Dennis H. Nelson, the President and CEO of Buckle Inc. (NYSE:BKE), recently sold 20,453 shares of the company's common stock, generating proceeds of approximately $1.05 million. The shares were sold at an average price of $51.37 each. This transaction was executed on December 17, 2024, under a pre-established 10b5-1 trading plan, which Nelson adopted earlier this year on April 24. According to InvestingPro data, Buckle maintains strong financial health with impressive gross profit margins of 59% and a healthy P/E ratio of 12.5.
Following this transaction, Nelson holds 1,760,187 shares indirectly through a trust, demonstrating continued significant ownership in the company. Additionally, he maintains direct ownership of 324,000 shares, with other holdings in various family-related accounts. The company currently offers a substantial 7.9% dividend yield and has maintained dividend payments for 22 consecutive years.
This sale is part of Nelson's strategic financial planning and does not necessarily indicate any change in his view of the company's prospects. Investors often scrutinize such transactions for potential insights into the executive's confidence in the company's future performance. InvestingPro analysis suggests the stock is currently trading near its Fair Value, with 8 additional key insights available to subscribers through the comprehensive Pro Research Report.
In other recent news, Buckle reported a decline in net income and sales for its third quarter of 2024. The fashion retailer's net income fell to $44.2 million, or $0.88 per share, from $51.8 million, or $1.04 per share, during the same period last year. Net sales also experienced a 3.2% decrease, landing at $293.6 million. This was despite a slight uptick in online sales and women's denim, with the overall decline attributed to decreased sales in men's merchandise and footwear.
In terms of future plans, Buckle intends to open one more store and complete seven remodels by the end of the year. Looking ahead to 2025, the company anticipates opening between 7 and 8 new stores with a net addition of 2 to 3 stores. However, it's worth noting that footwear sales saw a significant decline of 17%, and selling, general, and administrative expenses rose to 29.1% of net sales. On a positive note, private label penetration increased to 48.5% of sales, and accessories sales grew by 3%. These are some of the recent developments around Buckle.
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