The web drives nearly 90% of growth for The Buckle in Q3
November 25, 2013 01:02 PM
Thanks largely to the web side of its business, apparel retail chain The Buckle Inc. increased it total sales during Q3. E-commerce accounted for almost all of the retailer’s growth as same-store sales declined.
For the period ended Nov. 2, 2013, The Buckle, No. 225 in the Internet Retailer Top 500 Guide, reported:
- Online sales of $22.0 million, a 12% increase compared with $19.6 million in the third quarter of last year.
- Net sales of $286.8 million, up 1% from $284.1 million.
- Comparable-store sales dropped 0.5%.
- Net income was $40.6 million, a 3% decrease from $41.9 million.
Online sales represented 7.7% of total revenue during the quarter, compared with 6.9% in 2012. The web comprised around 89% of growth for the quarter.
During a conference call with investors last week, an analyst asked company executives why e-commerce sales increased while store sales dropped, and if weather conditions sent consumers online as opposed to into physical stores. “As far as why the Internet business was stronger than the store, I don't have a good handle on that,” replied CEO Dennis Nelson.
For the first three quarters of the year, The Buckle also reported:
- Online sales of $59.7 million, an 8% increase compared with $55.4 million in the first three quarters of 2012.
- Net sales of $789.0 million, a 3% increase over $763.4 million.
- Comparable-store sales increased 1.2%
- Net income was $103.3 million, a 0.4% boost over $102.9 million.
E-commerce sales represented 7.6% of total sales in the first three quarters of 2013, compared with 7.3% last year. The web comprised 16.8% of growth during for the first nine months of the year.