Today was an amazing day for mall-facing clothing retailer The Buckle (NYSE:BKE), which is telling, considering it’s got the phrase “mall-facing” built into its description. However, after posting an earnings report that might make you believe that malls have a future again, The Buckle gained in Friday afternoon’s trading.
The earnings report The Buckle released wasn’t all that great, certainly not enough to merit a 9% gain by itself. But gain it did, as it posted $1.04 per share in earnings. That beat analyst projections calling for $0.95 per share in earnings.
However, revenue proved a miss in several ways. It brought in $303.5 million, which not only couldn’t match the $316.95 million analysts projected but also faltered against the third quarter of 2022, slipping 8.7% against that year’s figure. Comparable store net sales slid 8.2% against 2022’s third quarter as well. Even online sales couldn’t salvage the day, falling to $46.1 million compared to the $55 million from 2022’s third quarter.
Why Did BKE Surge Today?
While The Buckle’s stats look mostly damning with faint praise, there’s no doubt it blasted up like it just did something significant. But what did it do? One report from Texoma’s Homepage may have some idea; that report notes that The Buckle will be leaving the Sykes Senter Mall in a matter of weeks, sometime in early December. Instead, it will be moving to the Quail Creek Crossing Shopping Center. The difference between the two is stark, yet may represent something of a trend in the making for physical retail.
The Sykes Senter Mall is an enclosed mall that finished construction in the 1970s. The Quail Creek Crossing, meanwhile, is a strip mall. Sykes Senter recently lost one of its remaining anchor stores, a Dillard’s, which leaves only At Home and JCPenney. For The Buckle to depart indoor malls, it may suggest a greater focus on online retail and lower-overhead physical retail options.
Is Buckle a Good Stock to Buy?
A look at the past five trading days for BKE stock highlights the level of impact today’s news had on it. Indeed, shares jumped over 8% at the time of writing. As a result, investors are now up 13.54% during this timeframe. Nevertheless, it’s still down over 8% on a year-to-date basis.
