Boot Barn(BOOT) - 2026 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations for the company Item 1. Condensed Consolidated Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, stockholders' equity, cash flows, and accompanying notes Condensed Consolidated Balance Sheets The balance sheet as of June 28, 2025, shows an increase in total assets to $2.09 billion, driven by higher cash and inventories, with total liabilities and stockholders' equity also increasing Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 28, 2025 | March 29, 2025 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $95,319 | $69,770 | | Inventories | $774,060 | $747,191 | | Total current assets | $908,744 | $863,960 | | Total assets | $2,093,826 | $2,018,021 | | Liabilities & Equity | | | | Total current liabilities | $358,654 | $353,349 | | Total liabilities | $922,420 | $886,964 | | Total stockholders' equity | $1,171,406 | $1,131,057 | | Total liabilities and stockholders' equity | $2,093,826 | $2,018,021 | Condensed Consolidated Statements of Operations For the thirteen weeks ended June 28, 2025, net sales grew 19.1% to $504.1 million, leading to a 25.8% increase in gross profit and a rise in net income to $53.4 million Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Thirteen Weeks Ended June 28, 2025 | Thirteen Weeks Ended June 29, 2024 | | :--- | :--- | :--- | | Net sales | $504,067 | $423,386 | | Gross profit | $197,221 | $156,749 | | Income from operations | $70,720 | $50,222 | | Net income | $53,408 | $38,909 | | Diluted EPS | $1.74 | $1.26 | Condensed Consolidated Statements of Stockholders' Equity Total stockholders' equity increased to $1.171 billion at June 28, 2025, primarily due to net income, partially offset by common stock repurchases - Stockholders' equity increased to $1,171.4 million at June 28, 2025, up from $1,131.1 million at March 29, 2025[15] - The increase in equity was primarily due to $53.4 million in net income, offset by $12.6 million in common stock repurchases and $4.2 million for tax withholding on net share settlements[15] Condensed Consolidated Statements of Cash Flows Net cash provided by operating activities significantly increased to $73.9 million for the thirteen-week period, while cash was used in investing and financing activities, resulting in a $25.5 million increase in cash and cash equivalents Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Thirteen Weeks Ended June 28, 2025 | Thirteen Weeks Ended June 29, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $73,850 | $41,311 | | Net cash used in investing activities | $(31,462) | $(27,066) | | Net cash used in financing activities | $(16,839) | $(6,705) | | Net increase in cash and cash equivalents | $25,549 | $7,540 | | Cash and cash equivalents, end of period | $95,319 | $83,387 | Notes to Condensed Consolidated Financial Statements The notes detail business operations, accounting policies, and financial matters, including an increase in store count, a new stock repurchase program, and a higher effective tax rate - The company operated 473 stores in 49 states as of June 28, 2025, an increase from 459 stores at the end of the previous fiscal year[20] - In May 2025, the Board of Directors authorized a new stock repurchase program for up to $200 million of its common stock, with 77,959 shares repurchased for $12.5 million during the quarter[37][40] - The company operates as a single operating and reportable segment, with 91% of net sales from stores and 9% from e-commerce for the quarter[47][54] - The effective income tax rate was 25.1% for the quarter, up from 22.9% in the prior-year period, primarily due to a lower tax benefit from stock-based compensation[94] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's strong first-quarter fiscal 2026 financial performance, highlighting increased net sales, expanded gross profit margin, and a robust liquidity position Results of Operations Net sales for the thirteen weeks ended June 28, 2025, increased 19.1% to $504.1 million, driven by same-store sales growth and new stores, while gross profit margin improved to 39.1% - Net sales increased by $80.7 million (19.1%) year-over-year, driven by a 9.4% increase in consolidated same-store sales and incremental sales from new stores[137] - Gross profit rate increased by 210 basis points to 39.1%, primarily due to a 180 basis-point improvement in merchandise margin rate and 30 basis points of leverage in buying, occupancy, and distribution costs[138] - SG&A expenses increased by $20.0 million (18.8%) due to operating more stores, but decreased by 10 basis points as a percentage of sales to 25.1%[139][140] Store Operating Data | Metric | Thirteen Weeks Ended June 28, 2025 | Thirteen Weeks Ended June 29, 2024 | | :--- | :--- | :--- | | Same Store Sales growth | 9.4% | 1.4% | | Stores operating at end of period | 473 | 411 | Liquidity and Capital Resources The company maintains strong liquidity with $95.3 million in cash and no outstanding debt on its $250.0 million revolving credit facility, while estimating $115.0 million to $120.0 million in capital expenditures for fiscal 2026 - Primary liquidity sources are cash flows from operating activities and the $250.0 million Wells Fargo Revolver, which had no borrowings outstanding as of June 28, 2025[147][154] - Estimated total capital expenditures for fiscal 2026 are between $115.0 million and $120.0 million, net of $35.5 million in landlord allowances[150] Summary Cash Flow (in thousands) | Cash Flow Activity | Thirteen Weeks Ended June 28, 2025 | Thirteen Weeks Ended June 29, 2024 | | :--- | :--- | :--- | | Operating activities | $73,850 | $41,311 | | Investing activities | $(31,462) | $(27,066) | | Financing activities | $(16,839) | $(6,705) | Item 3. Quantitative and Qualitative Disclosure About Market Risk The company is exposed to interest rate risk from its variable-rate credit facility, but this risk is mitigated by having no outstanding borrowings as of June 28, 2025 - The company is exposed to interest rate risk from its variable-rate credit facility, but had no amounts outstanding as of June 28, 2025[168] - There were no material changes in the market risks described in the Fiscal 2025 10-K[171] Item 4. Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of June 28, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of June 28, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[173] - No material changes to internal control over financial reporting occurred during the quarter ended June 28, 2025[174] PART II. OTHER INFORMATION This section provides additional information, including legal proceedings, risk factors, unregistered sales of equity securities, and other disclosures Item 1. Legal Proceedings The company is involved in incidental litigation, but management believes none of the pending legal matters will materially affect its financial position or results - The company states that none of its current legal proceedings are expected to have a material effect on its financial condition or results[85][178] Item 1A. Risk Factors There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended March 29, 2025 - As of June 28, 2025, there were no material changes to the risks described in the company's Fiscal 2025 10-K[179] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The Board authorized a new $200 million stock repurchase program in May 2025, under which the company repurchased 77,959 shares for $12.5 million during the first quarter - On May 8, 2025, the Board authorized a $200 million stock repurchase program with no expiration date[180] Share Repurchases for Thirteen Weeks Ended June 28, 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Approx. Dollar Value Remaining ($000) | | :--- | :--- | :--- | :--- | :--- | | May 2025 | 44,359 | $152.50 | 16,200 | $197,466 | | June 2025 | 61,759 | $161.37 | 61,759 | $187,500 | | Total | 106,118 | $157.66 | 77,959 | $187,500 | Item 5. Other Information No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the quarter ended June 28, 2025 - No directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements during the quarter[186]