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 5, 2024
Boot Barn Holdings, Inc.
(Exact name of registrant as specified in its charter)
| | | |
|---|---|---|
| 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) |
|---|---|
| ☐ | 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 | New York Stock Exchange |
Item 2.02 Results of Operations and Financial Condition
On January 5, 2024, Boot Barn Holdings, Inc. (the “Company”) announced certain preliminary financial results for its third quarter ended December 30, 2023 in connection with its participation in the 2024 ICR Conference on Monday, January 8, 2024. 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, 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 presenting at the 2024 ICR Conference on Monday, January 8, 2024 at 2:30 p.m. Eastern Time. A copy of the Company’s presentation materials (the “Presentation”) is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The Presentation 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.
The information provided in this Item 7.01, including Exhibit 99.2, 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.
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 | Press release dated January 5, 2024. | |
|---|---|---|
| Exhibit 99.2 | | January 2024 ICR Conference Presentation |
| 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 5, 2024 | By: | /s/ James M. Watkins |
| Name: James M. Watkins | ||
| Title: Chief Financial Officer and Secretary (Principal Financial Officer and Principal Accounting Officer) |
Exhibit 99.1
Boot Barn Holdings, Inc. Announces Preliminary Third Quarter Results and
Participation in the 2024 ICR Conference
IRVINE, California – January 5, 2024—Boot Barn Holdings, Inc. (NYSE: BOOT) today announced preliminary results for the third quarter of fiscal year 2024 ended December 30, 2023 in advance of its participation in the ICR Conference on Monday, January 8, 2024.
Preliminary Results for the Third Quarter of Fiscal Year 2024
For the third quarter ended December 30, 2023, the Company expects to report:
| · | Net sales of $520.4 million, representing growth of 1.1% over the prior year. |
|---|---|
| · | Same store sales decline of 9.7%, with a retail store same store sales decline of 9.4% and an e-commerce same store sales decline of 11.3%. |
| --- | --- |
| · | Net income per diluted share at or above the high end of its previously announced guidance range of $1.79. |
| --- | --- |
| · | The Company opened 11 new stores in the third quarter, or 37 stores year-to-date, bringing its total store count to 382. |
| --- | --- |
Jim Conroy, President and Chief Executive Officer, commented “Our third quarter played out largely as we expected with new store sales offsetting a decline in same store sales as we cycled outsized comp growth in prior years. We opened 11 new stores in the quarter, contributing to a 1.1% growth in total net sales. This modest sales growth combined with discipline around promotions and strong expense control drove an increase in earnings per share compared to last year.
The performance in the quarter demonstrates the power of the Boot Barn model where multiple levers can work in tandem to drive earnings growth. Additionally, our average store revenue continues to far exceed pre-pandemic sales levels despite the reduction in comparable store sales. I am proud of the Boot Barn team for excellent execution and look forward to the new calendar year and our fourth fiscal quarter.”
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 31, 2024, at which time it will also provide fourth quarter guidance.
2024 ICR Conference
The Company will be presenting at the 2024 ICR Conference on Monday, January 8, 2024 at 2:30 pm Eastern Standard Time. The slide presentation is available on the “Events & Presentations” section at http://investor.bootbarn.com. The presentation 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.
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 382 stores in 44 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: 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>January 2024 ICR Presentation<br>Offering everyone a piece of the American spirit<br>—one handshake at a time<br>.. |
|---|
| 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 the Company’s management has made in light of their industry experience and on<br>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,<br>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.<br>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<br>changes in consumer preferences; the Company’s ability to effectively execute on its growth strategy; the Company’s failure to maintain and enhance its strong brand image, to compete<br>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<br>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<br>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<br>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<br>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<br>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<br>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 Item 1A, Risk Factors, of our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), on May 18, 2023 (the “Fiscal 2023 10-K”). |
| --- |
| 2<br>Agenda<br>Strategic Initiatives<br>1<br>2<br>3<br>4<br>Drive Same Store Sales Growth<br>Continue Omni-Channel Leadership<br>Build Out Exclusive Brand Portfolio<br>Expand Our Store Base<br>Future Growth Potential<br>Boot Barn’s Story<br>Quarter Recap |
| --- |
| 3<br>$284 $302<br>$486 $515 $520<br>Q3 '20 Q3 '21 Q3 '22 Q3 '23 Q3 '24 E<br>Solid Q3 Results Despite Challenging SSS%<br>Total Sales ($M) Grew<br>6.7% 4.6%<br>54.2%<br>-3.6%<br>-9.7%<br>Q3 '20 Q3 '21 Q3 '22 Q3 '23 Q3 '24 E<br>Despite a Decline in SSS%<br>+50bps<br>+150bps<br>+270bps<br>(190)bps<br>+300bps<br>Q3 '20 Q3 '21 Q3 '22 Q3 '23 Q3 '24 E<br>Merchandise Margin Continued to Grow<br>$0.85 $1.00<br>$2.27<br>$1.74 *<br>Q3 '20 Q3 '21 Q3 '22 Q3 '23 Q3 '24 E<br>Modest EPS Growth<br>(180)bps<br>freight<br>+250bps<br>freight<br>1 1<br>1 1<br>1All Q3 FY2024 financial results are preliminary and the company’s best estimate as the quarter ended on December 30, 2023 and the quarter-end close process has not been finalized.<br>*We expect EPS to be at or above the high end of the guidance range of $1.79. |
| --- |
| 4<br>$515 $520 $522 $535<br>LY Actual Low-End<br>Guidance<br>High-End<br>Guidance<br>Q3 Total Sales ($M) Q3 GAAP EPS<br>$1.74 $1.67<br>$1.79<br>LY Low-End<br>Guidance<br>High-End<br>Guidance<br>Actual<br>$72 $70<br>$75<br>LY Low-End<br>Guidance<br>High-End<br>Guidance<br>Actual<br>Q3 Income from Operations ($M)<br>13.3%<br>of sales<br>14.0%<br>of sales<br>1.4%<br>growth<br>1.1%<br>growth<br>4.0%<br>growth<br>* *<br>*Q3 FY2024 ended on December 30, 2023, therefore, results are still preliminary. We expect Income from Operations and EPS to be<br>at or above the high end of the guidance range.<br>Solid Q3 Results Despite Challenging SSS%* |
| --- |
| 5<br>Boot Barn’s Story |
| --- |
| 6<br>Boot Barn’s Story – Key Takeaways<br>• #1 player in a large & fragmented industry<br>• Adding 15% new units annually<br>• Profitable online channel<br>• Full-price retailer with limited fashion risk<br>• Nationally recognized lifestyle brand<br>• Multiple levers for earnings growth<br>‒ New stores<br>‒ SSS growth<br>‒ Exclusive brands growth<br>‒ Economies of scale in buying<br>‒ Expense leverage |
| --- |
| 7<br>We Service A Broad Customer Base |
| --- |
| 8<br>We Have Built a National Lifestyle Brand |
| --- |
| 9<br>Boot Barn Brand Awareness is Growing Nationally<br>Boot Barn Brand Awareness by Region1<br>16%<br>32%<br>24%<br>17%<br>8%<br>33%<br>35% 50%<br>40%<br>25%<br>Total Western Southern Northern Eastern<br>48%<br>67%<br>74%<br>57%<br>33%<br>1<br>Illuminology researchers surveyed a nationally representative, random sample of 2,020 U.S. adults (age 18 and older) between November 30 and December 18, 2023. A<br>survey that interviews a random sample of that size has a margin of error of ±3% at the 95% confidence level.<br>2Aided awareness measures whether people recognize a brand name.<br>3Unaided awareness measures the extent to which a brand name is salient or top-of-mind.<br>Aided awareness2<br>Unaided awareness3 |
| --- |
| 10<br>$233<br>$346<br>$403<br>$569<br>$630 $678<br>$777<br>$846 $893<br>$1,488<br>$1,658 $1,704<br>FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 FY24<br>TTM E<br>Total Sales ($M)<br>Total<br>Sales<br>Growth 38% 48% 16% 41% 11% 8% 15% 9% 6% 67% 11%<br>Over a Decade of Strong Sales Growth<br>+19.8% CAGR<br>1 1 1 2<br>1FY17 and FY23 were 53-week years. The FY24 TTM estimate includes FY23 Q4 which was 14 weeks.<br>2All Q3 FY2024 financial results are preliminary and the company’s best estimate as the quarter ended on December 30, 2023 and the quarter-end close process has not been finalized.<br>3% |
| --- |
| 11<br>$9<br>$21<br>$35 $30 $38 $46<br>$64<br>$74<br>$86<br>$258<br>$232<br>$222<br>FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 FY24<br>TTM E<br>EBIT ($M)<br>Over a Decade of Strong Earnings Growth<br>+34.0% CAGR<br>1 2<br>1FY17 and FY23 were 53-week years. The FY24 TTM estimate includes FY23 Q4 which was 14 weeks.<br>2All Q3 FY2024 financial results are preliminary and the company’s best estimate as the quarter ended on December 30, 2023 and the quarter-end close process has not been finalized<br>1 1 |
| --- |
| 12<br>Recent Performance Has Been Nationally Recognized |
| --- |
| 13<br>Agenda<br>Strategic Initiatives<br>1<br>2<br>3<br>4<br>Drive Same Store Sales Growth<br>Continue Omni-Channel Leadership<br>Build Out Exclusive Brand Portfolio<br>Expand Our Store Base<br>Future Growth Potential<br>Boot Barn’s Story<br>Quarter Recap |
| --- |
| 14<br>Strategic Initiative:<br>Expand Our Store Base |
| --- |
| 15<br>Boot Barn Prioritize Store Growth<br>Boot Barn Sales %<br>TTM1<br>1<br>89%<br>11%<br>Boot Barn<br>Stores<br>Online<br>U.S. Retail Industry % of Sales2<br>(Clothing & General Merchandise)<br>86%<br>14%<br>U.S. Stores<br>Online<br>2 1All Q3 FY2024 financial results are preliminary and the company’s best Source: Census Bureau of the Department of Commerce. Excludes food, gasoline, etc.<br>estimate as the quarter ended on December 30, 2023 and the quarter-end close<br>process has not been finalized. |
| --- |
| 16 |
| --- |
| 17 |
| --- |
| 18 |
| --- |
| 19 |
| --- |
| 20<br>397<br>900<br>FY24 E FY25 FY26 FY27 FY28 FY29 FY30<br>1<br>Illustrative example of 15% new unit growth annually.<br>New Store Opportunity1<br>Common Investor Question: New Stores<br>Why are you opening stores in a negative SSS environment?<br>• 500 additional stores opportunity<br>• Expected to contribute ~$1.5 billion in sales<br>• Payback in ~18 months (ROIC ~66%)<br>• All stores positive 4-wall EBITDA |
| --- |
| 21<br>Strategic Initiative:<br>Drive Same Store Sales Growth |
| --- |
| 22<br>Expand<br>Customer<br>Reach<br>Modernize<br>the Brand<br>Broaden<br>Product<br>Assortment<br>Tailor<br>Customer<br>Communication<br>Invest in<br>Customer<br>Experience<br>1<br>2<br>3<br>4<br>5<br>2 Boot Barn Virtuous Cycle of Growth |
| --- |
| 23<br>GET festival READY<br>M E N ’S<br>Select<br>Up To<br>Boots<br>J U N E 8 T H - 14 T H<br>W hether you’re headed to a festiv al, concert or just a night out, w e’ll outfit you just right — from head to toe — in our new country chic festiv al w ear. We’v e got all<br>the best brands, at the low est prices, guaranteed.<br>*See r ever se for det ails.<br>$5 0<br>OF F * Country Chic<br>Sh in e Lik e t h e St a rs In<br>2 Prior Marketing Was More Promotional |
| --- |
| 24<br>2 We Have Transformed the Brand |
| --- |
| 25<br>We Have Broadened Our Reach<br>Montana Fouts<br>Alabama Softball<br>Marlon Humphrey<br>Baltimore Ravens<br>Rocker Steiner<br>Bareback Bronc Rider<br>Carolina Cowboys<br>PBR Team Series<br>2<br>National Finals Rodeo (NFR)<br>Boot Barn Booth 2023<br>Zane Smith<br>NASCAR<br>Luke Grimes<br>Actor / Musician |
| --- |
| 26<br>National Marketing – Dallas Cowboys Partnership<br>Dallas Cowboys<br>Official Sponsor of the 2023-2024 Season<br>2<br>• 5x Super Bowl Champions<br>• 8x NFC Champions<br>• “America’s Team”<br>• Most valuable NFL franchise |
| --- |
| 27<br>National Marketing – Morgan Wallen Partnership<br>Morgan Wallen<br>2024 Headline Tour Sponsor<br>2<br>• #1 Spotify album in the U.S. for 2023<br>(“One Thing at a Time”)<br>• #1 Spotify song in the U.S. for 2023<br>(“Last Night”)<br>• #3 Spotify artist in the U.S. for 2023<br>(Taylor Swift #1, Drake #2)<br>• Longest running Billboard top 10<br>album in history for any solo artist.<br>(“Dangerous: The Double Album”) |
| --- |
| 28<br>11.9%<br>6.7% 7.3%<br>-0.1%<br>0.3%<br>5.2%<br>10.0%<br>5.0%<br>3.1%<br>53.7%<br>-0.1%<br>-6.3%<br>FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 FY24<br>YTD E<br>Consolidated SSS%<br>2 Over A Decade of Strong Same Store Sales<br>1<br>1All Q3 FY2024 financial results are preliminary and the company’s best estimate as the quarter ended on December 30, 2023 and the quarter-end close process has not been finalized.<br>FY13 – FY19 +41% seven-year stack, +6% SSS avg<br>FY20 – FY24 E +55% five-year stack, +11% SSS avg |
| --- |
| 29<br>When do you think the Ladies’ business will be fixed?<br>139%<br>115%<br>88%<br>72%<br>23%<br>-1%<br>-9% -12%<br>-7% -9%<br>-16%<br>Q1<br>'22<br>Q2<br>'22<br>Q3<br>'22<br>Q4<br>'22<br>Q1<br>'23<br>Q2<br>'23<br>Q3<br>'23<br>Q4<br>'23<br>Q1<br>'24<br>Q2<br>'24<br>Q3<br>'24 E<br>Ladies’ Boots & Apparel SSS%<br>Common Investor Question: SSS%<br>81% 78%<br>19% 22%<br>FY20 Q3 FY24 TTM E<br>Ladies’ Boots & Apparel % to Total Sales<br>Ladies Ladies<br>1All Q3 FY2024 financial results are preliminary and the company’s best estimate as the quarter ended on December 30, 2023 and the quarter-end close process has not been finalized.<br>1<br>1<br>Despite recent comp declines, Ladies’<br>share remains higher compared to FY20. |
| --- |
| 30<br>Strategic Initiative:<br>Continue Omni-Channel Leadership |
| --- |
| 31<br>3 Differentiated Online Presence<br>• Branded site<br>• Same price as stores<br>• Sales performing better than other sites<br>• Most profitable online site<br>• ~70% of online sales<br>• Price sensitive customer<br>• Same assortment as Bootbarn.com<br>• ~15% of online sales<br>• Mostly ladies’ product<br>• More fashionable customer<br>• ~5% of online sales<br>• Least profitable online site<br>• ~10% of online sales |
| --- |
| 32<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>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>• Clear markdowns |
| --- |
| 33<br>Integrating Channels<br>Legacy<br>Digital<br>Omni-Channel<br>Capabilities<br>~60% of Online Orders Involve a<br>Store Associate<br>Q3 FY24 YTD Online Orders<br>• Buy Online Pick-Up<br>In Store<br>• Ship from Store<br>• Same Day Delivery<br>• Ship to Store<br>• In-Store Fulfillment<br>3<br>1<br>1All Q3 FY2024 financial results are preliminary and the company’s best estimate as the quarter ended on December 30, 2023 and the quarter-end close process has not been finalized. |
| --- |
| 34<br>Why hasn’t e-commerce grown as a % of sales?<br>$707 $728<br>$1,258<br>$1,446 $1,511<br>FY20 FY21 FY22 FY23 Q3 FY24<br>TTM E<br>Boot Barn Store Only Sales ($M)<br>9%<br>14% 14% 14% 14%<br>2019 2020 2021 2022 Sep 2023<br>TTM<br>U.S. Retail Industry Online % of Sales1<br>(Clothing & General Merchandise)<br>Common Investor Question: Omni-Channel<br>1Source: Census Bureau of the Department of Commerce. Excludes food, gasoline, etc. 1All Q3 FY2024 financial results are preliminary and the company’s best estimate as the quarter ended<br>on December 30, 2023 and the quarter-end close process has not been finalized.<br>1<br>Stores have demonstrated outsized<br>sales growth. |
| --- |
| 35<br>Strategic Initiative:<br>Build Out Exclusive Brand Portfolio |
| --- |
| 36<br>WESTERN 3 OF OUR TOP 5 SELLING BRANDS ARE EXCLUSIVE BRANDS COUNTRY ARTIST INSPIRED<br>WORK RANCH & RODEO<br>4 Exclusive Brands Portfolio<br>LUXURY<br>PRICE SENSITIVE |
| --- |
| 37<br>$5 $12 $24 $39<br>$63 $67<br>$92<br>$126<br>$186<br>$212<br>$421<br>$564<br>$643<br>FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 FY24<br>TTM E<br>Exclusive Brands Sales ($M)<br>4<br>Q3 Exclusive Brands Sales ($M)<br>$175<br>$194<br>FY23 Q3 Q3 FY24 E<br>Exclusive Brands Sales Growth<br>1All Q3 FY2024 financial results are preliminary and the company’s best estimate as the quarter ended on December 30, 2023 and the quarter-end close process has not been finalized.<br>1<br>1 |
| --- |
| 38<br>Can EB penetration continue to grow & provide margin expansion?<br>Common Investor Question: Exclusive Brands<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>37.9%<br>FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 FY24<br>YTD E<br>Exclusive Brands Penetration %<br>Margin enhancement ~1,000 bps vs. 3rd party brands<br>1All Q3 FY2024 financial results are preliminary and the company’s best estimate as the quarter ended on December 30, 2023 and the quarter-end close process has not been finalized.<br>1 |
| --- |
| 39<br>Prior Marketing Was More Promotional |
| --- |
| 40<br>+110bps<br>+90bps<br>+90bps<br>+270bps<br>(70)bps<br>+160bps<br>FY19 FY20 FY21 FY22 FY23 Q3 FY24<br>YTD E<br>Exclusive Brands Growth & Margin Expansion<br>Merchandise Margin Growth Over Six Years<br>(100)bps<br>Freight<br>+120ps<br>Freight<br>~650bps total margin expansion<br>Exclusive Brands Penetration<br>16.2%<br>37.9%<br>FY19 Q3 FY24<br>YTD E<br>EB is Only 1/3 of Margin Appreciation<br>EB<br>Expansion<br>220bps<br>Improved<br>full-price selling &<br>buying economies<br>of scale<br>430bps<br>1<br>1<br>1All Q3 FY2024 financial results are preliminary and the company’s best estimate as the quarter ended on<br>December 30, 2023 and the quarter-end close process has not been finalized. |
| --- |
| 41<br>Future Growth Potential |
| --- |
| 42<br>Common Investor Question: Overall Boot Barn Story<br>Long-Term Algorithm Actual Performance<br>New Stores +10% new units +15% new units<br>SSS Low single-digit to Mid single-digit +11% SSS average<br>FY20 – FY24<br>Merchandise Margin<br>Accretion<br>+25bps annually<br>from EB penetration<br>>100bps from EB, full-price selling &<br>additional purchase discounts<br>EPS 20% >30%<br>FY20 – FY24<br>$1.64 $2.01<br>$6.33<br>$5.62<br>$5.00<br>FY20 FY21 FY22 FY23 FY24 E<br>EPS<br>1<br>1FY24 estimated EPS reflects $5.00 as provided in the Company’s guidance outlined on their November 2, 2023 earnings call.<br>When will Boot Barn revert back to the long-term algorithm? |
| --- |
| 43<br>Multiple Growth Drivers<br>Same Store Sales<br>$1.5B<br>Annual Comp<br>Revenue<br>X<br>2.5% SSS<br>Annually X<br>35%<br>Flow-through<br>Illustrative 4-Year<br>Cumulative EBITDA $<br>= ~$50 Million<br>New Stores<br>397<br>Stores X<br>15%<br>New Units X<br>30%<br>Proforma<br>EBITDA Margin<br>X<br>~$3M<br>AUV<br>= ~$270 Million<br>Exclusive Brands & Margin Appreciation<br>25bps<br>Annually X<br>4<br>Years<br>= ~$40 Million<br>~$360 Million<br>1<br>1Used for illustrative purposes only.<br>2Used for illustrative purposes only. Low to mid single digit comp as outlined in IPO.<br>3Projected store count at the end of FY2024.<br>4Estimated new unit growth per year.<br>5Used for illustrative purposes only. Average year one revenue in FY22-FY24 was $3.5M.<br>6Used for illustrative purposes only. Proforma EBITDA margin discussed in prior investor deck.<br>7Used for illustrative purposes only. Targeted annual merchandise margin expansion per long-term algorithm set at IPO.<br>8Used for illustrative purposes only. $1.7 Billion in revenue for each of the 4 years with no change. 25bps incremental margin each year results in additional $40M over four years compared to the original sales and margin assumption.<br>9Used for illustrative purposes only. Represents additional EBITDA, but excludes other incremental organizational expenses such as depreciation, headcount, overhead, etc.<br>Illustrative Example<br>2 1<br>3 4 5 6<br>7<br>9<br>8<br>Illustrative 4-Year EBITDA $ from Growth Drivers<br>X<br>4<br>Years<br>X<br>4<br>Years<br>Note: The below is an illustration of the potential impacts of multiple growth drivers that impact results, and is not intended as a projection. Actual results will depend on many<br>factors, both within and outside of the Company’s control. See “Forward-Looking Statements.”<br>Annualized 4th Year<br>EBITDA $<br>= ~$13 Million<br>= ~$80 Million<br>= ~$17 Million<br>~$110 Million 9<br>8 |
| --- |
| 44<br>Thank You |
| --- |
| 45<br>-5.0% -2.6%<br>1.5% 1.1%<br>-3.7%<br>-7.3% -8.8% -11.5% -8.5%<br>Apr May Jun Jul Aug Sep Oct Nov Dec<br>FY23<br>8.1%<br>14.8%<br>8.1%<br>1.6%<br>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>FY24<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%<br>17.3%<br>Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar<br>1<br>Appendix: Store SSS% by Month<br>1 1<br>1All Q3 FY2024 financial results are preliminary and the company’s best estimate as the quarter ended on December 30, 2023 and the quarter-end close process has not been finalized. |
| --- |
| 46<br>-19.1%<br>-9.0% -3.5%<br>-11.9% -13.0% -10.6% -16.8% -15.1% -8.1%<br>Apr May Jun Jul Aug Sep Oct Nov Dec<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% -16.3% -18.7% -19.4%<br>Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar<br>FY24<br>FY22<br>26.1%<br>-4.4%<br>10.2%<br>32.1% 40.3%<br>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>Appendix: Ecommerce SSS% by Month<br>1 1<br>1All Q3 FY2024 financial results are preliminary and the company’s best estimate as the quarter ended on December 30, 2023 and the quarter-end close process has not been finalized. |
| --- |