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 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]