Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

The Buckle, Inc. (BKE): Buckle Up for a Good Ride With This Company

For American Eagle Outfitters (NYSE:AEO), the company is gearing up for international expansion. The company will take over its six licensee stores in China and add more of its own stores in the nation. American Eagle also hired the person that helped Guess? expand in China to do the same. The company also announced it would open its first store in Mexico. Mexico is growing rapidly and there’s strong demand for American retailers. American Eagle will also expand in the Philippines. The largest retailer in the Philippines, Suyen, will franchise American Eagle stores there. As the company expands into these fast-growing markets, look for the top and bottom lines to improve.

Going forward with Guess?, the focus is on returning to its roots with a focus on new designs for its denim jeans. The new designs will be in the fall product line and will be seen in the company’s ever-present ad campaigns. The company is in the process of hiring a new COO and CFO, and that will help once those positions are filled.

The problem I have with Guess? is that the company is still in turnaround mode and is forecasting weak sales. Guess? has a lot of exposure to Europe and is dealing with the overall weakness across the euro zone. Furthermore, with the executive management roles still not filled, it will take some time for a complete turnaround.

Foolish assessment

The best bet in the retail sector for jeans remains The Buckle, Inc. (NYSE:BKE). Sales are increasing and the company still has plenty of room for expansion in the U.S. American Eagle Outfitters remains attractive due to its moves overseas that will boost growth. Guess? is in the midst of a turnaround and investors should be patient and look for evidence of sales increasing and see how the new fall collection fares. Once a new COO and CFO are appointed, that will give the company some stability, but it will take time for the executives to get settled into their new roles. For now, I would stick with Buckle followed by American Eagle Outfitters.

The article Buckle Up for a Good Ride With This Company originally appeared on and is written by Mark Yagalla.

Mark Yagalla has no position in any stocks mentioned. The Motley Fool recommends Guess? and The Buckle. The Motley Fool owns shares of Guess? and The Buckle. Mark is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.