Asset Structure Analysis
At February 3, 2024 and January 28, 2023, The Buckle, Inc.’s total assets were $890 million and $838 million, respectively.
As of February 3, 2024, The Buckle, Inc.’s net property and equipment were $129 million, and operating lease rights were $280 million. As a retail company, such an asset structure is normal.
The company’s current assets as of February 3, 2024 were $444 million, of which cash and cash equivalents were $268 million and inventory was $126 million.
Liquidity and Debt-paying Ability Analysis
As of February 3, 2024, the company’s total current liabilities were $221 million and total liabilities were $477 million.
The current ratio was 2 times.
The debt ratio was 53.6%.
The Buckle, Inc. has good liquidity, low debt ratio, and a healthy balance sheet.
Profitability Analysis
The Buckle, Inc.’s sales reached $1.26 billion, $1.35 billion, and $1.3 billion in fiscal 2024, fiscal 2023, and 2022, respectively.
Sales have not changed much in the past three years, but declined in 2024.
The company’s net profit reached $220 million, $255 million, and $255 million in fiscal 2024, fiscal 2023, and fiscal 2022, respectively.
The growth of net profit seems to have reached a bottleneck, and the net profit in 2024 declined.
In fiscal 2024, fiscal 2023, and fiscal 2022, the company’s net profit margin was 17.5%, 18.9%, and 19.6%.
Cash Flow Analysis
Net cash from operating activities was $255 million, $242 million, and $310 million in fiscal 2024, fiscal 2023, and fiscal 2022, respectively.
The company has cash flow that matches its net profit, indicating that the quality of the profit is high.
In fiscal 2024, fiscal 2023, and fiscal 2022, the company paid dividends of $197 million, $200 million, and $348 million, respectively.
The Buckle, Inc. basically returned all the money it earned to shareholders.
Conclusion
The company’s balance sheet is relatively healthy and its profitability is relatively strong.
People have doubts about the sustainability of The Buckle, Inc.’s operating performance, and its stock price is not that high.
THE Buckle, Inc.’s stock price is $36.73 and its market value is $1.865 billion.
We estimate that the reasonable valuation is $1.5 billion.
We do not think it is a growth stock, and we are still conservative about the valuation. A price-to-earnings ratio of about 10 times is appropriate.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
The Buckle, Inc. (the “Company”) is a retailer of mid- to upper-tier casual apparel, footwear, and accessories for stylish young men and women. As of February 3, 2024, the Company operated 444 retail stores under the “Buckle” and “Buckle Youth” names in 42 states in the United States. The Company sells a variety of predominantly branded casual apparel, including jeans, other casual bottoms, tops, activewear, outerwear, accessories, and footwear. The Company emphasizes personalized attention to its customers and offers customer service such as free hemming, free gift wrapping, easy installment payments, the Buckle private-label credit card, and a guest loyalty program. Most stores are located in regional shopping centers and lifestyle centers. However, in recent years, the Company has successfully relocated several of its stores in small and mid-sized markets from enclosed malls to power centers and continues to plan to pursue more such relocation opportunities in the future. Most of the Company’s central office functions, including purchasing, pricing, accounting, advertising, and distribution, are controlled from its corporate office and distribution center located in Kearney, Nebraska. The Company’s men’s purchasing team is located in Overland Park, Kansas.
The Company was founded in Nebraska in 1948 and began business as Mills Clothing, Inc., a traditional men’s clothing store with a single location. In 1967, a second store was purchased under the trade name Brass Buckle. In the early 1970s, the store’s image changed to that of a jeans store, with a wide selection of jeans and shirts. In 1976, the first location opened in Columbus, Nebraska. In 1977, the company began selling young women’s clothing and opened its first mall location. The company changed its corporate name to The Buckle, Inc. on April 23, 1991, and since then, the company has experienced significant growth, operating 444 stores in 42 states as of the end of fiscal year 2023. References to fiscal year 2023 herein are to the 53-week period ending February 3, 2024. Fiscal year 2022 is to the 52-week period ending January 28, 2023, and fiscal year 2021 is to the 52-week period ending January 29, 2022. References herein to the “Company,” “Buckle,” “we,” “us,” or similar terms shall mean The Buckle, Inc. and its subsidiaries.
The Company’s principal executive offices are located at 2407 West 24th Street, Kearney, Nebraska 68845. The Company’s telephone number is (308) 236-8491. The Company maintains a corporate website at www.buckle.com.
