Financial Data and Key Metrics Changes - Full year fiscal 2024 revenue grew to approximately $1.7 billion, nearly 100% growth over pre-pandemic levels, with a 2% year-over-year increase when excluding the 53rd week of fiscal 2023 [7][26] - Fourth quarter net sales decreased 8.7% to $388 million, driven by a 5.9% decline in same-store sales [22][23] - Earnings per diluted share for the full year was $4.80, down from the previous year but nearly triple pre-pandemic earnings [8][31] Business Line Data and Key Metrics Changes - Merchandise margin for the full year grew 160 basis points, with a 160 basis point expansion in the fourth quarter driven by freight improvements and supply chain efficiencies [7][9] - Exclusive brands penetration decreased 20 basis points in the fourth quarter but increased 370 basis points for the full year, exceeding the goal of 250 basis points per year [18][19] Market Data and Key Metrics Changes - Same-store sales declined 5.9% in the fourth quarter, with retail store same-store sales down 5.7% and e-commerce same-store sales down 7.6% [22][24] - Each of the four regions showed sequential improvement in the quarter compared to Q3, with the East slightly below the chain average [14] Company Strategy and Development Direction - The company plans to open at least 500 more stores in the U.S., maintaining a pace of adding 15% new units annually [11][12] - Focus on expanding exclusive brands and enhancing merchandise margin through buying economies of scale and supply chain efficiencies [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about recent positive trends in sales, noting that same-store sales are flat through the first six weeks of Q1, with May showing positive growth [20][21] - The macro environment remains uncertain, with persistent inflationary pressures on core customers, leading to conservative guidance for the upcoming year [21][26] Other Important Information - The company opened 55 new stores in fiscal 2024, exceeding original plans, and achieved a 60% cash on cash return on capital in the first year for new stores [6][11] - The e-commerce sales declined 7.6% in the fourth quarter, but the digital team is making progress with AI development to enhance online sales [15][17] Q&A Session Summary Question: Drivers of same-store sales acceleration in April and May - Management noted broad-based sequential improvement across all major product categories, with significant increases in ladies Western boots and work apparel [36][37] Question: Bottom line and EBIT margin forecast - EBIT margin forecast includes 110 basis points of merchandise margin expansion, with deleverage on SG&A due to negative same-store sales guidance [40][41] Question: Impact of Beyonce's album on sales - Management indicated minimal impact from the album on buying behavior, emphasizing that improvements are driven by existing customer trends [46][50] Question: Areas of conservatism in guidance - Conservatism is embedded due to tough year-over-year comparisons in June and macroeconomic uncertainties [56][58] Question: New store performance and comp waterfall - New stores are performing above expectations, with a return to traditional comp performance anticipated over time [64][66] Question: Exclusive brand performance - Exclusive brand penetration is expected to grow again after a temporary decline, with positive trends noted in new brands launched [74][98] Question: Competitive landscape and market share - The company continues to take market share from smaller independent retailers, which have seen more closures than openings post-pandemic [116]

Sales Performance - In fiscal 2024, sales from exclusive brand products accounted for approximately 37.7% of consolidated sales[413] - Three of the five top-selling brands as of March 30, 2024, were exclusive brands, which historically have a higher gross margin than third-party branded merchandise[413] - The company’s sales are typically higher in the third fiscal quarter due to the Christmas shopping season, which also incurs significant additional costs[427] - Sales significantly fluctuate based on shopping seasons, leading to disproportionate quarterly operational results[455] - Net sales disaggregation shows that stores accounted for 89% of total net sales as of March 30, 2024, compared to 87% in fiscal 2023 and 85% in fiscal 2022, while e-commerce sales decreased to 11% from 13% and 15% respectively[196] Financial Condition - Total current assets increased to $729.649 million as of March 30, 2024, up from $669.173 million on April 1, 2023, representing an increase of approximately 9%[1] - Cash and cash equivalents rose significantly to $75.847 million from $18.193 million, marking an increase of over 317%[1] - Net income for the period was $146.996 million, a decrease of 14% compared to $170.553 million in the previous fiscal year[2] - Net cash provided by operating activities surged to $236.080 million, compared to $88.887 million in the prior year, indicating a growth of approximately 165%[2] - Total liabilities increased to $761.949 million as of March 30, 2024, compared to $740.931 million on April 1, 2023, reflecting a rise of about 3%[1] - Total stockholders' equity rose to $943.643 million, up from $776.450 million, representing an increase of approximately 21%[1] - The company reported a decrease in accounts receivable to $9.964 million from $13.145 million, a decline of about 24%[1] - The company’s inventories increased slightly to $599.120 million from $589.494 million, showing a growth of approximately 2%[1] - Cash paid for income taxes was $57.157 million, down from $60.171 million, indicating a decrease of about 5%[2] Risks and Challenges - The company faces risks related to network security breaches, which could incur significant expenses and disrupt operations[414] - The company relies on vendors for quality merchandise compliance with product safety laws, and any failure could adversely affect its reputation and financial condition[439] - Changes in laws regarding product safety or consumer protection could lead to increased costs and operational challenges[440] - The company is subject to numerous regulations that, if violated, could increase costs, cause shipment delays, or harm reputation, adversely affecting business[468] - Litigation costs and outcomes could materially adversely affect the business[458] - Unseasonable or extreme weather could negatively impact sales, financial condition, and operational results[456] Debt and Financing - As of March 30, 2024, there was no outstanding indebtedness under the Wells Fargo Revolver, but the company may incur debt in the future[423] - The company's variable rate debt is currently indexed to the Secured Overnight Financing Rate (SOFR), which is volatile and difficult to predict, impacting interest payments[448] - The leverage may reduce cash flow available for business growth, limiting flexibility to respond to changing conditions and increasing borrowing costs[450][452] - The Company has a $250.0 million syndicated senior secured asset-based revolving credit facility with a maturity date of July 11, 2027[242] - The sublimit for letters of credit under the Wells Fargo Revolver is $10.0 million[242] - The Company is required to maintain a Consolidated Fixed Charge Coverage Ratio of at least 1.00:1.00 during covenant trigger events[244] Accounting and Compliance - The implementation of new accounting standards could increase operating costs and alter financial statements[453] - The Company is evaluating the impact of new accounting standards on its financial disclosures, including segment reporting and income tax disclosures[207][236] - The Company recognized an impairment charge of $2.0 million related to the Sheplers indefinite-lived trademark during fiscal 2024[3] - The goodwill balance remained unchanged at $197.5 million for fiscal 2024, with no impairment charges recorded for fiscal 2024, 2023, and 2022[209] Marketing and Advertising - The Company recognized $44.0 million in advertising costs during fiscal 2024, an increase from $40.7 million in fiscal 2023 and $34.5 million in fiscal 2022[228] - The Company incurred store opening costs, which include payroll, marketing, and initial inventory costs, all of which are expensed as incurred[198] Other Financial Metrics - The Company defers recognition of gift card sales until the cards are used, with no expiration dates for unredeemed cards[194] - As of March 30, 2024, the unearned revenue from the customer loyalty program was $5.0 million, up from $4.1 million in April 1, 2023, and $3.5 million in March 26, 2022[193] - Prepaid expenses and other current assets totaled $44.7 million as of March 30, 2024, down from $48.3 million in April 1, 2023[208] - Sales from the Company's three largest suppliers represented approximately 24% of net sales in fiscal 2024, consistent with fiscal 2023, and a slight decrease from 27% in fiscal 2022[206]

Sales Performance - Net sales for the fourth fiscal quarter decreased by 8.7% year-over-year to $388.5 million, with a 2.2% decrease when excluding $28.3 million from the prior year's 14th week[3] - Same store sales declined by 5.9% compared to the prior year, with retail store same store sales down 5.7% and e-commerce same store sales down 7.6%[3] - For the fiscal year, net sales increased by 0.6% to $1.667 billion, with a 2.3% increase when excluding $28.3 million from the 53rd week of the prior year[4] - Net sales for the quarter ended March 30, 2024, were $388.459 million, a decrease from $425.661 million for the quarter ended April 1, 2023, representing a decline of approximately 8.7%[35] - Net sales increased 0.6% to $1.667 billion from $1.658 billion in the prior year, with consolidated same store sales decreasing 6.2%[39] Profitability - Net income for the fourth quarter was $29.4 million, or $0.96 per diluted share, down from $46.4 million, or $1.53 per diluted share in the prior year[3] - Net income for the quarter ended March 30, 2024, was $29.439 million, compared to $46.409 million for the quarter ended April 1, 2023, indicating a decline of approximately 36.5%[35] - Gross profit for the quarter ended March 30, 2024, was $139.438 million, down from $155.832 million for the same quarter last year, reflecting a decrease of about 10.5%[35] - Gross profit was $139.4 million, or 35.9% of net sales, down from $155.8 million, or 36.6% in the prior-year period, primarily due to a decrease in sales[37] - Income from operations decreased by $24.5 million to $38.2 million, or 9.8% of net sales, compared to $62.7 million, or 14.7% in the prior-year period[46] Store Operations - The company opened 18 new stores in the fourth quarter, bringing the total store count to 400[3] - The company reported a total of 400 stores at the end of the period, with 18 new stores opened during the quarter[32] - The company expects to open 60 new stores in the fiscal year ending March 29, 2025, with total sales projected between $1.766 billion and $1.800 billion, representing growth of 5.9% to 8.0%[13] Future Projections - Same store sales for the upcoming fiscal year are expected to decline by approximately 3.6% to 1.6%, with retail store same store sales declines of 4.0% to 2.0%[13] - Gross profit for the upcoming fiscal year is projected to be between $647.2 million and $664.1 million, or approximately 36.6% to 36.9% of sales[13] Financial Position - Cash on hand was reported at $76 million, with no amounts drawn from the $250 million revolving credit facility[24] - Cash and cash equivalents increased to $75.847 million as of March 30, 2024, up from $18.193 million as of April 1, 2023[33] - Total assets as of March 30, 2024, were $1.706 billion, an increase from $1.517 billion as of April 1, 2023[33] - Total liabilities increased to $761.949 million as of March 30, 2024, compared to $740.931 million as of April 1, 2023[33] - The company reported a cash flow from operating activities of $236.080 million for the quarter ended March 30, 2024[31] Expenses - Selling, general and administrative expenses rose to $101.2 million, or 26.1% of net sales, compared to $93.1 million, or 21.9% in the prior-year period, reflecting higher marketing expenses and normalized incentive-based compensation[45] - Selling, general and administrative expenses for the fiscal year ended March 30, 2024, were $416.2 million, or 25.0% of net sales, up from $378.8 million, or 22.9% in the prior year[48] Margin Analysis - The decrease in gross profit rate of 70 basis points was driven by 230 basis points of deleverage in buying, occupancy, and distribution center costs[37] - The increase in merchandise margin rate was driven by a 160 basis-point improvement in freight expense and supply chain efficiencies as a percentage of net sales[37]

Financial Data and Key Metrics Changes - In the third quarter, net sales increased by 1.1% to $520 million, benefiting from new store openings, but offset by a same-store sales decline of 9.7% [11][12] - Income from operations was $75 million, or 14.4% of sales, compared to $72 million, or 14.1% of sales in the prior year [12] - Net income rose to $56 million, or $1.81 per diluted share, compared to $53 million, or $1.74 per diluted share in the prior year [12] - Gross profit increased by 6% to $199 million, reflecting a 180 basis point increase in gross profit rate [111] Business Line Data and Key Metrics Changes - Exclusive brand penetration increased by 310 basis points to 37.3%, despite softness in the Ladies' business [109] - Same-store sales in the more functional categories, such as men's Western boots and work boots, outperformed the discretionary ladies' departments [126] - The most recent 100 new stores generated approximately $3.3 million in annual revenue on average, significantly higher than the typical $2 million expectation [106] Market Data and Key Metrics Changes - Geographically, the West and North regions performed slightly better than the chain average, while the South and East regions were slightly worse [6] - Preliminary consolidated same-store sales for the first four weeks of fiscal fourth quarter declined by 8.1% compared to the prior year [110] Company Strategy and Development Direction - The company plans to open 15% new units in fiscal year 2025, with expectations for new stores to generate at least $3 million in sales during their first year [15] - The focus remains on executing four strategic initiatives, including expanding the store base, driving same-store sales growth, strengthening omnichannel leadership, and enhancing exclusive brands [5][126] - The company aims to maintain merchandise margin growth despite a negative same-store sales environment [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining elevated sales levels and average store volume despite recent declines in same-store sales [7][30] - The company anticipates a return to positive same-store sales growth in fiscal 2025, contingent on stabilizing the discretionary business [40][145] - Management acknowledged the impact of inflation on consumer spending but noted that the core customer remains relatively healthy [145] Other Important Information - The company expects total sales for the full fiscal year to be $1.66 billion, representing growth of 0.4% over fiscal 2023 [14] - SG&A expenses increased to $124 million, or 23.8% of sales, primarily due to higher overhead costs associated with operating additional stores [132] - The company is moving to a new corporate office building, which will increase lease costs and associated depreciation, impacting SG&A [136] Q&A Session All Questions and Answers Question: Can you elaborate on the regional improvement in January sales? - Management noted that the West and South regions improved sequentially, while the North and East regions experienced a decline due to weather impacts [18][130] Question: What is the expected impact of tariffs on sourcing from China? - Management indicated that approximately half of their products are sourced from China, but they do not foresee significant competitive disadvantages arising from potential tariffs [36][74] Question: How do you view the future of the online business and ad spend? - The company is cautious about increasing online marketing spend due to inefficiencies and aims to manage it algorithmically to avoid eroding EBIT [80] Question: When do you expect same-store sales to turn positive? - Management suggested that while it is difficult to predict, they believe improvements could occur in the next few quarters as underlying trends stabilize [175]

Financial Performance - Net income for the thirteen weeks ended December 30, 2023, was $55,624,000, compared to $52,772,000 for the same period in 2022, representing a year-over-year increase of 3.3%[68] - Basic earnings per share for the thirteen weeks ended December 30, 2023, was $1.84, up from $1.77 in the same period of 2022, reflecting a growth of 3.9%[68] - Gross profit increased by $11.3 million, or 6.0%, to $199.1 million for the thirteen weeks ended December 30, 2023, with a gross profit margin of 38.3% compared to 36.5% for the same period in 2022[112] - Income from operations rose by $2.6 million, or 3.7%, to $75.1 million for the thirteen weeks ended December 30, 2023, representing 14.4% of net sales, up from 14.1% in the prior year[114] - Net sales increased by $5.8 million, or 1.1%, to $520.4 million for the thirteen weeks ended December 30, 2023, while consolidated same store sales decreased by 9.7%[140] - For the thirty-nine weeks ended December 30, 2023, gross profit increased by $20.3 million, or 4.5%, to $475.0 million, with a gross profit margin of 37.2% compared to 36.9% in the previous year[116] - Net sales increased by $46.6 million, or 3.8%, to $1.279 billion for the thirty-nine weeks ended December 30, 2023, compared to $1.232 billion for the same period in 2022[145] Store Operations and Expansion - The company operated 382 stores across 44 states as of December 30, 2023, with a significant expansion in its geographic footprint compared to competitors[98] - The number of stores operating at the end of the period increased to 382 from 333 year-over-year[152] - The company anticipates that a percentage of net sales in the near future will come from new stores not included in same store sales calculations, indicating a focus on growth through new openings[81] - Average net sales per store decreased to $1,185 thousand from $1,320 thousand year-over-year[152] Expenses and Costs - Selling, general and administrative expenses are expected to increase in future periods due to stock-based compensation and growth in the number of stores[109] - SG&A expenses increased by $8.7 million, or 7.5%, to $124.0 million for the thirteen weeks ended December 30, 2023, with SG&A as a percentage of net sales rising to 23.8% from 22.4%[142] - Selling, general and administrative (SG&A) expenses rose by $29.3 million, or 10.3%, to $315.0 million for the thirty-nine weeks ended December 30, 2023[146] - Interest expense decreased to $2.0 million for the thirty-nine weeks ended December 30, 2023, down from $4.3 million for the same period in 2022[149] Revenue Recognition and Profitability - The company recognizes revenue upon the purchase of merchandise by customers at retail locations and upon delivery for e-commerce sales, ensuring accurate revenue reporting[102] - The company’s gross profit is affected by the sales mix of exclusive brand products versus third-party brands, highlighting the importance of product strategy[84] - The increase in gross profit rate of 180 basis points was driven by a 300 basis-point increase in merchandise margin rate, partially offset by 120 basis points of deleverage in buying, occupancy, and distribution center costs[112] Tax and Liquidity - The effective tax rate increased to 25.8% for the thirteen weeks ended December 30, 2023, compared to 24.9% for the same period in 2022, primarily due to changes in state tax rates[115] - The company has a $250.0 million revolving credit facility, with zero amounts outstanding as of December 30, 2023, and a weighted average interest rate of 8.5% for the thirteen weeks ended December 30, 2023[124][125] - The company relies on cash flows from operating activities and its credit facility as primary sources of liquidity, with significant cash needs for inventories and capital expenditures related to new store openings[121] - The company expects the availability of cash under its credit facility to cover working capital requirements for at least the next 12 months[154] E-commerce and Technology - The company launched a Boot Barn app during fiscal 2023, which has become an additional sales channel, enhancing its e-commerce capabilities[98] - The company’s same store sales are influenced by various factors, including new store openings and seasonal trends, which are monitored to assess performance[105] - Consolidated same store sales decreased by 6.3%, with e-commerce same store sales down by 11.4%[145] Investment Activities - Net cash used in investing activities was $91.3 million for the thirty-nine weeks ended December 30, 2023, primarily for capital expenditures and improvements[161] - The company did not have any outstanding amount under the Wells Fargo Revolver as of December 30, 2023[165]

Supplemental Financial Presentation November 2023 This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this presentation are forwardlooking statements. You can identify forward-looking statements by the fact that they generally include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "outlook" and other words of similar meaning in connection with any disc ...

Boot Barn Holdings, Inc. (NYSE:BOOT) Q2 2024 Earnings Conference Call November 2, 2023 4:30 PM ET Company Participants Mark Dedovesh - SVP, IR and Financial Planning Jim Conroy - President and CEO Jim Watkins - CFO Conference Call Participants Matthew Boss - JPMorgan Steven Zaccone - Citi Max Rakhlenko - TD Cowen Jason Haas - Bank of America Janine Stichter - BTIG Dylan Carden - William Blair Jonathan Komp - Baird Corey Tarlowe - Jefferies Jay Sole - UBS Sam Poser - Williams Trading Jeremy Hamblin - Craig-H ...

The Company operates specialty retail stores and e-commerce websites that sell western and work boots and related apparel and accessories. The Company operates retail locations throughout the United States and sells its merchandise via the internet. The Company operated a total of 371 stores in 44 states as of September 30, 2023 and 345 stores in 43 states as of April 1, 2023. As of September 30, 2023, all stores operate under the Boot Barn name. Recent Developments Our business and opportunities for growth ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended July 1, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to | --- | --- | --- | |---------------------------------------------------------------------------------|---------------------------------------------- ...

National Leader in Attractive Market | --- | |------------------------------------------| | | | Brick-and-mortar presence in 44 | | states and online sales in all 50 states | | plus international | Strong variety of omni-channel offerings in place • • • Proven ability to open stores in both new and existing markets Lifestyle Brand with Loyal Customer 20 investor.bootbarn.com BOOT RARN' 0 Supplemental Financial Presentation August 2023 Offering everyone a piece of the American spirit—one handshake at a time. ...