The buckle Lumber Company
The buckle Lumber Company
Introduction
The Buckle (BKE) aligns the account for investors looking for a supply that boasts both long-run development promise and present income. This Zacks #2 Rank supply is anticipated to augment its profits per share at 12.0% per year for the next three to five years. It furthermore has a present bonus yield of 2.1%(Fuhrmann 2010)
Investment Story
BKE is a specialty retailer of casual apparel, footwear, and accessories for juvenile men and women. It deals its merchandise under both private-label and title brands. It functions over 400 shops in 41 states under The Buckle nameplate.
The business differentiates its shops through its merchandise blend and a better buying experience. The Buckle strives against with other mall-based, specialty retailers encompassing Abercrombie and Fitch (ANF), American Eagle Outfitters (AEO), and Aeropostale (ARO). (Fuhrmann 2010)
The Buckle isn't a blink in the pan. It has developed its yearly sales at 9% per year since 2002. And in the last three years, the retailer has described contradictory comps just one time.
The company's achievement arises from management's proficiency to recognise merchandise that resonates with its goal market (young men and women between the ages of 12 and 24) and to employees its shops with cooperative but not pushy front-line associates. The Buckle's most latest monthly sales report illustrates that the retailer's impetus continues strong. On April 8, it described March comp-store sales of +7.2%. This was about 100 cornerstone points before analyst expectations. On its face, BKE's March comp doesn't gaze as powerful as some other retailers. However, we note that Buckle's 7.2% March 2010 comp was on peak of a outstanding 14.7% comp in March 2009.
Earnings Trends
BKE's latest profits outcomes have been solid. In the fourth quarter, the retailer trounce the Zacks Consensus Estimate by 6 cents, or 7.1%. The retailer has struck the Zacks Consensus Estimate by an mean of 9.2% in the 5 quarters. The Buckle's proceeded power has analysts expanding their estimates. In the last 7 days, there have been 12 up modifications to the company's profits estimates. And in the last month, the Zacks Consensus Estimate for fiscal 2011 is up 22 cents, or 4.3%, and agreement approximates for fiscal 2012 are up 2 cents, or 1.0%.(Fuhrmann 2010)
Case Analysis
The Buckle, Inc. (BKE) is one of the premier retailers for casual apparel, footwear and accessories for fashion-conscious juvenile men and women. Currently the-Buckle they function over 400 shops in 41 states, under the titles Buckle and The Buckle. Its market share varieties from a broad assortment of emblem titles and personal mark casual apparel, encompassing denims, other casual bases, peaks, sportswear, outerwear, accessories and footwear. The Company emphasizes personalized vigilance to its clients and presents one-by-one clientele services for example free alterations, layaways, and a common shopper program. (Fuhrmann 2010)
What BKE Has Done
Buckle is a very cautious run business with powerful management. In the past 10 years sales have developed over ...