One Retailer Soared 15% On Thursday While Another Fell 10%

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One Retailer Soared 15% On Thursday While Another Fell 10%

A select group of retailers report to investors monthly metrics which gauge how their business is performing.  

On Thursday retail investors reacted sharply to two particular companies: Buckle (NYSE: BKE) and Zumiez. (NASDAQ: ZUMZ)

Buckle Plunges 10%

Shares of Buckle, a retailer of casual apparel, footwear and accessories, saw its stock fall more than 10 percent on Thursday after the company said that its comparable store net sales for the five-week period ending October 1 fell 15.5 percent.  Total not sales for the the same period also fell 14.8 percent to $82.9 million from $97.4 million in the same period a year ago.

The company’s woes extended beyond the five-week period.

Buckle added that its comparable store net sales year-to-date fell 12.1 percent compared to a year ago while total net sales for the same period fell 11.4 percent to $625.8 million from $706.2 million a year ago.

Investors heavily sold Buckle’s stock throughout Thursday’s trading session.  Shares closed the day lower by more than 10 percent at $21.24 after hitting a new 52-week low of $20.85.

Shares of the retailer are now lower by more than 30 percent since the start of 2016 and more than 40 percent over the past year.  By comparison, the retail sector ETF, the SPDR S&P Retail (ETF) (NYSE: XRT) is higher by around 1.50 percent since the start of the year and lower by around 2.3 percent over the past year.

Zumiez Soars

Many investors were likely exchanging Buckle’s stock for Zumiez, a specialty retailing peer that sells apparel, footwear, accessories and hardgoods under its own brand name.

Zumiez said after Wednesday’s market close that its total net sales for the same five-week period rose 11.5 percent to $75.0 million from $67.3 million a year ago.  Meanwhile, comparable sales also increased by 6.3 percent during the same period which marks an improvement from last year’s period which saw a 1.8 percent decline in comparable sales.

Zumiez also impressed investors by raising its guidance – a rare treat in the retail sector.

Zumiez now expects to earn $0.29 to $0.30 per share in its third quarter on revenue of $216 million to $217 million.  The company previously guided its third quarter earnings to be in a range of $0.21 to $0.26 on revenue of $209 million to $213 million.
After Thursday’s strong gains, shares of Zumiez are now higher by nearly 40 percent since the start of 2016 and are also higher by more than 35 percent over the past year.