Offering everyone a piece of the American spirit—one handshake at a time. Supplemental Financial Presentation February 2026 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 Boot Barn Holdings, Inc.'s (the "Company," "Boot Barn," "BOOT," "we," "us," and "ou ...

Core Insights - Boot Barn Holdings, Inc. reported a 16% year-over-year increase in net sales for the third fiscal quarter, reaching $705.6 million, driven by strong demand across various merchandise categories and channels [4][5] - The company achieved a merchandise margin expansion of 110 basis points, contributing to earnings per diluted share of $2.79, up from $2.43 in the prior year [4][5] - Same store sales increased by 5.7%, with retail store same store sales rising 3.7% and e-commerce same store sales growing 19.6% [4][5] Financial Performance - Net income for the quarter was $85.8 million, compared to $75.1 million in the prior-year period [4][5] - Gross profit was $281.2 million, representing 39.9% of net sales, an increase from 39.3% in the previous year [5][6] - Selling, general and administrative (SG&A) expenses rose to $166.5 million, or 23.6% of net sales, up from 22.9% in the prior year [5][6] Store Expansion and Operations - The company opened 25 new stores, bringing the total store count to 514 as of the end of the quarter [4][5] - Average inventory per store increased approximately 4.1% on a same-store basis compared to the previous year [11] - Boot Barn plans to open 70 new stores in the upcoming fiscal year [11] Future Outlook - For the fiscal year ending March 28, 2026, the company expects total sales between $2.24 billion and $2.25 billion, representing growth of 17% to 18% over fiscal year 2025 [11] - SG&A expenses are projected to be approximately 24.5% of net sales, with net income expected to be between $222.8 million and $225.8 million [15]

Financial Results - Boot Barn Holdings, Inc. announced preliminary financial results for Q3 fiscal year 2026, ending December 27, 2025[5]. - A press release detailing financial results is available as Exhibit 99.1, and a supplemental financial presentation is provided as Exhibit 99.2[10]. - The financial information provided is intended to be "furnished" and not "filed" under the Exchange Act[6]. Upcoming Events - The company will participate in the 2026 ICR Conference on January 12, 2026, where further details will be shared[7]. - The fireside chat at the ICR Conference will be webcast live, accessible via the company's investor relations website[7]. Company Information - The company is not classified as an emerging growth company under the Securities Act[4]. - The address of the company's principal executive offices is 17100 Laguna Canyon Road, Irvine, California 92618[2]. - The report was signed by James M. Watkins, Chief Financial Officer and Secretary, on January 9, 2026[14]. Investor Relations - The company reserves the right to discontinue the availability of the investor relations website at any time[9]. - The company disclaims any obligation to update or revise the information in the presentation[9].

Core Viewpoint - Boot Barn Holdings, Inc. is experiencing a positive trend in its consensus price target, reflecting growing analyst confidence in its performance and growth potential [1] Price Target Analysis - The average price target for Boot Barn has increased to $231, up from $229.8 in the previous quarter, indicating strong analyst confidence in the company's growth [2] - A year ago, the average price target was $212.73, showing a significant increase to the current target of $231, which reflects a positive outlook on Boot Barn's growth trajectory [3] Earnings Estimates and Analyst Sentiment - Analysts have raised their earnings estimates for Boot Barn, indicating confidence in the company's growth trajectory and market position [6] - Despite some caution regarding Boot Barn's ability to beat earnings estimates, the overall analyst consensus remains bullish, suggesting potential upward movement in the stock [4][6] Market Position and Performance - Boot Barn has been expanding its retail presence and enhancing its e-commerce capabilities, contributing to its positive performance and growth potential [1][3] - The company has consistently delivered impressive earnings surprises, indicating a strong potential to exceed expectations in its upcoming quarterly report [3]

Core Insights - Boot Barn Holdings, Inc. (BOOT) is expected to report its third-quarter fiscal 2026 earnings on February 4, with revenue estimates at $705.6 million, reflecting a 16% year-over-year growth, and earnings per share expected to be $2.79, indicating a 14.8% increase from the previous year [1] Group 1: Performance Highlights - Boot Barn's preliminary third-quarter results exceeded management's expectations, with strong same-store sales driven by growth across all geographies and major merchandise categories [2] - The company's performance is likely supported by strength in its core western and workwear categories, along with a focus on exclusive brands and private-label offerings [2] - Effective merchandising execution and disciplined inventory management have aligned product flow with demand trends [2] Group 2: Strategic Initiatives - Management has invested in supply chain, store operations, and omnichannel capabilities, improving product availability and customer experience [3] - Store-level initiatives to enhance in-store engagement and steady e-commerce execution have broadened customer reach and convenience [3] - Boot Barn's expansion strategy and brand-building efforts, including new store openings and market penetration initiatives, have strengthened its national footprint [4] Group 3: Technological Advancements - The company is leveraging technology to enhance the in-store experience and improve cross-channel efficiency through initiatives like "WHIP" (endless aisle), a dedicated mobile app, and "Cassidy," an AI-enabled in-store consumer solution [4] Group 4: Market Challenges - A cautious consumer backdrop and ongoing cost-related challenges may have impacted performance, with uneven discretionary spending patterns potentially weighing on demand [5] - Operating expenses related to labor, logistics, and store operations may limit margin expansion, especially if promotional activities increase in competitive categories [5] Group 5: Earnings Prediction - The Zacks model indicates uncertainty regarding an earnings beat for BOOT, with an Earnings ESP of 0.00% and a Zacks Rank of 1 [6][7]

Core Viewpoint - Boot Barn (BOOT) shares have increased by 1% over the past four weeks, closing at $180.21, with a potential upside indicated by Wall Street analysts' price targets suggesting a mean estimate of $231.54, representing a 28.5% upside [1] Price Targets and Analyst Estimates - The mean estimate consists of 13 short-term price targets with a standard deviation of $25.24, where the lowest estimate is $185.00 (2.7% increase) and the highest is $282.00 (56.5% increase) [2] - A low standard deviation indicates a higher agreement among analysts regarding the price targets, suggesting a more reliable consensus [2][9] Earnings Estimates and Analyst Optimism - Analysts are optimistic about Boot Barn's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlate with stock price movements [4][11] - The Zacks Consensus Estimate for the current year has risen by 3.8% over the past month, with six estimates increasing and no negative revisions [12] Zacks Rank and Investment Potential - Boot Barn holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [13] - While consensus price targets may not be entirely reliable, the implied direction of price movement appears to be a useful guide for investors [14]

Economic Outlook - The GDP estimate for the fourth quarter is projected to exceed 5% according to the Atlanta Fed, indicating a potential economic rebound [2] - Full-year GDP estimates for 2026 are being revised upwards to around 3%, compared to previous estimates closer to 2% [3] Market Trends - A new paradigm is emerging with a reflation of cyclical sectors, suggesting a broadening market approach compared to the previous years [2][4] - Positive earnings reports from various sectors, including banks, indicate that economic conditions may be better than previously thought [4] Investment Opportunities - There is a growing focus on semiconductor capital equipment due to increased demand from AI companies, highlighting a significant deficit in the chip equipment ecosystem [5] - Companies involved in workwear, such as Boot Barn, are performing well, with Boot Barn up 7% year-to-date and 21% over the past 52 weeks, suggesting a shift in consumer preferences towards value-oriented goods [9] Consumer Behavior - The consumer market is showing a trend towards more value-driven purchases, particularly in high-end goods, which may indicate a cooling off from the luxury revival seen in recent years [7][8] - The upcoming cold weather is expected to boost demand for workwear, benefiting companies like Carhartt [10]

Industry Overview - The Retail - Apparel and Shoes industry is entering 2026 on a steady footing despite a challenging macroeconomic environment, with demand driven by value-conscious consumers and rapid trend cycles [1] - Lifestyle categories such as athleisure and comfort are attracting younger, digitally native shoppers, while brand strength and product innovation are crucial for maintaining full-price sell-through [1] - Retailers are leveraging e-commerce, omnichannel strategies, and personalized marketing to enhance conversion rates and customer loyalty [1] - Supply chain efficiencies and strategic pricing are helping to mitigate cost pressures, while international expansion and sustainability initiatives offer long-term growth opportunities [1] Key Trends - Consumer spending remains resilient, with U.S. retail sales increasing by 0.6% month-over-month in November, and clothing store sales rising by 0.9% sequentially and 7.5% year-over-year [4] - The Federal Reserve's rate cuts have improved household financial flexibility, encouraging discretionary spending, which benefits the sector [4] - Companies are focusing on consumer engagement through product innovation and personalized shopping experiences, while also tightening inventory management and rationalizing store footprints [5] - Retailers are integrating in-store and online operations through omnichannel capabilities, enhancing customer experiences with loyalty programs and advanced technology [6] Margin Pressures - Intense competition is leading retailers to battle for market share through pricing and product assortment, which is increasing operational costs and putting pressure on margins [7][8] - Companies are actively streamlining operations and optimizing supply chains to balance growth and profitability [8] Investment Opportunities - American Eagle Outfitters, Inc. (AEO) is noted for its strong turnaround, driven by successful marketing and brand desirability, with a projected sales growth of 2.7% for the current financial year [18][19] - Boot Barn Holdings, Inc. (BOOT) is experiencing broad-based growth and executing a "stores-first" strategy, with expected sales growth of 16.9% and EPS growth of 25.1% [22][24] - Victoria's Secret & Co. (VSCO) is revitalizing its brand through product innovation and operational efficiency, with a projected sales growth of 4.7% [26][27] - The Gap, Inc. (GAP) is undergoing an operational turnaround with a focus on high-impact marketing and supply chain modernization, expecting sales growth of 1.9% [30][31] Industry Performance - The Zacks Retail - Apparel and Shoes industry ranks 46, placing it in the top 19% of over 250 Zacks industries, indicating positive near-term prospects [9][10] - The industry's earnings estimate has risen by 9.6% over the past year, reflecting growing analyst confidence in earnings growth potential [11] - The industry has underperformed the broader market, declining by 6.7% over the past year compared to the S&P 500's growth of 16.5% [12]

Core Insights - Boot Barn Holdings, Inc. (BOOT) shares have increased by 19.9% over the past year, outperforming the Zacks industry decline of 4.8%, the Retail-Wholesale sector growth of 9.1%, and the S&P 500 rally of 18.3% [1] Group 1: Stock Performance - Boot Barn's stock closed at $192.69, which is 8.4% below its 52-week high of $210.25 reached on December 12, 2025 [3] - The stock is trading above its 50-day and 200-day simple moving averages of $189.77 and $166.03, indicating a favorable technical setup [3] Group 2: Growth Strategy - Boot Barn has revised its Total Addressable Market (TAM) from $40 billion to approximately $58 billion, supporting a long-term potential of 1,200 U.S. stores, more than double its current footprint [4][6] - The company plans to open 12% to 15% new units annually, demonstrating its brand's national resonance [4] Group 3: Financial Performance - Boot Barn expects Q3 sales of $705.6 million, reflecting a 16% increase, with same-store sales rising by 5.7% across channels [6][10] - The company anticipates earnings per share of approximately $2.79, up from $2.43 in the same quarter of fiscal 2025 [10] Group 4: Margin Expansion - Boot Barn's exclusive brands reached a 41.5% mix, resulting in a 1,000-basis point margin uplift compared to third-party brands [6][8] - Merchandise margins have expanded by an estimated 790 basis points over the last six years, with an expected additional 110 basis points of expansion in Q3 fiscal 2026 [8] Group 5: Digital Strategy - The company's digital strategy has led to a 19.6% growth in e-commerce same-store sales in the most recent quarter [9] - Boot Barn is enhancing the in-store experience through technology initiatives like "WHIP" and "Cassidy," while maintaining consistent pricing across channels to protect brand equity [9] Group 6: Valuation - Boot Barn trades at a forward 12-month price-to-earnings (P/E) ratio of 23.61, higher than the industry's average of 16.12 but below its one-year median of 24.56 [11] Group 7: Earnings Estimates - The Zacks Consensus Estimate for Boot Barn's current year and next year earnings per share has improved by 22 cents and 23 cents, respectively, in the past 30 days [12]

Financial Data and Key Metrics Changes - The company achieved a merchandise margin expansion of 110 basis points, exceeding the guidance of 30 basis points year-over-year [3][4] - Over the past seven years, the company has seen a total of 700 basis points of merchandise margin expansion [5] Business Line Data and Key Metrics Changes - The exclusive brand penetration met expectations, contributing to growth but not the margin beat [3] - The work boot business showed mid-single-digit comparable sales growth, attributed to digital marketing and re-merchandising efforts [10][11] Market Data and Key Metrics Changes - The Total Addressable Market (TAM) was increased from $40 billion to $58 billion, influenced by the Country Lifestyle segment and the addition of denim [22][23] - The company is expanding its store count target from 900 to 1,200, with an average new store volume of approximately $3.2 million [24][25] Company Strategy and Development Direction - The company is focusing on building a proper sourcing team for exclusive brands and enhancing marketing efforts for these brands [7][10] - The strategy includes targeting the Country Lifestyle customer through partnerships with mainstream events like NASCAR and the NFL [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic landscape, noting that tax refunds and reduced withholdings could positively impact their core customer [43][44] - The company aims to achieve a mid-teens EBIT margin over time, currently tracking around 13% for the fiscal year [38] Other Important Information - The company is leveraging social media, particularly TikTok, to market its stores and products, focusing on authenticity and everyday creators rather than professional influencers [34][36] Q&A Session Summary Question: What are the drivers behind the merchandise margin expansion? - The company attributed the margin expansion to better buying economies of scale, lower markdowns, and improved inventory management [4][3] Question: How is the new sourcing team adapting to tariffs? - The sourcing team is navigating tariff challenges and is about two-thirds built, focusing on preserving margins while adapting to changing conditions [9][12] Question: What is the approach to pricing in relation to tariffs? - The company plans to implement low single-digit price increases on exclusive brands post-holiday to preserve margin rates [16] Question: How is the company expanding its customer base? - The company is targeting the Country Lifestyle customer and has adjusted marketing strategies to reach this demographic [19][20] Question: What are the expectations for store growth? - The company expects to maintain a store growth rate of 12%-15% for the foreseeable future, with new stores opening in both legacy and new markets [29][32]