Boot Barn(US:BOOT)2023-01-24 16:00Financial Performance - Net income for the thirteen weeks ended December 24, 2022, was $52,772,000, a decrease of 23.7% compared to $69,231,000 for the same period in 2021[76] - Basic earnings per share for the thirteen weeks ended December 24, 2022, was $1.77, down 24.4% from $2.34 in the prior year[76] - Diluted earnings per share for the thirteen weeks ended December 24, 2022, was $1.74, a decrease of 23.3% compared to $2.27 for the same period in 2021[76] - Net income was $52.8 million for the thirteen weeks ended December 24, 2022, down from $69.2 million for the same period in 2021[122] - For the thirty-nine weeks ended December 24, 2022, net sales increased by $127.0 million, or 11.5%, to $1.232 billion compared to $1.105 billion for the same period in 2021[129] - Net income for the thirty-nine weeks ended December 24, 2022, was $124.1 million, down from $147.7 million for the same period in 2021[137] Sales and Revenue - Net sales increased by $28.6 million, or 5.9%, to $514.6 million for the thirteen weeks ended December 24, 2022, compared to $485.9 million for the same period in 2021[124] - Same store sales declined by 3.6% for the period ending December 24, 2022, compared to a growth of 54.2% in the previous year[141] - Same store sales are influenced by various factors including economic trends, consumer preferences, and competition[100] Expenses - Selling, general and administrative (SG&A) expenses increased by $15.9 million, or 15.9%, to $115.3 million for the thirteen weeks ended December 24, 2022, representing 22.4% of net sales[120] - SG&A expenses for the thirty-nine weeks ended December 24, 2022, increased by $55.4 million, or 24.0%, to $285.7 million, representing 23.2% of net sales[131] - Selling, general and administrative (SG&A) expenses are expected to increase in future periods due to stock-based compensation and growth in the number of stores[109] Profitability - Gross profit decreased by $3.8 million, or 2.0%, to $187.8 million for the thirteen weeks ended December 24, 2022, with a gross profit margin of 36.5% compared to 39.4% in the prior year[118] - Gross profit for the thirty-nine weeks ended December 24, 2022, increased by $28.5 million, or 6.7%, to $454.7 million, with a gross profit margin of 36.9% compared to 38.6% in the prior year[130] - Income from operations decreased by $26.9 million, or 13.7%, to $169.1 million for the thirty-nine weeks ended December 24, 2022, with an operating margin of 13.7%[132] Store Operations - The company operated 333 stores across 41 states as of December 24, 2022, with a focus on western and work-related footwear, apparel, and accessories[88] - The company operated 333 stores at the end of December 2022, an increase from 289 stores at the end of December 2021[141] - The company anticipates that a percentage of net sales in the near future will come from new store openings, which are a key part of its growth strategy[101] - The company plans to continue opening new stores and remodeling existing ones, which will increase capital expenditures[145] Cash Flow and Capital Expenditures - Cash and cash equivalents were $50.4 million as of December 24, 2022, compared to $20.7 million as of March 26, 2022[156] - Net cash provided by operating activities was $87.1 million for the thirty-nine weeks ended December 24, 2022, down from $190.6 million for the same period in 2021[157][158] - Net cash used in investing activities was $83.1 million for the thirty-nine weeks ended December 24, 2022, primarily for capital expenditures related to store construction and technology improvements[163] - Total capital expenditures in fiscal 2023 are estimated to be between $90.0 million and $95.0 million, including investments in a new distribution center in Kansas City, Missouri[145] Debt and Interest - Interest expense for the thirty-nine weeks ended December 24, 2022, was $4.3 million, compared to $5.4 million for the same period in 2021[135] - Total interest expense incurred on the June 2015 Wells Fargo Revolver was $2.1 million for the thirteen weeks ended December 24, 2022, with a weighted average interest rate of 4.9%[152] - The company had $59.1 million outstanding under the June 2015 Wells Fargo Revolver as of December 24, 2022[165] - The company is in compliance with the June 2015 Wells Fargo Revolver covenant as of December 24, 2022[159] Revenue Recognition - The company recognizes revenue upon the purchase of merchandise by customers at retail locations and upon delivery for e-commerce sales[93] Seasonal Trends - The third quarter of the fiscal year, which includes the Christmas shopping season, has historically produced higher sales and larger operating income compared to other quarters[94]