Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Boot Barn Holdings, Inc. Announces Second Quarter Fiscal Year 2025 Financial Results and CEO Transition By: Boot Barn via Business Wire October 28, 2024 at 16:05 PM EDT Boot Barn Holdings, Inc. (NYSE: BOOT) (the “Company”) today announced its financial results for the second fiscal quarter ended September 28, 2024. A Supplemental Financial Presentation is available at investor.bootbarn.com. In addition, the Company announced that Jim Conroy plans to step down as the Company’s Chief Executive Officer (CEO) and President and as a member of the Company’s Board of Directors, effective November 22, 2024, to pursue an opportunity as CEO of Ross Stores, Inc (NASDAQ: ROST). CEO Transition The Company further announced that John Hazen, the Company’s current Chief Digital Officer, will assume the role of Interim CEO, effective November 22, 2024. Mr. Hazen joined the Company in 2018 with responsibility for e-commerce, marketing, and the customer experience. Additionally, Peter Starrett, the Company’s current Chairman of the Board of Directors, will assume the role of Executive Chairman, effective November 22, 2024. Mr. Conroy will remain with the Company through November 22, 2024 to assist with an orderly transition. Mr. Starrett stated, “John Hazen is very highly regarded within the Boot Barn organization and has a diverse background that includes brand building, digital, and store roles. He has a strong track record of growing sales and profits both at Boot Barn and prior to joining the Company. He also has been extremely instrumental in advancing Boot Barn’s customer-facing technology capabilities including many industry-leading applications of artificial intelligence. I am confident in his ability to step into the role as Interim CEO. Personally, I am looking forward to providing oversight and mentorship as Executive Chairman while the Board conducts an internal and external search before making a permanent decision on our next CEO.” John Hazen commented, "I am deeply honored to step into this role and incredibly grateful to Jim for his visionary leadership and unwavering support. I also want to express my heartfelt thanks to the Board for their trust and to every member of this incredible team for their dedication that makes this Company exceptional. Together, we will continue building on the strong foundation that we have created and will move forward with confidence, tenacity, and purpose.” Mr. Starrett added, “The Board recognizes the great contributions Jim has made during his tenure as Boot Barn’s CEO. When he assumed the CEO reins 12 years ago, Boot Barn was one of several regional retail chains specializing in western and work products. His focused approach on the execution of our strategic initiatives has led to one of the most exceptional growth stories in the retail industry. Today, Boot Barn is a national chain of 426 stores and the industry leader by a wide margin. On behalf of all Boot Barn partners, we wish Jim continued success in his next endeavor.” Mr. Conroy commented, “After 12 incredible years, I am filled with immense gratitude for this Company and the extraordinary people who have been by my side throughout this journey. Together, we’ve built something truly special, and I will forever cherish the shared successes, challenges, and memories we created. Thank you for your trust, dedication, and passion—I leave with a heart full of pride and appreciation for every one of you.” Second Quarter Fiscal Year 2025 Financial Results For the quarter ended September 28, 2024 compared to the quarter ended September 30, 2023: Net sales increased 13.7% over the prior-year period to $425.8 million. Same store sales increased 4.9% compared to the prior-year period, comprised of an increase of 4.3% in retail store same store sales and an increase of 10.1% in e-commerce same store sales. Net income was $29.4 million, or $0.95 per diluted share, compared to $27.7 million, or $0.90 per diluted share, in the prior-year period. The Company opened 15 new stores, bringing its total store count to 425. Jim Conroy, President and Chief Executive Officer said, "Our fiscal second quarter saw broad-based growth in same store sales, the addition of 15 new stores and a healthy beat to guidance in earnings per diluted share. Our team's excellent execution has driven improving trends across all channels, store geographies, and major merchandise classifications, positioning us well for the upcoming holiday season. As we manage through an orderly transition over the next month, I feel great about the condition of the business and am confident in the team’s ability, under John’s leadership, to execute on the four strategic initiatives and to drive future growth in sales and earnings." Operating Results for the Second Quarter Ended September 28, 2024 Compared to the Second Quarter Ended September 30, 2023 Net sales increased 13.7% to $425.8 million from $374.5 million in the prior-year period. Consolidated same store sales increased 4.9%, with retail store same store sales increasing 4.3% and e-commerce same store sales increasing 10.1%. The increase in net sales was the result of incremental sales from new stores and the increase in consolidated same store sales. Gross profit was $152.9 million, or 35.9% of net sales, compared to $133.9 million, or 35.8% of net sales, in the prior-year period. Gross profit increased primarily due to an increase in sales and merchandise margin, partially offset by the occupancy costs of new stores. The increase in gross profit rate of 10 basis points was driven primarily by a 70 basis-point increase in merchandise margin rate, partially offset by 60 basis points of deleverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was primarily the result of supply chain efficiencies, while the deleverage in buying, occupancy and distribution center costs was driven by the occupancy costs of new stores. Selling, general and administrative expenses were $112.9 million, or 26.5% of net sales, compared to $95.3 million, or 25.5% of net sales, in the prior-year period. The increase in selling, general and administrative expenses, as compared to the prior-year period, was primarily a result of higher store payroll and store-related expenses associated with operating more stores, incentive-based compensation, marketing expenses, and legal expenses in the current year. Selling, general and administrative expenses as a percentage of net sales increased by 100 basis points primarily as a result of higher incentive-based compensation, legal expenses, and marketing expenses in the current year, partially offset by lower store payroll expenses. Income from operations increased $1.4 million to $40.0 million, or 9.4% of net sales, compared to $38.6 million, or 10.3% of net sales, in the prior-year period, primarily due to the factors noted above. Net income was $29.4 million, or $0.95 per diluted share, compared to net income of $27.7 million, or $0.90 per diluted share, in the prior-year period. The increase in net income is primarily attributable to the factors noted above. Operating Results for the Six Months Ended September 28, 2024 Compared to the Six Months Ended September 30, 2023 Net sales increased 12.0% to $849.2 million from $758.2 million in the prior-year period. Consolidated same store sales increased 3.1%, with retail store same store sales increasing 2.5% and e-commerce same store sales increasing 8.4%. The increase in net sales was the result of incremental sales from new stores and the increase in consolidated same store sales. Gross profit was $309.6 million, or 36.5% of net sales, compared to $275.9 million, or 36.4% of net sales, in the prior-year period. Gross profit increased primarily due to an increase in sales and merchandise margin, partially offset by the occupancy costs of new stores. The increase in gross profit rate of 10 basis points was driven primarily by an 80 basis-point increase in merchandise margin rate, partially offset by 70 basis points of deleverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was the result of supply chain efficiencies, while the deleverage in buying, occupancy and distribution center costs was driven primarily by the occupancy costs of new stores. Selling, general and administrative expenses were $219.4 million, or 25.8% of net sales, compared to $191.1 million, or 25.2% of net sales, in the prior-year period. The increase in selling, general and administrative expenses, as compared to the prior-year period, was primarily a result of higher store payroll and store-related expenses associated with operating more stores, marketing expenses, and incentive-based compensation in the current year. Selling, general and administrative expenses as a percentage of net sales increased by 60 basis points primarily as a result of higher incentive-based compensation and marketing expenses in the current year, partially offset by lower store payroll and store-related expenses. Income from operations increased $5.4 million to $90.2 million, or 10.6% of net sales, compared to $84.8 million, or 11.2% of net sales, in the prior-year period, primarily due to the factors noted above. Net income was $68.3 million, or $2.21 per diluted share, compared to net income of $61.9 million, or $2.03 per diluted share, in the prior-year period. The increase in net income is primarily attributable to the factors noted above. Sales by Channel The following table includes total net sales growth, same store sales (“SSS”) growth/(decline) and e-commerce as a percentage of net sales for the periods indicated below. Thirteen Weeks Preliminary Ended Four Weeks Four Weeks Five Weeks Four Weeks September 28, 2024 Fiscal July Fiscal August Fiscal September Fiscal October Total Net Sales Growth 13.7 % 8.8 % 14.7 % 16.8 % 14.6 % Retail Stores SSS 4.3 % (0.9) % 5.3 % 7.5 % 4.3 % E-commerce SSS 10.1 % 5.0 % 12.1 % 12.2 % 12.5 % Consolidated SSS 4.9 % (0.3) % 6.0 % 8.0 % 5.1 % E-commerce as a % of Net Sales 9.5 % 9.2 % 9.4 % 9.9 % 9.3 % Balance Sheet Highlights as of September 28, 2024 Cash of $37 million. Zero drawn under the $250 million revolving credit facility. Average inventory per store increased approximately 10.5% on a same store basis compared to September 30, 2023. Fiscal Year 2025 Outlook The Company is providing updated guidance for the fiscal year ending March 29, 2025, superseding in its entirety the previous guidance issued in its first quarter earnings report on August 7, 2024. Please note that the Company’s guidance excludes any benefits and costs related to the CEO transition. For the fiscal year ending March 29, 2025 the Company now expects: To open a total of 60 new stores. Total sales of $1.874 billion to $1.907 billion, representing growth of 12.4% to 14.4% over the prior year. Same store sales growth of approximately 3.0% to 5.0%, with retail store same store sales growth of approximately 2.5% to 4.5% and e-commerce same store sales growth of approximately 7.5% to 9.5%. Gross profit between $696.9 million and $713.4 million, or approximately 37.2% to 37.4% of sales. Selling, general and administrative expenses between $476.5 million and $480.4 million, or approximately 25.4% to 25.2% of sales. Income from operations between $220.4 million and $233.0 million, or approximately 11.8% to 12.2% of sales. Effective tax rate of 26.6% for the remaining six months of the fiscal year. Net income of $164.4 million to $173.7 million. Net income per diluted share of $5.30 to $5.60, based on 31.0 million weighted average diluted shares outstanding. Capital expenditures between $115.0 million and $120.0 million, which is net of estimated landlord tenant allowances of $30.2 million. For the fiscal third quarter ending December 28, 2024, the Company now expects: Total sales of $582 million to $595 million, representing growth of 11.8% to 14.3% over the prior-year period. Same store sales growth of approximately 3.5% to 6.0%, with retail store same store sales growth of approximately 3.0% to 5.0% and e-commerce same store sales growth of approximately 7.5% to 10.0%. Income from operations between $82.7 million and $87.3 million, or approximately 14.2% to 14.7% of sales. Net income per diluted share of $1.96 to $2.07, based on 31.0 million weighted average diluted shares outstanding. Conference Call Information A conference call to discuss the financial results for the second quarter of fiscal year 2025 is scheduled for today, October 28, 2024, at 4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in participating in the call are invited to dial (844) 481-2552. The conference call will also be available to interested parties through a live webcast at investor.bootbarn.com. Please visit the website and select the “Events and Presentations” link at least 15 minutes prior to the start of the call to register and download any necessary software. A Supplemental Financial Presentation is also available on the investor relations section of the Company’s website. A telephone replay of the call will be available until November 28, 2024, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 10193684. Please note participants must enter the conference identification number in order to access the replay. About Boot Barn Boot Barn is the nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children. The Company offers its loyal customer base a wide selection of work and lifestyle brands. As of the date of this release, Boot Barn operates 426 stores in 46 states, in addition to an e-commerce channel www.bootbarn.com. The Company also operates www.sheplers.com, the nation’s leading pure play online western and work retailer and www.countryoutfitter.com, an e-commerce site selling to customers who live a country lifestyle. For more information, call 888-Boot-Barn or visit www.bootbarn.com. Forward Looking Statements This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements refer to the Company’s current expectations and projections relating to, by way of example and without limitation, the Company’s financial condition, liquidity, profitability, results of operations, margins, plans, objectives, strategies, future performance, business and industry. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan“, “intend”, “believe”, “may”, “might”, “will”, “could”, “should”, “can have”, “likely”, “outlook” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. These forward-looking statements are based on assumptions that the Company’s management has made in light of their industry experience and on their perceptions of historical trends, current conditions, expected future developments and other factors that they believe are appropriate under the circumstances. As you consider this press release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond the Company’s control) and assumptions. These risks, uncertainties and assumptions include, but are not limited to, the following: decreases in consumer spending due to declines in consumer confidence, local economic conditions or changes in consumer preferences; the Company’s ability to effectively execute on its growth strategy; and the Company’s failure to maintain and enhance its strong brand image, to compete effectively, to maintain good relationships with its key suppliers, and to improve and expand its exclusive product offerings. The Company discusses the foregoing risks and other risks in greater detail under the heading “Risk factors” in the periodic reports filed by the Company with the Securities and Exchange Commission. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the Company’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. Because of these factors, the Company cautions that you should not place undue reliance on any of these forward-looking statements. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict those events or how they may affect the Company. Further, any forward-looking statement speaks only as of the date on which it is made. Except as required by law, the Company does not intend to update or revise the forward-looking statements in this press release after the date of this press release. Boot Barn Holdings, Inc. Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) September 28, March 30, 2024 2024 Assets Current assets: Cash and cash equivalents $ 37,377 $ 75,847 Accounts receivable, net 7,886 9,964 Inventories 712,991 599,120 Prepaid expenses and other current assets 48,851 44,718 Total current assets 807,105 729,649 Property and equipment, net 368,289 323,667 Right-of-use assets, net 429,020 390,501 Goodwill 197,502 197,502 Intangible assets, net 58,677 58,697 Other assets 6,184 5,576 Total assets $ 1,866,777 $ 1,705,592 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 153,564 $ 132,877 Accrued expenses and other current liabilities 134,302 116,477 Short-term lease liabilities 70,540 63,454 Total current liabilities 358,406 312,808 Deferred taxes 41,267 42,033 Long-term lease liabilities 446,068 403,303 Other liabilities 4,378 3,805 Total liabilities 850,119 761,949 Stockholders’ equity: Common stock, $0.0001 par value; September 28, 2024 - 100,000 shares authorized, 30,824 shares issued; March 30, 2024 - 100,000 shares authorized, 30,572 shares issued 3 3 Preferred stock, $0.0001 par value; 10,000 shares authorized, no shares issued or outstanding — — Additional paid-in capital 244,931 232,636 Retained earnings 791,363 723,026 Less: Common stock held in treasury, at cost, 298 and 228 shares at September 28, 2024 and March 30, 2024, respectively (19,639 ) (12,022 ) Total stockholders’ equity 1,016,658 943,643 Total liabilities and stockholders’ equity $ 1,866,777 $ 1,705,592 Boot Barn Holdings, Inc. Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Thirteen Weeks Ended Twenty-Six Weeks Ended September 28, September 30, September 28, September 30, 2024 2023 2024 2023 Net sales $ 425,799 $ 374,456 $ 849,185 $ 758,151 Cost of goods sold 272,941 240,540 539,578 482,272 Gross profit 152,858 133,916 309,607 275,879 Selling, general and administrative expenses 112,879 95,338 219,406 191,056 Income from operations 39,979 38,578 90,201 84,823 Interest expense 384 463 735 1,486 Other income (loss), net 949 (50 ) 1,545 174 Income before income taxes 40,544 38,065 91,011 83,511 Income tax expense 11,116 10,385 22,674 21,578 Net income $ 29,428 $ 27,680 $ 68,337 $ 61,933 Earnings per share: Basic $ 0.96 $ 0.92 $ 2.24 $ 2.06 Diluted $ 0.95 $ 0.90 $ 2.21 $ 2.03 Weighted average shares outstanding: Basic 30,510 30,137 30,471 30,029 Diluted 30,899 30,627 30,859 30,540 Boot Barn Holdings, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Twenty-Six Weeks Ended September 28, September 30, 2024 2023 Cash flows from operating activities Net income $ 68,337 $ 61,933 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 29,540 22,597 Stock-based compensation 10,864 7,833 Amortization of intangible assets 20 27 Noncash lease expense 32,229 26,487 Amortization and write-off of debt issuance fees and debt discount 54 54 Loss on disposal of assets 134 298 Deferred taxes (766 ) 2,993 Changes in operating assets and liabilities: Accounts receivable, net 2,097 3,046 Inventories (113,871 ) 3,921 Prepaid expenses and other current assets (4,397 ) 9,243 Other assets (608 ) 1,302 Accounts payable 19,722 7,051 Accrued expenses and other current liabilities 9,897 13,600 Other liabilities 573 510 Operating leases (20,283 ) (15,435 ) Net cash provided by operating activities $ 33,542 $ 145,460 Cash flows from investing activities Purchases of property and equipment (65,403 ) (64,687 ) Net cash used in investing activities $ (65,403 ) $ (64,687 ) Cash flows from financing activities Payments on line of credit, net — (66,043 ) Repayments on debt and finance lease obligations (423 ) (428 ) Tax withholding payments for net share settlement (7,617 ) (2,412 ) Proceeds from the exercise of stock options 1,431 8,582 Net cash used in financing activities $ (6,609 ) $ (60,301 ) Net (decrease)/increase in cash and cash equivalents (38,470 ) 20,472 Cash and cash equivalents, beginning of period 75,847 18,193 Cash and cash equivalents, end of period $ 37,377 $ 38,665 Supplemental disclosures of cash flow information: Cash paid for income taxes $ 17,770 $ 2,822 Cash paid for interest $ 677 $ 1,399 Supplemental disclosure of non-cash activities: Unpaid purchases of property and equipment $ 24,061 $ 14,103 Boot Barn Holdings, Inc. Store Count Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended September 28, June 29, March 30, December 30, September 30, July 1, April 1, December 24, 2024 2024 2024 2023 2023 2023 2023 2022 Store Count (BOP) 411 400 382 371 361 345 333 321 Opened/Acquired 15 11 18 11 10 16 12 12 Closed (1 ) — — — — — — — Store Count (EOP) 425 411 400 382 371 361 345 333 Boot Barn Holdings, Inc. Selected Store Data Fourteen Thirteen Thirteen Weeks Ended Weeks Ended Weeks Ended September 28, June 29, March 30, December 30, September 30, July 1, April 1, December 24, 2024 2024 2024 2023 2023 2023 2023 2022 Selected Store Data: Same Store Sales growth/(decline) 4.9 % 1.4 % (5.9 )% (9.7 )% (4.8 )% (2.9 )% (5.5 )% (3.6 )% Stores operating at end of period 425 411 400 382 371 361 345 333 Comparable stores operating during period(1) 363 349 335 322 312 302 290 280 Total retail store selling square footage, end of period (in thousands) 4,720 4,547 4,371 4,153 4,027 3,914 3,735 3,598 Average retail store selling square footage, end of period 11,105 11,063 10,929 10,872 10,855 10,841 10,825 10,806 Average sales per comparable store (in thousands)(2) $ 952 $ 980 $ 917 $ 1,256 $ 950 $ 1,014 $ 1,092 $ 1,424 (1) Comparable stores have been open at least 13 full fiscal months as of the end of the applicable reporting period. (2) Average sales per comparable store is calculated by dividing comparable store trailing three-month sales for the applicable period by the number of comparable stores operating during the period. View source version on businesswire.com: https://www.businesswire.com/news/home/20241028994741/en/Contacts Investor Contact: ICR, Inc. Brendon Frey, 203-682-8216 BootBarnIR@icrinc.com or Company Contact: Boot Barn Holdings, Inc. Mark Dedovesh, 949-453-4489 Senior Vice President, Investor Relations & Financial Planning BootBarnIRMedia@bootbarn.com Stock Quote API & Stock News API supplied by www.cloudquote.io Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Boot Barn Holdings, Inc. Announces Second Quarter Fiscal Year 2025 Financial Results and CEO Transition By: Boot Barn via Business Wire October 28, 2024 at 16:05 PM EDT Boot Barn Holdings, Inc. (NYSE: BOOT) (the “Company”) today announced its financial results for the second fiscal quarter ended September 28, 2024. A Supplemental Financial Presentation is available at investor.bootbarn.com. In addition, the Company announced that Jim Conroy plans to step down as the Company’s Chief Executive Officer (CEO) and President and as a member of the Company’s Board of Directors, effective November 22, 2024, to pursue an opportunity as CEO of Ross Stores, Inc (NASDAQ: ROST). CEO Transition The Company further announced that John Hazen, the Company’s current Chief Digital Officer, will assume the role of Interim CEO, effective November 22, 2024. Mr. Hazen joined the Company in 2018 with responsibility for e-commerce, marketing, and the customer experience. Additionally, Peter Starrett, the Company’s current Chairman of the Board of Directors, will assume the role of Executive Chairman, effective November 22, 2024. Mr. Conroy will remain with the Company through November 22, 2024 to assist with an orderly transition. Mr. Starrett stated, “John Hazen is very highly regarded within the Boot Barn organization and has a diverse background that includes brand building, digital, and store roles. He has a strong track record of growing sales and profits both at Boot Barn and prior to joining the Company. He also has been extremely instrumental in advancing Boot Barn’s customer-facing technology capabilities including many industry-leading applications of artificial intelligence. I am confident in his ability to step into the role as Interim CEO. Personally, I am looking forward to providing oversight and mentorship as Executive Chairman while the Board conducts an internal and external search before making a permanent decision on our next CEO.” John Hazen commented, "I am deeply honored to step into this role and incredibly grateful to Jim for his visionary leadership and unwavering support. I also want to express my heartfelt thanks to the Board for their trust and to every member of this incredible team for their dedication that makes this Company exceptional. Together, we will continue building on the strong foundation that we have created and will move forward with confidence, tenacity, and purpose.” Mr. Starrett added, “The Board recognizes the great contributions Jim has made during his tenure as Boot Barn’s CEO. When he assumed the CEO reins 12 years ago, Boot Barn was one of several regional retail chains specializing in western and work products. His focused approach on the execution of our strategic initiatives has led to one of the most exceptional growth stories in the retail industry. Today, Boot Barn is a national chain of 426 stores and the industry leader by a wide margin. On behalf of all Boot Barn partners, we wish Jim continued success in his next endeavor.” Mr. Conroy commented, “After 12 incredible years, I am filled with immense gratitude for this Company and the extraordinary people who have been by my side throughout this journey. Together, we’ve built something truly special, and I will forever cherish the shared successes, challenges, and memories we created. Thank you for your trust, dedication, and passion—I leave with a heart full of pride and appreciation for every one of you.” Second Quarter Fiscal Year 2025 Financial Results For the quarter ended September 28, 2024 compared to the quarter ended September 30, 2023: Net sales increased 13.7% over the prior-year period to $425.8 million. Same store sales increased 4.9% compared to the prior-year period, comprised of an increase of 4.3% in retail store same store sales and an increase of 10.1% in e-commerce same store sales. Net income was $29.4 million, or $0.95 per diluted share, compared to $27.7 million, or $0.90 per diluted share, in the prior-year period. The Company opened 15 new stores, bringing its total store count to 425. Jim Conroy, President and Chief Executive Officer said, "Our fiscal second quarter saw broad-based growth in same store sales, the addition of 15 new stores and a healthy beat to guidance in earnings per diluted share. Our team's excellent execution has driven improving trends across all channels, store geographies, and major merchandise classifications, positioning us well for the upcoming holiday season. As we manage through an orderly transition over the next month, I feel great about the condition of the business and am confident in the team’s ability, under John’s leadership, to execute on the four strategic initiatives and to drive future growth in sales and earnings." Operating Results for the Second Quarter Ended September 28, 2024 Compared to the Second Quarter Ended September 30, 2023 Net sales increased 13.7% to $425.8 million from $374.5 million in the prior-year period. Consolidated same store sales increased 4.9%, with retail store same store sales increasing 4.3% and e-commerce same store sales increasing 10.1%. The increase in net sales was the result of incremental sales from new stores and the increase in consolidated same store sales. Gross profit was $152.9 million, or 35.9% of net sales, compared to $133.9 million, or 35.8% of net sales, in the prior-year period. Gross profit increased primarily due to an increase in sales and merchandise margin, partially offset by the occupancy costs of new stores. The increase in gross profit rate of 10 basis points was driven primarily by a 70 basis-point increase in merchandise margin rate, partially offset by 60 basis points of deleverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was primarily the result of supply chain efficiencies, while the deleverage in buying, occupancy and distribution center costs was driven by the occupancy costs of new stores. Selling, general and administrative expenses were $112.9 million, or 26.5% of net sales, compared to $95.3 million, or 25.5% of net sales, in the prior-year period. The increase in selling, general and administrative expenses, as compared to the prior-year period, was primarily a result of higher store payroll and store-related expenses associated with operating more stores, incentive-based compensation, marketing expenses, and legal expenses in the current year. Selling, general and administrative expenses as a percentage of net sales increased by 100 basis points primarily as a result of higher incentive-based compensation, legal expenses, and marketing expenses in the current year, partially offset by lower store payroll expenses. Income from operations increased $1.4 million to $40.0 million, or 9.4% of net sales, compared to $38.6 million, or 10.3% of net sales, in the prior-year period, primarily due to the factors noted above. Net income was $29.4 million, or $0.95 per diluted share, compared to net income of $27.7 million, or $0.90 per diluted share, in the prior-year period. The increase in net income is primarily attributable to the factors noted above. Operating Results for the Six Months Ended September 28, 2024 Compared to the Six Months Ended September 30, 2023 Net sales increased 12.0% to $849.2 million from $758.2 million in the prior-year period. Consolidated same store sales increased 3.1%, with retail store same store sales increasing 2.5% and e-commerce same store sales increasing 8.4%. The increase in net sales was the result of incremental sales from new stores and the increase in consolidated same store sales. Gross profit was $309.6 million, or 36.5% of net sales, compared to $275.9 million, or 36.4% of net sales, in the prior-year period. Gross profit increased primarily due to an increase in sales and merchandise margin, partially offset by the occupancy costs of new stores. The increase in gross profit rate of 10 basis points was driven primarily by an 80 basis-point increase in merchandise margin rate, partially offset by 70 basis points of deleverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was the result of supply chain efficiencies, while the deleverage in buying, occupancy and distribution center costs was driven primarily by the occupancy costs of new stores. Selling, general and administrative expenses were $219.4 million, or 25.8% of net sales, compared to $191.1 million, or 25.2% of net sales, in the prior-year period. The increase in selling, general and administrative expenses, as compared to the prior-year period, was primarily a result of higher store payroll and store-related expenses associated with operating more stores, marketing expenses, and incentive-based compensation in the current year. Selling, general and administrative expenses as a percentage of net sales increased by 60 basis points primarily as a result of higher incentive-based compensation and marketing expenses in the current year, partially offset by lower store payroll and store-related expenses. Income from operations increased $5.4 million to $90.2 million, or 10.6% of net sales, compared to $84.8 million, or 11.2% of net sales, in the prior-year period, primarily due to the factors noted above. Net income was $68.3 million, or $2.21 per diluted share, compared to net income of $61.9 million, or $2.03 per diluted share, in the prior-year period. The increase in net income is primarily attributable to the factors noted above. Sales by Channel The following table includes total net sales growth, same store sales (“SSS”) growth/(decline) and e-commerce as a percentage of net sales for the periods indicated below. Thirteen Weeks Preliminary Ended Four Weeks Four Weeks Five Weeks Four Weeks September 28, 2024 Fiscal July Fiscal August Fiscal September Fiscal October Total Net Sales Growth 13.7 % 8.8 % 14.7 % 16.8 % 14.6 % Retail Stores SSS 4.3 % (0.9) % 5.3 % 7.5 % 4.3 % E-commerce SSS 10.1 % 5.0 % 12.1 % 12.2 % 12.5 % Consolidated SSS 4.9 % (0.3) % 6.0 % 8.0 % 5.1 % E-commerce as a % of Net Sales 9.5 % 9.2 % 9.4 % 9.9 % 9.3 % Balance Sheet Highlights as of September 28, 2024 Cash of $37 million. Zero drawn under the $250 million revolving credit facility. Average inventory per store increased approximately 10.5% on a same store basis compared to September 30, 2023. Fiscal Year 2025 Outlook The Company is providing updated guidance for the fiscal year ending March 29, 2025, superseding in its entirety the previous guidance issued in its first quarter earnings report on August 7, 2024. Please note that the Company’s guidance excludes any benefits and costs related to the CEO transition. For the fiscal year ending March 29, 2025 the Company now expects: To open a total of 60 new stores. Total sales of $1.874 billion to $1.907 billion, representing growth of 12.4% to 14.4% over the prior year. Same store sales growth of approximately 3.0% to 5.0%, with retail store same store sales growth of approximately 2.5% to 4.5% and e-commerce same store sales growth of approximately 7.5% to 9.5%. Gross profit between $696.9 million and $713.4 million, or approximately 37.2% to 37.4% of sales. Selling, general and administrative expenses between $476.5 million and $480.4 million, or approximately 25.4% to 25.2% of sales. Income from operations between $220.4 million and $233.0 million, or approximately 11.8% to 12.2% of sales. Effective tax rate of 26.6% for the remaining six months of the fiscal year. Net income of $164.4 million to $173.7 million. Net income per diluted share of $5.30 to $5.60, based on 31.0 million weighted average diluted shares outstanding. Capital expenditures between $115.0 million and $120.0 million, which is net of estimated landlord tenant allowances of $30.2 million. For the fiscal third quarter ending December 28, 2024, the Company now expects: Total sales of $582 million to $595 million, representing growth of 11.8% to 14.3% over the prior-year period. Same store sales growth of approximately 3.5% to 6.0%, with retail store same store sales growth of approximately 3.0% to 5.0% and e-commerce same store sales growth of approximately 7.5% to 10.0%. Income from operations between $82.7 million and $87.3 million, or approximately 14.2% to 14.7% of sales. Net income per diluted share of $1.96 to $2.07, based on 31.0 million weighted average diluted shares outstanding. Conference Call Information A conference call to discuss the financial results for the second quarter of fiscal year 2025 is scheduled for today, October 28, 2024, at 4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in participating in the call are invited to dial (844) 481-2552. The conference call will also be available to interested parties through a live webcast at investor.bootbarn.com. Please visit the website and select the “Events and Presentations” link at least 15 minutes prior to the start of the call to register and download any necessary software. A Supplemental Financial Presentation is also available on the investor relations section of the Company’s website. A telephone replay of the call will be available until November 28, 2024, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 10193684. Please note participants must enter the conference identification number in order to access the replay. About Boot Barn Boot Barn is the nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children. The Company offers its loyal customer base a wide selection of work and lifestyle brands. As of the date of this release, Boot Barn operates 426 stores in 46 states, in addition to an e-commerce channel www.bootbarn.com. The Company also operates www.sheplers.com, the nation’s leading pure play online western and work retailer and www.countryoutfitter.com, an e-commerce site selling to customers who live a country lifestyle. For more information, call 888-Boot-Barn or visit www.bootbarn.com. Forward Looking Statements This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements refer to the Company’s current expectations and projections relating to, by way of example and without limitation, the Company’s financial condition, liquidity, profitability, results of operations, margins, plans, objectives, strategies, future performance, business and industry. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan“, “intend”, “believe”, “may”, “might”, “will”, “could”, “should”, “can have”, “likely”, “outlook” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. These forward-looking statements are based on assumptions that the Company’s management has made in light of their industry experience and on their perceptions of historical trends, current conditions, expected future developments and other factors that they believe are appropriate under the circumstances. As you consider this press release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond the Company’s control) and assumptions. These risks, uncertainties and assumptions include, but are not limited to, the following: decreases in consumer spending due to declines in consumer confidence, local economic conditions or changes in consumer preferences; the Company’s ability to effectively execute on its growth strategy; and the Company’s failure to maintain and enhance its strong brand image, to compete effectively, to maintain good relationships with its key suppliers, and to improve and expand its exclusive product offerings. The Company discusses the foregoing risks and other risks in greater detail under the heading “Risk factors” in the periodic reports filed by the Company with the Securities and Exchange Commission. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the Company’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. Because of these factors, the Company cautions that you should not place undue reliance on any of these forward-looking statements. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict those events or how they may affect the Company. Further, any forward-looking statement speaks only as of the date on which it is made. Except as required by law, the Company does not intend to update or revise the forward-looking statements in this press release after the date of this press release. Boot Barn Holdings, Inc. Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) September 28, March 30, 2024 2024 Assets Current assets: Cash and cash equivalents $ 37,377 $ 75,847 Accounts receivable, net 7,886 9,964 Inventories 712,991 599,120 Prepaid expenses and other current assets 48,851 44,718 Total current assets 807,105 729,649 Property and equipment, net 368,289 323,667 Right-of-use assets, net 429,020 390,501 Goodwill 197,502 197,502 Intangible assets, net 58,677 58,697 Other assets 6,184 5,576 Total assets $ 1,866,777 $ 1,705,592 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 153,564 $ 132,877 Accrued expenses and other current liabilities 134,302 116,477 Short-term lease liabilities 70,540 63,454 Total current liabilities 358,406 312,808 Deferred taxes 41,267 42,033 Long-term lease liabilities 446,068 403,303 Other liabilities 4,378 3,805 Total liabilities 850,119 761,949 Stockholders’ equity: Common stock, $0.0001 par value; September 28, 2024 - 100,000 shares authorized, 30,824 shares issued; March 30, 2024 - 100,000 shares authorized, 30,572 shares issued 3 3 Preferred stock, $0.0001 par value; 10,000 shares authorized, no shares issued or outstanding — — Additional paid-in capital 244,931 232,636 Retained earnings 791,363 723,026 Less: Common stock held in treasury, at cost, 298 and 228 shares at September 28, 2024 and March 30, 2024, respectively (19,639 ) (12,022 ) Total stockholders’ equity 1,016,658 943,643 Total liabilities and stockholders’ equity $ 1,866,777 $ 1,705,592 Boot Barn Holdings, Inc. Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Thirteen Weeks Ended Twenty-Six Weeks Ended September 28, September 30, September 28, September 30, 2024 2023 2024 2023 Net sales $ 425,799 $ 374,456 $ 849,185 $ 758,151 Cost of goods sold 272,941 240,540 539,578 482,272 Gross profit 152,858 133,916 309,607 275,879 Selling, general and administrative expenses 112,879 95,338 219,406 191,056 Income from operations 39,979 38,578 90,201 84,823 Interest expense 384 463 735 1,486 Other income (loss), net 949 (50 ) 1,545 174 Income before income taxes 40,544 38,065 91,011 83,511 Income tax expense 11,116 10,385 22,674 21,578 Net income $ 29,428 $ 27,680 $ 68,337 $ 61,933 Earnings per share: Basic $ 0.96 $ 0.92 $ 2.24 $ 2.06 Diluted $ 0.95 $ 0.90 $ 2.21 $ 2.03 Weighted average shares outstanding: Basic 30,510 30,137 30,471 30,029 Diluted 30,899 30,627 30,859 30,540 Boot Barn Holdings, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Twenty-Six Weeks Ended September 28, September 30, 2024 2023 Cash flows from operating activities Net income $ 68,337 $ 61,933 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 29,540 22,597 Stock-based compensation 10,864 7,833 Amortization of intangible assets 20 27 Noncash lease expense 32,229 26,487 Amortization and write-off of debt issuance fees and debt discount 54 54 Loss on disposal of assets 134 298 Deferred taxes (766 ) 2,993 Changes in operating assets and liabilities: Accounts receivable, net 2,097 3,046 Inventories (113,871 ) 3,921 Prepaid expenses and other current assets (4,397 ) 9,243 Other assets (608 ) 1,302 Accounts payable 19,722 7,051 Accrued expenses and other current liabilities 9,897 13,600 Other liabilities 573 510 Operating leases (20,283 ) (15,435 ) Net cash provided by operating activities $ 33,542 $ 145,460 Cash flows from investing activities Purchases of property and equipment (65,403 ) (64,687 ) Net cash used in investing activities $ (65,403 ) $ (64,687 ) Cash flows from financing activities Payments on line of credit, net — (66,043 ) Repayments on debt and finance lease obligations (423 ) (428 ) Tax withholding payments for net share settlement (7,617 ) (2,412 ) Proceeds from the exercise of stock options 1,431 8,582 Net cash used in financing activities $ (6,609 ) $ (60,301 ) Net (decrease)/increase in cash and cash equivalents (38,470 ) 20,472 Cash and cash equivalents, beginning of period 75,847 18,193 Cash and cash equivalents, end of period $ 37,377 $ 38,665 Supplemental disclosures of cash flow information: Cash paid for income taxes $ 17,770 $ 2,822 Cash paid for interest $ 677 $ 1,399 Supplemental disclosure of non-cash activities: Unpaid purchases of property and equipment $ 24,061 $ 14,103 Boot Barn Holdings, Inc. Store Count Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended September 28, June 29, March 30, December 30, September 30, July 1, April 1, December 24, 2024 2024 2024 2023 2023 2023 2023 2022 Store Count (BOP) 411 400 382 371 361 345 333 321 Opened/Acquired 15 11 18 11 10 16 12 12 Closed (1 ) — — — — — — — Store Count (EOP) 425 411 400 382 371 361 345 333 Boot Barn Holdings, Inc. Selected Store Data Fourteen Thirteen Thirteen Weeks Ended Weeks Ended Weeks Ended September 28, June 29, March 30, December 30, September 30, July 1, April 1, December 24, 2024 2024 2024 2023 2023 2023 2023 2022 Selected Store Data: Same Store Sales growth/(decline) 4.9 % 1.4 % (5.9 )% (9.7 )% (4.8 )% (2.9 )% (5.5 )% (3.6 )% Stores operating at end of period 425 411 400 382 371 361 345 333 Comparable stores operating during period(1) 363 349 335 322 312 302 290 280 Total retail store selling square footage, end of period (in thousands) 4,720 4,547 4,371 4,153 4,027 3,914 3,735 3,598 Average retail store selling square footage, end of period 11,105 11,063 10,929 10,872 10,855 10,841 10,825 10,806 Average sales per comparable store (in thousands)(2) $ 952 $ 980 $ 917 $ 1,256 $ 950 $ 1,014 $ 1,092 $ 1,424 (1) Comparable stores have been open at least 13 full fiscal months as of the end of the applicable reporting period. (2) Average sales per comparable store is calculated by dividing comparable store trailing three-month sales for the applicable period by the number of comparable stores operating during the period. View source version on businesswire.com: https://www.businesswire.com/news/home/20241028994741/en/Contacts Investor Contact: ICR, Inc. Brendon Frey, 203-682-8216 BootBarnIR@icrinc.com or Company Contact: Boot Barn Holdings, Inc. Mark Dedovesh, 949-453-4489 Senior Vice President, Investor Relations & Financial Planning BootBarnIRMedia@bootbarn.com
Boot Barn Holdings, Inc. (NYSE: BOOT) (the “Company”) today announced its financial results for the second fiscal quarter ended September 28, 2024. A Supplemental Financial Presentation is available at investor.bootbarn.com. In addition, the Company announced that Jim Conroy plans to step down as the Company’s Chief Executive Officer (CEO) and President and as a member of the Company’s Board of Directors, effective November 22, 2024, to pursue an opportunity as CEO of Ross Stores, Inc (NASDAQ: ROST). CEO Transition The Company further announced that John Hazen, the Company’s current Chief Digital Officer, will assume the role of Interim CEO, effective November 22, 2024. Mr. Hazen joined the Company in 2018 with responsibility for e-commerce, marketing, and the customer experience. Additionally, Peter Starrett, the Company’s current Chairman of the Board of Directors, will assume the role of Executive Chairman, effective November 22, 2024. Mr. Conroy will remain with the Company through November 22, 2024 to assist with an orderly transition. Mr. Starrett stated, “John Hazen is very highly regarded within the Boot Barn organization and has a diverse background that includes brand building, digital, and store roles. He has a strong track record of growing sales and profits both at Boot Barn and prior to joining the Company. He also has been extremely instrumental in advancing Boot Barn’s customer-facing technology capabilities including many industry-leading applications of artificial intelligence. I am confident in his ability to step into the role as Interim CEO. Personally, I am looking forward to providing oversight and mentorship as Executive Chairman while the Board conducts an internal and external search before making a permanent decision on our next CEO.” John Hazen commented, "I am deeply honored to step into this role and incredibly grateful to Jim for his visionary leadership and unwavering support. I also want to express my heartfelt thanks to the Board for their trust and to every member of this incredible team for their dedication that makes this Company exceptional. Together, we will continue building on the strong foundation that we have created and will move forward with confidence, tenacity, and purpose.” Mr. Starrett added, “The Board recognizes the great contributions Jim has made during his tenure as Boot Barn’s CEO. When he assumed the CEO reins 12 years ago, Boot Barn was one of several regional retail chains specializing in western and work products. His focused approach on the execution of our strategic initiatives has led to one of the most exceptional growth stories in the retail industry. Today, Boot Barn is a national chain of 426 stores and the industry leader by a wide margin. On behalf of all Boot Barn partners, we wish Jim continued success in his next endeavor.” Mr. Conroy commented, “After 12 incredible years, I am filled with immense gratitude for this Company and the extraordinary people who have been by my side throughout this journey. Together, we’ve built something truly special, and I will forever cherish the shared successes, challenges, and memories we created. Thank you for your trust, dedication, and passion—I leave with a heart full of pride and appreciation for every one of you.” Second Quarter Fiscal Year 2025 Financial Results For the quarter ended September 28, 2024 compared to the quarter ended September 30, 2023: Net sales increased 13.7% over the prior-year period to $425.8 million. Same store sales increased 4.9% compared to the prior-year period, comprised of an increase of 4.3% in retail store same store sales and an increase of 10.1% in e-commerce same store sales. Net income was $29.4 million, or $0.95 per diluted share, compared to $27.7 million, or $0.90 per diluted share, in the prior-year period. The Company opened 15 new stores, bringing its total store count to 425. Jim Conroy, President and Chief Executive Officer said, "Our fiscal second quarter saw broad-based growth in same store sales, the addition of 15 new stores and a healthy beat to guidance in earnings per diluted share. Our team's excellent execution has driven improving trends across all channels, store geographies, and major merchandise classifications, positioning us well for the upcoming holiday season. As we manage through an orderly transition over the next month, I feel great about the condition of the business and am confident in the team’s ability, under John’s leadership, to execute on the four strategic initiatives and to drive future growth in sales and earnings." Operating Results for the Second Quarter Ended September 28, 2024 Compared to the Second Quarter Ended September 30, 2023 Net sales increased 13.7% to $425.8 million from $374.5 million in the prior-year period. Consolidated same store sales increased 4.9%, with retail store same store sales increasing 4.3% and e-commerce same store sales increasing 10.1%. The increase in net sales was the result of incremental sales from new stores and the increase in consolidated same store sales. Gross profit was $152.9 million, or 35.9% of net sales, compared to $133.9 million, or 35.8% of net sales, in the prior-year period. Gross profit increased primarily due to an increase in sales and merchandise margin, partially offset by the occupancy costs of new stores. The increase in gross profit rate of 10 basis points was driven primarily by a 70 basis-point increase in merchandise margin rate, partially offset by 60 basis points of deleverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was primarily the result of supply chain efficiencies, while the deleverage in buying, occupancy and distribution center costs was driven by the occupancy costs of new stores. Selling, general and administrative expenses were $112.9 million, or 26.5% of net sales, compared to $95.3 million, or 25.5% of net sales, in the prior-year period. The increase in selling, general and administrative expenses, as compared to the prior-year period, was primarily a result of higher store payroll and store-related expenses associated with operating more stores, incentive-based compensation, marketing expenses, and legal expenses in the current year. Selling, general and administrative expenses as a percentage of net sales increased by 100 basis points primarily as a result of higher incentive-based compensation, legal expenses, and marketing expenses in the current year, partially offset by lower store payroll expenses. Income from operations increased $1.4 million to $40.0 million, or 9.4% of net sales, compared to $38.6 million, or 10.3% of net sales, in the prior-year period, primarily due to the factors noted above. Net income was $29.4 million, or $0.95 per diluted share, compared to net income of $27.7 million, or $0.90 per diluted share, in the prior-year period. The increase in net income is primarily attributable to the factors noted above. Operating Results for the Six Months Ended September 28, 2024 Compared to the Six Months Ended September 30, 2023 Net sales increased 12.0% to $849.2 million from $758.2 million in the prior-year period. Consolidated same store sales increased 3.1%, with retail store same store sales increasing 2.5% and e-commerce same store sales increasing 8.4%. The increase in net sales was the result of incremental sales from new stores and the increase in consolidated same store sales. Gross profit was $309.6 million, or 36.5% of net sales, compared to $275.9 million, or 36.4% of net sales, in the prior-year period. Gross profit increased primarily due to an increase in sales and merchandise margin, partially offset by the occupancy costs of new stores. The increase in gross profit rate of 10 basis points was driven primarily by an 80 basis-point increase in merchandise margin rate, partially offset by 70 basis points of deleverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was the result of supply chain efficiencies, while the deleverage in buying, occupancy and distribution center costs was driven primarily by the occupancy costs of new stores. Selling, general and administrative expenses were $219.4 million, or 25.8% of net sales, compared to $191.1 million, or 25.2% of net sales, in the prior-year period. The increase in selling, general and administrative expenses, as compared to the prior-year period, was primarily a result of higher store payroll and store-related expenses associated with operating more stores, marketing expenses, and incentive-based compensation in the current year. Selling, general and administrative expenses as a percentage of net sales increased by 60 basis points primarily as a result of higher incentive-based compensation and marketing expenses in the current year, partially offset by lower store payroll and store-related expenses. Income from operations increased $5.4 million to $90.2 million, or 10.6% of net sales, compared to $84.8 million, or 11.2% of net sales, in the prior-year period, primarily due to the factors noted above. Net income was $68.3 million, or $2.21 per diluted share, compared to net income of $61.9 million, or $2.03 per diluted share, in the prior-year period. The increase in net income is primarily attributable to the factors noted above. Sales by Channel The following table includes total net sales growth, same store sales (“SSS”) growth/(decline) and e-commerce as a percentage of net sales for the periods indicated below. Thirteen Weeks Preliminary Ended Four Weeks Four Weeks Five Weeks Four Weeks September 28, 2024 Fiscal July Fiscal August Fiscal September Fiscal October Total Net Sales Growth 13.7 % 8.8 % 14.7 % 16.8 % 14.6 % Retail Stores SSS 4.3 % (0.9) % 5.3 % 7.5 % 4.3 % E-commerce SSS 10.1 % 5.0 % 12.1 % 12.2 % 12.5 % Consolidated SSS 4.9 % (0.3) % 6.0 % 8.0 % 5.1 % E-commerce as a % of Net Sales 9.5 % 9.2 % 9.4 % 9.9 % 9.3 % Balance Sheet Highlights as of September 28, 2024 Cash of $37 million. Zero drawn under the $250 million revolving credit facility. Average inventory per store increased approximately 10.5% on a same store basis compared to September 30, 2023. Fiscal Year 2025 Outlook The Company is providing updated guidance for the fiscal year ending March 29, 2025, superseding in its entirety the previous guidance issued in its first quarter earnings report on August 7, 2024. Please note that the Company’s guidance excludes any benefits and costs related to the CEO transition. For the fiscal year ending March 29, 2025 the Company now expects: To open a total of 60 new stores. Total sales of $1.874 billion to $1.907 billion, representing growth of 12.4% to 14.4% over the prior year. Same store sales growth of approximately 3.0% to 5.0%, with retail store same store sales growth of approximately 2.5% to 4.5% and e-commerce same store sales growth of approximately 7.5% to 9.5%. Gross profit between $696.9 million and $713.4 million, or approximately 37.2% to 37.4% of sales. Selling, general and administrative expenses between $476.5 million and $480.4 million, or approximately 25.4% to 25.2% of sales. Income from operations between $220.4 million and $233.0 million, or approximately 11.8% to 12.2% of sales. Effective tax rate of 26.6% for the remaining six months of the fiscal year. Net income of $164.4 million to $173.7 million. Net income per diluted share of $5.30 to $5.60, based on 31.0 million weighted average diluted shares outstanding. Capital expenditures between $115.0 million and $120.0 million, which is net of estimated landlord tenant allowances of $30.2 million. For the fiscal third quarter ending December 28, 2024, the Company now expects: Total sales of $582 million to $595 million, representing growth of 11.8% to 14.3% over the prior-year period. Same store sales growth of approximately 3.5% to 6.0%, with retail store same store sales growth of approximately 3.0% to 5.0% and e-commerce same store sales growth of approximately 7.5% to 10.0%. Income from operations between $82.7 million and $87.3 million, or approximately 14.2% to 14.7% of sales. Net income per diluted share of $1.96 to $2.07, based on 31.0 million weighted average diluted shares outstanding. Conference Call Information A conference call to discuss the financial results for the second quarter of fiscal year 2025 is scheduled for today, October 28, 2024, at 4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in participating in the call are invited to dial (844) 481-2552. The conference call will also be available to interested parties through a live webcast at investor.bootbarn.com. Please visit the website and select the “Events and Presentations” link at least 15 minutes prior to the start of the call to register and download any necessary software. A Supplemental Financial Presentation is also available on the investor relations section of the Company’s website. A telephone replay of the call will be available until November 28, 2024, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 10193684. Please note participants must enter the conference identification number in order to access the replay. About Boot Barn Boot Barn is the nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children. The Company offers its loyal customer base a wide selection of work and lifestyle brands. As of the date of this release, Boot Barn operates 426 stores in 46 states, in addition to an e-commerce channel www.bootbarn.com. The Company also operates www.sheplers.com, the nation’s leading pure play online western and work retailer and www.countryoutfitter.com, an e-commerce site selling to customers who live a country lifestyle. For more information, call 888-Boot-Barn or visit www.bootbarn.com. Forward Looking Statements This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements refer to the Company’s current expectations and projections relating to, by way of example and without limitation, the Company’s financial condition, liquidity, profitability, results of operations, margins, plans, objectives, strategies, future performance, business and industry. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan“, “intend”, “believe”, “may”, “might”, “will”, “could”, “should”, “can have”, “likely”, “outlook” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. These forward-looking statements are based on assumptions that the Company’s management has made in light of their industry experience and on their perceptions of historical trends, current conditions, expected future developments and other factors that they believe are appropriate under the circumstances. As you consider this press release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond the Company’s control) and assumptions. These risks, uncertainties and assumptions include, but are not limited to, the following: decreases in consumer spending due to declines in consumer confidence, local economic conditions or changes in consumer preferences; the Company’s ability to effectively execute on its growth strategy; and the Company’s failure to maintain and enhance its strong brand image, to compete effectively, to maintain good relationships with its key suppliers, and to improve and expand its exclusive product offerings. The Company discusses the foregoing risks and other risks in greater detail under the heading “Risk factors” in the periodic reports filed by the Company with the Securities and Exchange Commission. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the Company’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. Because of these factors, the Company cautions that you should not place undue reliance on any of these forward-looking statements. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict those events or how they may affect the Company. Further, any forward-looking statement speaks only as of the date on which it is made. Except as required by law, the Company does not intend to update or revise the forward-looking statements in this press release after the date of this press release. Boot Barn Holdings, Inc. Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) September 28, March 30, 2024 2024 Assets Current assets: Cash and cash equivalents $ 37,377 $ 75,847 Accounts receivable, net 7,886 9,964 Inventories 712,991 599,120 Prepaid expenses and other current assets 48,851 44,718 Total current assets 807,105 729,649 Property and equipment, net 368,289 323,667 Right-of-use assets, net 429,020 390,501 Goodwill 197,502 197,502 Intangible assets, net 58,677 58,697 Other assets 6,184 5,576 Total assets $ 1,866,777 $ 1,705,592 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 153,564 $ 132,877 Accrued expenses and other current liabilities 134,302 116,477 Short-term lease liabilities 70,540 63,454 Total current liabilities 358,406 312,808 Deferred taxes 41,267 42,033 Long-term lease liabilities 446,068 403,303 Other liabilities 4,378 3,805 Total liabilities 850,119 761,949 Stockholders’ equity: Common stock, $0.0001 par value; September 28, 2024 - 100,000 shares authorized, 30,824 shares issued; March 30, 2024 - 100,000 shares authorized, 30,572 shares issued 3 3 Preferred stock, $0.0001 par value; 10,000 shares authorized, no shares issued or outstanding — — Additional paid-in capital 244,931 232,636 Retained earnings 791,363 723,026 Less: Common stock held in treasury, at cost, 298 and 228 shares at September 28, 2024 and March 30, 2024, respectively (19,639 ) (12,022 ) Total stockholders’ equity 1,016,658 943,643 Total liabilities and stockholders’ equity $ 1,866,777 $ 1,705,592 Boot Barn Holdings, Inc. Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Thirteen Weeks Ended Twenty-Six Weeks Ended September 28, September 30, September 28, September 30, 2024 2023 2024 2023 Net sales $ 425,799 $ 374,456 $ 849,185 $ 758,151 Cost of goods sold 272,941 240,540 539,578 482,272 Gross profit 152,858 133,916 309,607 275,879 Selling, general and administrative expenses 112,879 95,338 219,406 191,056 Income from operations 39,979 38,578 90,201 84,823 Interest expense 384 463 735 1,486 Other income (loss), net 949 (50 ) 1,545 174 Income before income taxes 40,544 38,065 91,011 83,511 Income tax expense 11,116 10,385 22,674 21,578 Net income $ 29,428 $ 27,680 $ 68,337 $ 61,933 Earnings per share: Basic $ 0.96 $ 0.92 $ 2.24 $ 2.06 Diluted $ 0.95 $ 0.90 $ 2.21 $ 2.03 Weighted average shares outstanding: Basic 30,510 30,137 30,471 30,029 Diluted 30,899 30,627 30,859 30,540 Boot Barn Holdings, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Twenty-Six Weeks Ended September 28, September 30, 2024 2023 Cash flows from operating activities Net income $ 68,337 $ 61,933 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 29,540 22,597 Stock-based compensation 10,864 7,833 Amortization of intangible assets 20 27 Noncash lease expense 32,229 26,487 Amortization and write-off of debt issuance fees and debt discount 54 54 Loss on disposal of assets 134 298 Deferred taxes (766 ) 2,993 Changes in operating assets and liabilities: Accounts receivable, net 2,097 3,046 Inventories (113,871 ) 3,921 Prepaid expenses and other current assets (4,397 ) 9,243 Other assets (608 ) 1,302 Accounts payable 19,722 7,051 Accrued expenses and other current liabilities 9,897 13,600 Other liabilities 573 510 Operating leases (20,283 ) (15,435 ) Net cash provided by operating activities $ 33,542 $ 145,460 Cash flows from investing activities Purchases of property and equipment (65,403 ) (64,687 ) Net cash used in investing activities $ (65,403 ) $ (64,687 ) Cash flows from financing activities Payments on line of credit, net — (66,043 ) Repayments on debt and finance lease obligations (423 ) (428 ) Tax withholding payments for net share settlement (7,617 ) (2,412 ) Proceeds from the exercise of stock options 1,431 8,582 Net cash used in financing activities $ (6,609 ) $ (60,301 ) Net (decrease)/increase in cash and cash equivalents (38,470 ) 20,472 Cash and cash equivalents, beginning of period 75,847 18,193 Cash and cash equivalents, end of period $ 37,377 $ 38,665 Supplemental disclosures of cash flow information: Cash paid for income taxes $ 17,770 $ 2,822 Cash paid for interest $ 677 $ 1,399 Supplemental disclosure of non-cash activities: Unpaid purchases of property and equipment $ 24,061 $ 14,103 Boot Barn Holdings, Inc. Store Count Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended September 28, June 29, March 30, December 30, September 30, July 1, April 1, December 24, 2024 2024 2024 2023 2023 2023 2023 2022 Store Count (BOP) 411 400 382 371 361 345 333 321 Opened/Acquired 15 11 18 11 10 16 12 12 Closed (1 ) — — — — — — — Store Count (EOP) 425 411 400 382 371 361 345 333 Boot Barn Holdings, Inc. Selected Store Data Fourteen Thirteen Thirteen Weeks Ended Weeks Ended Weeks Ended September 28, June 29, March 30, December 30, September 30, July 1, April 1, December 24, 2024 2024 2024 2023 2023 2023 2023 2022 Selected Store Data: Same Store Sales growth/(decline) 4.9 % 1.4 % (5.9 )% (9.7 )% (4.8 )% (2.9 )% (5.5 )% (3.6 )% Stores operating at end of period 425 411 400 382 371 361 345 333 Comparable stores operating during period(1) 363 349 335 322 312 302 290 280 Total retail store selling square footage, end of period (in thousands) 4,720 4,547 4,371 4,153 4,027 3,914 3,735 3,598 Average retail store selling square footage, end of period 11,105 11,063 10,929 10,872 10,855 10,841 10,825 10,806 Average sales per comparable store (in thousands)(2) $ 952 $ 980 $ 917 $ 1,256 $ 950 $ 1,014 $ 1,092 $ 1,424 (1) Comparable stores have been open at least 13 full fiscal months as of the end of the applicable reporting period. (2) Average sales per comparable store is calculated by dividing comparable store trailing three-month sales for the applicable period by the number of comparable stores operating during the period. View source version on businesswire.com: https://www.businesswire.com/news/home/20241028994741/en/
Investor Contact: ICR, Inc. Brendon Frey, 203-682-8216 BootBarnIR@icrinc.com or Company Contact: Boot Barn Holdings, Inc. Mark Dedovesh, 949-453-4489 Senior Vice President, Investor Relations & Financial Planning BootBarnIRMedia@bootbarn.com
