Retailer Buckle Posts Decent Growth In March

Buckle (BKE) may serve as a good barometer of the U.S. consumer, especially young adults who seek stylish clothes but don't want to spend top dollar for them.Jeans are a bread-and-butter product for the Kearney, Neb.-based retailer, which operates 409 stores in 41 states.Buckle's name-brand and private-label designer jeans are not cheap, with most priced between $74 and $148 each. But these prices don't reach the stratospheric levels of premium denim hawkers like True Religion (TRLG) and Guess (GES).
On April 7, Buckle announced an 8.4% rise in same-store net sales in March vs. year-ago levels. Net sales rose 11.4% to $97 million.

Indeed, Buckle's profit and revenue growth in recent quarters is hardly breathtaking, but the company has steadily increased its earnings per share each year since fiscal 2005 ended in January that year.

Earnings per share grew 10% or faster in six of the past eight quarters. The last time Buckle's growth surpassed 25% was in the quarter ended in April 2009. IBD's CAN SLIM strategy recommends focusing on stocks that are growing quarterly earnings by 25% or more.

Nevertheless, its three-year earnings stability factor of 8 is exceptional in the fast-changing retail apparel industry. The 1 factor is reserved for companies with the most stable earnings; a 99 is the least stable.

Buckle will pay a quarterly per-share dividend of 20 cents on April 27; its annualized dividend yield is 1.8%.

In both December and February, the stock lacked the buying power needed to burst past resistance at 40. But on March 30, Buckle rose 3% and closed at 40.05 in volume that exceeded its average by 54%.

The stock is now extended from the proper buy point; watch to see if it might pull back to within buying range or touch its 50-day moving average line for the first or second time in the future.

Buckle's 88 Relative Price Strength Rating is solid.

In April, the firm said that CFO Karen Rhoads will step down from her post by the end of the current fiscal year, which ends on Jan. 28, 2012. Rhoads plans to continue serving on the company's board of directors.
Par jeanssale le vendredi 22 avril 2011

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