Apparently, no one told teenagers we’re in a recession. Consider Buckle (BKE), the teen retailer, which continues to be one of my favorite retail stocks.
This morning, the company reported fourth-quarter earnings of 74 cents a share which is an impressive increase over the 63 cents it earned during the fourth quarter of 2007. This comes at a time when many retail stocks are reporting big earnings drops and announcing layoffs.
Buckle’s earnings were in line with expectations so I don’t expect a big pop in today’s trading. But don’t let that fool you, the expectations for Buckle were very high and the company delivered. Sales rose 21.4% to 251.4 million.
If Buckle can do that well when consumer confidence is down and the economy is contracting, you can imagine how strong it will be once the environment improves. Buckle is an outstanding buy.