| --- | --- | --- | --- | --- | --- | |--------------|-------|---------------------------------------------------------------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | October 2024 | | Supplemental Financial Presentation Offering everyone a piece of the American spirit—one handshake at a time. | | | | 0 Important Information Forward-Looking Statements This presentation contains forward-looking statements that are subjec ...

Financial Performance - Net sales for Q2 FY2025 increased by 13.7% to $425.8 million compared to $374.5 million in the prior-year period[5]. - Net income for the quarter was $29.4 million, or $0.95 per diluted share, up from $27.7 million, or $0.90 per diluted share, in the prior-year period[5]. - Gross profit for the quarter was $152.9 million, representing a gross margin of 35.9%, compared to $133.9 million and a gross margin of 35.7% in the prior year[25]. - Net income for the quarter was $29.4 million, or $0.96 per diluted share, compared to $27.7 million, or $0.92 per diluted share, in the same quarter last year, reflecting a 6.3% increase in net income[25]. - Total current assets increased to $807.1 million as of September 28, 2024, compared to $729.6 million as of March 30, 2024, marking a 10.6% increase[23]. - The company reported a total of $1.87 billion in assets as of September 28, 2024, up from $1.71 billion as of March 30, 2024, reflecting a 9.5% increase[23]. - Cash and cash equivalents at the end of the period were $37.4 million, a decrease from $75.8 million at the beginning of the period[27]. - Operating cash flow for the quarter was $33.5 million, compared to $145.5 million in the same quarter last year, indicating a decrease in cash generated from operations[27]. Sales and Growth Projections - For the fiscal year ending March 29, 2025, total sales are expected to be between $1.874 billion and $1.907 billion, representing growth of 12.4% to 14.4%[18]. - Same store sales growth for FY2025 is projected to be approximately 3.0% to 5.0%, with retail store same store sales growth of 2.5% to 4.5% and e-commerce same store sales growth of 7.5% to 9.5%[18]. - For Q3 FY2025, total sales are expected to be between $582 million and $595 million, representing growth of 11.8% to 14.3% over the prior-year period[19]. - The company anticipates continued growth in net sales and plans to open additional stores in the upcoming quarters as part of its expansion strategy[24]. Store Operations - The company opened 15 new stores, bringing the total store count to 426[5]. - The company opened 15 new stores during the quarter, bringing the total store count to 425 as of September 28, 2024, up from 411 at the end of the previous quarter[29]. - Total retail store selling square footage at the end of September 2024 was 4,720,000 square feet[30]. - Average retail store selling square footage increased to 11,105 square feet in September 2024[30]. - The number of stores operating at the end of the period increased from 411 in June 2024 to 425 in September 2024[30]. - Comparable stores operating during the period increased to 363 from 349 in June 2024[30]. - Same store sales grew by 4.9%, with retail store same store sales increasing by 4.3% and e-commerce same store sales increasing by 10.1%[5]. - Same store sales decline was recorded at (5.9)% for March 2024[30]. - Average sales per comparable store for September 2024 was $952,000[30]. - Average sales per comparable store was $980,000 in June 2024[30]. Expenses - Selling, general and administrative expenses for FY2025 are projected to be between $476.5 million and $480.4 million, or approximately 25.4% to 25.2% of sales[18]. - Selling, general, and administrative expenses for the quarter were $112.9 million, which is 26.5% of net sales, compared to $95.3 million or 25.5% of net sales in the prior year[25].

Core Viewpoint - Boot Barn is positioned as a strong contender in the retail sector, consistently outperforming expectations and gaining attention from Wall Street with a Zacks Rank 1 (Strong Buy) [2][4] Company Performance - Boot Barn operates over 280 stores in the U.S. and has three successful e-commerce sites, demonstrating its ability to adapt and scale [3] - The company reported fiscal Q2 results that exceeded consensus estimates by $0.28 per share, marking its sixth consecutive earnings surprise [3] - Store sales increased by 76% compared to 2020 and 69% compared to 2019, while e-commerce sales grew by 57% from pre-pandemic levels [3] Growth Drivers - Boot Barn maintains customer loyalty through high-quality brands such as Wrangler, Justin, and Carhartt, while also benefiting from a lifestyle shift towards western and rugged workwear [3] - The company has seen strong full-price sales, leading to improved merchandise margins and minimal reliance on promotions, which is uncommon in the retail sector [3] Market Position - Boot Barn's strategy allows it to outperform the retail industry average, effectively meeting demand both online and in-store while controlling costs [4] - The company is recognized as a high-performance retail stock with strong brand loyalty and a rapidly expanding footprint, making it an attractive option for investors [4]

Group 1: Company Performance - Boot Barn's shares have increased by 22.9% over the past month and have gained 116.9% since the start of the year, outperforming the Zacks Retail-Wholesale sector and the Zacks Retail - Apparel and Shoes industry, which saw returns of 20.9% and 13.3% respectively [1] - The company reported an EPS of $1.2 in its last earnings report, exceeding the consensus estimate of $1.08, and beat the revenue estimate by 1.78% [2] - For the current fiscal year, Boot Barn is expected to post earnings of $5.36 per share on revenues of $1.86 billion, reflecting a 10.52% change in EPS and an 11.45% change in revenues [3] Group 2: Valuation Metrics - Boot Barn has a Value Score of B, a Growth Score of B, and a Momentum Score of A, resulting in a VGM Score of A [6] - The stock currently trades at 31.1X current fiscal year EPS estimates, which is a premium compared to the peer industry average of 17.5X, and on a trailing cash flow basis, it trades at 25.2X versus the peer group's average of 8.3X [6] Group 3: Zacks Rank and Industry Comparison - Boot Barn holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts, indicating potential for further gains [7] - The Retail - Apparel and Shoes industry is positioned in the top 41% of all industries, suggesting positive market conditions for both Boot Barn and its peers [10]

Core Viewpoint - The article emphasizes the importance of conducting thorough due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments in complex instruments like cryptocurrencies and CFDs [1]. Group 1 - The content includes general news and publications, personal analysis and opinions, and third-party content intended for educational and research purposes [1]. - It highlights that the information provided is not necessarily real-time or accurate, and prices may be sourced from market makers rather than exchanges [1]. - The article warns that trading or financial decisions made based on the information provided are the sole responsibility of the individual [1]. Group 2 - The article discusses the high risk associated with cryptocurrencies and CFDs, noting that they are complex instruments that can lead to significant financial losses [1]. - It encourages individuals to perform their own research before making investment decisions and to avoid investing in instruments that they do not fully understand [1].

Market Overview - U.S. markets have continued their upward trend in 2024, building on the rally from 2023 despite recent economic turbulence and recession concerns [1] - The S&P 500 has increased over 16% year-to-date, driven by optimism from a decline in the annual inflation rate to its lowest since early 2021 [2] Economic Indicators - The decline in inflation is seen as positive ahead of expected Federal Reserve rate cuts, with a 25-basis point cut anticipated this month [2] - The Federal Reserve's dovish stance is attributed to steady declines in inflation, aligning with its 2% target [2] Stock Recommendations - Recommended stocks based on relative price strength include Limbach Holdings (LMB), Ubiquiti (UI), Royal Caribbean Cruises (RCL), DaVita (DVA), and Boot Barn Holdings (BOOT) [3] Stock Selection Strategy - Investors should focus on stocks outperforming their sectors in price, as they are more likely to provide significant returns [5] - Stocks that have shown better performance than the S&P 500 over the past 1 to 3 months and have solid fundamentals are ideal candidates [6] Earnings Estimates - Positive estimate revisions for upcoming earnings are crucial, as upward revisions typically lead to price gains [7] - Screening parameters include relative price changes over various time frames and positive current-quarter estimate revisions [8] Stock Profiles - **Limbach Holdings (LMB)**: Market cap of $772.8 million, with a 38.1% year-over-year EPS growth estimate for 2024 and a 115.7% increase in shares over the past year [12][11] - **Ubiquiti (UI)**: Market cap of $12 billion, with a 22.2% growth estimate for fiscal 2025 and a 25.2% increase in shares over the past year [13][12] - **Royal Caribbean Cruises (RCL)**: Market cap not specified, with a 71.1% year-over-year EPS growth estimate for 2024 and a 66% increase in shares over the past year [14][13] - **DaVita (DVA)**: Expected EPS growth rate of 17.5% over the next 3 to 5 years, with a 60.2% increase in shares over the past year [15][16] - **Boot Barn Holdings (BOOT)**: Market cap of $4.5 billion, with an 11.2% upward revision in earnings estimates and a 69.5% increase in shares over the past year [16][17]

Company Performance - Boot Barn (BOOT) has gained approximately 99.9% year-to-date, significantly outperforming the average return of 14.2% for the Retail-Wholesale sector [4] - Boot Barn currently holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook [3] - The Zacks Consensus Estimate for Boot Barn's full-year earnings has increased by 9.6% over the past three months, reflecting improved analyst sentiment [4] Industry Comparison - Boot Barn is part of the Retail - Apparel and Shoes industry, which has an average gain of 4.8% this year, indicating that Boot Barn is performing better than its industry peers [6] - In contrast, Carvana (CVNA), another stock in the Retail-Wholesale sector, has a year-to-date return of 146.9% and a Zacks Rank of 2 (Buy) [5] - The Internet - Commerce industry, to which Carvana belongs, has seen a 16% increase this year, ranking 61 among industries [6] Sector Ranking - The Retail-Wholesale sector includes 211 companies and is currently ranked 9 in the Zacks Sector Rank [2] - The Zacks Rank system focuses on earnings estimates and revisions to identify stocks with improving earnings outlooks [3]

Company Performance - Boot Barn's shares have increased by 13.6% over the past month, reaching a new 52-week high of $162.16, and have gained 99.9% since the start of the year [1] - The company reported EPS of $1.2 in its last earnings report, exceeding the consensus estimate of $1.08, and beat the revenue estimate by 1.78% [2] - For the current fiscal year, Boot Barn is expected to post earnings of $5.34 per share on revenues of $1.84 billion, reflecting a 10.31% change in EPS and a 10.67% change in revenues [3] Valuation Metrics - Boot Barn has a Value Score of C, a Growth Score of B, and a Momentum Score of D, resulting in a VGM Score of B [6] - The stock trades at 28.7X current fiscal year EPS estimates, which is a premium compared to the peer industry average of 16.2X, and at 23.2X trailing cash flow versus an average of 7.5X for its peer group [6] Zacks Rank - Boot Barn holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, indicating potential for future growth [7] Industry Comparison - The Retail - Apparel and Shoes industry is in the top 35% of all industries, suggesting favorable conditions for Boot Barn and its peers [10] - Another industry peer, Industria de Diseno Textil SA (IDEXY), has a Zacks Rank of 2 (Buy) and shows strong performance with a 4.55% earnings beat and expected earnings of $1.05 per share on revenues of $42.37 billion [8][9]

Core Insights - Boot Barn's shares surged to all-time highs following analysts raising their price targets due to positive same-store sales trends [1][3] - Management provided an update indicating a rebound in same-store sales after a slight dip in July, with growth accelerating in September [2][4] - Preliminary Q2 numbers show a 4% year-over-year gain in same-store sales, compared to just over 1% in the previous quarter [4][5] Analyst Reactions - JPMorgan analyst Matthew Boss raised Boot Barn's price target by approximately 10% to $160 per share based on the same-store sales trends [3] - The positive analyst sentiment contributed to the stock's rise to an all-time high [1][3] Company Performance - Boot Barn's preliminary Q2 results indicate strong performance, countering fears that the brand might lose relevance [4][5] - The company is actively opening new locations across the country, further supporting its growth narrative [5]

Core Viewpoint - Boot Barn's 1Q25 results indicate a return to comparable sales growth after a challenging FY24, driven by improved digital advertising returns and stable margins despite store expansion [1][2][3] Group 1: Financial Performance - Comparable sales increased by 1.4% in 1Q25, reversing negative trends from 2H24 where same-store sales were down nearly 5% to 10% [2] - Operating margins remained flat, with gross margins up 100 basis points from merchandise but offset by a 100 basis point decline in overhead [2] - The company expects FY25 sales growth of 9-11% with flat comparable sales, and operating margins projected to remain around 11.5% [3] Group 2: Management and Strategy - Boot Barn's management is recognized for effective ad spend and inventory management, focusing on long-term profitability rather than short-term growth [4] - The company plans to expand store square footage by 15% annually, with a target to grow from 400 to 500 stores [3] Group 3: Valuation and Market Position - Boot Barn's current market cap is $4.1 billion, with expected operating profits of $220 million, leading to a P/E multiple of 25x and an earnings yield of 4% [5] - The stock is considered overvalued, requiring significant growth to achieve a fair return, with potential risks from execution, fashion cycles, and macroeconomic factors [5]