Boot Barn(US:BOOT)2026-02-04 22:35Business Operations - Boot Barn operates 514 stores across 49 states and has a strong e-commerce presence through multiple websites and an app[109]. - The company assesses performance using key indicators such as net sales, gross profit, same store sales, and operating income[112]. - Economic conditions and consumer confidence significantly influence Boot Barn's business performance[107]. Sales Performance - Net sales include revenue from retail locations and e-commerce, with fluctuations due to seasonality and external factors[113][115]. - Same store sales reflect net sales from stores open for at least 13 months, including e-commerce sales, and are a critical measure of performance[116][120]. - Net sales increased by $97.5 million, or 16.0%, to $705.6 million for the thirteen weeks ended December 27, 2025, compared to $608.2 million for the same period in 2024[135]. - For the thirty-nine weeks ended December 27, 2025, net sales increased by $257.8 million, or 17.7%, to $1.715 billion, with consolidated same store sales growth of 7.6%[144]. Profitability - Gross profit is calculated as net sales minus cost of goods sold, which includes significant expenses that are expected to rise with growth[123][124]. - Gross profit rose by $42.4 million, or 17.7%, to $281.2 million for the thirteen weeks ended December 27, 2025, with a gross profit margin of 39.9%, up from 39.3% in the prior year[136]. - Gross profit for the thirty-nine weeks ended December 27, 2025, increased by $114.1 million, or 20.8%, to $662.6 million, with a gross profit margin of 38.6%[145]. - Income from operations increased by $15.3 million, or 15.4%, to $114.8 million for the thirteen weeks ended December 27, 2025, with an operating margin of 16.3%[140]. - Income from operations for the thirty-nine weeks ended December 27, 2025, increased by $52.3 million, or 27.6%, to $241.9 million, with an operating margin of 14.1%[148]. - Net income for the thirteen weeks ended December 27, 2025, was $85.8 million, compared to $75.1 million for the same period in 2024, reflecting a net income margin of 12.2%[143]. Expenses - Selling, general and administrative (SG&A) expenses are anticipated to increase due to stock-based compensation and expansion-related costs[127]. - Selling, general and administrative (SG&A) expenses increased by $27.1 million, or 19.4%, to $166.5 million for the thirteen weeks ended December 27, 2025, resulting in a SG&A margin of 23.6%[137][139]. - SG&A expenses for the thirty-nine weeks ended December 27, 2025, rose by $61.9 million, or 17.2%, to $420.7 million, achieving a SG&A margin of 24.5%[146][147]. Capital Expenditures and Investments - New store openings are a key growth strategy, with pre-opening costs impacting initial profitability[121][122]. - The company plans to invest between $125.0 million and $130.0 million in capital expenditures for fiscal 2026, focusing on new store openings and improvements to distribution and IT infrastructure[156]. Cash Flow and Financing - As of December 27, 2025, cash and cash equivalents were $200.1 million, up from $69.8 million as of March 29, 2025[165]. - Net cash provided by operating activities for the thirty-nine weeks ended December 27, 2025, was $309.3 million, compared to $190.7 million for the same period in 2024[166][167]. - Net cash used in investing activities was $136.7 million for the thirty-nine weeks ended December 27, 2025, primarily for capital expenditures related to store construction[169]. - Net cash used in financing activities was $42.3 million for the thirty-nine weeks ended December 27, 2025, including $37.5 million for share repurchases[171]. - The Company has a $250.0 million Wells Fargo Revolver with a maturity date of July 11, 2027[157]. - The Company was in compliance with the Wells Fargo Revolver debt covenants as of December 27, 2025[163]. - The borrowing base for the Wells Fargo Revolver is calculated monthly based on eligible credit card receivables, commercial accounts, inventory, and available reserves[159]. - The applicable margin for Term SOFR loans under the Wells Fargo Revolver ranges from 1.00% to 1.25%[158]. - The Company paid a commitment fee of 0.25% per annum on the unutilized revolving loans under the Wells Fargo Revolver[158]. - Total interest expense incurred on the Wells Fargo Revolver for the thirty-nine weeks ended December 27, 2025, was $0.6 million, with a weighted average interest rate of 7.1%[160]. Fiscal Year Information - The fiscal year ends on the last Saturday of March, with both fiscal 2026 and fiscal 2025 consisting of 52 weeks[132]. - The company does not plan to update forward-looking statements unless required by law, acknowledging inherent risks and uncertainties[106].