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Feb 4, 2010
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Buckle surprises with January sales drop, shares down

By
Reuters
Published
Feb 4, 2010

BANGALORE, Feb 4 (Reuters) - A harsh winter and fewer promotions weighed on Buckle Inc (BKE.N) as the apparel retailer posted its first same-store sales drop in more than two years, sending its shares down as much as 10 percent.

Buckle
"I Dream of Jeans" outfit at Buckle.com

The Kearney, Nebraska-based company reported a fall of 1.2 percent in January sales at stores open for at least a year, while analysts were expecting same-store sales to rise 4.1 percent, according to Thomson Reuters data.

"Comps were down, but it would have been positive were it not for the fact that a year ago they had promotions that they did not have this year. And then, the snowy weather affected their business," Margaret Whitfield, analyst with Sterne, Agee & Leach, said.

The company, which has been guarding sales with higher price points compared to its peers, said in November it was not planning to offer significant discounts during the holiday season.

"Same-store sales have been supported by price, not transaction, and that is not as healthy as you would like to see," analyst Whitfield said, adding that if January has been tough, February would be more difficult with tougher year-over-year comparisons.

Total sales at Buckle's men business fell 2.5 percent while sales of women's products rose 9.5 percent in January, the company said on a pre-recorded call.

Total sales for the fourth quarter ended Jan. 30, rose 9 percent to $274.4 million.

Analysts on average were expecting quarterly sales of $270.8 million, according to Thomson Reuters I/B/E/S.

The company's shares were trading down $3.08 at $28.69 Thursday (4 February) afternoon on the New York Stock Exchange. They touched a low of $28.68 earlier in the session.

(Additional reporting by Mihir Dalal in Bangalore; Editing by Anne Pallivathuckal)

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