Buckle’s (BKE) Women’s Business Is Quietly Outrunning The Rest Of The Store

Buckle Inc. (BKE) reported a 4.6% increase in second-quarter net sales to $319.8 million, while net income fell to $44.4 million. Women's apparel now accounts for half of the company's sales, growing more than three times faster than the overall business. Denim led growth in women's apparel, with a 11% increase and an average price point rising from $85.35 to $92.50.

Alternative pants saw a 50% increase in demand, driven by prints, colors, and wider-leg silhouettes. Kids' apparel also grew 11%, with "Mini Me styling" attracting matching looks between parents and children. The men's segment remained flat, with a 3.5% decline in men's denim sales. Marketing and labor costs contributed to a 0.4% decline in operating margin to 17.4%.

Inventory increased 13.3%, outpacing sales growth, while units per transaction declined 1%. Capital spending totaled $20.1 million. Hedge fund ownership of Buckle fell from 39 funds to 30 in the most recent quarter. The stock trades at a forward P/E of 11.75, suggesting limited growth potential compared to other AI stocks.