8-K
Boot Barn Holdings, Inc. (BOOT)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 10, 2025
Boot Barn Holdings, Inc.
(Exact name of registrant as specified in its charter)
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|---|---|---|
| Delaware | 001-36711 | 90-0776290 |
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (I.R.S. Employer<br>Identification No.) |
| | |
|---|---|
| 15345 Barranca Parkway , Irvine , California | 92618 |
| (Address of principal executive offices) | (Zip Code) |
( 949 ) 453-4400
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Securities registered pursuant to Section 12(b) of the Act:
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|---|---|---|
| Title of each class | Trading Symbol | Name of each exchange on which registered |
| Common Stock, $0.0001 par value | BOOT | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On January 10, 2025, Boot Barn Holdings, Inc. (the “Company”) announced certain preliminary financial results for its third quarter ended December 28, 2024 in connection with its participation in the 2025 ICR Conference on Monday, January 13, 2025. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information provided in this Item 2.02, including Exhibit 99.1, is intended to be “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 7.01. Regulation FD Disclosure.
The Company is furnishing this Current Report on Form 8-K in connection with the disclosure of information contained in an investor presentation (the “Presentation”) to be used by the Company at various meetings with institutional investors and analysts and during participation at the 2025 ICR Conference. The Company is hosting a fireside chat at the 2025 ICR Conference on Monday, January 13, 2025 at 10:30 a.m. Eastern Time. The fireside chat will be webcast live over the internet and can also be accessed at http://investor.bootbarn.com. An online archive will be available for a period of 90 days following the Presentation. A copy of the Company’s Presentation is attached hereto as Exhibit 99.2 and is incorporated by reference.
The information furnished in this Item 7.01, including Exhibit 99.2, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any other filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.
The Company expressly disclaims any obligation to update or revise any of the information contained in the Presentation.
The Presentation is available on the Company’s investor relations website located at investor.bootbarn.com, although the Company reserves the right to discontinue that availability at any time. The website address included herein is an inactive textual reference only. The information contained on such website is not incorporated into this Current Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits.
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|---|---|---|
| Exhibit Number | Description | |
| Exhibit 99.1 | Press release dated January 10, 2025. | |
| Exhibit 99.2 | Investor Presentation dated January 10, 2025. | |
| Exhibit 104 | The cover page of this Current Report on Form 8-K, formatted in Inline XBRL. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | BOOT BARN HOLDINGS, INC. | |
|---|---|---|
| Date: January 10, 2025 | By: | /s/ James M. Watkins |
| | | Name: James M. Watkins |
| | | Title: Chief Financial Officer and Secretary |
Exhibit 99.1
Boot Barn Holdings, Inc. Announces Preliminary Third Quarter Results,
Appointment of New Chief Digital Officer, and
Participation in the 2025 ICR Conference
IRVINE, California – January 10, 2025—Boot Barn Holdings, Inc. (NYSE: BOOT) (the “Company,” “we,” “us,” and “our”) today announced preliminary results for the third quarter of fiscal year 2025 ended December 28, 2024 in advance of its participation in the ICR Conference on Monday, January 13, 2025. A Supplemental Financial Presentation is available at investor.bootbarn.com.
Preliminary Results for the Third Quarter of Fiscal Year 2025
For the third quarter ended December 28, 2024, the Company expects to report:
| · | Net sales of approximately $608.2 million, representing growth of 16.9% over the prior year. |
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| · | Same store sales growth of approximately 8.6%, with retail store same store sales growth of approximately 8.2% and e-commerce same store sales growth of approximately 11.1%. |
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| · | Income from operations of approximately $99.5 million compared to $75.1 million in the prior-year period. Included in income from operations is a net benefit of $6.7 million related to the Chief Executive Officer (“CEO”) transition. This benefit primarily relates to the forfeiture of unvested long-term equity incentive compensation and reversal of fiscal 2025 cash incentive bonus expense for the Company’s former CEO. These expenses were not deductible for income taxes. |
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| · | Net income per diluted share of approximately $2.43 based on 30.9 million weighted average diluted shares outstanding and a 24.3% effective tax rate, compared to net income per diluted share of $1.81 in the prior-year period. Included in net income per diluted share is an estimated $0.22 benefit related to the CEO transition. |
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| · | The Company opened 13 new stores in the third quarter, or 39 stores year-to-date, bringing its total store count to 438. |
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John Hazen, Interim Chief Executive Officer, commented, “I am very pleased with our third quarter results. We once again experienced broad-based growth, driving same store sales up 8.6% versus last year and above our expectations. Both channels and all geographies and major merchandise categories were nicely positive, with the latter led by our ladies and men’s western businesses, which were up low-double digits and high-single digits, respectively. We are pleased that our sales outperformance, driven by strong full-price selling, translated into strong earnings per share as we expanded merchandise margin approximately 130 basis points. I am proud of the entire team for delivering a strong holiday quarter, and I look forward to a successful finish to our fiscal year.”
The foregoing expected results are preliminary and remain subject to the completion of normal quarter-end accounting procedures and closing adjustments. The Company currently plans to report third quarter results on January 30, 2025, at which time it will also provide fourth quarter guidance.
Appointment of New Chief Digital Officer
The Company has appointed Jonathon D. Kosoff to serve as its Chief Digital Officer, effective January 27, 2025. Mr. Kosoff previously served as the Chief Digital Officer for Tillys, Inc. from February 2020 to January 2025. Mr. Kosoff was Vice President of E-commerce and Performance Marketing at Taco Bell, a subsidiary of Yum! Brands, Inc., from January 2018 to February 2020.
2025 ICR Conference
The Company will be hosting a fireside chat at the 2025 ICR Conference on Monday, January 13, 2025 at 10:30 a.m. Eastern Time. The fireside chat will be webcast live over the internet and can also be accessed at http://investor.bootbarn.com. An online archive will be available for a period of 90 days on the investor page of the Company’s website.
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 438 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.
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
Exhibit 99.2
| 0<br>ICR CONFERENCE<br>JANUARY 2025<br>Offering everyone a piece of the American spirit—one handshake at a time. |
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| 1<br>Important Information<br>Forward-Looking Statements<br>This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this presentation are forward-looking statements. You can identify forward-looking statements by the fact that they generally include words such as "anticipate," "estimate," "expect," "project," "plan,“ "intend," "believe,"<br>“outlook” and other words 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<br>statements contain these identifying words. These forward-looking statements are based on assumptions that Boot Barn Holdings, Inc.’s (the “Company,” “we,” “us,” and “our”) management has<br>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<br>under the circumstances. As you consider this presentation, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of<br>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<br>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<br>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<br>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.<br>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<br>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<br>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.<br>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<br>statements in this presentation after the date of this presentation.<br>Industry and Market Information<br>Statements in this presentation concerning our industry and the markets in which we operate, including our general expectations and competitive position, business opportunity and market size,<br>growth and share, are based on information from independent industry organizations and other third-party sources, data from our internal research and management estimates. Management<br>estimates are derived from publicly available information and the information and data referred to above and are based on assumptions and calculations made by us based upon our<br>interpretation of such information and data. The information and data referred to above are imprecise and may prove to be inaccurate because the information cannot always be verified with<br>complete certainty due to the limitations on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties. As a result,<br>please be aware that the data and statistical information in this presentation may differ from information provided by our competitors or from information found in current or future studies<br>conducted by market research institutes, consultancy firms or independent sources.<br>Recent Developments<br>Our business and opportunities for growth depend on consumer discretionary spending, and as such, our results are particularly sensitive to economic conditions and consumer confidence.<br>Inflation and other challenges affecting the global economy could impact our operations and will depend on future developments, which are uncertain. These and other effects make it more<br>challenging for us to estimate the future performance of our business, particularly over the near-to-medium term. For further discussion of the uncertainties and business risks affecting the<br>Company, see the sections captioned “Risk factors” in our periodic reports filed with the Securities and Exchange Commission.<br>Q3 Fiscal 2025 Preliminary Results<br>The foregoing Q3 FY25, Q3 YTD FY25 and Q3 FY25 TTM (trailing twelve month) results are preliminary and remain subject to the completion of normal quarter end accounting procedures and<br>closing adjustments. The Company currently plans to report third quarter results on January 30, 2025. |
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| 2<br>Q3 Fiscal 2025 Financial Results<br>$520<br>$595 $608<br>LY High-End<br>Guidance<br>Preliminary<br>Actual<br>Q3 Total Sales ($M) Q3 GAAP EPS<br>$1.81<br>$2.07<br>$2.43<br>LY High-End<br>Guidance<br>Preliminary<br>Actual<br>$75.1<br>$87.3<br>$99.5<br>LY High-End<br>Guidance<br>Preliminary<br>Actual<br>Q3 Income from Operations ($M)<br>1 1 2 1 3<br>1All Q3 Fiscal 2025 financial results are preliminary and contain the Company’s best estimate for the quarter ended on December 28, 2024.<br>2<br>Included in income from operations is a net benefit of $6.7 million related to the Chief Executive Officer (“CEO”) transition. This benefit primarily relates to the forfeiture of unvested long-term equity incentive<br>compensation and reversal of fiscal 2025 cash incentive bonus expense for the Company’s former CEO. These expenses were not deductible for income taxes.<br>3Net income per diluted share in the third quarter is $2.43 based on 30.9 million weighted average diluted shares outstanding and a 24.3% effective tax rate. Included in net income per diluted share is an estimated $0.22<br>benefit related to the CEO transition. Our projected effective tax rate for Q4 Fiscal 2025 is 25.4%, and we currently expect our Fiscal 2026 effective tax rate to be approximately 26%. |
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| 3<br>Q3 Fiscal 2025 Financial Results<br>$284 $302<br>$486 $515 $520<br>$608<br>FY20 FY21 FY22 FY23 FY24 FY25<br>Q3 Total Sales ($M)<br>6.7% 4.6%<br>54.2%<br>-3.6%<br>-9.7%<br>8.6%<br>FY20 FY21 FY22 FY23 FY24 FY25<br>Q3 Consolidated SSS%<br>+50bps<br>+150bps<br>+270bps<br>(190)bps<br>+300bps<br>+130bps<br>FY20 FY21 FY22 FY23 FY24 FY25<br>Q3 Merchandise Margin %<br>$0.85 $1.00<br>$2.27<br>$1.74 $1.81<br>$2.43<br>FY20 FY21 FY22 FY23 FY24 FY25<br>Q3 GAAP EPS<br>1All Q3 Fiscal 2025 financial results are preliminary and contain the Company’s best estimate for the quarter ended on December 28, 2024.<br>2The estimated 130 basis points of merchandise margin expansion was primarily driven by supply chain efficiencies, better buying economies of scale, and growth in exclusive brand penetration.<br>3Net income per diluted share in the third quarter is $2.43 based on 30.9 million weighted average diluted shares outstanding and a 24.3% effective tax rate. Included in net income per diluted share is an estimated $0.22 benefit<br>related to the CEO transition. Our projected effective tax rate for Q4 Fiscal 2025 is 25.4%, and we currently expect our Fiscal 2026 effective tax rate to be approximately 26%.<br>1 1<br>1 2 1 3<br>(180)bps<br>freight<br>+250bps<br>freight |
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| 4<br>$233<br>$346 $403<br>$569 $630 $678<br>$777<br>$846 $893<br>$1,488<br>$1,658 $1,667<br>$1,846<br>FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q3 FY25<br>TTM<br>Total Sales ($M)<br>Total Sales<br>Growth 38% 48% 16% 41% 11% 8% 15% 9% 6% 67% 11%<br>Over a Decade of Strong Sales Growth<br>1 1<br>2<br>1Fiscal 2017 and Fiscal 2023 were 53-week years.<br>2All Q3 Fiscal 2025 financial results are preliminary and contain the Company’s best estimate for the quarter ended on December 28, 2024.<br>1%<br>~+19% CAGR<br>SSS%<br>Growth 11.9% 6.7% 7.3% (0.1)% 0.3% 5.2% 10.0% 5.0% 3.1% 53.7% (0.1)% (6.2)% |
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| 5<br>Strategic Initiatives Update<br>1<br>2<br>3<br>4<br>New Stores<br>Same Store Sales<br>Omni-Channel<br>Merchandise Margin & Exclusive Brands |
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| 6<br>15% New Unit Growth<br>86<br>117<br>152<br>169<br>208 219 226<br>240<br>259<br>273<br>300<br>345<br>400<br>460<br>FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 E<br>Annual Store Count<br>1<br>1Represents management’s guidance to open a total of 60 new stores in Fiscal 2025, as provided on the Company’s second quarter earnings call held on October 28, 2024.<br>1 |
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| 7<br>1 Profitable New Units & Expanding Our National Footprint<br>FY25 Q3<br>• 438 stores<br>• 46 states<br>New Store Economics<br>SqFt<br>$1.7M<br>$3.0M<br>1st Year Sales<br>$700K<br>Investment Return on Investment<br>FY25 E<br>3yr<br>Payback<br>~1.5yr<br>Payback<br>IPO Model<br>$1.5M 32%<br>12K ~60%<br>10K |
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| 8<br>1 Investing in Stores |
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| 9<br>1 Investing in Stores |
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| 10<br>1 Investing in Stores |
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| 11<br>1 Investing in Stores |
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| 12<br>460<br>900<br>FY25 E FY26 FY27 FY28 FY29 FY30<br>1<br>Illustrative example of 15% new unit growth annually.<br>2Represents management’s guidance to open a total of 60 new stores in Fiscal 2025, as provided on the Company’s second quarter earnings call held on October 28, 2024.<br>New Store Opportunity1<br>Looking Forward: 15% New Unit Growth<br>• ~500 additional stores opportunity<br>• Expected to contribute ~$1.5 billion in sales<br>• Payback in ~18 months (ROIC ~60%)<br>• All stores positive 4-wall EBITDA<br>1<br>2 |
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| 13<br>11.9%<br>6.7% 7.3%<br>-0.1%<br>0.3%<br>5.2%<br>10.0%<br>5.0% 3.1%<br>53.7%<br>-0.1%<br>-6.2%<br>5.4%<br>FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q3 FY25<br>YTD<br>Consolidated SSS%<br>2 Over A Decade of Strong Same Store Sales<br>FY13 – FY19<br>+41% seven-year stack, +6% SSS avg<br>FY20 – Q3 FY25 YTD<br>~+61% six-year stack, ~+10% SSS avg<br>1<br>1All Q3 Fiscal 2025 financial results are preliminary and contain the Company’s best estimate for the quarter ended on December 28, 2024.<br>1 |
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| 14<br>-1.5%<br>1.9% 1.8%<br>-0.9%<br>5.3% 7.5% 4.6%<br>-2.4%<br>16.0%<br>Apr May Jun Jul Aug Sep Oct Nov Dec<br>2 Store SSS% by Month<br>FY24<br>-5.0% -2.6%<br>1.5% 1.1%<br>-3.7%<br>-7.3% -8.8% -11.5% -8.5% -7.2% -8.1%<br>-2.8%<br>Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar<br>FY25<br>FY23<br>8.1%<br>14.8%<br>8.1%<br>1.6% 4.4% 5.1%<br>1.5% 1.9%<br>-3.2%<br>0.6%<br>-1.9%<br>-6.2%<br>Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar<br>Stores are<br>~88% of<br>FY25 Q3 Sales<br>FY22<br>323.1%<br>98.2%<br>54.0% 74.8% 72.9% 55.5% 50.4% 56.7% 57.8% 38.2% 47.8% 17.3%<br>Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar<br>1<br>1All Q3 Fiscal 2025 financial results are preliminary and contain the Company’s best estimate for the quarter ended on December 28, 2024.<br>1 1<br>Thanksgiving and Black Friday shifted<br>from fiscal November FY24 into Fiscal<br>December FY25. |
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| 15<br>3 Omni-Channel Capabilities<br>Drive Store Traffic<br>• Bring Long Tail to Stores<br>• Ship to Store / BOPIS<br>• Return in Store<br>Deliver Digital Experience in<br>Stores<br>• Mobile App<br>• Range Finder (AI-enabled)<br>• WHIP (endless aisle)<br>• Cassidy (piloting in-store<br>consumer AI solution)<br>Fulfill Online Demand<br>Efficiently<br>• DC Fulfillment<br>• Store Fulfillment<br>• Same Day Delivery<br>Drive Online Profitability<br>• Boot Barn retail price<br>consistent across channels<br>• Infrequent promotions<br>• Profitable ROAS standard<br>• Maximize clearance margin |
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| 16<br>3 Ecommerce SSS% by Month<br>5.0% 6.0% 8.7% 5.0%<br>12.1% 12.2% 13.7%<br>2.2%<br>13.5%<br>Apr May Jun Jul Aug Sep Oct Nov Dec<br>FY24<br>-19.1%<br>-9.0% -3.5%<br>-11.9% -13.0% -10.6%<br>-16.8% -15.1%<br>-8.4% -11.3% -5.9% -6.0%<br>Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar<br>FY25<br>FY23<br>13.1% 8.5% 6.4%<br>-3.0% -1.3%<br>-13.5% -18.5%<br>-25.4%<br>-10.1%<br>-16.3% -18.7% -19.4%<br>Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar<br>Ecommerce is<br>~12% of<br>FY25 Q3 Sales<br>FY22<br>26.1%<br>-4.4%<br>10.2%<br>32.1% 40.3% 49.3% 55.5% 59.4%<br>42.4%<br>63.1% 57.2%<br>35.4%<br>Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar<br>1<br>Thanksgiving and Black Friday shifted<br>from fiscal November FY24 into Fiscal<br>December FY25.<br>1All Q3 Fiscal 2025 financial results are preliminary and contain the Company’s best estimate for the quarter ended on December 28, 2024.<br>1 1 |
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| 17<br>WESTERN COUNTRY ARTIST INSPIRED<br>WORK RANCH & RODEO<br>4 Exclusive Brands Portfolio<br>PREMIUM<br>VALUE |
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| 18<br>3.0%<br>5.0%<br>7.0%<br>9.7%<br>11.1% 10.7%<br>13.5%<br>16.2%<br>22.0%<br>23.7%<br>28.3%<br>34.0%<br>37.7% 38.5%<br>FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q3<br>FY25<br>YTD<br>Exclusive Brands Penetration %<br>Margin enhancement ~1,000 bps vs. 3rd party brands<br>4<br>1<br>Exclusive Brands Penetration Growth<br>1All Q3 Fiscal 2025 financial results are preliminary and contain the Company’s best estimate for the quarter ended on December 28, 2024.<br>37.3%<br>39.1%<br>Q3 FY24 Q3 FY25<br>Q3 Exclusive Brands Penetration %<br>Margin enhancement ~1,000 bps vs. 3rd party brands<br>+310bps<br>vs. LY<br>+180bps<br>vs. LY<br>1 |
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| 19<br>Margin Drivers<br>• Full-price selling<br>• Buying economies of scale<br>• Supply chain efficiencies<br>• Volume discounts<br>• Exclusive brands sales penetration<br>Exclusive Brands Penetration Growth Over Seven Years<br>13.5%<br>38.5%<br>FY18 Q3 FY25<br>YTD<br>EB is Only 1/3 of Margin Appreciation<br>EB<br>Expansion<br>250bps<br>Other Margin<br>Drivers<br>500bps<br>+110bps<br>+90bps<br>+90bps<br>+270bps (70)bps<br>+160bps<br>+100bps<br>FY19 FY20 FY21 FY22 FY23 FY24 Q3 FY25<br>YTD<br>Merchandise Margin Growth Over Seven Years<br>4<br>Estimated 750bps of Total Merchandise Margin Expansion<br>Exclusive Brands Growth & Margin Expansion<br>(100)bps<br>freight<br>+120bps<br>freight<br>1<br>1 1All Q3 Fiscal 2025 financial results are preliminary and contain the Company’s best estimate for the quarter<br>ended on December 28, 2024. |
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| 20<br>National Leader in<br>Attractive Market<br>• Leading player in estimated $40<br>billion industry<br>• Brick-and-mortar presence in 46<br>states and online sales in all 50 states<br>plus international<br>• Pressure-tested model<br>World Class Omni-Channel<br>Capabilities<br>• Strong variety of omni-channel<br>offerings in place<br>• Ability to drive incremental traffic to<br>stores<br>• Improved customer satisfaction with<br>added convenience and quicker<br>delivery<br>Strong New Unit Growth<br>Opportunities<br>• Proven ability to open stores in both<br>new and existing markets<br>• Store-preferred shopping experience<br>• Minimal sales cannibalization from<br>new stores<br>Lifestyle Brand with Loyal<br>Customer<br>• Genuine lifestyle retail brand<br>• Extremely loyal customers seeking<br>authenticity<br>• Lifestyle experience across stores,<br>e-commerce and events<br>Profit Enhancement<br>Opportunities<br>• Proven ability to drive merchandise<br>margin expansion<br>• Economies of scale in purchasing and<br>ability to leverage expenses<br>Investment Considerations<br>Exclusive Brands<br>• 1,000bps margin enhancement vs. 3rd<br>party brands<br>• Differentiated assortment to satisfy<br>all customer segments<br>• Proven supply chain reliability |
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| 21<br>investor.bootbarn.com |
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