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Diminishing Sales Revenue At Buckle

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Mathematics
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Diminishing sales revenue at Buckle
1. Introduction
Buckle as a company have been in the fashion business industry for long. Buckle was
started by David Hirschfield back in 1948 as a men’s clothing store in Kearney, Nebraska.
However, there is need to note that its original name was Mills Clothing. The name was later
changed to Brass Buckle in 1965 when Dan, David’s son, took over the business. Buckle’s
first mall was opened in 1977. It was during this time when the company started selling
women’s clothing. They continued selling women clothes until 1991 when they decided to
develop their own private clothing label. This was due to increase in their business hence they
wanted to privatize their business. This was a great step since the company started getting
more customers hence became more famous. As a result, the Buckle Company developed
more than 100 locations in 18 different states. In addition to this, the company became a
publicly traded company on the NASDAQ. During this time, the Buckle Company was
traded as a BKLE. The company’s operations continued to improve hence increase in profits
made. In addition, the company became more famous and received more customers from
various states. In 1999, the Buckle Company opened their first online store. During this time,
E-commerce had started to slowly take off hence Buckle did not want to be left behind.
Joining the e-commerce would result into more customers hence more profits. The
company’s sales increased in 2011 when they sold over 5 million pairs of jeans. This was the
highest amount they have over sold.

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Currently, the company has over 450 stores in 44 states. After this, the company’s
sales started to reduce. As a result, the net profits also declined. According to the data
collected in 2016, there was a 15 percent decline as compared to the sales made in 2011. This
hence becomes a major problem facing the company hence appropriate measures ought to be
put in place to prevent further decline in sales. This research tends to base its concern on the
source as well as the concern of the rapid sales decline through regressions. By 2017, the
research was finalized by coming up with two possible outcomes depending on the
company’s performance in 2017. Due to this, several theories have been formulated to
explain the sudden sales decline in Buckle, Inc. One the perceptions is that the company’s
prices are too high. In this regard, customers find alternatives of what is offered by Buckle in
terms of fashion and denim as well. Another issue is the location since the many stores might
be located in areas that have a small population hence less customers. Also, the location
might have other stores that are selling the same commodities at a cheaper price. In addition,
the company has over 450 stories. The loss of sales then occur when they open and stock the
new stores. Finally, the economy has been evaluated since it has resulted to issues like
inflation. Due to the low economy, many people find buying clothes as a secondary need
hence they focus on more urgent needs like buying food. This therefore affects the total
number of sales which become less each day.
2. Variables used in the study, like Independent Variable and Dependent Variable
Identifying the major variables used in the study is key in understanding how they
relate with each other. The independent variables used in the study include inflation rates,
unemployment rates, consumer sentiment index and number of stores. On the other hand, the
dependent variable used in the study is net sales.

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Surname 1 Student’s name: Instructor: Course: Date: Diminishing sales revenue at Buckle 1. Introduction Buckle as a company have been in the fashion business industry for long. Buckle was started by David Hirschfield back in 1948 as a men’s clothing store in Kearney, Nebraska. However, there is need to note that its original name was Mills Clothing. The name was later changed to Brass Buckle in 1965 when Dan, David’s son, took over the business. Buckle’s first mall was opened in 1977. It was during this time when the company started selling women’s clothing. They continued selling women clothes until 1991 when they decided to develop their own private clothing label. This was due to increase in their business hence they wanted to privatize their business. This was a great step since the company started getting more customers hence became more famous. As a result, the Buckle Company developed more than 100 locations in 18 different states. In addition to this, the company became a publicly traded company on the NASDAQ. During this time, the Buckle Company was traded as a BKLE. The company’s operations continued to improve hence increase in profits made. In addition, the company became more famous and received more customers from various states. In 1999, the Buckle Company opened their first online store. During this time, E-commerce had started to slowly take off hence Buckle did not want to be left behind. Joining the e-commerce would result into more customers he ...
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