Online gaining at The Buckle

Leading mall-based denim retailer The Buckle said its third quarter profits fell after strengthening online sales couldn’t overcome in store weakness.



Profits at the operator of 469 stores, billed as a denim destination, declined to $35.9 million, or 74 cents a share, during the third quarter ended Oct. 31, compared to $40.6 million, or 84 cents a share, during the third quarter the prior year. The profit decline was expected as The Buckle had previously reported that same-store sales had declined 5.2% and total sales had declined 4.1% to $280.2 million.



In what has become a recurring theme with retailers, The Buckle said its online sales grew a respectable 13.6% to $25.9 million and now represents 9.2% of total sales. In the prior year third quarter, online sales of $22.8 million represented 7.8% of total sales of $292.2 million. The increasing online penetration rate at The Buckle is understandable considering the supply chain challenges of managing the denim business. The company would appear to be leveraging its online assortment when the selection of fits, styles and finishes available within the confines of a physical store isn’t adequate.



Even if that is the case, 2015 has proven to be a challenging year for The Buckle. Through the first three quarters, sales have declined 1.5% to $787.6 million and same store sales are down 3.1%. Net income has declined to $92.9 million, or $1.93 per share, compared to $102.4 million, or $2.14 per share. Online sales during the first nine months increased 14.4% to $70.2 million from $61.4 million.