UBS reiterates Neutral rating on Buckle stock despite September sales growth

Published 10/10/2025, 15:30
UBS reiterates Neutral rating on Buckle stock despite September sales growth

Investing.com - UBS has maintained its Neutral rating and $54.00 price target on Buckle, Inc. (NYSE:BKE) following the company’s September sales report. According to InvestingPro data, the company trades at a P/E of 13.4x and maintains impressive gross profit margins of 59%, with the stock currently showing a modest undervaluation relative to its Fair Value.

Buckle announced September net sales increased 7.8% year-over-year to $108.4 million, with retail comparable sales growing 6.9% compared to the same period last year.

The retail comparable sales growth marked a significant deceleration of 530 basis points from August’s 12.2% year-over-year increase, which had strengthened from July’s 11.0% growth.

On a two-year basis, Buckle’s September comparable sales rose 1.1%, showing a sequential slowdown of 570 basis points from August’s 6.8% growth.

UBS expressed caution regarding Buckle’s margins and earnings trajectory, citing potential impacts from tariff-related costs on the company’s private brands business, which represents 47% of sales.

In other recent news, The Buckle, Inc. reported a 6.9% increase in comparable store net sales for September, with total net sales rising 7.8% to $108.4 million. The company also declared a quarterly dividend of $0.35 per share, payable on October 29, 2025. Kansas City Capital maintained its Perform rating on Buckle following a strong quarterly performance, with earnings per share of $0.89, surpassing both the previous year’s $0.78 and the firm’s estimate of $0.77. Revenue for the quarter increased by 8.3% to $305.7 million, driven by a 7.3% gain in comparable store sales.

Additionally, Buckle reported a 12.2% increase in August comparable store sales, with total net sales rising 13.4% to $119.2 million. UBS raised its price target for Buckle to $54.00, citing the company’s solid growth strategy and consistent cash returns to shareholders. These developments reflect Buckle’s ongoing efforts to drive sales growth and maintain high EBIT margins.

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