Jacob Babcock<br />Brian Fielder<br />Matt Haskamp<br />Kirk Howard<br />Mike Russell<br />
History<br />1948 – Mill’s Clothing<br />Kearney, Nebraska<br />David Hirschfield<br />1965 – Change of Hands (Daniel)<br ...
History<br />1977 – Men’s and Women’s<br /><ul><li>1990 – Re-vamped Whole store
Appeal to college –aged customers
Layout, Lighting arrays, fixtures, music</li></ul>April 21, 1991 – The Buckle arrives<br /><ul><li>1992 – IPO - NASDAQ
1997 – NYSE
Currently 404 Stores</li></li></ul><li>Products<br />Denim Destination <br />41 % of total sales<br />BKE Jeans<br />38 % ...
Customers<br />Target market<br />Young men and women  ages 12-24 who are fashion-conscious and able to purchase medium to...
Pricing<br />Higher end – Fashion & Quality<br />$ 5.00 – Accessories<br />$110.00 – Jeans<br />$350.00 - Women’s Boots<br...
Distribution<br />Manufacturers ship apparel to corporate headquarters<br />Merchandise is received, sorted, and shipped <...
Promotion<br />Internet<br />E-mail lists<br />Credit Card<br />Events<br />Social Media<br />
Main Issue<br />How to maintain market share in an industry that is shifting towards mass retailers?<br />Price-sensitive ...
Financial Performance<br />2009 Operating Revenue - $800,000,000<br />13th in respective market<br />Gross Margin Percenta...
Financial Performance<br /><ul><li>Return 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</li></li></ul><li>Economic Conditions<br /><ul><li>Discretionary income down 3-15% in 2009
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Buckle

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Buckle

  1. 1. Jacob Babcock<br />Brian Fielder<br />Matt Haskamp<br />Kirk Howard<br />Mike Russell<br />
  2. 2. History<br />1948 – Mill’s Clothing<br />Kearney, Nebraska<br />David Hirschfield<br />1965 – Change of Hands (Daniel)<br />2 New stores – Brass Buckle<br />Changed Original Store name<br />Men’s Apparel<br />Jeans store that offered wide selection of denim apparel and coordinating shirts<br />
  3. 3. History<br />1977 – Men’s and Women’s<br /><ul><li>1990 – Re-vamped Whole store
  4. 4. Appeal to college –aged customers
  5. 5. Layout, Lighting arrays, fixtures, music</li></ul>April 21, 1991 – The Buckle arrives<br /><ul><li>1992 – IPO - NASDAQ
  6. 6. 1997 – NYSE
  7. 7. Currently 404 Stores</li></li></ul><li>Products<br />Denim Destination <br />41 % of total sales<br />BKE Jeans<br />38 % of Denim sales<br />Complements<br />Tops, footwear, outerwear, accessories<br />Brands : Affliction, Sinful, Hurley, Billabong, Quicksilver/ Roxy, 7 Diamonds, OBEY, Ed Hardy, and Fossil.<br />
  8. 8. Customers<br />Target market<br />Young men and women ages 12-24 who are fashion-conscious and able to purchase medium to higher priced apparel, shoes, and accessories.<br />1 % Market Share<br />
  9. 9. Pricing<br />Higher end – Fashion & Quality<br />$ 5.00 – Accessories<br />$110.00 – Jeans<br />$350.00 - Women’s Boots<br />$700.00 – Leather Jacket / Watch<br />Financial Crisis<br />Lower Demand<br />Difficult to increase Markups<br />
  10. 10. Distribution<br />Manufacturers ship apparel to corporate headquarters<br />Merchandise is received, sorted, and shipped <br />Packaged for transit to individual retail outlets<br />Shipped within 1 day of receipt<br />Allows for quick & efficient delivery<br />New experience every time<br />
  11. 11. Promotion<br />Internet<br />E-mail lists<br />Credit Card<br />Events<br />Social Media<br />
  12. 12. Main Issue<br />How to maintain market share in an industry that is shifting towards mass retailers?<br />Price-sensitive consumers<br />Less discretionary income<br />More emphasis on convenience<br />
  13. 13. Financial Performance<br />2009 Operating Revenue - $800,000,000<br />13th in respective market<br />Gross Margin Percentage – 43.37%<br />3rd highest<br />Industry average – 38%<br />2009 Net Income - $105,000,000<br />Eddie Bauer & Coachman – ($200,000,000)<br />
  14. 14. Financial Performance<br /><ul><li>Return on Assets (ROA) – 21.7%
  15. 15. Industry Average – 3.6%
  16. 16. Net Profit Margin – 15.75%
  17. 17. Industry Average – 2.3%
  18. 18. Inventory Turnover – 8.4
  19. 19. Industry Average – 7.3
  20. 20. Asset Turnover – 1.38
  21. 21. Industry Average – 2.03</li></li></ul><li>Economic Conditions<br /><ul><li>Discretionary income down 3-15% in 2009
  22. 22. Trend continues through 2011
  23. 23. Consumers spending Jan - May
  24. 24. 2009 - $400 billion
  25. 25. Down 4.9% from 2008</li></li></ul><li>Industry Trends<br />Ages 15-19 represent 7.1% of US population (21.6 Million)<br />Moving into adulthood<br />Tastes change<br />Income changes<br />Increase in kids from the age of 7-12<br />AE - 77kids<br />
  26. 26. Competitors<br />
  27. 27. Abercrombie and Fitch<br /><ul><li>Founded 1892 – David T. Abercrombie
  28. 28. Originally sold sporting and excursion goods
  29. 29. Positioned as a “casual luxury’ lifestyle brand
  30. 30. Very similar target market
  31. 31. Teenagers
  32. 32. Young Adults
  33. 33. Largest market share</li></li></ul><li>The Buckle vs. Abercrombie<br />Buckle Inc.<br />Abercrombie and Fitch<br />Net Sales: $620 Million<br />Expenses: $156 Million<br />Net Profit Margin: 15.75%<br />Inventory Turnover Rate: 8.4<br />Net Sales: $3.75 Billion<br />Expenses: Over $2 Billion<br />Net Profit Margin: 11.8%<br />Inventory Turnover Rate: 10.05<br />
  34. 34. Operating Income Comparison<br />The Buckle<br />Abercrombie and Fitch<br />$76 Million in 2006<br />$110 Million in 2008<br />45% Increase<br />$543 Million in 2006<br />$740 Million in 2008<br />36% Increase<br />
  35. 35. What Does the Future Hold?<br />Wider variety of products being offered at discounted prices<br />Down economy<br />Maintain competitive advantages<br />Highly-personalized customer service<br />Extensive fashion knowledge<br />Trendy apparel<br />Many opportunities<br />
  36. 36. Future Opportunities<br />Continue with its existing target market<br />Customers age and move on <br />New customers become available<br />Develop an additional brand targeted to older age group<br />Martin + OSA<br />Anthropologie<br />
  37. 37. Recommendation<br />Continue to develop competitive advantages<br />Personalized and knowledgeable customer service<br />Well-trained employees<br />Unique products<br />Narrow & deep product offering<br />
  38. 38. Sources<br />"Abercrombie and Fitch." Mergent Online. 2009. Web. 5 Dec 2009. <www.mergentonline.com>.<br />"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>.<br />"Buckle Inc.: Company Profile." Standard & Poor's Net Advantage. 2009. Standard & Poor's, Web. 13 Sep 2009. <http://www.netadvantage.standardpoor.com/NASApp/NetAdvantage/si mpleSearchRun.do?ControlName=HomePageSearch>. <br />"Buckle Inc.." Mergent Online. 2009. Web. 5 Dec 2009. <www.mergentonline.com>.<br />"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>.<br />"The Buckle Competitor's List." Hoovers. 2009. Web. 5 Dec 2009. <www.hoovers.com/thebuckle/--ID_15764--/free-co- competitors.xhtml>.<br />

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