The Buckle Inc. delivered disappointing results for the first quarter with net income and sales falling again.
Considering the size of the decline, the stock was only dropping by a modest 2 percent to $22.94.
Net income for the quarter fell 25 percent to $23.1 million, or 48 cents a diluted share, down from $33.6 million, or 70 cents, a year ago. The FactSet estimate was for earnings of 55 cents a share.
Sales for the three months ended April 30 decreased 10.2 percent to $243.5 million from $271.3 million a year earlier. The sales were just shy of the FactSet estimate for $244 million. Comparable-store sales decreased 11.1 percent. Online sales fell 2.8 percent for the quarter.
Gross profits fell from $113,597 for the first quarter of last year to $94,729 for this year’s first quarter.
Buckle also said that net sales were affected by a $3 million adjustment that was recorded as a reduction to accrue for estimated future rewards related to the new Guest Loyalty program. The company said that despite the impact, the company is excited about the potential benefits of the program.
Buckle’s stock has declined 47 percent this past year. The retailer hasn’t been able to turn around its business and the remaining analysts covering the company all give the stock a “Hold” rating.