporarily shut its entire brick-and-mortar stores effective Mar 18, 2020.
Notably, this casual apparel, footwear and accessories retailer initiated the process of reopening outlets during the week of Apr 26, 2020. As of Aug 1, 2020, Buckle reopened about 431 outlets and currently operates 446 retail stores across 42 states. During the fiscal July period, the company introduced a store in Ridgeland, MS, while shuttering one.
Out of the 15 outlets that have been closed, two were not opened owing to damage sustained in the closure period. The balance 13 outlets, which are situated in California, were previously reopened but subsequently shut per the state guidelines. Nonetheless, online sales for the year-to-date fiscal period jumped 64.3% to $78.1 million from net sales of $47.5 million for the year-ago 26-week period. Due to store closures, management has decided to report total net sales only every month. It will not issue any separate data on comparable store sales for now. Management continues to evaluate the proper time to resume reporting of its regular monthly sales data based on resumption of normal business functions.
Shares of this Nebraska-based company have gained 15.2% compared with the industry’s 31.5% rally over the past three months.
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