Buckle's (BKE) Q1 sales growth acceleration should drive modest sequential improvement in its gross margin compared to a year earlier despite near-term tariff pressures, but UBS Securities said the results are unlikely to be a meaningful stock catalyst as the improvement is largely expected by the market.

UBS Evidence Lab data shows the company is relatively long-crowded. However, the stock has underperformed the S&P 500 in the past quarter, while short interest has increased by 105 basis points over the past three months. This implies mixed sentiment around the company, analysts wrote in a Thursday research note.

Investor concerns point to potential pressure on the company's fiscal 2026 gross margins amid rising freight rates and oil prices. Combined with the lack of annual guidance, these factors will likely limit upside.

UBS Evidence Lab and industry data show web traffic at Buckle's site increased 35% year over year during Q1. Price per unit likely grew faster than cost per unit, which should support merchandise margin expansion during the quarter, according to the note.

The firm reiterated its neutral rating on the stock and adjusted its price target to $52 per share from $53.

Price: 48.95, Change: -0.08, Percent Change: -0.15