Boot Barn(US:BOOT)2022-01-27 16:00Financial Performance - Boot Barn reported net income of $69.231 million for the 13 weeks ended December 25, 2021, compared to $29.566 million for the same period in 2020, representing a 134% increase [117]. - Basic earnings per share increased to $2.34 for the 13 weeks ended December 25, 2021, up from $1.02 in the prior year, reflecting a 129% growth [117]. - Net sales increased by $183.6 million, or 60.7%, to $485.9 million for the thirteen weeks ended December 25, 2021, compared to $302.3 million for the same period in 2020 [161]. - Consolidated same store sales increased by 54.2%, with a 48.4% increase in e-commerce same store sales [161]. - Gross profit rose by $84.9 million, or 79.4%, to $191.7 million for the thirteen weeks ended December 25, 2021, with a gross profit margin of 39.4% [163]. - Income from operations was $92.2 million for the thirteen weeks ended December 25, 2021, compared to $41.6 million for the same period in 2020 [157]. - Adjusted EBITDA for the thirteen weeks ended December 25, 2021, was $101.9 million, compared to $49.9 million for the same period in 2020 [159]. - Net income for the thirteen weeks ended December 25, 2021, was $69.2 million, compared to $29.6 million for the same period in 2020 [159]. - Average net sales per store increased to $3,218 for the thirteen weeks ended December 25, 2021, compared to $889 for the same period in 2020 [160]. - Income from operations rose by $50.6 million, or 121.5%, to $92.2 million for the thirteen weeks ended December 25, 2021, with income from operations as a percentage of net sales at 19.0% [165]. Sales and Store Operations - The company operated 289 stores across 37 states as of December 25, 2021, with a significant focus on western and work-related footwear and apparel [124]. - The company operated 289 stores at the end of the period, an increase from 266 stores at the end of the previous year [160]. - Boot Barn's same store sales growth is influenced by various factors, including economic trends, consumer preferences, and competition [137]. - The company anticipates that new store openings will contribute to future net sales growth, with a focus on expanding its geographic footprint [138]. Expenses and Profitability - Selling, general and administrative expenses are expected to increase due to growth in the number of stores and incremental share-based compensation [146]. - Cost of goods sold as a percentage of net sales decreased to 60.6% for the thirteen weeks ended December 25, 2021, from 64.7% for the same period in 2020 [157]. - SG&A expenses increased by $34.3 million, or 52.6%, to $99.5 million for the thirteen weeks ended December 25, 2021, compared to $65.2 million for the same period in 2020, with SG&A as a percentage of net sales decreasing by 110 basis points to 20.5% [164]. - The increase in gross profit margin was driven by a 270-basis point increase in merchandise margin rate, attributed to better full-price selling and growth in exclusive brand penetration [163]. Cash Flow and Investments - Net cash provided by operating activities for the thirty-nine weeks ended December 25, 2021, was $190.6 million, significantly higher than $156.6 million for the same period in 2020, marking an increase of 21.7% [196][197]. - The net income contributing to operating cash flow for the thirty-nine weeks ended December 25, 2021, was $147.7 million, compared to $34.8 million for the same period in 2020, reflecting a substantial increase of 324.0% [196][197]. - Net cash used in investing activities was $39.7 million for the thirty-nine weeks ended December 25, 2021, compared to $20.5 million in the same period of 2020, indicating an increase of 93.7% [201][202]. - The company plans to invest between $41.0 million and $43.0 million in capital expenditures for fiscal 2022, focusing on new store openings and improvements to e-commerce and IT infrastructure [185]. Debt and Financial Obligations - The company repaid the remaining $111.5 million outstanding principal under the 2015 Golub Term Loan during the thirty-nine weeks ended December 25, 2021 [186]. - The company repaid $112.1 million on debt and finance lease obligations during the thirty-nine weeks ended December 25, 2021 [203]. - The company did not experience significant changes to its contractual obligations during the thirteen and thirty-nine weeks ended December 25, 2021 [206]. - There are no off-balance sheet arrangements associated with the company [208]. Seasonal Trends and Risks - Boot Barn's business is moderately seasonal, with higher sales typically occurring during the Christmas shopping season [131]. - The impact of COVID-19 on operations and consumer discretionary spending remains a significant risk factor for future growth [122].