$BKE Set To Squeeze The Shorts$BKE delivered a strong Q3 earnings report and the stock gapped and made new 52-week highs. With 35% of the float short, we believe $BKE is set to keep climbing as the shorts get squeezed. Here are the highlights from Q3:
Buckle (NYSE:BKE): Q3 GAAP EPS of $0.53 beats by $0.10.
Revenue of $224.12M (+4.2% Y/Y) beats by $6.34M.
Buckle reported a comparable sales increase of 4.7% in Q3.
The company's gross margin also improved to 41.7% of sales vs. 40.1% a year ago and was well ahead of the consensus mark of 38.4%.
Operating margin rose to 14.9% of sales vs. 12.2% a year ago.
The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. It markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear, as well as private label merchandise primarily comprising BKE, Buckle Black, BKE Boutique, Red by BKE, Daytrip denim, Gimmicks, Gilded Intent, FITZ + EDDI, Outpost Makers, Departwest, and Veece. The company also provides services, such as hemming, gift-wrapping, layaways, guest loyalty program, the Buckle private label credit card, and personalized stylist services, as well as special order system that allows stores to obtain requested merchandise from other company stores or its online order fulfillment center. As of February 02-2019, it operated 450 retail stores in 42 states under the Buckle and The Buckle names. The Buckle, Inc. also sells its products through its Website, buckle.com. The company was formerly known as Mills Clothing, Inc. and changed its name to The Buckle, Inc. in April 1991. The Buckle, Inc. was founded in 1948 and is headquartered in Kearney, Nebraska.
As always, use protective stops and trade with caution.
Good luck to all!
