The Buckle is a retailer of denim and casual apparel founded in 1948 that has grown to 404 stores across the US. It targets young men and women ages 12-24 and has developed a competitive advantage through high-quality fashionable products and knowledgeable customer service. While the economic downturn has reduced discretionary spending among its target market, The Buckle has maintained strong financial performance compared to competitors like Abercrombie & Fitch. To sustain its success in the future, it will need to continue enhancing its competitive advantages and potentially expand its target market.

1. Jacob BabcockBrian FielderMatt HaskampKirk HowardMike Russell

2. History1948 – Mill’s ClothingKearney, NebraskaDavid Hirschfield1965 – Change of Hands (Daniel)2 New stores – Brass BuckleChanged Original Store nameMen’s ApparelJeans store that offered wide selection of denim apparel and coordinating shirts

3. History1977 – Men’s and Women’s1990 – Re-vamped Whole store

4. Appeal to college –aged customers

5. Layout, Lighting arrays, fixtures, musicApril 21, 1991 – The Buckle arrives1992 – IPO - NASDAQ

6. 1997 – NYSE

7. Currently 404 StoresProductsDenim Destination 41 % of total salesBKE Jeans38 % of Denim salesComplementsTops, footwear, outerwear, accessoriesBrands : Affliction, Sinful, Hurley, Billabong, Quicksilver/ Roxy, 7 Diamonds, OBEY, Ed Hardy, and Fossil.

8. CustomersTarget marketYoung 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

9. PricingHigher end – Fashion & Quality$ 5.00 – Accessories$110.00 – Jeans$350.00 - Women’s Boots$700.00 – Leather Jacket / WatchFinancial CrisisLower DemandDifficult to increase Markups

10. DistributionManufacturers ship apparel to corporate headquartersMerchandise is received, sorted, and shipped Packaged for transit to individual retail outletsShipped within 1 day of receiptAllows for quick & efficient deliveryNew experience every time

11. PromotionInternetE-mail listsCredit CardEventsSocial Media

12. Main IssueHow to maintain market share in an industry that is shifting towards mass retailers?Price-sensitive consumersLess discretionary incomeMore emphasis on convenience

13. Financial Performance2009 Operating Revenue - $800,000,00013th in respective marketGross Margin Percentage – 43.37%3rd highestIndustry average – 38%2009 Net Income - $105,000,000Eddie Bauer & Coachman – ($200,000,000)

14. Financial PerformanceReturn on Assets (ROA) – 21.7%

15. Industry Average – 3.6%

16. Net Profit Margin – 15.75%

17. Industry Average – 2.3%

18. Inventory Turnover – 8.4

19. Industry Average – 7.3

20. Asset Turnover – 1.38

21. Industry Average – 2.03Economic ConditionsDiscretionary income down 3-15% in 2009

22. Trend continues through 2011

23. Consumers spending Jan - May

24. 2009 - $400 billion

25. Down 4.9% from 2008Industry TrendsAges 15-19 represent 7.1% of US population (21.6 Million)Moving into adulthoodTastes changeIncome changesIncrease in kids from the age of 7-12AE - 77kids

26. Competitors

27. Abercrombie and FitchFounded 1892 – David T. Abercrombie

28. Originally sold sporting and excursion goods

29. Positioned as a “casual luxury’ lifestyle brand

30. Very similar target market

31. Teenagers

32. Young Adults

33. Largest market shareThe Buckle vs. AbercrombieBuckle Inc.Abercrombie and FitchNet Sales: $620 MillionExpenses: $156 MillionNet Profit Margin: 15.75%Inventory Turnover Rate: 8.4Net Sales: $3.75 BillionExpenses: Over $2 BillionNet Profit Margin: 11.8%Inventory Turnover Rate: 10.05

34. Operating Income ComparisonThe BuckleAbercrombie and Fitch$76 Million in 2006$110 Million in 200845% Increase$543 Million in 2006$740 Million in 200836% Increase

35. What Does the Future Hold?Wider variety of products being offered at discounted pricesDown economyMaintain competitive advantagesHighly-personalized customer serviceExtensive fashion knowledgeTrendy apparelMany opportunities

36. Future OpportunitiesContinue with its existing target marketCustomers age and move on New customers become availableDevelop an additional brand targeted to older age groupMartin + OSAAnthropologie

37. RecommendationContinue to develop competitive advantagesPersonalized and knowledgeable customer serviceWell-trained employeesUnique productsNarrow & deep product offering

38. 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/si mpleSearchRun.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>.