Buckle shares surge after same-store sales jump

KEARNEY, Neb. - The Buckle Inc.'s shares surged on Thursday after the teen apparel and accessories retailer reported that November same-store sales jumped 15 percent — marking a rare bright spot in what was otherwise a bleak November for retailers.

Buckle shares surged $4.09, or 20.9 percent, to $23.65 in afternoon trading. The stock has traded between $13.57 and $44.57 in the past 52 weeks.

Same-store sales, or sales at stores open at least a year, is an important gauge of retail health because it measures growth at existing outlets rather than from expansion.

For the four-week period ended Nov. 29, Buckle's same-store sales gained 15 percent from the comparable period ended Dec. 1, 2007. Analysts polled by Thomson Reuters forecast an 8.3 percent increase.

Net sales for November rose 21.6 percent to $72.2 million, from $59.4 million in the prior year.

According to the Goldman Sachs-International Council of Shopping Centers index of 37 stores, retail sales dropped 2.7 percent for November, the worst monthly performance since at least 1969 when the index began.

Wal-Mart Stores Inc. also reported strong results, as shoppers focused on bargains and necessities, but another teen clothing retailer, Abercrombie & Fitch Co., saw a steep 28 percent same-store sales drop.

For the year-to-date period, Buckle's same-store sales jumped 22.6 percent. Year-to-date net sales surged 29.7 percent to $612.8 million, from $472.3 million a year ago.

Sterne Agee analyst Margaret Whitfield noted that Buckle's men's sales gained 15 percent in November to total 43 percent of sales. Women's sales grew 28 percent to total 57 percent of sales.

Despite the robust sales, Whitfield maintained a "Hold" rating on the stock, saying she is cautious about the company's comparisons against the strong levels in fiscal 2009.

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