04:04 PM EDT, 07/12/2024 (MT Newswires) -- The Buckle's (BKE) weak sales indicate shares will underperform in the near term, UBS Securities said in a report emailed Friday.

On Thursday, the company reported a 5.7% drop in comparable-store net sales in the five weeks ended July 6 at stores open at least one year from a year earlier.

The sales slump is "mostly due to company-specific issues, including persistent declines in footwear," UBS said. "We therefore don't believe this result has major implications for other specialty retailers with solid momentum."

Risks at The Buckle include the health of consumer spending, shifting fashion trends and customer preferences, and inventory management, all of which may adversely impact sales, margins and overall financial performance, UBS said.

UBS maintained its sell rating on The Buckle with a $32 price target.

The Buckle's shares rose 1.6% in Friday trading.

Price: 39.04, Change: +0.62, Percent Change: +1.60