"Retail", "brick-and-mortar", "fast-fashion": it's hard to imagine a more deadly combination, as the cemeteries of capitalism are so full of companies that combined these three attributes.
Few of them have survived the effects of fashion or the breakthrough of e-commerce. However, there are some strange exceptions, such as the American chain The Buckle, which published its annual results at the end of last week.
On the surface, nothing distinguishes it from its peers: its assortment of jeans and other "casual" clothing could not be more classic.
On the surface only, because if you dig a little deeper, two things stand out: one, the management is completely focused on profitability at the expense of growth; two, a chairman and a CEO who are both long past retirement age, but still control 40% of the capital.
An octogenarian and a septuagenarian thriving in jeans and hoodie retailing - that's something to smile about. Add the headquarters in Kearney, Nebraska, and you've almost got Berkshire Hathaway stock!
In any case, the results for fiscal year 2023 are in line with long-term performance: no growth beyond inflation, but operating margins higher than those of Zara or Levi's.
Cash generation is plentiful and accounting perfectly clear, while balance sheet and working capital optimization are textbook. The Buckle has no excess debt or capital, redistributes all its profits through regular and special dividends, and has a return on equity of 80%.
Proof that, even in a hyper-difficult sector, astute management can make a difference when it works with measure, prudence, patience and realism.
The market capitalization - approaching $2 billion - represents a multiple of only x7-x8 the profits. This discount is probably explained by the uncertainty surrounding the succession plan of the two leading figures, Daniel Hirschfeld and Dennis Nelson.
The Buckle, Inc. is a retailer of casual apparel, footwear, and accessories. The Company operates approximately 440 retail stores in 42 states. The Company markets a wide selection of casual apparel including denim, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear. It also provides customer services, such as free hemming, free gift-packaging, easy layaways, the Buckle private label credit card, and a guest loyalty program. The Company offers denims from brands such as Miss Me, Rock Revival, KanCan, Hidden, Flying Monkey, Levi's, Preme, Smoke Rise, Ariat, Good American, and Wrangler. Other key brands include Hurley, Billabong, Affliction, American Fighter, Sullen, Howitzer, Oakley, Fox, RVCA, 7 Diamonds, Nixon, Free People, Z Supply, Salt Life, White Crow, Brew City, Reef, Stance, Versace Cologne, American Highway, Eight X, Pendelton, Hooey, Goorin Bros., Old Row, Timberland, Teva, Kimes Ranch, SOREL, Hey Dude, Steve Madden, Dolce Vita, and SAXX.
THE BUCKLE, INC. 
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