2. History 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
8. Customers 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
10. Distribution 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 delivery New experience every time
12. Main Issue How to maintain market share in an industry that is shifting towards mass retailers? Price-sensitive consumers Less discretionary income More emphasis on convenience
13. Financial Performance 2009 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)
34. 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
35. 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
36. 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
37. Recommendation Continue to develop competitive advantages Personalized and knowledgeable customer service Well-trained employees Unique products Narrow & 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>.