Is Buckle's Luck Running Out?

(Updated with stock price.)

NEW YORK (TheStreet) -- Buckle(BKE Quote) may be ready to buckle.

The denim retailer was given a sell rating by Goldman Sachs, which initiated coverage of the company on Thursday.

The news sent shares are the company tumbling 5.7% in afternoon trading to $28.58.

The brokerage firm says it sees few drivers of earnings growth left for the company -- given the company's limited store-opening potential and the fact that it is currently operating at peak margins.

Its only hope for earnings upside is a strong trend cycle, which Goldman views as a negative.

In the past, Buckle's outperformance was limited to three to four years. When Buckle hit a down cycle, shares sold off significantly in response to negative same-store sales.

But while comparable sales remain in positive territory, growth for the company has been slowing. In October, Buckle posted a 4.3% increase, missing analysts' forecast of a 5.3% jump.

Goldman's price target for the stock is $27.

Buckle is not the only retailer whose success amid the recession might not carry over into good times. Wal-Mart Stores(WMT Quote), Aeropostale(ARO Quote) and TJX(TJX Quote), could also see their outperformance narrow as the consumer slowly recovers.

-- Reported by Jeanine Poggi in New York

Follow TheStreet.com on Twitter and become a fan on Facebook.