Buckle Stock Near Support Ahead of Earnings – What to Expect

Buckle, Inc. (NYSE: BKE), a leading retailer of apparel, footwear, and accessories, is set to release its next earnings report this morning, placing the company under intense scrutiny. Markets are eager to assess whether Buckle can sustain its recent financial performance amid a mixed bag of insider trading activity and evolving institutional positions.

The stock is poised at $55.02 leading into the print, an important level that has offered up both support and resistance in recent attempts from either side of the bull/bear line.

Analysts expect Buckle to deliver EPS of $0.95, reflecting an increase from $0.88 in the same quarter last year. Revenue is projected to reach $317.97 million, representing an anticipated 8.3% year-over-year sales growth.

In the second quarter of fiscal 2025, Buckle reported a net income of $45 million, or $0.89 per share, a notable increase from $39.3 million, or $0.78 per share, in the same period last year. Net sales climbed by 8.3% to $305.7 million, driven by a 7.3% increase in comparable store sales and a robust 17.7% surge in online sales.

The company also improved its gross margin by 50 basis points to 47.4% and its operating margin to 18.4% from 17.1% year-over-year. Standout performance in women’s merchandise (up 18.5%) and kids' segments (up 23%) further fueled the positive results. During the quarter, Buckle strategically expanded its brick-and-mortar presence by opening two new stores and remodeling four existing locations.

However, recent insider trading activity has raised some eyebrows. Director James E. Shada sold 10,000 shares in July at an average price of $49.84, totaling approximately $498,400. Similarly, Senior Vice President of Leasing Brett P. Milkie sold 6,000 shares in September for an estimated $361,019.

Perhaps most notably, CEO Dennis H. Nelson sold 20,453 shares in June at an average price of $43.52, amounting to approximately $890,115. While insider sales don't automatically indicate a negative outlook, the scale of these transactions warrants attention, prompting speculation about potential shifts in executive confidence or personal financial strategies.

Institutional backers have also been adjusting their positions. Comerica Bank reduced its holdings by 2.6% during the first quarter of 2025. Conversely, the Illinois Municipal Retirement Fund increased its position, and the State of Alaska Department of Revenue acquired 1,473 shares, reflecting a mixed sentiment among institutional players.

Buckle’s commitment to returning value to shareholders is evident in its recent declaration of a quarterly dividend of $0.35 per share, paid on October 29th. This translates to an annualized dividend of $1.40 per share, yielding approximately 2.6%.

Analyst ratings present a divided view. Wall Street Zen upgraded the stock from “hold” to “buy” in May, while UBS Group maintained a “neutral” rating but raised its price target from $40.00 to $51.00. These differing opinions highlight the uncertainty surrounding Buckle's future valuation.

Year-to-date, Buckle's stock has increased by 16.65%, indicating positive market sentiment overall. The company's market capitalization stands at approximately $2.52 billion.

While consensus seems cautiously optimistic, a deeper dive suggests potential vulnerabilities. Buckle's impressive Q2 results may have been fueled by temporary trends, such as pent-up demand or fleeting fashion fads. The significant insider selling could be a signal that those closest to the company anticipate challenges ahead, such as increased competition from online retailers or a slowdown in consumer spending.

Furthermore, relying heavily on specific merchandise categories like women's and kids' apparel could expose Buckle to risks if those trends reverse. The seemingly attractive dividend yield might not be sustainable if earnings growth stalls.