Boot Barn(US:BOOT)2025-10-29 21:32Financial 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][22] Market Data and Key Metrics Changes - The total addressable market (TAM) was revised upward from $40 billion-$58 billion, reflecting a 45% increase [9][37] - 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][60] Company Strategy and Development Direction - The company is focused on expanding its store footprint while enhancing its omnichannel capabilities [10][14] - Strategic initiatives include new store growth, same-store sales improvement, omnichannel enhancements, and merchandise margin expansion [5][15] - The company aims to leverage AI to improve customer experience and operational efficiencies [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the current business tone and readiness for the holiday season, despite macroeconomic uncertainties [17][22] - The company anticipates a consolidated same-store sales increase of 4.5% for the third quarter [24] - Management remains focused on maintaining strong customer service and inventory management [17][21] Other Important Information - The company plans to open 70 new stores during fiscal 2026, with 30 already opened [8][23] - SG&A expenses as a percentage of sales decreased by 120 basis points to 25.3% [20] - The company has a strong cash position with $65 million in cash and no drawn amounts on its revolving credit line [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 [30][31] Question: What is driving the large increase in the total addressable market? - The increase is attributed to demographic studies and the growing trend of casualization in wearing occasions [37][38] Question: How do you see pricing elasticity performing across different categories? - Management indicated that they have not seen significant changes in consumer behavior despite price increases, except for one small brand that raised prices significantly [95] Question: What are the expectations for store openings in the upcoming quarters? - The company plans to open 25 stores in Q3 and 15 in Q4 [86] Question: How is the company addressing the challenges posed by tariffs? - Management is working with factories to mitigate tariff impacts and plans to adjust exclusive brand pricing post-holiday season [39][68]