Boot Barn (NYSE:BOOT) FY 2026 Conference January 12, 2026 10:30 AM ET Company ParticipantsJim Watkins - CFOJohn Hazen - CEOConference Call ParticipantsPeter Keith - Managing Director and Senior Research AnalystJohn HazenJob, some new screening tools for order management, better search functionality, better merchandising, additional payment methods on the site. So those all contributed to the e-commerce business for the quarter. And as we think about those exclusive brands, it really is about driving the awa ...

Financial Data and Key Metrics Changes - The company achieved a merchandise margin expansion of 110 basis points, exceeding the guidance of 30 basis points year-over-year [3][4] - Over the past seven years, the company has seen a total of 700 basis points of merchandise margin expansion [5] Business Line Data and Key Metrics Changes - The exclusive brand penetration met expectations, contributing to growth but not the margin beat [3] - Lower markdowns compared to previous years allowed for better full-price selling, positively impacting margins [4] Market Data and Key Metrics Changes - The company has expanded its Total Addressable Market (TAM) from $40 billion to $58 billion, incorporating the Country Lifestyle segment and denim [22][23] - The average new store volume is approximately $3.2 million, with plans to open stores in both legacy and new markets [24][28] Company Strategy and Development Direction - The company is focusing on building a proper sourcing team for exclusive brands and reinvigorating the work boot business [7][10] - Marketing initiatives are being tailored to reach a broader Country Lifestyle customer base, including partnerships with mainstream events like NASCAR and the NFL [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the economic landscape, noting that tax refunds and household income trends could positively impact sales [43][44] - The company aims for a mid-teens EBIT margin over time, currently tracking around 13% for the fiscal year [38] Other Important Information - The company is leveraging social media, particularly TikTok, to market stores and products, focusing on authenticity through everyday creators rather than professional influencers [35][36] - The company plans to raise prices on exclusive brands post-holiday to preserve margin rates, with low single-digit increases expected [16] Q&A Session Summary Question: What are the drivers behind the merchandise margin expansion? - Management highlighted better buying economies of scale, lower markdowns, and improved inventory management as key drivers [4][3] Question: How is the company approaching pricing in relation to tariffs? - The company has held exclusive brand pricing through the holiday season and plans to implement low single-digit price increases post-holiday [16][12] Question: What is the strategy for reaching the Country Lifestyle customer? - The company is expanding marketing efforts to include mainstream partnerships and events, targeting customers who embody a rural lifestyle without being traditional ranchers [19][20] Question: What are the expectations for store growth? - The company has raised its store growth target to 1,200 locations, with a focus on both legacy and new markets [24][25] Question: How is the company performing in urban markets? - The company has seen success in urban areas, indicating strong performance in densely populated regions [32][34]

Boot Barn (BOOT) FY Conference Summary Company Overview - Boot Barn is a retail brand established in 1978, focusing on Western, work, and everyday lifestyle products [3][2] - The company has expanded its store base significantly over the years and has a strong exclusive brand portfolio [3][2] Total Addressable Market (TAM) - Initial TAM at IPO was $20 billion, primarily from work and Western customers [4] - Expansion of TAM to $40 billion by including the "Just Country" customer segment, adding approximately $15 billion [7][8] Competitive Landscape - Boot Barn operates 467 stores, with competition from regional players like Cavenders (104 stores) and various mom-and-pop retailers [8][9] - The industry is characterized by rational pricing strategies, avoiding price wars common in other retail sectors [12] Financial Performance - FY 2025 sales increased by 15% to $1.9 billion, with comparable sales up 5.5% [13] - Earnings per share (EPS) reached $5.88, nearly three times higher than four years ago [13] - Historical same-store sales growth averaged 5.5%, with a significant post-COVID spike of 54% [14][15] Store Expansion Strategy - Boot Barn plans to continue opening stores at a rate of 15% annually, targeting a total of 524 to 529 stores by the end of the year [25] - Long-term potential to double store count to 900 based on previous studies [26] Customer Demographics and Sales Mix - Customer demographics have remained consistent, with no significant shift towards higher-income customers [22] - Online sales have decreased from 17% to 10% of total sales due to new store growth [22] Strategic Initiatives 1. **Store Growth**: Continuous expansion with a focus on both legacy and new markets [25][26] 2. **Same Store Sales**: Consistent positive comps, with broad-based growth across all merchandise categories [33][36] 3. **Omnichannel Strategy**: Emphasis on in-store experiences while maintaining a digital presence [41] 4. **Exclusive Brands**: Focus on growing exclusive brands, which account for 35% of sales [46] Marketing and Brand Partnerships - Marketing budget has increased to $65 million, focusing on distribution and brand partnerships [38][39] - Collaborations with country music artists and events to enhance brand visibility [37] Future Growth Potential - Projected future sales growth of $1.4 billion from new stores, alongside comp sales [50] - Opportunities for margin expansion through full-price selling and supply chain efficiencies [51] Conclusion - Boot Barn is positioned for significant growth through strategic store expansion, consistent customer engagement, and a focus on exclusive brands, with a strong financial performance backing its initiatives [51]