Boot Barn(BOOT)2024-10-30 20:15Store Operations and Growth Strategy - Boot Barn operates 425 stores across 46 states as of September 28, 2024, with a strong e-commerce presence including websites like bootbarn.com and the Boot Barn app[102] - New store openings are a key growth strategy, with pre-opening costs expensed as incurred and initial sales typically higher before normalizing[114][115] - The company operated 425 stores at the end of September 2024, compared to 371 stores in the prior-year period[142] Revenue and Sales Performance - The company's net sales include revenue from retail locations, e-commerce, and shipping fees, with revenue recognized upon purchase or delivery[105] - Net sales increased by 425.8 million for the thirteen weeks ended September 28, 2024, driven by new store sales and a 4.9% increase in consolidated same-store sales[126] - Net sales increased by 849.2 million for the twenty-six weeks ended September 28, 2024, with a 3.1% increase in consolidated same-store sales[133] - Same-store sales growth was 4.9% for the thirteen weeks ended September 28, 2024, and 3.1% for the twenty-six weeks ended September 28, 2024[142] Gross Profit and Cost of Goods Sold - Gross profit is derived from net sales minus cost of goods sold, which includes merchandise costs, occupancy, freight, and other inventory-related expenses[116][118] - Gross profit increased by 152.9 million for the thirteen weeks ended September 28, 2024, with a 10 basis-point increase in gross profit rate to 35.9%[127] - Gross profit increased by 309.6 million for the twenty-six weeks ended September 28, 2024, with a 10 basis-point increase in gross profit rate to 36.5%[134] Selling, General, and Administrative (SG&A) Expenses - Selling, general, and administrative (SG&A) expenses include labor, operating costs, and corporate expenses, expected to increase with store growth[120][121] - SG&A expenses increased by 112.9 million for the thirteen weeks ended September 28, 2024, primarily due to higher store payroll, marketing, and legal expenses[128][129] - SG&A expenses increased by 219.4 million for the twenty-six weeks ended September 28, 2024, driven by higher store payroll, marketing, and incentive-based compensation[135] Net Income and Financial Performance - Net income increased by 29.4 million for the thirteen weeks ended September 28, 2024, compared to 6.4 million to 61.9 million in the prior-year period[139] Capital Expenditures and Investments - The company plans to invest between 120.0 million in capital expenditures for fiscal 2025, including investments in a new distribution center in Kansas City, Missouri, and improvements to e-commerce and IT infrastructure[145] - Net cash used in investing activities was 250.0 million syndicated senior secured asset-based revolving credit facility (Wells Fargo Revolver) with a sublimit for letters of credit of 37.4 million in cash and cash equivalents, a decrease from 33.5 million for the twenty-six weeks ended September 28, 2024, driven by net income of 32.2 million[156] - Net cash used in financing activities was 7.6 million paid in taxes related to restricted stock vesting[160] Fiscal Year and Reporting Periods - The company's fiscal year consists of 52 or 53 weeks, with fiscal 2025 and fiscal 2024 both being 52-week years[124] - Same store sales are calculated for stores open at least 13 full fiscal months, with specific criteria for temporary closures, relocations, and acquisitions[107][108]