Boot Barn(BOOT) - 2025 Q1 - Quarterly Report

Financial Performance - Boot Barn reported net income of $38,909,000 for the 13 weeks ended June 29, 2024, compared to$ 34,253,000 for the same period last year, representing an increase of approximately 13.3%[85]. - Basic earnings per share increased to $1.28 from$ 1.14 year-over-year, while diluted earnings per share rose to $1.26 from$ 1.13[85]. - Net sales increased by $39.7 million, or 10.3%, to$ 423.4 million for the thirteen weeks ended June 29, 2024, compared to $383.7 million for the same period in 2023[113]. - Gross profit rose by$ 14.7 million, or 10.4%, to $156.7 million, maintaining a gross profit margin of 37.0% for both periods[114]. - Income from operations increased by$ 4.0 million, or 8.6%, to $50.2 million, with an operating margin of 11.9%[116]. - Net income for the period was$ 38.9 million, up from $34.3 million, reflecting an increase in the effective tax rate to 22.9% from 24.6%[117]. - Same store sales growth was 1.4%, with e-commerce same store sales increasing by 6.7%[113]. Store Operations and Growth Strategy - As of June 29, 2024, Boot Barn operated 411 stores across 46 states, alongside its e-commerce platforms, indicating a robust retail presence[91]. - The company anticipates that a percentage of future net sales will come from new store openings, which are integral to its growth strategy[100]. - The company operated 411 stores at the end of the period, up from 361 stores in the previous year[118]. Expenses and Profitability - Selling, general and administrative (SG&A) expenses increased by$ 10.8 million, or 11.3%, to $106.5 million, with SG&A as a percentage of net sales rising to 25.2% from 24.9%[115]. - Selling, general and administrative expenses are expected to rise due to increased stock-based compensation and the growth of the store network[107]. - Gross profit is closely tied to net sales, with the company regularly analyzing components such as initial markups and markdowns to maintain profitability[104]. Cash Flow and Capital Expenditures - Cash and cash equivalents increased to$ 83.4 million as of June 29, 2024, compared to $75.8 million as of March 30, 2024[126]. - Net cash provided by operating activities was$ 41.3 million for the thirteen weeks ended June 29, 2024, down from $70.8 million for the same period in 2023[127]. - Net cash used in investing activities was$ 27.1 million for the thirteen weeks ended June 29, 2024, compared to $29.9 million for the same period in 2023, indicating a decrease of 9.4%[129]. - Total capital expenditures for fiscal 2025 are estimated to be between$ 115.0 million and $120.0 million, including investments in a new distribution center[120]. - Capital expenditures for store construction and improvements to the Kansas City distribution center were significant contributors to the investing activities in both periods[129]. - Net cash used in financing activities was$ 6.7 million for the thirteen weeks ended June 29, 2024, a substantial decrease from $42.0 million in the same period of 2023, reflecting a reduction of 84.0%[130]. Market and Economic Factors - Boot Barn's business is sensitive to consumer discretionary spending, with economic conditions and consumer confidence playing significant roles in its performance[90]. - Boot Barn's same store sales metrics are influenced by various factors, including economic trends, consumer preferences, and competition, which are critical for assessing performance[99]. - The company is subject to interest rate risk due to borrowings under its credit facility, which bears interest at variable rates[131]. - There were no material changes in the market risks as described in the "Quantitative and Qualitative Disclosure of Market Risks" section of the Fiscal 2024 10-K[132]. - The company has not reported significant changes to its critical accounting policies and estimates as of the latest filing[109].