03:32 PM EDT, 08/09/2024 (MT Newswires) -- Buckle's (BKE) negative comparable store sales in July were likely due to certain issues within the company, including footwear declines, along with a softer retail environment, UBS said in a note emailed Friday.

Comparable store sales in July fell 6.8% year over year, a deceleration from a decline of 5.7% in June, UBS said.

"The underlying deceleration in the year-over-year print reinforces our view Buckle's topline pressures are likely to persist in the near term, especially as we consider the consumer spending environment likely deteriorates from here," UBS said.

Net sales in July, however, increased by 3.8%. The difference between the comparable store sales and net sales was attributed to a positive calendar shift that resulted in an additional back-to-school week in July sales, according to the note.

Despite Buckle's stock rebounding 9.8% in the past month and outperforming peers, the company remains one of the most "short-crowded" in UBS' softlines coverage and the market is likely to react negatively to the lack of improvement in its fundamentals, the firm said.

UBS reiterated its sell rating on Buckle's stock, with a price target of $32.

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