Jacob Babcock

Brian Fielder

Matt Haskamp

Kirk Howard

Mike Russell

1948 – Mill’s Clothing◦ Kearney, Nebraska◦ David Hirschfield

1965 – Change of Hands (Daniel)◦ 2 New stores – Brass Buckle◦ Changed Original Store name

Men’s Apparel Jeans store that offered wide selection of denim

apparel and coordinating shirts

History

1977 – Men’s and Women’s• 1990 – Re-vamped Whole store

oAppeal to college –aged customersoLayout, Lighting arrays, fixtures, music

April 21, 1991 – The Buckle arriveso1992 – IPO - NASDAQo1997 – NYSEoCurrently 404 Stores

History

Denim Destination ◦ 41 % of total sales◦ BKE Jeans

38 % of Denim salesComplements

◦ Tops, footwear, outerwear, accessories◦ Brands : Affliction, Sinful, Hurley, Billabong,

Quicksilver/ Roxy, 7 Diamonds, OBEY, Ed Hardy, and Fossil.

Products

Target market◦ Young men and women ages 12-24 who are

fashion-conscious and able to purchase medium to higher priced apparel, shoes, and accessories.

1 % Market Share

Customers

Higher end – Fashion & Quality◦ $ 5.00 – Accessories◦ $110.00 – Jeans◦ $350.00 - Women’s Boots◦ $700.00 – Leather Jacket / Watch

Financial Crisis◦ Lower Demand◦ Difficult to increase Markups

Pricing

Manufacturers ship apparel to corporate headquarters◦ Merchandise is received, sorted, and shipped ◦ Packaged for transit to individual retail outlets◦ Shipped within 1 day of receipt

Allows for quick & efficient deliveryNew experience every time

Distribution

Internet◦ E-mail lists

Credit Card

Events

Social Media

Promotion

Main IssueHow to maintain market share in an

industry that is shifting towards mass retailers?◦Price-sensitive consumers◦Less discretionary income◦More emphasis on convenience

Financial Performance2009 Operating Revenue - $800,000,000

◦13th in respective market

Gross Margin Percentage – 43.37%◦3rd highest◦Industry average – 38%

2009 Net Income - $105,000,000◦ Eddie Bauer & Coachman – ($200,000,000)

Financial PerformanceReturn on Assets (ROA) – 21.7%

◦Industry Average – 3.6%

Net Profit Margin – 15.75%◦Industry Average – 2.3%

Inventory Turnover – 8.4 ◦Industry Average – 7.3

Asset Turnover – 1.38 ◦Industry Average – 2.03

Economic ConditionsDiscretionary income down 3-15% in 2009

◦Trend continues through 2011

Consumers spending Jan - May◦2009 - $400 billion◦Down 4.9% from 2008

Industry TrendsAges 15-19 represent 7.1% of US

population (21.6 Million)◦Moving into adulthood

Tastes change Income changes

Increase in kids from the age of 7-12◦AE - 77kids

CompetitorsCompetitors

# of Stores Target Market Product Offerings

Price Points Location Brands

1) Abercrombie & Fitch Co.

1,125Men & women 18 to 21

who are very hip & trendy

Casual sportswear apparel, knit and woven shirts, graphic t-shirts, fleece, jeans, woven pants, shorts, sweaters, outerwear, personal

care products, and accessories for men, women and kids

$8 - $600U.S., Canada, U.K., France, Ireland and

Japan

Abercrombie & Fitch, abercrombie, Hollister, RUEHL,

Gilly Hicks

2) The Gap, Inc. 3,143Men & women 17 to 32 who desire fashion at an

affordable price

Casual apparel, accessories, and personal care products for men, women and children

$5 - $425U.S., Canada, U.K., France, Ireland and

Japan

Gap, Old Navy, Banana Republic, Piperlime, Athleta

3) Urban Outfitters, Inc.

294Men & women 18 to 45 that live an active lifestyle

Women's and men's fashion apparel, footwear and accessories, apartment wares

and gifts, rugs, pillows, shower curtains, books, candles and novelties

$8 - $298

U.S., Eurpoe, and Canada (Metropolitan areas, select university communities as well as

enclosed malls)

Urban Outfitters, Anthropologie, Free People, Terrain

4) Pacific Sunwear of

California, Inc.650

Teenagers & young adults that desire surf-and-skate-

style clothing

Men's and women's casual apparel, jeans, tees, long sleeved shirts, hoodies, jackets, sweaters, vests, pants, shorts, skirts, and

accessories

$10 - $225U.S. & Puerto Rico

(Primarily mall-based retail stores)

Billabong, Element, Quicksilver, Roxy, DC Shoes, Fox Racing,

Volcom, Hurley

5) American Eagle Outfitters,

Inc.1,098

Men & women 15 to 25 who desire fashionable,

yet affordable, all-American, casual lifestyle

apparel

Men's and women's jeans, sweaters, t-shirts, outerwear, pants, shorts, hats, belts,

hoodies, dresses, skirts, related accessories, and footwear

$12 - $140 U.S. & CanadaAmerican Eagle Outfitters,

aerie, 77kids, MARTIN+OSA

Abercrombie and FitchFounded 1892 – David T. Abercrombie

Originally sold sporting and excursion goods

Positioned as a “casual luxury’ lifestyle brand

Very similar target market◦Teenagers◦Young Adults ◦Largest market share

The Buckle vs. Abercrombie

Net Sales: $620 Million

Expenses: $156 Million

Net Profit Margin: 15.75%

Inventory Turnover Rate: 8.4

Net Sales: $3.75 Billion

Expenses: Over $2 Billion

Net Profit Margin: 11.8%

Inventory Turnover Rate: 10.05

Buckle Inc. Abercrombie and Fitch

Operating Income Comparison

The Buckle Abercrombie and Fitch

$76 Million in 2006

$110 Million in 2008◦ 45% Increase

$543 Million in 2006

$740 Million in 2008◦ 36% Increase

What Does the Future Hold?Wider variety of products being offered at

discounted prices

Down economy

Maintain competitive advantages◦Highly-personalized customer service◦Extensive fashion knowledge◦Trendy apparel

Many opportunities

Future Opportunities

Continue with its existing target market◦Customers age and move on ◦New customers become available

Develop an additional brand targeted to older age group◦Martin + OSA◦Anthropologie

Recommendation

Continue to develop competitive advantages◦Personalized and knowledgeable customer

service◦Well-trained employees◦Unique products

Narrow & deep product offering

Sources "Abercrombie and Fitch." Mergent Online. 2009. Web. 5 Dec 2009.

<www.mergentonline.com>.

"Buckle.com: Designer Jeans: Men's and Women's Fashion Clothing." Buckle.com. 2009. Buckle.com, Web. 13 Sep 2009. <http://www.buckle.com/index.jsp?bmUID=1252881614081>.

"Buckle Inc.: Company Profile." Standard & Poor's Net Advantage. 2009. Standard

& Poor's, Web. 13 Sep 2009. <http://www.netadvantage.standardpoor.com/NASApp/NetAdvantage/simpleSearchRun.do?ControlName=HomePageSearch>.

"Buckle Inc.." Mergent Online. 2009. Web. 5 Dec 2009. <www.mergentonline.com>.

"CoreMetrics: Behavioral Analytics, Precision Marketing." The Buckle Tailors Campaigns Based on Customer Response. 2008. CoreMetrics, Web. 13 Sep 2009. <http://www.coremetrics.com/downloads/buckle_tailors_email_targetin

g.pdf>.

"The Buckle Competitor's List." Hoovers. 2009. Web. 5 Dec 2009. <www.hoovers.com/thebuckle/--ID_15764--/free-co- competitors.xhtml>.