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): May 10, 2022
Boot Barn Holdings, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 001-36711 | 90-0776290 |
|---|---|---|
| (State or other jurisdiction<br><br> of incorporation) | (Commission<br><br> File Number) | (I.R.S. Employer<br><br> Identification No.) |
| 15345 Barranca Parkway,<br> 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) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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.
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.0001 par value | BOOT | The New York Stock Exchange |
Item 2.02. Results of Operations and Financial Condition.
On May 10, 2022, Boot Barn Holdings, Inc. issued a press release announcing certain financial results for its fiscal fourth quarter and fiscal year ended March 26, 2022. The press release is attached hereto as Exhibit 99.1.
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, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 7.01. Regulation FD Disclosure.
Boot Barn Holdings, Inc. (the “Company”) is furnishing this Current Report on Form 8-K in connection with the disclosure of information contained in a supplemental financial presentation (the “Presentation”) to be used by the Company at various meetings with institutional investors and analysts. This information may be amended or updated at any time and from time to time through another Current Report on Form 8-K or other means. A copy of the Presentation is furnished herewith as Exhibit 99.2 and is incorporated into this Item 7.01 by reference.
The information furnished in this Item 7.01, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement filed pursuant to the Securities Act of 1933, as amended, except as may be 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.
Item 9.01. Financial Statements and Exhibits.
| Exhibit 99.1 | Earnings press release dated May 10,<br> 2022. |
|---|---|
| Exhibit 99.2 | Supplemental Financial Presentation<br> dated May 10, 2022. |
| 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: May 10, 2022 | By: | /s/ James M. Watkins |
| Name: James M. Watkins | ||
| Title: Chief Financial Officer and Secretary |
Exhibit 99.1
Boot Barn Holdings, Inc. Announces Fourth Quarter and Fiscal Year 2022 Financial Results
Fourth Quarter Same Store Sales Increased 33%
Total Addressable Market Now Estimated to be $40 Billion vs. $20 Billion
Increases Store Count Potential to 900 Stores
IRVINE, Calif.--(BUSINESS WIRE)--May 10, 2022--Boot Barn Holdings, Inc. (NYSE: BOOT) today announced its financial results for the fourth fiscal quarter and fiscal year ended March 26, 2022. The Company has also filed a Supplemental Financial Presentation that has been made available on the investor relations section of its website.
For the quarter ended March 26, 2022:
- Net sales increased 48.1% over the prior-year period to $383.3 million. Net sales increased 103.2% compared to the quarter ended March 28, 2020, two years ago.
- Same store sales increased 33.3% compared to the prior-year period, comprised of an increase in retail store same store sales of 30.7% and an increase in e-commerce same store sales of 49.5%.
- Net income was $44.7 million, or $1.47 per diluted share, compared to $24.6 million, or $0.82 per diluted share in the prior-year period. Net income per diluted share in the prior-year period includes an approximately $0.07 per share benefit primarily due to income tax accounting for share-based compensation. Excluding the tax benefit in the prior-year period, net income per diluted share grew 96.0% in the current-year period to $1.47, compared to $0.75 in the prior-year period.
- The Company opened 11 new stores bringing its total store count to 300.
For the fiscal year ended March 26, 2022:
- Net sales increased 66.6% to $1.488 billion. Net sales increased 76.0% compared to the fiscal year ended March 28, 2020, two years ago.
- Same store sales increased 53.7% compared to the prior-year period, comprised of an increase in retail store same store sales of 57.2% and an increase in e-commerce same store sales of 38.7%.
- Net income was $192.5 million, or $6.33 per diluted share, compared to $59.4 million, or $2.01 per diluted share in the prior-year period. Net income per diluted share in the current-year and prior-year periods includes an approximately $0.17 and $0.09 per share benefit, respectively, primarily due to income tax accounting for share-based compensation. Excluding the tax benefit in both periods, net income per diluted share in the current-year period was $6.16, compared to $1.92 in the prior-year period.
- The Company opened 28 new stores and closed one store.
The Company has also provided the below table which includes year-over-year comparisons of retail store sales, e-commerce sales, and total net sales for each of the periods indicated below. In addition, the following table includes retail store sales and e-commerce sales as a percentage of total net sales for the periods indicated below:
| (all $ in thousands) | Q4 FY2022 | Q4 FY2021 | Q4 FY2020 | % Change Q4 FY2022 vs. Q4 FY2021 | % Change Q4 FY2022 vs. Q4 FY2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Retail Stores | $ | 328,221 | $ | 221,631 | $ | 156,769 | 48 | % | 109 | % | |||
| E-commerce | $ | 55,087 | $ | 37,242 | $ | 31,859 | 48 | % | 73 | % | |||
| Total Net Sales | $ | 383,308 | $ | 258,873 | $ | 188,628 | 48 | % | 103 | % | |||
| Retail Stores as a % of Net Sales | 86 | % | 86 | % | 83 | % | |||||||
| E-commerce as a % of Net Sales | 14 | % | 14 | % | 17 | % |
“It was an incredible year by every measure,” said Jim Conroy, President and Chief Executive Officer. “With our top-line increasing 67% over the previous year, we far surpassed the one-billion-dollar mark for the first time, generating $1.5 billion in sales for fiscal 2022. Importantly, our performance was highlighted by very strong full-price selling, which contributed to a 270-basis point increase in merchandise margin and a more than tripling of our earnings per share to a record $6.33. We are excited about the strength in the business through the first six weeks of fiscal 2023, with consolidated same store sales growth of approximately 12% compared to the prior-year period.”
Mr. Conroy continued, “Looking forward, I am excited to announce that, based in part on a third-party study, we have updated our estimated total addressable market to $40 billion, compared to our previous $20 billion estimate. Additionally, we have established a new long-term store count target and now believe we can triple from our current base to 900 stores. We believe our progress in expanding our business and attracting new consumers to our brand is proving successful and has established a strong foundation for future growth.”
Operating Results for the Fourth Quarter Ended March 26, 2022 Compared to the Fourth Quarter Ended March 27, 2021
Net sales increased 48.1% to $383.3 million from $258.9 million in the prior-year period. Consolidated same store sales increased 33.3% with retail store same store sales up 30.7% and e-commerce same store sales up 49.5%. The increase in net sales was the result of an increase of 33.3% in consolidated same store sales and the incremental sales from new stores opened over the past twelve months.
Gross profit was $148.8 million, or 38.8% of net sales, compared to $92.4 million, or 35.7% of net sales, in the prior-year period. Gross profit increased primarily due to increased sales. The increase in gross profit rate of 310 basis points was driven by 190 basis points of leverage in buying and occupancy costs as a result of expense leverage on higher sales and a 120-basis point increase in merchandise margin. Merchandise margin increased 120 basis points primarily as a result of better full-price selling and growth in exclusive brand penetration, partially offset by a 60-basis point increase in freight charges.
Selling, general and administrative expenses were $86.4 million, or 22.6% of net sales, compared to $59.5 million, or 23.0% of net sales, in the prior-year period. The increase in selling, general and administrative expenses was primarily a result of higher store payroll, higher store overhead and increased marketing expenses in the current-year period compared to the prior-year period. Selling, general and administrative expenses as a percentage of net sales decreased by 40 basis points primarily as a result of expense leverage on higher sales.
Income from operations increased $29.5 million to $62.4 million, or 16.3% of net sales, compared to $32.9 million, or 12.7% of net sales, in the prior-year period. This increase represents 360 basis points of improvement in operating profit margin.
Net income was $44.7 million, or $1.47 per diluted share, compared to net income of $24.6 million, or $0.82 per diluted share in the prior-year period. Net income per diluted share in the prior-year period includes an approximately $0.07 per share benefit primarily due to income tax accounting for share-based compensation. Excluding the tax benefit in the prior-year period, net income per diluted share in the current-year period was $1.47, compared to net income per diluted share of $0.75 in the prior-year period.
Operating Results for the Fiscal Year Ended March 26, 2022 Compared to the Fiscal Year Ended March 27, 2021
Net sales increased 66.6% to $1.488 billion from $893.5 million in the prior-year period. Consolidated same store sales increased 53.7% with retail store same store sales up 57.2% and e-commerce same store sales up 38.7%. The increase in net sales was the result of an increase of 53.7% in consolidated same store sales, the incremental sales from new stores opened over the past twelve months, and the sales contribution from temporarily closed stores that were excluded from the comp base. Net sales in the prior-year period were adversely impacted by decreases in retail store sales resulting from decreased traffic in our stores from customers staying at home in response to the COVID-19 crisis and temporary store closures.
Gross profit was $575.1 million, or 38.6% of net sales, compared to $294.9 million, or 33.0% of net sales, in the prior-year period. Gross profit increased primarily due to increased sales. The increase in gross profit rate of 560 basis points was driven by 290 basis points of leverage in buying and occupancy costs as a result of expense leverage on higher sales and a 270 basis point increase in merchandise margin. Merchandise margin increased 270 basis points primarily as a result of better full-price selling and growth in exclusive brand penetration.
Selling, general and administrative expenses were $316.7 million, or 21.3% of net sales, compared to $208.6 million, or 23.3% of net sales, in the prior-year period. The increase in selling, general and administrative expenses was primarily a result of higher store payroll, higher store overhead and increased marketing expenses in the current-year period compared to the prior-year period which was impacted by COVID-19. Selling, general and administrative expenses as a percentage of net sales decreased by 210 basis points primarily as a result of expense leverage on higher sales.
Income from operations increased $172.0 million to $258.3 million, or 17.4% of net sales, compared to $86.3 million, or 9.7% of net sales, in the prior-year period. This increase represents 770 basis points of improvement in operating profit margin.
Net income was $192.5 million, or $6.33 per diluted share, compared to net income of $59.4 million, or $2.01 per diluted share in the prior-year period. Net income per diluted share in the current-year and prior-year periods includes an approximately $0.17 and $0.09 per share benefit, respectively, primarily due to income tax accounting for share-based compensation. Excluding the tax benefit in both periods, net income per diluted share in the current-year period was $6.16, compared to net income per diluted share of $1.92 in the prior-year period.
Balance Sheet Highlights as of March 26, 2022
- Cash of $20.7 million.
- Average inventory per store increased approximately 36% on a same store basis compared to March 27, 2021.
- $28.5 million balance drawn under our $180 million revolving credit facility.
Fiscal Year 2023 Outlook
The Company is providing guidance for what it can reasonably estimate at this time. For the fiscal year ending April 1, 2023 the Company expects:
- To open 40 new stores.
- Same store sales growth of 4.8%.
- Total sales of $1.740 billion.
- Gross profit of $652 million or 37.5% of sales.
- Selling, general and administrative expenses of $386 million or 22.2% of sales.
- Capital expenditures of $87 million.
- Income from operations of $266 million or 15.3% of sales.
- Interest expense of $3 million.
- Effective tax rate of 25.2%.
- Net income of $197 million.
- Net income per diluted share of $6.41 based on 30.7 million weighted average diluted shares outstanding.
- Fiscal year 2023 is a 53-week year and the Company expects to generate approximately $34 million of sales and earn approximately $0.19 per diluted share in the 53rd week, which is included in the above guidance range.
For the fiscal first quarter ending June 25, 2022, the Company expects:
- Same store sales growth of 10%.
- Total sales of $367 million.
- Income from operations of $47 million or 12.8% of sales.
- Net income per diluted share of $1.14 based on 30.5 million weighted average diluted shares outstanding.
Conference Call Information
A conference call to discuss the financial results for the fourth quarter and fiscal year 2022 is scheduled for today, May 10, 2022, at 4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in participating in the call are invited to dial (866) 524-3160. 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 will also be available on the investor relations section of the Company’s website at least 15 minutes prior to the conference call. A telephone replay of the call will be available until June 10, 2022, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 10166886. 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 304 stores in 38 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 our current expectations and projections relating to, by way of example and without limitation, our 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 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: the effect of COVID-19 on our business operations, growth strategies, store traffic, employee availability, financial condition, liquidity and cash flow; 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. <br> Consolidated Balance Sheets <br> (In thousands, except per share data) <br> (Unaudited) | |||
|---|---|---|---|
| March 27, | |||
| 2021 | |||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | 20,674 | $ | 73,148 |
| Accounts receivable, net | 9,662 | 12,771 | |
| Inventories | 474,300 | 275,760 | |
| Prepaid expenses and other current assets | 37,195 | 12,777 | |
| Total current assets | 541,831 | 374,456 | |
| Property and equipment, net | 155,247 | 110,444 | |
| Right-of-use assets, net | 241,147 | 186,827 | |
| Goodwill | 197,502 | 197,502 | |
| Intangible assets, net | 60,813 | 60,885 | |
| Other assets | 3,315 | 3,467 | |
| Total assets | 1,199,855 | $ | 933,581 |
| Liabilities and stockholders’ equity | |||
| Current liabilities: | |||
| Line of credit | 28,549 | $ | — |
| Accounts payable | 131,394 | 104,641 | |
| Accrued expenses and other current liabilities | 133,408 | 77,615 | |
| Short-term lease liabilities | 43,117 | 39,400 | |
| Total current liabilities | 336,468 | 221,656 | |
| Deferred taxes | 26,895 | 21,993 | |
| Long-term portion of notes payable, net | — | 109,781 | |
| Long-term lease liabilities | 234,584 | 181,836 | |
| Other liabilities | 2,232 | 3,424 | |
| Total liabilities | 600,179 | 538,690 | |
| Stockholders’ equity: | |||
| Common stock, 0.0001 par value; March 26, 2022 - 100,000 shares authorized, 29,820 shares issued; March 27, 2021 - 100,000 shares<br> authorized, 29,348 shares issued | 3 | 3 | |
| Preferred stock, 0.0001 par value; 10,000 shares authorized, no shares issued or outstanding | — | — | |
| Additional paid-in capital | 199,054 | 183,815 | |
| Retained earnings | 405,477 | 213,027 | |
| Less: Common stock held in treasury, at cost, 135 and 96 shares at March 26, 2022 and March 27, 2021, respectively | (4,858) | (1,954) | |
| Total stockholders’ equity | 599,676 | 394,891 | |
| Total liabilities and stockholders’ equity | 1,199,855 | $ | 933,581 |
All values are in US Dollars.
| Boot Barn Holdings, Inc. Consolidated Statements of Operations (In thousands, except per share data) <br><br> (Unaudited) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Thirteen Weeks Ended | Thirteen Weeks Ended | Fifty-Two Weeks Ended | Fifty-Two Weeks Ended | ||||||
| March 26, 2022 | March 27, 2021 | March 26, 2022 | March 27, 2021 | ||||||
| Net sales | $ | 383,308 | $ | 258,872 | $ | 1,488,256 | $ | 893,491 | |
| Cost of goods sold | 234,472 | 166,493 | 913,183 | 598,612 | |||||
| Gross profit | 148,836 | 92,379 | 575,073 | 294,879 | |||||
| Selling, general and administrative expenses | 86,447 | 59,519 | 316,735 | 208,553 | |||||
| Income from operations | 62,389 | 32,860 | 258,338 | 86,326 | |||||
| Interest expense | 388 | 2,115 | 5,780 | 9,442 | |||||
| Other (loss)/income, net | (126 | ) | 71 | 35 | 366 | ||||
| Income before income taxes | 61,875 | 30,816 | 252,593 | 77,250 | |||||
| Income tax expense | 17,162 | 6,264 | 60,143 | 17,864 | |||||
| Net income | $ | 44,713 | $ | 24,552 | $ | 192,450 | $ | 59,386 | |
| Earnings per share: | |||||||||
| Basic shares | $ | 1.51 | $ | 0.84 | $ | 6.51 | $ | 2.05 | |
| Diluted shares | $ | 1.47 | $ | 0.82 | $ | 6.33 | $ | 2.01 | |
| Weighted average shares outstanding: | |||||||||
| Basic shares | 29,671 | 29,122 | 29,556 | 28,930 | |||||
| Diluted shares | 30,411 | 30,033 | 30,391 | 29,477 |
| Boot Barn Holdings, Inc. Consolidated Statements of Cash Flows (In thousands)<br><br> (Unaudited) | ||||||
|---|---|---|---|---|---|---|
| Fiscal Year Ended | ||||||
| March 26, | March 27, | March 28, | ||||
| 2022 | 2021 | 2020 | ||||
| Cash flows from operating activities | ||||||
| Net income | $ | 192,450 | $ | 59,386 | $ | 47,949 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Depreciation | 27,280 | 24,059 | 21,211 | |||
| Stock-based compensation | 9,475 | 7,158 | 4,908 | |||
| Amortization of intangible assets | 72 | 89 | 172 | |||
| Noncash lease expense | 39,286 | 34,231 | 31,091 | |||
| Amortization and write-off of debt issuance fees and debt discount | 1,878 | 884 | 946 | |||
| Loss on disposal of property and equipment | 175 | 87 | 417 | |||
| (Gain)/loss on adjustment of right-of-use assets and lease liabilities | (259) | 295 | (186) | |||
| Store impairment charges | — | 384 | 191 | |||
| Deferred taxes | 4,902 | 2,192 | 2,599 | |||
| Changes in operating assets and liabilities, net of acquisition: | ||||||
| Accounts receivable, net | 5,222 | 8,050 | 5,721 | |||
| Inventories | (198,540) | 12,957 | (45,622) | |||
| Prepaid expenses and other current assets | (24,577) | 1,382 | (2,351) | |||
| Other assets | (236) | (1,729) | (548) | |||
| Accounts payable | 25,502 | 12,360 | (13,810) | |||
| Accrued expenses and other current liabilities | 45,229 | 25,003 | 6,310 | |||
| Other liabilities | (1,192) | 2,789 | (3,611) | |||
| Operating leases | (37,803) | (33,655) | (30,070) | |||
| Net cash provided by operating activities | $ | 88,864 | $ | 155,922 | $ | 25,317 |
| Cash flows from investing activities | ||||||
| Purchases of property and equipment | $ | (60,443) | $ | (28,424) | $ | (37,195) |
| Insurance recoveries for property and equipment | — | — | 717 | |||
| Acquisition of business, net of cash acquired | — | — | (3,688) | |||
| Net cash used in investing activities | $ | (60,443) | $ | (28,424) | $ | (40,166) |
| Cash flows from financing activities | ||||||
| Borrowings/(payments) on line of credit - net | $ | 28,549 | $ | (129,900) | $ | 129,900 |
| Repayments on debt and finance lease obligations | (112,304) | (667) | (65,553) | |||
| Debt issuance fees paid | — | — | (1,221) | |||
| Tax withholding payments for net share settlement | (2,904) | (754) | (532) | |||
| Proceeds from the exercise of stock options | 5,764 | 7,408 | 5,204 | |||
| Net cash (used in)/provided by financing activities | $ | (80,895) | $ | (123,913) | $ | 67,798 |
| Net (decrease)/increase in cash and cash equivalents | (52,474) | 3,585 | 52,949 | |||
| Cash and cash equivalents, beginning of period | 73,148 | 69,563 | 16,614 | |||
| Cash and cash equivalents, end of period | $ | 20,674 | $ | 73,148 | $ | 69,563 |
| Supplemental disclosures of cash flow information: | ||||||
| Cash paid for income taxes | $ | 41,684 | $ | 11,458 | $ | 13,391 |
| Cash paid for interest | $ | 3,808 | $ | 8,795 | $ | 11,958 |
| Supplemental disclosure of non-cash activities: | ||||||
| Unpaid purchases of property and equipment | $ | 14,963 | $ | 2,642 | $ | 6,066 |
| Boot Barn Holdings, Inc. Store Count | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||||
| March 26, | December 25, | September 25, | June 26, | March 27, | December 26, | September 26, | June 27, | |||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||||||||
| Store Count (BOP) | 289 | 278 | 276 | 273 | 266 | 265 | 264 | 259 | ||||||||||||||||
| Opened/Acquired | 11 | 11 | 3 | 3 | 8 | 1 | 1 | 5 | ||||||||||||||||
| Closed | — | — | (1) | — | (1) | — | — | — | ||||||||||||||||
| Store Count (EOP) | 300 | 289 | 278 | 276 | 273 | 266 | 265 | 264 | ||||||||||||||||
| Boot Barn Holdings, Inc. Selected Store Data | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Thirteen Weeks Ended | ||||||||||||||||||||||||
| March 26, | December 25, | September 25, | June 26, | March 27, | December 26, | September 26, | June 27, | |||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||||||||
| Selected Store Data: | ||||||||||||||||||||||||
| Same Store Sales growth/(decline) | 33.3 | % | 54.2 | % | 61.7 | % | 78.9 | % | 26.9 | % | 4.6 | % | (5.1) | % | (14.9) | % | ||||||||
| Stores operating at end of period | 300 | 289 | 278 | 276 | 273 | 266 | 265 | 264 | ||||||||||||||||
| Total retail store square footage, end of period (in thousands) | 3,194 | 3,063 | 2,940 | 2,915 | 2,854 | 2,787 | 2,779 | 2,770 | ||||||||||||||||
| Average store square footage, end of period | 10,648 | 10,597 | 10,575 | 10,563 | 10,455 | 10,477 | 10,486 | 10,491 | ||||||||||||||||
| Average net sales per store (in thousands) | $ | 1,094 | $ | 1,372 | $ | 965 | $ | 942 | $ | 792 | $ | 889 | $ | 565 | $ | 410 |
Contacts
Investor Contact:
ICR, Inc.
Brendon Frey, 203-682-8216
BootBarnIR@icrinc.com
or
**Company Contact:**
Boot Barn Holdings, Inc.
Jim Watkins, 949-453-4428
Chief Financial Officer
BootBarnIRMedia@bootbarn.com
Exhibit 99.2
Supplemental Financial PresentationMay 10, 2022
Important Information Forward-Looking Statements 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," “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 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 they believe are appropriate 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 which are beyond the Company’s control) and assumptions. These risks, uncertainties and assumptions include, but are not limited to, the following: the effect of COVID-19 on our business operations, growth strategies, store traffic, employee availability, financial condition, liquidity and cash flow; decreases in consumer spending due to declines in consumer confidence, local and national economic conditions, including inflation, or changes in consumer preferences; the Company’s failure to maintain and enhance its strong brand image; the Company’s failure to compete effectively, to maintain good relationships with its key suppliers, and to improve and expand its exclusive product offerings; supply chain disruptions; and the Company’s ability to effectively execute on its growth strategy. 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 presentation after the date of this presentation. Industry and Market InformationStatements 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, 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 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 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 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, 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 conducted by market research institutes, consultancy firms or independent sources. COVID-19 ImpactIn December 2019, a novel strain of coronavirus (“COVID-19”) was reported in Wuhan, China. Since first being reported, COVID-19 spread to numerous countries around the world, including the U.S., resulting in the World Health Organization declaring the outbreak a global pandemic on March 11, 2020. COVID-19 has had and may continue to have a significant impact on economic conditions and consumer confidence. There remains significant uncertainty around the duration and impact of the COVID-19 pandemic on the U.S. economy and consumer confidence. These and other effects make it more challenging for us to estimate the future performance of our business, particularly over the near-to-medium term. For more information about the risks, uncertainties, and other factors that could affect our future results, please see the risks described in our Annual Report on Form 10-K, our Quarterly Report on Form 10-Q and our subsequent filings with the Securities and Exchange Commission.
Q4 Fiscal 2022 Results Total Net Sales Growth ($MM) EPS Growth Consolidated SSS% 26.9% 33.3% 1 Q4 FY2022 vs. Q4 FY2021 Highlights540bps expansion in exclusive brand penetration120bps merchandise margin expansion190bps buying and occupancy leverage40bps operating expense leverage360bps EBIT rate leverage Store Count 273 300 ~48% 1Earnings per diluted share in Q4 FY 2021 was approximately $0.82, or $0.75 when excluding an approximately $0.07 per share benefit primarily due to income tax accounting for share-based compensation. .
Fiscal 2022 – A Record-Setting Year AchievementsFiscal Year 2022 Fiscal 2022 vs. Fiscal 2021 Fiscal 2022 vs.Fiscal 2020 Total Sales Growth %Compared to FY2020, sales growth >+55% every week of the fiscal year +67% +76% Consolidated Same Store Sales Growth % +54% +61% Active B Rewarded Customers Purchasing: 5.8M1 +23% +35% Merchandise Margin Growth +270bps +360bps Exclusive Brand Penetration Growth +470bps +630bps EBIT 17.4% +770bps +870bps Earnings per Diluted Share of $6.332 3x vs. FY21 ~4x vs. FY20 FY2022 was a milestone year where our sales crossed the $1 billion threshold to $1.5 billion and we opened our 300th store. 1As of March 26, 2022 our loyalty program included approximately 5.8 million members who have purchased merchandise from us in the last three fiscal years. This represents growth of 23% when compared to the 4.7 million loyalty members who purchased merchandise from us in the three fiscal years ended March 27, 2021, and 35% growth when compared to the 4.3 million loyalty members who purchased merchandise from us in the three fiscal years ended March 28, 2020. 2Earnings per diluted share in FY2022 was approximately $6.33, or $6.16 when excluding an approximately $0.17 per share benefit primarily due to income tax accounting for share-based compensation. This represents 3x growth over FY2021 earnings per diluted share of $2.01, or $1.92 when excluding an approximately $0.09 per share benefit primarily due to income tax accounting for share-based compensation. This represents ~4x growth over FY2020 earnings per diluted share of $1.64, or $1.56 when excluding an approximately $0.07 per share benefit primarily due to income tax accounting for share-based compensation. .
Full Year Fiscal 2022 Results Total Net Sales Growth ($MM) EPS Growth Consolidated SSS% 3.1% 53.7% FY2022 vs. FY2021 Highlights470bps expansion in exclusive brand penetration270bps merchandise margin expansion290bps buying and occupancy leverage210bps operating expense leverage770bps EBIT rate leverage 1 Store Count 273 300 ~67% 1Earnings per diluted share in FY2021was approximately $2.01, or $1.92 when excluding an approximately $0.09 per share benefit primarily due to income tax accounting for share-based compensation.2Earnings per diluted share in FY2022 was approximately $6.33, or $6.16 when excluding an approximately $0.17 per share benefit primarily due to income tax accounting for share-based compensation..
Growth Since IPO Over $1 Billion in Sales Growth ($MM) Over 10x EPS Growth 169 300 FY2022 vs. FY2015 HighlightsOver 20% sales CAGR and over 40% EPS CAGR630bps product margin expansion1,830bps expansion in exclusive brand penetration from 10% to 28.3% 1 Store Count CAGR 21% CAGR 42% 1Earnings per diluted share in FY2015 was approximately $0.54, or $0.76 when adjusting for certain costs as disclosed in Exhibit 99.1 of our Form 8-K filed on May 28, 2015 with the Securities and Exchange Commission. 2Earnings per diluted share in FY2022 was approximately $6.33, or $6.16 when excluding an approximately $0.17 per share benefit primarily due to income tax accounting for share-based compensation..
FY2023 Guidance – Growth on the New Baseline Total Net Sales Growth ($MM)2 Maintaining New EPS Level FY2023 Guidance Assumptions14.8% consolidated SSS% growth 40 new store openings (13% new unit growth), $3.5M annual new store sales proforma300bps expansion in exclusive brand penetration130bps freight headwindsNormalize SG&A, specifically related to store labor and marketing15.3% EBIT rate Consolidated SSS% 53.7% 4.8%1 Store Count 300 3401 1All FY2023 guidance figures have been provided on a 53-week basis. FY2022 by comparison was a 52-week fiscal year. 2FY2023 estimated net sales have been provided on a 53-week basis. The Company estimates sales of $34 million from the 53rd week. 3FY2023 estimated earnings per share has been provided on a 53-week basis. The Company estimates that included in FY2023 estimated EPS is $0.19 attributed to the 53rd week. . ~1% 1 2 3
Step Function Expansion in EBIT Margin Since FY2021 EBIT Rate Bridge 9.7% 17.4% MarginExpansion OccupancyLeverage SG&A Leverage FreightHeadwinds 15.3% MarginExpansion FreightHeadwinds OccupancyDeleverage NormalizeSG&A NewBaseline Highlights1FY2022 EBIT rate doubled from FY2020 and increased 770bps from FY2021.FY2023 freight headwinds of 130bps partially offset by 50bps of product margin expansion.FY2023 occupancy de-leverage due to 40 projected new store openings in fiscal 2023, 22 new store openings in the back half of fiscal 2022 and low-single digit store comps.Accelerated FY2022 sales in Q1 and Q2 created artificially low SG&A rate, particularly related to store labor and marketing. FY2023 is an opportunity to normalize SG&A rate.Anticipate ongoing EBIT margin expansion in future years. 1All FY2023 guidance figures, assumptions, and illustrations have been provided on a 53-week basis. FY2022 by comparison was a 52-week fiscal year. 1
FY2023 Financial Guidance Metric FY2022($MM) FY2023 Guidance1 ($MM) B/(W)vs. FY2022($MM) Comments Total Sales2 $1,488 $1,740 $252 4.8% consolidated SSS% growthStores low-single digit SSS%E-comm mid-teens SSS%40 new stores Gross Profit% $57538.6% $65237.5% $77(120)bps 50bps product margin expansion(130)bps freight headwinds(40)bps occupancy deleverage SG&A% $31721.3% $38622.2% $(69)(90)bps (90)bps deleverage specifically due to normalizing store labor and marketing EBIT% $25817.4% $26615.3% $8(210)bps GAAP Earnings per Diluted Share3 $6.33 $6.41 $0.08 1All FY2023 guidance figures, assumptions, and illustrations have been provided on a 53-week basis. FY2022 by comparison was a 52-week fiscal year.2FY2023 estimated net sales have been provided on a 53-week basis. The Company estimates sales of $34 million from the 53rd week. 3FY2023 estimated earnings per share has been provided on a 53-week basis. The Company estimates that included in FY2023 estimated EPS is $0.19 attributed to the 53rd week.
Total Addressable Market – Has Doubled in Size Prior TAM ~$20B1 Updated TAM ~$40B2 CountryLifestyle~$15B Western&Work~$20B HighlightsWestern & work market estimate increased from ~$20 Billion to ~$25 BillionCountry lifestyle market estimated to be worth ~$15 Billion Western&Work~$25B 1Estimated TAM calculated by an independent third party prior to the Company’s IPO in October 2014. 2Updated estimated TAM calculated by an independent third party in April 2022. .
HighlightsOpportunity to increase store count equally in new and existing marketsSynergistic sales growth between stores & online when opening in new marketsNo meaningful cannibalization when opening new stores in existing markets Store Count Potential – 900 U.S. Stores Over 200 New Stores in last 10 Years Triple the Current Store Count CAGR% 13% Existing Markets New Markets 900 Stores 1Reflects store count as of March 26, 2022.
New Stores Exceeding Expectations METRICS Prior Target New Stores Opened After March 2020 FY2023 New Stores Projection Store Size (sq. ft.) ~10,000 ~10,000 ~12,000 Year 1 Net Sales $1.7MM $4.0MM $3.5MM Net Capital Investment $0.4MM $0.5MM $0.6MM Net Inventory Investment $0.4MM $0.5MM $0.6MM Cash on Cash Return (Yr. 1) ~30% ~100% ~73% Payback Period ~3 years ~1 year ~1.4 years
Leveraging Stores for Omni-Channel Capabilities ~Two-Thirds of E-comm Orders Involve a Store Associate1 1Based on Q4 FY2022 In-Store Fulfillment, Ship to Store, WHIP, BOPIS and Same Day Delivery orders as a percent of total Q4 FY2022 e-commerce orders. Omni-ChannelCapabilities Legacy Digital Q4 FY2022E-commerce Orders
Healthy Growth in Customer Count Active B Rewarded Customers Purchasing1(in millions) HighlightsNew customers have generated roughly half of revenue growthMedian age has been decreasing since IPOGender split more balanced with outsized growth in ladies’ categoriesHealthy growth in Hispanic customer segment 1Represents the number of active B Rewarded loyalty program members who have purchased merchandise from us in the trailing three years ended FY2020, FY2021 and FY2022, respectively.
Management View – Industry Competition (Softlines) Strong inventory position Mom & Pop Western Breadth of assortment Omni-channel capabilities Good, Better, Best High quality exclusive brands Knowledgeable associates Farm & Ranch Shopping Experience Strength of Brand Leading Capability Little/no capability
Investment Considerations Ample Whitespace for New Unit Growth1 Multiple Trails Growth Companies LululemonFive BelowFloor & DecorAllbirds Ulta BeautyTractor SupplyWarby Parker High Growth Potential2 New Unit GrowthSame Store Sales GrowthExclusive Brand Penetration ~13%Mid-single digit+300bps 1Map reflects store count as of May 6th, 2022. 2Represents FY2023 guidance on a 53-week basis. Total U.S. Store Potential 900
Upside to Valuation Metric FY2023 Earnings per Diluted Share $6.41 PE1 14 Earnings growth CAGR2 36% PEG3 0.4 1Calculated by dividing the May 9, 2022 stock price by FY2023 estimated earnings per diluted share of $6.41 on a 53-week basis. 2The earnings growth CAGR of 36% is calculated using estimated GAAP earnings per diluted share guidance of $6.41 in FY2023, compared to GAAP earnings per diluted share in FY2015 of $0.54.3Calculated by dividing the above PE by the above Earnings Growth CAGR for FY2023. National Leader in Attractive Market Leading player in estimated $40 billion industryBrick-and-mortar presence in 38 states and online sales in all 50 states plus internationalPressure-tested model World Class Omni-Channel Capabilities Strong variety of omni-channel offerings in placeAbility to drive incremental traffic to storesImproved customer satisfaction with added convenience and quicker delivery Strong New Unit Growth Opportunities Proven ability to open stores in both new and existing marketsStore-preferred shopping experienceMinimal sales cannibalization from opening stores in existing markets Lifestyle Brand with Loyal Customer Genuine lifestyle retail brandExtremely loyal customers seeking authenticityLifestyle experience across stores, e-commerce and events Profit Enhancement Opportunities Proven ability to drive merchandise margin expansion with full-price selling modelIncremental profitability opportunity in online channelEconomies of scale in purchasing & ability to leverage expenses Investment Considerations
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