Consumer stocks are as risky as they've ever been now.
Unemployment is at historic highs, consumers are spooked, and
subpar earnings abound as companies pay the price for lost
competitive advantage or fiscal irresponsibility. But tough
times can offer investors
the best chance to buy stocks.
Even if stock prices are low, investors still need to be
careful. Many companies simply won't survive the recession.
However, thinning the herd of weaker competitors should lead
to big winners in the consumer space when the economy
recovers. In this article, I've highlighted two reasons to
love
The Buckle (NYSE: BKE).
Performance!
You may have never heard of The Buckle. You may have
never even seen one of its stores. But somehow, it's blowing
many of its retail peers away when it comes to business
performance, and it has been doing so for a long time
running.
Let's look at its quarterly financial results for the past
year.
The Buckle
Q3 (November 2008)
Q4 (January 2009)
Q1 (May 2009)
Q2 (August 2009)
Earnings (Loss) Per Share
$0.62
$0.74
$0.58
$0.54
Sales Increase/Decrease
26%
22%
25%
14%
Same-Store Sales
19%
14%
18%
9%
As I'm sure you're aware, the past year or so hasn't been
easy for many retailers. Yet somehow The Buckle has been
going like gangbusters, reporting amazing increases in
earnings and sales.
To compare, let's take a look at teen retailers
Abercrombie & Fitch (NYSE: ANF) and
American Eagle Outfitters (NYSE: AEO).
Abercrombie & Fitch
Q3 (November 2008)
Q4 (January 2009)
Q1 (May 2009)
Q2 (August 2009)
Earnings (Loss) Per Share
$0.72
$0.78
($0.68)
($0.30)
Sales Increase/Decrease
(8%)
(19%)
(24%)
(23%)
Same-Store Sales
(14%)
(25%)
(30%) Continued... |