Short Buckle? Only if you like money

Buckle is now a short on any decent pop.  The earnings failed to impress and no doubt the longs will use the dividend as an excuse to buy.  That may prove risky as the dividend cannot stay at the current level as sales continue to erode.  The shorts are already leaning on this name so by shorting now you should know this isn’t a new idea that no one has discovered.  Matter of fact the cost to borrow is running at 3%.

 

Here is the deal, foot traffic is pathetic, to say the least at Buckle.  They don’t seem to know their target customer.  Is it the teens? Is it cougar moms?  Are men going to keep buying bedazzled jeans and Affliction shirts?  All that stuff has come and gone.  It may have been cool 5 years ago but I can’t see that fad coming back to life.  Fashion is fickle.  Buckle has been slow to change.  The industry is waiting for the next big cycle of what is hot.  Without a clear fad to chase it will make mall rats like Buckle’s job even more difficult.