Buckle (BKE): Good product mix, good execution, good company

By Michael Cintolo, Vice President of Investments and Editor of Cabot Market Letter and Cabot Top Ten Report
From Cabot Wealth Advisory, 4/25/09 Sign up for free Cabot Wealth Advisory e-newsletter

Retail stores have heard the message, loud and clear, that consumers are looking for value. One such store is Buckle (BKE), which was featured in Cabot Top Ten Report on April 6:

“Buckle, which was founded in the fashion capital of Kearney, Nebraska, in 1948, has turned into a real contender in the iffy business of selling clothes, shoes and accessories to young people. The product mix is the usual array of denims, pants, shirts and outerwear, but the company’s management has a knack for keeping its 390 stores in 40 states profitable. Attention to personal service, free alterations, layaways and a frequent shopper program are nice to see, but ultimately, good management is the real story. The company’s Q4 earnings report on March 11 was headlined by a 25% gain in earnings on a 21% rise in revenues, and the after-tax profit margin of 14.6% (huge for a retailer) was a new high. A 2.3% dividend is an added attraction. Good product mix, good execution, good company—that’s the kind of combination that put Buckle into Cabot Top Ten Report….BKE had been a steady long-term performer, climbing along with earnings and paying a steady dividend.”

Editor’s Note: BKE might be a good investment if you want to capitalize on teenagers’ penny-pinching trend, but it likely won’t be discussed here again. It is being followed in Cabot Top Ten Report, however, and will be as long as it looks like a winning stock. To get the latest updates on it and other leaders, click on this link: Information on Cabot Top Ten Report

Mike Cintolo Michael Cintolo

Vice President of Investments and Editor of Cabot Market Letter and Cabot Top Ten Weekly

A growth stock and market timing expert, Michael Cintolo is editor of Cabot Market Letter and Cabot Top Ten Weekly. Since joining Cabot in 1999, Mike has uncovered exceptional growth stocks and helped to create new tools and rules for buying and selling stocks. Perhaps most notable was his development of the proprietary trend-following market timing system, Cabot Tides that has helped Cabot place among the top handful of market-timing newsletters numerous times.

Company Details

Buckle (BKE)
2407 West 24th Street
Kearney, Nebraska 68845-4915
Index Membership: S&P 600 SmallCap, S&P 1500 Super Comp
Sector: Services
Industry: Apparel Stores
Full Time Employees: 1,955