Buckle's Margin Pressures Likely to Persist, UBS Says

12:38 PM EDT, 08/24/2026 (MT Newswires) -- Buckle's (BKE) fiscal Q2 showed ongoing margin pressure and higher costs, making the stock less attractive compared with other opportunities, UBS Securities said in a note Monday. While merchandise margins remain resilient, higher store-related costs and additional investments are likely to weigh on earnings growth in the coming quarters, the investment firm said. Buckle is expected to deliver mid-single-digit long-term earnings per share growth and a high-single-digit dividend yield, the analysts said, adding that this return profile is not strong enough to drive a meaningful increase in the stock's valuation or lead to outperformance. "Additionally, we see more attractive opportunities across our coverage universe." The analysts raised their fiscal 2026 EPS estimate by 5 cents to reflect the benefit from tariff refunds. They also slightly increased their fiscal 2026-2027 sales growth forecasts, driven by stronger performance from new stores and relocated stores. They added that their fiscal 2027-2028 EPS estimates remain unchanged. UBS maintained its neutral rating and $46 price target on Buckle. Shares of Buckle were up more than 1% in Monday trading. Price: 44.35, Change: +0.53, Percent Change: +1.22