Why Fashion Retailer Buckle Shares Are Gaining Today
Portfolio Pulse from Shivani Kumaresan
Buckle Inc (NYSE:BKE) reported Q3 FY23 sales of $303.46 million, an 8.7% decrease YOY, missing estimates of $316.70 million. Comparable store sales fell by 9.2%, and online sales dropped 16.2%. Operating expenses decreased by 3.3%, while gross profit declined by 11%, with a gross margin contraction of 120 basis points to 48.5%. Operating income decreased by 19.3%, but EPS of $1.04 beat the $0.98 estimate. Despite the sales decline, BKE shares rose by 8.65% to $37.93.
November 17, 2023 | 3:38 pm
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POSITIVE IMPACT
Buckle Inc reported lower Q3 sales and profits but exceeded EPS estimates. The stock price increased by 8.65% following the earnings report.
The increase in BKE's stock price despite the sales decline suggests that the market is reacting positively to the EPS beat and potentially to other underlying factors not detailed in the article, such as investor sentiment or strategic initiatives. The short-term impact is likely positive due to the earnings surprise, but the long-term impact will depend on the company's ability to reverse the sales decline trend.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100