Shares of apparel, accessories, and footwear retailer The Buckle, Inc. (BKE) have gained 44.2% so far this year. The company reported 36% year-over-year growth in comparable store sales for the month of November. Net sales during this period jumped to $117.3 million from $86.3 million a year ago.
Furthermore, in a major positive, Buckle has announced a quarterly dividend of $0.35 per share and a special dividend of $5.65 per share. Both dividends are payable on December 29.
With these developments in mind, let us take a look at the changes in Buckle’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Buckle’s top two risk categories are Legal & Regulatory and Ability to Sell, contributing 24% each to the total 17 risks identified.
In its recent quarterly report, the company has added one key risk factor under the Legal & Regulatory risk category. Compared to a sector average of 17%, Buckle’s Legal & Regulatory risk factor is at 24%.
Buckle highlighted that mandates for COVID-19 vaccination and other government requirements associated with the pandemic could pose material risks to the company’s operations and results.
Mandatory vaccinations for employees pose a risk to Buckle’s retail store and distribution operations. Such a mandate can also affect the company’s employee retention and recruitment as well. Compliance with vaccination requirements could also increase the company’s labor costs.
Wall Street’s Take
On December 14, Sidoti initiated coverage on the stock with a Buy rating. Based on 1 Buy, consensus on the Street is a Moderate Buy. The Buckle price target of $60 implies potential upside of 45.1%.
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