Should You Invest in The Buckle (BKE)?

Miller Value Partners, an investment management company, released its “Income Strategy” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -7.34% net of fees compared to a -0.68% return for the ICE BofA US High Yield Index. Also, the fund underperformed the S&P 500 Index which returned -4.88% in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Miller Value Partners discussed stocks like The Buckle, Inc. (NYSE:BKE) in its Q3 2022 investor letter. Headquartered in Kearney, Nebraska, The Buckle, Inc. (NYSE:BKE) is an apparel, footwear, and accessories retailer. On October 20, 2022, The Buckle, Inc. (NYSE:BKE) stock closed at $34.81 per share. One-month return of The Buckle, Inc. (NYSE:BKE) was 7.97% and its shares lost 17.90% of their value over the last 52 weeks. The Buckle, Inc. (NYSE:BKE) has a market capitalization of $1.744 billion.

Miller Value Partners made the following comment about The Buckle, Inc. (NYSE:BKE) in its Q3 2022 investor letter:

“The Buckle, Inc. (NYSE:BKE) had a strong quarter, climbing 14.1%². Buckle reported 2Q23 net sales of $302.0 million, +2.3% Y/Y, slightly below consensus of $304.3 million, and EPS of $1.01, -2.9% Y/Y, ahead of analyst expectations for EPS of $0.89. The company achieved gross margin of 48.1%, in-line with 2Q21 gross margin, as management noted on the earnings call that “markdown inventory continues to be clean.” Comparable store net sales and online sales saw Y/Y growth of 1.6% and 6.5%, respectively. Free cash flow for the quarter was $40.2MM, bringing TTM FCF to $220MM, or a FCF yield of 12.9%.”

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The Buckle, Inc. (NYSE:BKE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held The Buckle, Inc. (NYSE:BKE) at the end of the second quarter, which was 29 in the previous quarter.

We discussed The Buckle, Inc. (NYSE:BKE) in another article and shared Miller Value Partners’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.