1. By: Alexa van Bergen & Jericca Pearson

2. Background
1948- Buckle began as Mills Clothing, a men’s clothing company in Kearney, NE
1967- Opened second store and called Brass Buckle
1970- Brass Buckle became known for their wide selection of denim and shirts and their current CEO, Dennis Nelson, joins the company
1977- Introduced women’s apparel and their first mall-based location opened
1988- Distribution teams move to downtown west Kearney
1991- Changed name to The Buckle, Inc. and developed their private label BKE
Introduced primo rewards card
1995- Launched first private label credit card

3. Background count.
1997- Moved to New York Stock Exchange with symbol BKE
1999- First ecommerce site launched (buckle.com)
2006- Private label accounted fro 45% of denim sales
2010- Completes the construction of Distribution Center
2011- Newly redesigned of website
Today- operates 450 retail stores in 44 states and has grown to be America’s favorite denim destinations.

4. Dominant Industry Characteristics
Number of Rivals
Across the board, for both men and women
Abercrombie & Fitch, American Eagle Outfitters, Gap, Hollister, Pacific Sunwear, Tilly’s, Gap, Tilly’s, Charlotte Russe, Express, Forever 21, H&M, Maurices, Vanity, Wet Seal, and Zumiez.
They also compete with the big department stores like Dillard’s, Macy’s, and Nordstrom

5. Five Forces Analysis

6. Five Forces Rivalry among existing Firms: High
- highly competitive industry
- specialty retailer
- quality product
Threat of New Entrants: High
- industry is always emerging
- trendy fashion scene
Threat of substitutes: Low
- few alternatives
- wide range of products
Buyer Power: High/Medium
- customers have low switching costs
- limited power of raising prices
- able to adapt to changing demands
Supplier Power: Low/Medium
- not materially dependent to any one supplier
- carries wide and diversified products
Five Forces

7. EFE Matrix

8. The Buckle EFE Matrix
Opportunities
Weight
Rating
Weighted Score
Predict and respond to changing customer demands and preferred choices more efficiently
0.10 4
0.40
Source merchandise more efficiently
0.08 3
0.24
Continue to develop consumer perception of quality for the future
0.09
0.27
Increase in Market Share
0.06
0.18
Increase in household income (increase in minimum wage)
0.05 2
Keep up with consumer/social deployments, need to develop more technology systems
0.07
0.28
Threats
The industry is highly competitive, specifically for: fashion, selection, quality, price, location, service and atmosphere (mostly in malls)
0.14
0.56
Time-sensitivity of inventory/merchandise, especially out of season articles of clothing
Rising of labor and product cost
0.12
Reliability on customers spending trends/customer confidence
0.16
0.48
Changing tax rates for business
Growing costs of healthcare
0.04
Totals
1.00
3.10

9. Strategic Group Map

11. IFE Matrix

12. The Buckle IFE Matrix
Strengths
Weighted
Rating
Weighted Score
Expansion of stores
0.09 3
0.27
Well known in the 43 states it's located
0.05 4
0.20
Distribution ships in 2-3 days
Diverse Product Lines, Specialized inventory to reflect local tastes
0.06
0.18
Staff Loyalty (all members)
0.04
0.16
Private-label and exclusive merchandise
0.10
0.40
Little debt (no long-term)
0.08
0.32
Targets ages 15-30
0.12
Denim accounts for 45% of sales
0.15
Weaknesses
Fluctuations in comparable stores net sales results
0.07 2
0.14
Very localized markets with stores that compete against each other
No company-shared customer management system (store specific) 1
Reliant on key personnel (leadership team), small number of full-time employees
Reliant on foreign producers
Dependence on Single Distribution Center
The change in fashion fluctuates each year
0.03
Lack of social media presence (recycled instead of targeting promotions
Totals
1.00
2.95

13. Mission/Vision
“To create the most enjoyable shopping experience possible for our guests.”

14. Competitive Strategy Broad Differentiation Strategy
Offering numerous brands
Have their own brand in store
Unique and one of a kind products (“treasure hunt”)
Offers a multitude of services, including:
Free hemming
Gift-wrapping
Layaways
Buckle credit cards
Frequent shopper rewards cards

15. SWOT Analysis Strengths Weaknesses 430 stores and expanding
Well known, present in 43 states
Diverse Products lines, unique inventory
Merchandise ships in 2-3 days
Little to no debt
Weaknesses
Lack of social media presence, no targeting promotions
Small number of full-time employees, more dependent on leadership teams
Depend on foreign producers
Very common market, constantly having to compete against rivals

16. SWOT Analysis Opportunities Threats
Anticipate and react to the changing customer demands more efficiently
More top selling and competitive brands
Develop the customers awareness of the quality products
Design a system to keep up with consumer and social advances
Threats
Retail industry is highly competitive
Time sensitivity of inventory
Rising labor and product costs
Relying on consumer spending trends

17. SWOT Analysis SO strategies ST strategies
(S1, O4) Expand into the international markets to appeal to consumers and make social advancements in foreign markets
(S3, O2) Create a marketing strategy for the diverse and unique product lines to sell more competitive brands than rivals
(S4,O) Build more distribution centers to accommodate for the consumers demands of products that need shipped in 2-3 days
ST strategies
(S3, T2) Improve inventory turnover by increasing the demand for the unique and diverse products
(S2, T1) Gain higher awareness to stay competitive amongst rivals, in the current 43 states
(S1, T3) Build more stores to increase revenue to compensate for the increase in labor and product cost

18. SWOT Analysis WO strategies WT strategies
(W1, O4) Lower prices and utilize technology by gaining a stronger social media presence
(W2, O1) Create more full-time jobs in their stores, help keep up with the changing consumer demands
(W4, O3) Develop a advertising plan to raise company awareness to stay competitive amongst rivals.
WT strategies
(W3, T2) Lower the dependency on foreign producers to decrease product costs
(W1, T4) Increase social media presence to market to the consumers and keep up to date on the latest trends

19. Competitive Profile Matrix

20. CPM
Buckle
Abercrombie and Fitch
Express
Critical Success Factors
Weights
Rating
Score
Advertising
0.13 3
0.39 4
0.52 2
0.26
Company Image
0.14
0.56
0.42
Global Expansion
0.10 1
0.40
0.20
Consumer Loyalty
0.12
0.48
0.24
0.36
Production Capacity
0.30
Market Share
0.11
0.44
0.22
Price Competitiveness
Technology
0.09
0.27
0.18
Management
0.08
0.32
0.16
Totals
1.00
3.18
3.20
2.38

21. Ethics For the most part they are pretty ethical Lawsuits:
1. Buckle Store Class Action Lawsuit Settlement, Dec. 17, 2013
Consumers who made credit card purchases at a California Buckle store between 2011 and 2013 can claim a $30.00 Credit Certificate from a class action settlement over claims the clothing store violated California law.
2. HUNTER v. THE BUCKLE, INC, May 29, 2007
Gloria Hunter and Jessica Hunter, Kansas City, MO residences, both of whom are African American, became involved in the incident which culminated with them being placed in handcuffs and removed from a retail store, after which they were released. They were shopping at The Buckle. Jessica Hunter testified in her deposition that on the three or four occasions when she had previously shopped at The Buckle, The Buckle's employees treated her differently from white customers. She testified specifically that she was not greeted immediately or offered assistance without requesting it, and that she was constantly watched by the employees.

22. Financials

23. BKE Financials 2014 2013 2012 2011 Operating Profit Margin 22.8% 23.0%
22.2%
Net Profile Margin
14.4%
14.6%
14.3%
14.2%
Earnings Per Share
3.39
3.44
3.2
2.68
Return on Assests
31.8%
32.6%
29.5%
27.4%
Return on Equity
49.9%
50.3%
42.7%
38.5%
Current Ratio
2.77
2.15
2.91
2.57
Working Capital
219
148
210
161
Total-Debt-to-Assests
Total-Debt-to-Equity
Long-Term-Debt-to-Equity
Days of Inventory
66.17
60.78
59.21
60.79
Inventory Turnover
5.52 6
6.16
Net Income (in millions)
163
164
151
135
CAGR
4.82%

24. Recommendations Continue with its existing Target market
There are always going to be year olds
Develop an additional brand or offer products that are targeted to older age group
Continue to develop their competitive advantages
Personalized and knowledgeable customer services
Well- trained employees
Unique products
Narrow and deepen their product offering