Buckle (BKE) has reported a 33.76 percent plunge in profit for the quarter ended Jan. 28, 2017. The company has earned $36 million, or $0.74 a share in the quarter, compared with $54.34 million, or $1.13 a share for the same period last year.
Revenue during the quarter dropped 15.68 percent to $279.96 million from $332.03 million in the previous year period. Gross margin for the quarter contracted 207 basis points over the previous year period to 44.89 percent. Total expenses were 80.20 percent of quarterly revenues, up from 74.91 percent for the same period last year. That has resulted in a contraction of 529 basis points in operating margin to 19.80 percent.
Operating income for the quarter was $55.43 million, compared with $83.31 million in the previous year period.
Dennis Nelson, president and chief executive officer, commented: "Thank you to each of Buckle's 8,000+ teammates for their dedication and efforts to managing our business in what has proven to be a challenging and evolving retail environment. While overall results for both the quarter and year were below expectations, we were able to maintain merchandise margins and finish the year with an operating margin of 15.7 percent. Our focus on running a profitable business also enabled us to maintain a strong balance sheet, ending the year with $264.6 million in cash and investments and no debt."
Working capital increases
Buckle has recorded an increase in the working capital over the last year. It stood at $287.84 million as at Jan. 28, 2017, up 12.76 percent or $32.57 million from $255.27 million on Jan. 30, 2016. Current ratio was at 3.92 as on Jan. 28, 2017, up from 3.37 on Jan. 30, 2016.
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