Financial Data and Key Metrics Changes - Revenue increased by 19% year-over-year to $505 million, driven by new store openings and same-store sales growth of 8.4% [7][18] - Earnings per diluted share rose 44% to $1.37 compared to $0.95 in the prior year [7][20] - Merchandise margin rates increased by 80 basis points year-over-year [7][15] Business Line Data and Key Metrics Changes - Same-store sales growth was 8.4%, with brick-and-mortar sales increasing by 7.8% and e-commerce sales growing by 14.4% [10][18] - The ladies' business saw positive mid-teens comp growth, while men's business comped positive high single digits [10][11] - Exclusive brand penetration increased by 290 basis points to 41% of sales [15][22] Market Data and Key Metrics Changes - The total addressable market (TAM) was revised upward from $40 billion-$58 billion, reflecting a 45% increase [9][37] - The company estimates a long-term U.S. store count potential of 1,200 stores, with plans to open 12%-15% new units annually [10][60] Company Strategy and Development Direction - The company is focused on expanding its store footprint while enhancing its omnichannel capabilities [10][14] - Strategic initiatives include new store growth, same-store sales improvement, omnichannel enhancements, and merchandise margin expansion [5][15] - The company aims to leverage AI to improve customer experience and operational efficiencies [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the current business tone and readiness for the holiday season, despite macroeconomic uncertainties [17][22] - The company anticipates a consolidated same-store sales increase of 4.5% for the third quarter [24] - Management remains focused on maintaining strong customer service and inventory management [17][21] Other Important Information - The company plans to open 70 new stores during fiscal 2026, with 30 already opened [8][23] - SG&A expenses as a percentage of sales decreased by 120 basis points to 25.3% [20] - The company has a strong cash position with $65 million in cash and no drawn amounts on its revolving credit line [21] Q&A Session Summary Question: Can you elaborate on the drivers of October's further comp acceleration? - Management noted that October's performance aligned with major merchandise categories, with work boots showing notable improvement [30][31] Question: What is driving the large increase in the total addressable market? - The increase is attributed to demographic studies and the growing trend of casualization in wearing occasions [37][38] Question: How do you see pricing elasticity performing across different categories? - Management indicated that they have not seen significant changes in consumer behavior despite price increases, except for one small brand that raised prices significantly [95] Question: What are the expectations for store openings in the upcoming quarters? - The company plans to open 25 stores in Q3 and 15 in Q4 [86] Question: How is the company addressing the challenges posed by tariffs? - Management is working with factories to mitigate tariff impacts and plans to adjust exclusive brand pricing post-holiday season [39][68]

Financial Data and Key Metrics Changes - Revenue increased by 19% year-over-year to $505 million, driven by new store openings and same-store sales growth of 8.4% [5][18] - Earnings per diluted share rose 44% to $1.37 compared to $0.95 in the prior year [5][19] - Merchandise margin rates increased by 80 basis points year-over-year [5][19] Business Line Data and Key Metrics Changes - Same-store sales growth was 8.4%, with brick-and-mortar sales increasing by 7.8% and e-commerce sales growing by 14.4% [9][18] - The ladies' business saw positive mid-teens comp growth, while men's business comped positive high single digits [10] - Exclusive brand penetration increased by 290 basis points to 41% of sales [14][19] Market Data and Key Metrics Changes - The total addressable market (TAM) expanded from $40 billion to $58 billion, a 45% increase [8][33] - The company estimates a long-term U.S. store count potential of 1,200 stores, with plans to open 12-15% new units annually [8][9] Company Strategy and Development Direction - The company is focused on a "stores-first" strategy, emphasizing new store growth and omnichannel initiatives [9][13] - Marketing efforts include sponsorship of rodeos and partnerships with country music artists to enhance brand visibility [10] - The company aims to leverage AI to improve customer experience and operational efficiencies [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the current business tone and preparation for a strong holiday season [17] - There is a recognition of macroeconomic uncertainties affecting consumer sentiment, leading to a conservative outlook for the second half of the year [31][68] - The company raised its full-year guidance, expecting total sales of $2.235 billion, representing a 17% growth over fiscal 2025 [21][22] Other Important Information - Inventory increased by 20% year-over-year to $855 million, with markdowns below last year and historical levels [20] - The company repurchased approximately 73,000 shares for $12.5 million as part of its share repurchase program [20] Q&A Session Summary Question: Drivers of October's comp acceleration and long-term store count potential - Management noted that October's performance aligned with major merchandise categories, with work boots showing notable improvement [28][29] Question: Details on the TAM increase - The increase in TAM was driven by demographic studies and the trend of casualization in wearing occasions [33] Question: Pricing strategy and exclusive brand penetration - Exclusive brand pricing will be adjusted post-holiday to preserve margins, with current penetration at 41% [34][35] Question: Success of exclusive brand websites - The websites for exclusive brands aim to drive customer traffic to Boot Barn stores, with no plans for wholesale or international sales [38][39] Question: Online penetration and margin implications - Online business is expected to hover around 10% penetration, with no significant shifts anticipated [62] Question: Regional performance and consumer behavior - Management reported widespread growth across geographies, with no significant changes in shopping behavior among Hispanic consumers [58] Question: Margin dynamics and tariff impacts - The company is managing tariff impacts through negotiations with factories and has factored these into margin guidance [60]

Offering everyone a piece of the American spirit—one handshake at a time. Supplemental Financial Presentation October 2025 0 Important Information Forward-Looking Statements This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this presentation are forward- looking statements. Forward-looking statements refer to the Boot Barn Holdings, Inc.'s (the "Company," "Boot Barn," "BOOT," "we," "us," and ...

Core Insights - Boot Barn Holdings, Inc. reported a net sales increase of 18.7% year-over-year for the second fiscal quarter, reaching $505.4 million [1] - Same store sales rose by 8.4%, with retail store same store sales also increasing [1] Financial Performance - The financial results for the quarter ended September 27, 2025, show significant growth compared to the same quarter in the previous year [1] - The increase in net sales indicates strong consumer demand and effective sales strategies [1]

Financial Performance - Net sales increased 18.7% to $505.4 million from $425.8 million in the prior-year period[4] - Net income was $42.2 million, or $1.37 per diluted share, compared to $29.4 million, or $0.95 per diluted share, in the prior-year period[3] - Operating income improved by 41% to $56.4 million, with an operating margin increase of 180 basis points to 11.2%[7] - SG&A expenses were $127.7 million, or 25.3% of net sales, down from 26.5% in the prior-year period[7] - Net income for the twenty-six weeks ended September 27, 2025, was $95,630,000, a 40% increase from $68,337,000 in 2024[24] - Gross profit for the twenty-six weeks ended September 27, 2025, was $381,370,000, up from $309,607,000 in 2024, indicating a 23.2% year-over-year growth[22] Sales and Growth - Same store sales increased 8.4%, with retail store same store sales increasing 7.8% and e-commerce same store sales increasing 14.4%[3] - The company expects total sales of $2.197 billion to $2.235 billion for the fiscal year ending March 28, 2026, representing growth of 15% to 17% over fiscal year 2025[11] - Same store sales growth guidance for the fiscal year is set at 4.0% to 6.0%[11] - Same store sales growth for the quarter ended September 27, 2025, was 8.4%, compared to 9.4% in the previous quarter[28] - The average sales per comparable store for the quarter was $996,000, compared to $1,031,000 in the previous quarter[28] Store Expansion - Merchandise margin is now estimated to be approximately $58 billion, with the potential to operate 1,200 stores across the United States, up from a previous estimate of 900[1] - The company plans to open 70 new stores in the upcoming fiscal year[11] - The total number of stores increased to 489 by the end of the quarter, with 16 new stores opened during the period[26] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $64,728,000, down from $69,770,000 at the beginning of the period[24] - The company reported a total current asset increase to $967,271,000 as of September 27, 2025, compared to $863,960,000 in March 2025[19] - Operating cash flow for the twenty-six weeks ended September 27, 2025, was $99,585,000, significantly higher than $33,542,000 in the same period last year[24] Liabilities - Total liabilities increased to $1,051,279,000 as of September 27, 2025, from $886,964,000 in March 2025[19]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Boot Barn (BOOT) - Boot Barn currently holds a Momentum Style Score of A, indicating strong momentum potential [3]. - The company has a Zacks Rank of 2 (Buy), which is associated with a historical outperformance when combined with a Style Score of A or B [4]. Price Performance - Boot Barn shares have increased by 6.48% over the past week, outperforming the Zacks Retail - Apparel and Shoes industry, which rose by 2.56% [6]. - Over the past month, Boot Barn's stock price has changed by 19.8%, significantly higher than the industry's 1.08% [6]. - In the last quarter, shares have risen by 18.84%, and over the past year, they have gained 53.45%, while the S&P 500 has only increased by 8.19% and 19.61%, respectively [7]. Trading Volume - Boot Barn's average 20-day trading volume is 525,755 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - Recent earnings estimate revisions for Boot Barn show positive momentum, with two estimates moving higher and none lower, raising the consensus estimate from $6.56 to $6.61 over the past 60 days [10]. - For the next fiscal year, one estimate has increased, with no downward revisions noted [10]. Conclusion - Given the strong price performance, positive earnings outlook, and high Momentum Style Score, Boot Barn is positioned as a solid momentum pick for investors [12].

Market Overview - U.S. equities reached record highs driven by optimism regarding trade negotiations between Washington and Beijing, with the Dow Jones Industrial Average increasing by 337.47 points (0.71%) to close at 47,544.59, the S&P 500 rising by 1.23% to 6,875.16, and the Nasdaq Composite leading the rally with a 1.86% jump to 23,637.46 [1] Interest Coverage Ratio Importance - The interest coverage ratio is crucial for assessing a company's ability to meet its debt obligations, with a higher ratio indicating better financial health [2][5] - This ratio is calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense, providing insight into how many times a company can cover its interest payments from earnings [6][7] Company Analysis - Stride, Inc. (LRN), Ralph Lauren Corporation (RL), Encompass Health Corporation (EHC), and Boot Barn Holdings, Inc. (BOOT) are highlighted for their strong interest coverage ratios, indicating robust financial health [4][11] - Stride has a projected EPS growth of 8.8% and a stock price increase of 67.6% over the past year [14] - Ralph Lauren is projected to have a 21.7% EPS growth and a stock price increase of 65.8% over the past year [15] - Encompass Health is expected to see a 19% EPS growth with a stock price rise of 27.2% over the past year [16] - Boot Barn is projected to achieve a 12.9% EPS growth and a stock price increase of 56.2% over the past year [17] Investment Strategy - A successful investment strategy should include companies with an interest coverage ratio above the industry average, a favorable Zacks Rank, and a VGM Score of A or B [9][12] - Stocks with a strong historical EPS growth and substantial trading volume are also recommended for better investment outcomes [10][12]

Core Insights - Growth investors are attracted to stocks with above-average financial growth, but identifying stocks that can fulfill their potential is challenging [1] - Boot Barn (BOOT) is highlighted as a recommended growth stock due to its favorable Growth Score and top Zacks Rank [2] Earnings Growth - Earnings growth is crucial for attracting investor attention, with double-digit growth being particularly desirable [4] - Boot Barn has a historical EPS growth rate of 26%, with projected EPS growth of 12.9% this year, surpassing the industry average of 10.7% [5] Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without external financing [6] - Boot Barn's year-over-year cash flow growth is 20.7%, significantly higher than the industry average of -3.2% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 19.5%, compared to the industry average of 7.6% [7] Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - Boot Barn has seen upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate increasing by 1.2% over the past month [9] Conclusion - Boot Barn has achieved a Growth Score of A and a Zacks Rank of 2, indicating it is a potential outperformer and a solid choice for growth investors [11]

Core Viewpoint - Boot Barn (BOOT) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook for its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to institutional investors adjusting their valuations, resulting in stock price movements due to large transactions [4]. Boot Barn's Earnings Outlook - Boot Barn is projected to earn $6.57 per share for the fiscal year ending March 2026, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for Boot Barn has increased by 5%, reflecting a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Boot Barn's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - Lands' End (LE) has shown strong year-to-date performance, significantly outperforming the average returns of the Retail-Wholesale sector [1][4]. Group 1: Company Performance - Lands' End has returned 21.4% year-to-date, while the average gain for the Retail-Wholesale group is approximately 7% [4]. - The Zacks Consensus Estimate for Lands' End's full-year earnings has increased by 12.1% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3]. - Lands' End holds a Zacks Rank of 2 (Buy), suggesting it is positioned well for potential market outperformance [3]. Group 2: Industry Context - Lands' End is part of the Retail - Catalog Shopping industry, which has also seen an average gain of 21.4% year-to-date, indicating that it is performing on par with its industry peers [5]. - In contrast, the Retail - Apparel and Shoes industry, which includes Boot Barn (BOOT), has experienced a decline of 11.9% since the beginning of the year, highlighting the relative strength of Lands' End [6].