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 (NYSE:BOOT) FY 2026 Conference January 12, 2026 10:30 AM ET Speaker1Job, 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 awareness so people come into Boot Barn stores.Speaker0Okay. Great. From Jim Watkins, another question on the pre-release was that wonderful merc ...

Core Insights - Boot Barn Holdings Inc. (BOOT) has raised its sales forecast for fiscal 2026 to between $2,197 million and $2,235 million, indicating a year-over-year growth of 15% to 17% [1][9] - The updated forecast is driven by ongoing store expansion and strong consumer demand in the western and workwear segments [1] Sales Growth and Store Expansion - Management anticipates same-store sales growth of 4% to 6% for fiscal 2026, with retail store same-store sales expected to rise between 3.3% and 5.3%, while e-commerce same-store sales are projected to increase by 11% to 13% [2] - Boot Barn experienced an 18.7% increase in total net sales in the second quarter, supported by strong performance across all major product categories and the opening of 64 new stores over the past year [3] - The company plans to open an additional 70 new stores in fiscal 2026, which is expected to generate approximately $3.2 million in annual sales per new location [3][9] E-commerce Performance - E-commerce remains a crucial growth driver, with same-store online sales rising 14.4% year-over-year in the second quarter, surpassing the 7.8% growth in retail same-store sales [4] - BootBarn.com accounts for about 75% of total online sales, and management is optimistic about continued e-commerce momentum, particularly with brand-focused websites and AI integration to enhance functionality [4] Competitive Landscape - Boot Barn faces competition from Buckle Inc. and Deckers Outdoor Corp., both of which reported significant sales growth in their recent quarters [6][7] - Buckle's net sales increased by 8.3% year-over-year, while Deckers saw a 9% jump in net sales, indicating a competitive retail environment [6][7] Market Position and Valuation - Boot Barn's shares have gained 21.1% year-to-date, contrasting with a 17.4% decline in the industry, and the company holds a Zacks Rank 2 (Buy) [8] - The forward price-to-earnings ratio for BOOT is 24.16X, which is higher than the industry average of 16.31X [10] - The Zacks Consensus Estimate for BOOT's fiscal 2026 and 2027 earnings suggests a year-over-year increase of 20.5% and 13.8%, respectively [11]

Core Insights - Boot Barn Holdings Inc. is experiencing significant growth driven by digital investments, with a 14.4% increase in e-commerce same-store sales for Q2 of fiscal 2026, surpassing the 7.8% growth in retail store same-store sales [1][9] - Total revenue for the company reached $505.4 million, reflecting an 18.7% year-over-year growth [1][9] E-commerce Performance - E-commerce sales now account for 9.3% of the net sales in the second quarter, attributed to initiatives enhancing online engagement and optimizing the shopping experience through technology [2] - BootBarn.com, which constitutes approximately 75% of total online sales, reported high-teens comps growth [1] Brand and Technology Initiatives - The Cody James and Hawx platforms are enhancing brand discovery and attracting new customers, with plans to launch a website for the Cheyenne brand post-holidays [3] - The integration of artificial intelligence is pivotal, improving website search tools for better product results and recommendations, while tools like Cassidy assist store associates [3] Future Growth Expectations - For fiscal 2026, Boot Barn anticipates same-store sales growth of 4% to 6%, with retail stores expected to grow by 3.3-5.3% and e-commerce sales projected to rise by 11-13% [4] - The company plans to open 70 new stores in the current fiscal year, reinforcing the synergy between digital and physical channels [4][5] Competitive Landscape - Levi Strauss & Co. is also advancing its digital-first strategy, with e-commerce sales increasing by 18% in Q3 of fiscal 2025, aiming for e-commerce to represent 15% of total revenues [6] - Tapestry, Inc. is leveraging data analytics and omnichannel capabilities, attracting over 6.8 million new North American customers in fiscal 2025 [7] Stock Performance and Valuation - Boot Barn's shares have increased by 25.9% year-to-date, contrasting with a 16.3% decline in the industry, and the company holds a Zacks Rank 1 (Strong Buy) [8] - The forward price-to-earnings ratio for Boot Barn is 24.99X, higher than the industry average of 16.51X [10] - The Zacks Consensus Estimate indicates a year-over-year earnings rise of 20.5% for fiscal 2026 and 13.4% for fiscal 2027 [11]

Financial Data and Key Metrics Changes - Revenue increased by 19% year-over-year to $505 million, driven by new store openings and same-store sales growth of 8.4% [7][18] - Earnings per diluted share rose 44% to $1.37 compared to $0.95 in the prior year [7][20] - Merchandise margin rates increased by 80 basis points year-over-year [7][15] Business Line Data and Key Metrics Changes - Same-store sales growth was 8.4%, with brick-and-mortar sales increasing by 7.8% and e-commerce sales growing by 14.4% [10][18] - The ladies' business saw positive mid-teens comp growth, while men's business comped positive high single digits [10][11] - Exclusive brand penetration increased by 290 basis points to 41% of sales [15] Market Data and Key Metrics Changes - The total addressable market (TAM) expanded from $40 billion to $58 billion, a 45% increase [9][39] - The company estimates a long-term U.S. store count potential of 1,200 stores, with plans to open 12-15% new units annually [10][9] Company Strategy and Development Direction - The company is focused on four strategic initiatives: new store growth, same-store sales, omnichannel expansion, and merchandise margin expansion [5][10] - The strategy includes leveraging AI to enhance customer experience and improve online sales [12][14] - The company aims to maintain a stores-first approach while expanding its online presence [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the current business tone and preparation for a strong holiday season [17] - There is a recognition of macroeconomic uncertainties affecting consumer sentiment, leading to a conservative outlook for the second half of the year [17][34] - The company raised its full-year guidance, expecting total sales of $2.235 billion, representing a 17% growth over fiscal 2025 [22][23] Other Important Information - The company plans to open 70 new stores during fiscal 2026, with 30 already opened halfway through the year [8][23] - Inventory increased by 20% year-over-year to $855 million, with markdowns below last year and historical levels [21] Q&A Session Summary Question: Can you elaborate on the drivers of October's further comp acceleration? - Management noted that October's performance aligned with major merchandise categories, with work boots showing notable improvement [32] Question: What is driving the large increase in the total addressable market? - The increase is attributed to demographic studies and the company's growing reputation as a denim destination [39] Question: How do you see pricing elasticity performing? - Management indicated that pricing increases have not significantly affected consumer behavior, with consistent demand across both exclusive and third-party brands [53][98] Question: What are the plans for exclusive brands moving forward? - The focus will be on enhancing brand storytelling and driving customers to Boot Barn stores, with no current plans for wholesale or international sales [46][49] Question: How many stores will be opened in Q3 and Q4? - The company plans to open 25 stores in Q3 and 15 in Q4 [89]

Financial Data and Key Metrics Changes - Revenue increased by 19% year-over-year to $505 million, driven by new store openings and same-store sales growth of 8.4% [5][18] - Earnings per diluted share rose 44% to $1.37 compared to $0.95 in the prior year [5][19] - Merchandise margin rates increased by 80 basis points year-over-year [5][19] Business Line Data and Key Metrics Changes - Same-store sales growth was 8.4%, with brick-and-mortar sales increasing by 7.8% and e-commerce sales growing by 14.4% [9][18] - The ladies' business saw positive mid-teens comp growth, while men's business comped positive high single digits [10] - Exclusive brand penetration increased by 290 basis points to 41% of sales [14][19] Market Data and Key Metrics Changes - The total addressable market (TAM) expanded from $40 billion to $58 billion, a 45% increase [8][33] - The company estimates a long-term U.S. store count potential of 1,200 stores, with plans to open 12-15% new units annually [8][9] Company Strategy and Development Direction - The company is focused on a "stores-first" strategy, emphasizing new store growth and omnichannel initiatives [9][13] - Marketing efforts include sponsorship of rodeos and partnerships with country music artists to enhance brand visibility [10] - The company aims to leverage AI to improve customer experience and operational efficiencies [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the current business tone and preparation for a strong holiday season [17] - There is a recognition of macroeconomic uncertainties affecting consumer sentiment, leading to a conservative outlook for the second half of the year [31][68] - The company raised its full-year guidance, expecting total sales of $2.235 billion, representing a 17% growth over fiscal 2025 [21][22] Other Important Information - Inventory increased by 20% year-over-year to $855 million, with markdowns below last year and historical levels [20] - The company repurchased approximately 73,000 shares for $12.5 million as part of its share repurchase program [20] Q&A Session Summary Question: Drivers of October's comp acceleration and long-term store count potential - Management noted that October's performance aligned with major merchandise categories, with work boots showing notable improvement [28][29] Question: Details on the TAM increase - The increase in TAM was driven by demographic studies and the trend of casualization in wearing occasions [33] Question: Pricing strategy and exclusive brand penetration - Exclusive brand pricing will be adjusted post-holiday to preserve margins, with current penetration at 41% [34][35] Question: Success of exclusive brand websites - The websites for exclusive brands aim to drive customer traffic to Boot Barn stores, with no plans for wholesale or international sales [38][39] Question: Online penetration and margin implications - Online business is expected to hover around 10% penetration, with no significant shifts anticipated [62] Question: Regional performance and consumer behavior - Management reported widespread growth across geographies, with no significant changes in shopping behavior among Hispanic consumers [58] Question: Margin dynamics and tariff impacts - The company is managing tariff impacts through negotiations with factories and has factored these into margin guidance [60]

Core Insights - Boot Barn reported strong operational gains with a 19.1% sales growth for Q1 FY2026 and a 38.1% increase in diluted earnings per share (GAAP) compared to Q1 FY2025, despite falling short of analyst expectations for revenue and net income [1][2] Financial Performance - Revenue for Q1 FY2026 was $504.1 million, below the consensus estimate of $561.8 million, while earnings per share (GAAP) were $1.74, slightly under the $1.77 estimate [1][2] - Gross profit increased to $197.2 million, reflecting a gross margin of 39.1%, up from 37.0% in Q1 FY2025, driven by better buying power and a growing share of exclusive brand sales [6] - Same-store sales growth was 9.4%, significantly higher than the previous year's 1.4% [2][5] Business Operations - Boot Barn operates 473 locations nationwide, focusing on western and work-related footwear, apparel, and accessories [3] - The company opened 14 new stores during the quarter, contributing to top-line growth [5] - E-commerce accounted for 8.7% of net sales, with both brick-and-mortar and online platforms showing strong performance [5] Strategic Focus - Recent strategies include building brand identity, expanding the store base, developing exclusive brands, growing e-commerce, and fostering customer loyalty through a rewards program [4] - Exclusive brands accounted for 38.6% of consolidated sales in FY2025, with a goal to reduce sourcing risk from China to just 5% in the second half of FY2026 [7] Market Outlook - Boot Barn raised its full-year FY2026 sales outlook to between $2.10 billion and $2.18 billion, projecting a 10% to 14% increase over the prior year [10] - For Q2 FY2026, revenue guidance is set at $487 million to $495 million, with same-store sales growth projected at 4.5% to 6.5% [11]

Financial Data and Key Metrics Changes - First quarter revenue increased by 19% to $504 million, with consolidated same store sales rising by 9.4% [5][17] - Earnings per diluted share grew by 38% to $1.74 compared to $1.26 in the prior year [5][19] - Merchandise margin rate increased by 180 basis points year-over-year, contributing to a gross profit increase of 26% to $197 million [5][17][18] Business Line Data and Key Metrics Changes - New store growth: 14 new stores opened in Q1, bringing the total to 473 stores across 49 states [5][6] - Same store sales: Brick and mortar same store sales increased by 9.5%, driven by an 8.5% increase in transactions [7][8] - Ecommerce same store sales grew by 9.3%, with bootbarn.com accounting for approximately 75% of online sales [10][17] Market Data and Key Metrics Changes - The denim business showed strong performance, with double-digit growth in both men's and women's categories [8][31] - The work boots business experienced low single-digit positive comp growth, indicating a steady recovery [12][62] Company Strategy and Development Direction - The company is focused on four strategic initiatives: new store growth, same store sales, omnichannel expansion, and merchandise margin expansion [5][12] - Plans to double the store count in the U.S. over the next several years, with a target of opening 65 to 70 new stores in fiscal 2026 [6][23] - Exclusive brand penetration increased to 40.6% of sales, with a goal to reach 50% over the next five to six years [12][49] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding overall consumer sentiment and macroeconomic uncertainty, particularly in the second half of the year [15][21] - Despite challenges, the company remains confident in its ability to execute its strategic initiatives and drive growth [26][78] - The company raised its full-year guidance due to strong Q1 results and positive momentum into Q2 [20][21] Other Important Information - Inventory increased by 23% year-over-year to $774 million, with markdowns as a percentage of inventory below historical levels [19][20] - The company repurchased approximately 78,000 shares for $12.5 million as part of its $200 million share repurchase program [20] Q&A Session Summary Question: Drivers of demand strength in Q1 and July acceleration - Management noted that transaction growth was a key driver, with broad-based strength across all regions and categories, particularly in denim [30][31] Question: Markdown levels relative to last year - Markdowns remained low compared to last year and historical levels, with expectations for this trend to continue [34][36] Question: Exclusive brand marketing initiatives - The company is focusing on marketing its exclusive brands, with successful campaigns for Hawx and Cody James, targeting blue-collar customers [38][40] Question: Tariff-related price increases - Price increases from suppliers remain at mid-single digit levels, with reticketing expected to be completed by August [42][43] Question: Competitive landscape and share gain opportunities - Management believes the company is well-positioned relative to competitors, especially with exclusive brands and inventory management [68][70] Question: Inventory management and buying plans - The company feels confident in its inventory flow and believes it has enough inventory to meet guidance and potential upside [76][77] Question: Future strategic initiatives - Management is focused on current strategic priorities and is not considering new initiatives at this time [78][79]

Boot Barn (BOOT) FY Conference Summary Company Overview - **Company**: Boot Barn (BOOT) - **Conference Date**: June 04, 2025 - **Analyst Rating**: Buy rating with a price target of $185 [1] Key Points Business Performance - Boot Barn is experiencing broad-based growth across all major merchandise categories and geographies, with consistent customer transaction growth [5][10] - The company has historically been a mid-single-digit comp business, but current performance is exceeding that, indicating strong underlying momentum [6][19] - The first quarter guidance remains intact, with a high-end estimate of 6% same-store sales growth, while current performance is tracking at over 10% [19][20] Strategic Initiatives - Boot Barn's strategic focus includes same-store sales growth, new store openings, margin improvement, exclusive brands, and omni-channel strategies [13] - Exclusive brands accounted for 38.6% of sales last fiscal year, with a target for an additional 100 basis points growth this fiscal year [15] - The company plans to launch separate websites and marketing campaigns for exclusive brands to enhance storytelling and brand presence [14] Pricing and Elasticity - The company anticipates mid-single-digit price increases across third-party vendors due to tariffs, but expects to maintain competitive pricing through MAP policies [25][27] - Boot Barn is focused on holding prices lower for longer on exclusive brands to drive penetration growth [29] Market Trends and Industry Position - Boot Barn's performance contrasts with other public companies in the Western retail space, indicating strong execution and brand loyalty [8][40] - The company does not view current trends as a peak but rather as a stable mid-single-digit comp business, with a history of resilience [38][39] Marketing and Advertising - Boot Barn's marketing budget has grown significantly, now at over $60 million, with a focus on content distribution and storytelling for both the retailer and exclusive brands [42][43] - The company aims to leverage its marketing efforts to build brand awareness and drive sales [42] Margin and Cost Management - The company has achieved over 600 basis points of merchandise margin expansion over the last six years, with ongoing efforts to improve supply chain efficiencies [52] - Future margin drivers include exclusive brand penetration growth and better vendor discounts [52] - The company expects to maintain a full-price selling strategy, with markdowns primarily focused on moving through historic low inventory levels [46][47] Store Growth and Operations - Boot Barn plans to continue opening new stores, with a focus on finding the right locations and managing operational loads effectively [59][60] - New stores in regions like the Northeast are performing similarly to established markets, indicating strong brand acceptance [61] Future Outlook - The company remains optimistic about achieving a 15% EBIT margin over the next five to six years, despite current challenges [58] - Boot Barn is committed to maintaining its growth trajectory while ensuring operational efficiency and customer satisfaction [59][60] Additional Insights - The company is adapting its strategies in response to macroeconomic factors, including consumer spending and pricing pressures [20][21] - Boot Barn's approach to advertising and marketing is evolving to capitalize on digital opportunities and enhance customer engagement [42][43]