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): October 26, 2022
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 October 26, 2022, Boot Barn Holdings, Inc. issued a press release announcing certain financial results for its fiscal second quarter ended September 24, 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 October 26, 2022. |
| Exhibit 99.2 | Supplemental Financial Presentation dated October 26, 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: October 26, 2022 | 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 Second Quarter Fiscal Year 2023
Financial Results
IRVINE, California – October 26, 2022—Boot Barn Holdings, Inc. (NYSE: BOOT) today announced its financial results for the second fiscal quarter ended September 24, 2022. The Company has also filed a Supplemental Financial Presentation that has been made available at investor.bootbarn.com.
For the quarter ended September 24, 2022:
| ● | Net sales increased 12.4% over the prior-year period to $351.5 million, cycling 69.5% net sales growth in the prior-year period. |
|---|---|
| ● | Same store sales increased 2.3% compared to the prior-year period, cycling 61.7% same store sales growth in the prior-year period. The 2.3% increase in consolidated same store sales is comprised of an increase in retail store same store sales of 3.9% and a decrease in e-commerce same store sales of 7.0%. |
| --- | --- |
| ● | Net income was $32.1 million, or $1.06 per diluted share, compared to $37.9 million, or $1.25 per diluted share in the prior-year period. Excluding a $0.03 per share tax benefit related primarily to income tax accounting for share-based compensation, net income per diluted share was $1.22 in the prior-year period. |
| --- | --- |
| ● | The Company opened 10 new stores bringing its total count to 321. |
| --- | --- |
“We are pleased to have followed up our strong start to fiscal 2023 with solid second quarter results,” said Jim Conroy, President and Chief Executive Officer. “Sales and earnings exceeded expectations as the market share gains we’ve made over the past two years proved sustainable despite the multiple headwinds pressuring consumer discretionary spending. Our top-line performance was driven by new store expansion and positive retail store same store sales growth, which were up mid-single digits for the quarter. This was accompanied by further merchandise margin expansion fueled primarily by an increase in exclusive brand penetration and better full-price selling. While current macroeconomic factors are creating general marketplace uncertainty, we feel good about our prospects for the upcoming holiday season, and remain very confident in our ability to deliver profitable growth and increased shareholder value over the long-term.”
Operating Results for the Second Quarter Ended September 24, 2022 Compared to the Second Quarter Ended September 25, 2021
| ● | Net sales increased 12.4% to $351.5 million from $312.7 million in the prior-year period. Consolidated same store sales increased 2.3% with retail store same store sales increasing 3.9% and e-commerce same store sales decreasing 7.0%. The increase in net sales was the result of the incremental sales from new stores opened over the past twelve months and the increase in consolidated same store sales, which saw an increase in average unit retail prices, driven in part by inflation. |
|---|
1
| ● | Gross profit was $129.1 million, or 36.7% of net sales, compared to $118.2 million, or 37.8% of net sales, in the prior-year period. Gross profit increased primarily due to increased sales. The decrease in gross profit rate of 110 basis points was driven by 160 basis points of deleverage in buying, occupancy and distribution center costs, partially offset by a 50 basis-point increase in merchandise margin. The merchandise margin expansion was primarily a result of growth in exclusive brand penetration and better full-price selling. |
|---|---|
| ● | Selling, general and administrative expenses were $84.9 million, or 24.2% of net sales, compared to $68.0 million, or 21.8% of net sales, in the prior-year period. The increase in selling, general and administrative expenses was primarily a result of higher store payroll, other store-related expenses and marketing expenses compared to the prior-year period. Selling, general and administrative expenses as a percentage of net sales increased by 240 basis points primarily as a result of higher marketing expenses, other store-related expenses and higher store payroll. |
| --- | --- |
| ● | Income from operations decreased $6.0 million to $44.2 million, or 12.6% of net sales, compared to $50.1 million, or 16.0% of net sales, in the prior-year period, primarily due to higher selling, general and administrative expenses. |
| --- | --- |
| ● | Net income was $32.1 million, or $1.06 per diluted share, compared to net income of $37.9 million, or $1.25 per diluted share in the prior-year period. Excluding a $0.03 per share tax benefit related primarily to income tax accounting for share-based compensation, net income per diluted share was $1.22 in the prior-year period. |
| --- | --- |
Operating Results for the Six Months Ended September 24, 2022 Compared to the Six Months Ended September 25, 2021
| ● | Net sales increased 15.9% to $717.4 million from $619.0 million in the prior-year period. Consolidated same store sales increased 6.1% with retail store same store sales increasing 7.0% and e-commerce same store sales increasing 0.8%. The increase in net sales was the result of the incremental sales from new stores opened over the past twelve months and the increase in consolidated same store sales, which saw an increase in average unit retail prices, driven in part by inflation. |
|---|---|
| ● | Gross profit was $266.9 million, or 37.2% of net sales, compared to $234.6 million, or 37.9% of net sales, in the prior-year period. Gross profit increased primarily due to increased sales. The decrease in gross profit rate of 70 basis points was driven by 110 basis points of deleverage in buying, occupancy and distribution center costs, partially offset by a 40 basis-point increase in merchandise margin. Merchandise margin increased 40 basis points despite a 30 basis-point headwind from increased freight expense. The merchandise margin expansion was primarily a result of growth in exclusive brand penetration and better full-price selling. |
| --- | --- |
| ● | Selling, general and administrative expenses were $170.4 million, or 23.7% of net sales, compared to $130.8 million, or 21.1% of net sales, in the prior-year period. The increase in selling, general and administrative expenses was primarily a result of higher store payroll, other store-related expenses and marketing expenses compared to the prior-year period. Selling, general and administrative expenses as a percentage of net sales increased by 260 basis points primarily as a result of an increase in other store-related expenses, store payroll, and marketing expenses. |
| --- | --- |
2
| ● | Income from operations decreased $7.2 million to $96.6 million, or 13.5% of net sales, compared to $103.8 million, or 16.8% of net sales, in the prior-year period, primarily due to higher selling, general and administrative expenses. |
|---|---|
| ● | Net income was $71.4 million, or $2.35 per diluted share, compared to net income of $78.5 million, or $2.59 per diluted share in the prior-year period. Net income per diluted share in the current-year and prior-year periods includes an approximately $0.03 and $0.12 per share benefit, respectively, primarily due to income tax accounting for share-based compensation. Excluding the tax benefits, net income per diluted share in the current-year period was $2.32, compared to $2.47 in the prior-year period. |
| --- | --- |
Current Business
The following table includes total net sales growth and same store sales growth/(decline) for the periods indicated below:
| | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | | | | | Thirteen Weeks | | | | Preliminary | | |
| | | Four Weeks | | Four Weeks | | Five Weeks | | Ended | | | | Four Weeks | | |
| | **** | Fiscal July | **** | Fiscal August | **** | Fiscal September | **** | September 24, 2022 | **** | **** | **** | Fiscal October | **** | |
| | | | | | | | | | | | | | | |
| Total Net Sales Growth | | 11.2 | % | 13.1 | % | 12.7 | % | 12.4 | % | | | 7.9 | % | |
| | | | | | | | | | | | | | | |
| Retail Stores SSS | 1.6 | % | 4.4 | % | 5.1 | % | 3.9 | % | | | 1.7 | % | | |
| E-commerce SSS | (3.0) | % | (1.3) | % | (13.5) | % | (7.0) | % | | | (17.6) | % | | |
| Total SSS | 1.0 | % | 3.6 | % | 2.2 | % | 2.3 | % | | | (1.3) | % | | |
| | | | | |
Balance Sheet Highlights as of September 24, 2022
| · | Cash of $19.7 million. |
|---|---|
| · | $146.8 million drawn under our $250 million revolving credit facility. |
| --- | --- |
Fiscal Year 2023 Outlook
The Company is providing updated guidance for the fiscal year ending April 1, 2023, superseding in its entirety the previous guidance issued in its first quarter earnings report on July 27, 2022. As a result, for the fiscal year ending April 1, 2023, the Company now expects:
| ● | To open 40 new stores. |
|---|---|
| ● | Total sales of $1.65 billion to $1.67 billion, representing growth of 10.9% to 12.2% over the prior year. |
| --- | --- |
| ● | Same store sales range of approximately (1.0)% to 0.5%, with retail store same store sales of approximately 2.0% to 3.0% and e-commerce same store sales of (13.0)% to (11.0)%. |
| --- | --- |
| ● | Gross profit between $617 million and $625 million, or approximately 37.4% of sales. Gross profit includes an estimated 100 basis points of pressure from freight expense. |
| --- | --- |
| ● | Income from operations between $235 million and $243 million. This represents approximately 14.2% to 14.6% of sales. |
| --- | --- |
| ● | Interest expense of $4.6 million. |
| --- | --- |
3
| ● | Effective tax rate of 25.2% for the remaining six months of the year. |
|---|---|
| ● | Net income of $173.3 million to $179.3 million. |
| --- | --- |
| ● | Net income per diluted share of $5.70 to $5.90 based on 30.4 million weighted average diluted shares outstanding. |
| --- | --- |
| ● | Capital expenditures between $80 million and $87 million. |
| --- | --- |
| ● | Fiscal year 2023 is a 53-week year and the Company expects to generate approximately $34.0 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 third quarter ending December 24, 2022, the Company expects:
| · | Total sales of $502 million to $514 million, representing growth of 3.3% to 5.8% over the prior year. |
|---|---|
| · | Same store sales range of approximately (5.0)% to (3.0)%, with retail store same store sales of (2.0)% to flat and e-commerce same store sales of (21.0)% to (17.0)%. |
| --- | --- |
| · | Gross profit between $184 million and $189 million, or approximately 36.8% of sales. Gross profit includes an estimated 200 basis points of pressure from freight expense. |
| --- | --- |
| · | Income from operations between $71 million and $76 million. This represents approximately 14.1% to 14.8% of sales. |
| --- | --- |
| · | Net income per diluted share of $1.71 to $1.83 based on 30.3 million weighted average diluted shares outstanding. |
| --- | --- |
Conference Call Information
A conference call to discuss the financial results for the second quarter of fiscal year 2023 is scheduled for today, October 26, 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 (877) 451-6152. The conference call will also be available to interested parties through a live webcast at investor.bootbarn.com. Please visit the website and select the “Events and Presentations” link at least 15 minutes prior to the start of the call to register and download any necessary software. A Supplemental Financial Presentation is also available on the investor relations section of the Company’s website. A telephone replay of the call will be available until November 26, 2022, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 13733847. 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 322 stores in 40 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.
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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.
Investor Contact: ICR, Inc.
Brendon Frey, 203-682-8216
BootBarnIR@icrinc.com
or
Company Contact: Boot Barn Holdings, Inc.
Mark Dedovesh
Vice President, Investor Relations & Financial Planning
BootBarnIRMedia@bootbarn.com
5
Boot Barn Holdings, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
| | | | | | | |
|---|---|---|---|---|---|---|
| **** | **** | September 24, | **** | March 26, | ||
| **** | | 2022 | | 2022 | ||
| Assets | | | ||||
| Current assets: | | | ||||
| Cash and cash equivalents | | $ | 19,686 | | $ | 20,674 |
| Accounts receivable, net | | 11,059 | | 9,662 | ||
| Inventories | | 641,021 | | 474,300 | ||
| Prepaid expenses and other current assets | | 42,978 | | 37,195 | ||
| Total current assets | | 714,744 | | 541,831 | ||
| Property and equipment, net | | 204,267 | | 155,247 | ||
| Right-of-use assets, net | | 302,007 | | 241,147 | ||
| Goodwill | | 197,502 | | 197,502 | ||
| Intangible assets, net | | 60,782 | | 60,813 | ||
| Other assets | | 6,643 | | 3,315 | ||
| Total assets | | $ | 1,485,945 | | $ | 1,199,855 |
| Liabilities and stockholders’ equity | | | ||||
| Current liabilities: | | | ||||
| Line of credit | | $ | 146,830 | | $ | 28,549 |
| Accounts payable | | 171,148 | | 131,394 | ||
| Accrued expenses and other current liabilities | | 116,530 | | 133,408 | ||
| Short-term lease liabilities | | 46,847 | | 43,117 | ||
| Total current liabilities | | 481,355 | | 336,468 | ||
| Deferred taxes | | 28,374 | | 26,895 | ||
| Long-term lease liabilities | | 299,803 | | 234,584 | ||
| Other liabilities | | 2,476 | | 2,232 | ||
| Total liabilities | | 812,008 | | 600,179 | ||
| | | | ||||
| Stockholders’ equity: | | | ||||
| Common stock, $0.0001 par value; September 24, 2022 - 100,000 shares authorized, 30,001 shares issued; March 26, 2022 - 100,000 shares authorized, 29,820 shares issued | | 3 | | 3 | ||
| Preferred stock, $0.0001 par value; 10,000 shares authorized, no shares issued or outstanding | | — | | — | ||
| Additional paid-in capital | | 206,444 | | 199,054 | ||
| Retained earnings | | 476,849 | | 405,477 | ||
| Less: Common stock held in treasury, at cost, 190 and 135 shares at September 24, 2022 and March 26, 2022, respectively | | (9,359) | | (4,858) | ||
| Total stockholders’ equity | | 673,937 | | 599,676 | ||
| Total liabilities and stockholders’ equity | | $ | 1,485,945 | | $ | 1,199,855 |
6
Boot Barn Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Thirteen Weeks Ended | | Twenty-Six Weeks Ended | ||||||||
| | | September 24, | | September 25, | | September 24, | | September 25, | ||||
| | 2022 | 2021 | 2022 | 2021 | ||||||||
| Net sales | | $ | 351,545 | | $ | 312,717 | | $ | 717,401 | | $ | 619,044 |
| Cost of goods sold | | 222,449 | | 194,566 | | 450,475 | | 384,466 | ||||
| Gross profit | | 129,096 | | 118,151 | | 266,926 | | 234,578 | ||||
| Selling, general and administrative expenses | | 84,946 | | 68,037 | | 170,351 | | 130,821 | ||||
| Income from operations | | 44,150 | | 50,114 | | 96,575 | | 103,757 | ||||
| Interest expense | | 1,362 | | 1,162 | | 2,087 | | 3,725 | ||||
| Other income/(loss), net | | — | | 14 | | (273) | | 118 | ||||
| Income before income taxes | | 42,788 | | 48,966 | | 94,215 | | 100,150 | ||||
| Income tax expense | | 10,734 | | 11,105 | | 22,843 | | 21,644 | ||||
| Net income | | $ | 32,054 | | $ | 37,861 | | $ | 71,372 | | $ | 78,506 |
| | | | | | ||||||||
| Earnings per share: | | | | | ||||||||
| Basic | | $ | 1.08 | | $ | 1.28 | | $ | 2.40 | | $ | 2.67 |
| Diluted | | $ | 1.06 | | $ | 1.25 | | $ | 2.35 | | $ | 2.59 |
| Weighted average shares outstanding: | | | | | ||||||||
| Basic | | 29,808 | | 29,555 | | 29,778 | | 29,458 | ||||
| Diluted | | 30,313 | | 30,356 | | 30,351 | | 30,312 |
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Boot Barn Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| | | | | | | |
|---|---|---|---|---|---|---|
| | | Twenty-Six Weeks Ended | ||||
| | | September 24, | | September 25, | ||
| | **** | 2022 | **** | 2021 | ||
| Cash flows from operating activities | | | ||||
| Net income | | $ | 71,372 | | $ | 78,506 |
| Adjustments to reconcile net income to net cash (used in)/provided by operating activities: | | | ||||
| Depreciation | | 16,792 | | 12,871 | ||
| Stock-based compensation | | 7,143 | | 5,968 | ||
| Amortization of intangible assets | | 32 | | 36 | ||
| Noncash lease expense | | 22,951 | | 18,737 | ||
| Amortization and write-off of debt issuance fees and debt discount | | 74 | | 1,189 | ||
| Loss on disposal of assets | | 250 | | 90 | ||
| Gain on adjustment of right-of-use assets and lease liabilities | | — | | (247) | ||
| Deferred taxes | | 1,479 | | (6,630) | ||
| Changes in operating assets and liabilities: | | | ||||
| Accounts receivable, net | | (972) | | 5,852 | ||
| Inventories | | (166,721) | | (74,514) | ||
| Prepaid expenses and other current assets | | (5,857) | | (25,366) | ||
| Other assets | | (3,329) | | (523) | ||
| Accounts payable | | 36,472 | | 36,312 | ||
| Accrued expenses and other current liabilities | | (27,199) | | 14,634 | ||
| Other liabilities | | 244 | | 507 | ||
| Operating leases | | (14,868) | | (18,794) | ||
| Net cash (used in)/provided by operating activities | | $ | (62,137) | | $ | 48,628 |
| Cash flows from investing activities | | | ||||
| Purchases of property and equipment | | $ | (52,459) | | $ | (22,251) |
| Net cash used in investing activities | | $ | (52,459) | | $ | (22,251) |
| Cash flows from financing activities | | | ||||
| Borrowings on line of credit - net | | $ | 118,281 | | $ | — |
| Repayments on debt and finance lease obligations | | (419) | | (61,872) | ||
| Tax withholding payments for net share settlement | | (4,501) | | (2,648) | ||
| Proceeds from the exercise of stock options | | 247 | | 4,540 | ||
| Net cash provided by/(used in) financing activities | | $ | 113,608 | | $ | (59,980) |
| | | | | | | |
| Net decrease in cash and cash equivalents | | (988) | | (33,603) | ||
| Cash and cash equivalents, beginning of period | | 20,674 | | 73,148 | ||
| Cash and cash equivalents, end of period | | $ | 19,686 | | $ | 39,545 |
| | | | | | | |
| Supplemental disclosures of cash flow information: | | | ||||
| Cash paid for income taxes | | $ | 45,519 | | $ | 26,005 |
| Cash paid for interest | | $ | 1,642 | | $ | 2,495 |
| Supplemental disclosure of non-cash activities: | | | ||||
| Unpaid purchases of property and equipment | | $ | 21,551 | | $ | 7,195 |
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Boot Barn Holdings, Inc.
Store Count
| | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | ||||||||
| | | September 24, | | June 25, | | March 26, | | December 25, | | September 25, | | June 26, | | March 27, | | December 26, |
| | | 2022 | | 2022 | | 2022 | | 2021 | | 2021 | | 2021 | | 2021 | | 2020 |
| Store Count (BOP) | 311 | 300 | 289 | 278 | 276 | 273 | 266 | 265 | ||||||||
| Opened/Acquired | 10 | 11 | 11 | 11 | 3 | 3 | 8 | 1 | ||||||||
| Closed | — | — | — | — | (1) | — | (1) | — | ||||||||
| Store Count (EOP) | 321 | 311 | 300 | 289 | 278 | 276 | 273 | 266 |
Boot Barn Holdings, Inc.
Selected Store Data
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Thirteen Weeks Ended | | ||||||||||||||||||||||
| | | September 24, | | June 25, | | March 26, | | December 25, | | September 25, | | June 26, | | March 27, | | December 26, | |||||||||
| | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | 2020 | |||||||||||||||||
| Selected Store Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Same Store Sales growth | | | 2.3 | % | | 10.0 | % | | 33.3 | % | | 54.2 | % | | 61.7 | % | | 78.9 | % | | 26.9 | % | | 4.6 | % |
| Stores operating at end of period | | | 321 | | 311 | | 300 | | 289 | | 278 | | 276 | | 273 | | 266 | | |||||||
| Total retail store square footage, end of period (in thousands) | | | 3,451 | | 3,333 | | 3,194 | | 3,063 | | 2,940 | | 2,915 | | 2,854 | | 2,787 | | |||||||
| Average store square footage, end of period | | | 10,751 | | 10,717 | | 10,648 | | 10,597 | | 10,575 | | 10,563 | | 10,455 | | 10,477 | | |||||||
| Average net sales per store (in thousands) | | $ | 966 | | $ | 1,031 | | $ | 1,094 | | $ | 1,372 | | $ | 965 | | $ | 942 | | $ | 792 | | $ | 889 | |
9
Exhibit 99.2
| 0<br>Supplemental Financial Presentation<br>October 26, 2022 |
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| 1<br>Important Information<br>Forward<br>-<br>Looking Statements<br>This presentation contains forward<br>-<br>looking statements that are subject to risks and uncertainties. All statements other than sta<br>tements of historical fact included in this presentation are forward<br>-<br>looking statements. You can identify forward<br>-<br>looking statements by the fact that they generally include words such as "anticipat<br>e," "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<br>fi<br>nancial performance or other events but not all forward<br>-<br>looking<br>statements contain these identifying words. These forward<br>-<br>looking statements are based on assumptions that the Company’s managem<br>ent 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 a<br>ppr<br>opriate 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 (<br>som<br>e of which are beyond the Company’s control) and assumptions.<br>These risks, uncertainties and assumptions include, but are not limited to, the following: the effect of COVID<br>-<br>19 on our busines<br>s operations, growth strategies, store traffic, employee availability,<br>financial condition, liquidity and cash flow; decreases in consumer spending due to declines in consumer confidence, local an<br>d n<br>ational economic conditions, including inflation, or changes in<br>consumer preferences; the Company’s failure to maintain and enhance its strong brand image; the Company’s failure to compete<br>eff<br>ectively, to maintain good relationships with its key suppliers,<br>and to improve and expand its exclusive product offerings; supply chain disruptions; and the Company’s ability to effectively<br>ex<br>ecute on its growth strategy. The Company discusses the foregoing<br>risks and other risks in greater detail under the heading “Risk factors” in the periodic reports filed by the Company with th<br>e S<br>ecurities and Exchange Commission. Although the Company believes<br>that these forward<br>-<br>looking statements are based on reasonable assumptions, you should be aware that many factors could affect th<br>e Company’s actual financial results and cause them to differ<br>materially from those anticipated in the forward<br>-<br>looking statements. Because of these factors, the Company cautions that you sho<br>uld not place undue reliance on any of these forward<br>-<br>looking<br>statements. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict those events<br>or<br>how they may affect the Company. Further, any forward<br>-<br>looking<br>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<br>re<br>vise the forward<br>-<br>looking statements in this presentation after<br>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 expectatio<br>ns<br>and competitive position, business opportunity and market size,<br>growth and share, are based on information from independent industry organizations and other third<br>-<br>party sources, data from our<br>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 ass<br>ump<br>tions 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 ina<br>ccu<br>rate 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 g<br>ath<br>ering 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 co<br>mpe<br>titors 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 particularl<br>y s<br>ensitive to economic conditions and consumer confidence.<br>Inflation (which has occurred over the past twelve months and is continuing) and other challenges affecting the global econom<br>y c<br>ould impact our operations and will depend on future<br>developments, which are uncertain. These and other effects make it more challenging for us to estimate the future performance<br>of<br>our business, particularly over the near<br>-<br>to<br>-<br>medium term. For<br>further discussion of the uncertainties and business risks affecting the Company, see Item 1A, Risk Factors, of our Fiscal 20<br>22<br>10<br>-<br>K. |
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| 2<br>Q2 Fiscal 2023 Results<br>$339<br>$346<br>$352<br>Low-End<br>High-End<br>Q2 FY2023<br>Actual<br>Total Net Sales<br>($MM)<br>$0.87<br>$0.93<br>$1.06<br>Low-End<br>High-End<br>Q2 FY2023<br>Actual<br>EPS Beats Guidance<br>•<br>10 new stores opened<br>•<br>12.4% total sales growth (88% 3<br>-<br>year total sales growth)<br>•<br>2.3% same store sales growth (59% 3<br>-<br>year stack)<br>•<br>32.3% exclusive brands penetration<br>•<br>$44MM income from operations (12.6% operating income margin)<br>•<br>$1.06 EPS<br>1<br>Represents Q2 FY 2023 guidance provided on the Company’s first quarter fiscal 2023 earnings call on July 27, 2022.<br>Q2 FY2023 Highlights<br>Q2 FY2023 Guidance<br>Q2 FY2023 Guidance<br>1<br>1 |
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| 3<br>Trailing Twelve Months Results<br>•<br>43 new stores opened<br>•<br>30.4% exclusive brands penetration<br>•<br>4 new exclusive brands launched<br>•<br>15.8% operating income margin<br>•<br>$6.09 EPS<br>Trailing Twelve Months Highlights<br>TTM Sales $<br>$1.6 Billion<br>Operating Income $<br>$251 Million<br>EPS $<br>$6.09<br>Operating Income %<br>15.8%<br>1<br>1<br>Represents the combined quarters of Q3 FY2022, Q4 FY2022, Q1 FY2023 and Q2 FY2023. |
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| 4<br>Strategic Initiatives Update<br>1<br>2<br>3<br>4<br>Drive Same Store Sales Growth<br>Continue Omni<br>-<br>Channel Leadership<br>Build Out Exclusive Brand Portfolio<br>Expand Our Store Base |
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| 5<br>Consistent Average Unit Volume for 19 Months<br>1<br>Apr<br>May<br>Jun<br>Jul<br>Aug<br>Sep<br>Oct<br>Nov<br>Dec<br>Jan<br>Feb<br>Mar<br>Apr<br>May<br>Jun<br>Jul<br>Aug<br>Sep<br>Oct<br>Nov-Mar<br>Guide<br>Annualized Average Unit Volume ($MM)<br>1<br>$4.2MM<br>The average annual unit volume is proving to be sustainable.<br>2<br>1<br>Annualized average unit volume by month was calculated by annualizing the average monthly unit volume using historical result<br>s.<br>2<br>For example, an average $4.2MM annual unit volume store would have $301,000 of sales in April. FY2023 April stores had an ave<br>rag<br>e monthly unit volume of $325,000, which would equate to an average annual unit volume of $4.5MM. |
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| 6<br>Broadening Our Reach<br>1<br>Chris Paddack<br>Minnesota Twins<br>Marlon Humphrey<br>Baltimore Ravens<br>Los Angeles Angels<br>Sponsorship<br>Carolina Cowboys<br>PBR Teams Series<br>Danielle Bradbery<br>Musician |
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| 7<br>Broadening Our Reach<br>1<br>Boot Barn brand continues to gain awareness through both industry and mainstream press coverage<br>.. |
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| 8<br>Healthy Inventory Position<br>•<br>Men’s Boots<br>•<br>Ladies’<br>Performance Boots<br>•<br>Work Boots<br>•<br>Men’s Apparel<br>•<br>Ladies’ Denim<br>•<br>Kids<br>•<br>Accessories<br>Ladies’ Apparel<br>Ladies’ Boots<br>“Fashion” 14%<br>Composition of Inventory<br>2<br>29<br>23<br>15<br>23<br>Q2 FY2020<br>Q2 FY2021<br>Q2 FY2022<br>Q2 FY2023<br>Stores’ Weeks of Supply<br>1<br>“Functional” 86%<br>Store merchandise margin has improved each<br>fiscal year<br>1<br>Weeks of supply calculated using respective end of quarter store<br>-<br>only on<br>-<br>hand inventory and sales estimates for future weeks of<br>approximately flat retail store SSS.<br>2<br>Composition of on<br>-<br>hand inventory in stores and Fontana and Wichita distribution centers as of September 24, 2022.<br>•<br>39% average comp store inventory growth.<br>•<br>3<br>-<br>year stack SSS% is outpacing 3<br>-<br>year stack comp store inventory growth.<br>•<br>23 weeks of store supply.<br>•<br>Minimal markdown exposure as fashionable product is ~14% of inventory.<br>•<br>Average annual unit store volume has increased 56% from $2.7MM in FY20 to $4.2MM in FY22.<br>1<br>59%<br>34%<br> SSS%<br> Comp Inventory<br>3<br>-<br>Year Stack % |
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| 9<br>2<br>$28<br>$31<br>$44<br>$42<br>FY20<br>FY21<br>FY22<br>FY23<br>Q2 E<br>-<br>commerce Sales ($MM)<br>Amazon<br>Marketplace<br>Amazon<br>Marketplace<br>BB+SHP+CO<br>BB+SHP+CO<br>BB+SHP+CO<br>Amazon<br>Marketplace<br>Q2 FY2023 E<br>-<br>commerce Sales Bridge<br>Amazon marketplace<br>accounts for ~10% of Q2<br>FY2023 e<br>-<br>commerce<br>sales or ~1% of Q2<br>FY2023 total company<br>sales. |
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| 10<br>2<br>Drive Store Traffic<br>•<br>Bring Long Tail to Stores<br>•<br>Ship to Store / BOPIS<br>•<br>Return in Store<br>Deliver Digital Experience in<br>Stores<br>•<br>Range Finder (finite aisle)<br>•<br>WHIP (endless aisle)<br>•<br>Handheld Tablet Roll<br>-<br>out<br>Fulfill Online Demand Efficiently<br>•<br>DC Fulfillment<br>•<br>Store Fulfillment<br>•<br>Same Day Delivery<br>Improve Online Profitability<br>•<br>Achieved pricing parity with<br>bootbarn.com and stores<br>•<br>Expand Exclusive Brands %<br>•<br>Improve ROAS<br>Extensive Omni<br>-<br>Channel Capabilities<br>Our omni<br>-<br>channel initiatives continue to drive more online<br>-<br>only customers to the stores. |
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| 11<br>Exclusive Brand Growth<br>3<br>15.3%<br>21.3%<br>24.9%<br>28.8%<br>32.3%<br>FY2019<br>FY2020<br>FY2021<br>FY2022<br>FY2023<br>Q2 EB Penetration %<br>Our exclusive brands continue to grow and are well received by customers. |
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| 12<br>Exclusive Brand Portfolio<br>3<br>ARTIST INSPIRED<br>WORK<br>WESTERN<br>COUNTRY<br>RANCH & RODEO |
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| 13<br>Store Openings in New and Legacy Markets<br>4<br>Current Locations<br>Stores opened in the last 12 months<br>We continue to see opportunity to add stores in new and legacy markets on our path to 900 stores. |
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| 14<br>Consistent New Unit Openings<br>4<br>3<br>3<br>11<br>11<br>11<br>10<br>43<br>Q1 FY2022<br>Q2 FY2022<br>Q3 FY2022<br>Q4 FY2022<br>Q1 FY2023<br>Q2 FY2023<br>TTM<br>New Store Openings by Quarter<br>1<br>Represents FY 2023 guidance provided on the Company’s second quarter fiscal 2023 earnings call on October 26, 2022.<br>~9<br>~10<br>Q3 FY2023<br>Q4 FY2024<br>~19 Additional Stores<br>to be opened in FY23<br>43 new stores opened in the last 12 months.<br>1 |
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| 15<br>New Stores Continue to Exceed Expectations<br>METRICS<br>FY2023 New Stores<br>Projection<br>Store Size (sq. ft.)<br>~12,000<br>Year 1 Net Sales<br>$3.5MM<br>Sales per Square Foot<br>$292/sq. ft.<br>Net Capital Investment<br>$0.6MM<br>Net Inventory Investment<br>$0.6MM<br>Cash on Cash Return (Yr. 1)<br>~73%<br>Payback Period<br>~1.4 years<br>4<br>FY2023 new openings are projected to do $3.5MM in annual sales and payback in just over 1 year.<br>1 |
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| 16<br>Revised Full Year FY2023 Guidance<br>1<br>$1,650<br>$1,670<br>Low-End<br>High-End<br>Total Net Sales<br>($MM)<br>1<br>$5.70<br>$5.90<br>Low-End<br>High-End<br>Earnings Per Share<br>2<br>1<br>All FY2023 guidance figures have been provided on a 53<br>-<br>week basis. The Company estimates sales of $34 million from the 53<br>rd<br>week.<br>2<br>FY2023 estimated earnings per share has been provided on a 53<br>-<br>week basis. The Company estimates that included in FY2023 estimate<br>d EPS is $0.19 attributed to the 53<br>rd<br>week.<br>3<br>All high<br>-<br>end guidance highlights have been provided on a 53<br>-<br>week basis.<br>..<br>•<br>40 new stores opened<br>•<br>12.2% total sales growth<br>•<br>0.5% same store sales growth<br>•<br>$243MM income from operations<br>•<br>14.6% operating income margin<br>•<br>$5.90 EPS<br>High<br>-<br>End Guidance Highlights<br>3 |
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| 17<br>Revised FY2023 Financial Guidance<br>Full Year FY2023 Financial Guidance<br>Previous<br>High End<br>($MM)<br>New<br>High End<br>($MM)<br>Revised High End Guidance Comments<br>Total Net Sales<br>1<br>Consolidated SSS%<br>Store SSS%<br>E<br>-<br>commerce SSS%<br>Total Net Sales Growth %<br>New Store Openings<br>$1,700<br>2.0%<br>2.0%<br>1.5%<br>14.2%<br>40<br>$1,670<br>0.5%<br>3.0%<br>(11.0)%<br>12.2%<br>40<br>Continued growth in retail store SSS%.<br>E<br>-<br>Commerce sales softness.<br>New store volume in line with $3.5MM, but<br>opening later than originally planned.<br>Gross Profit<br>%<br>Product Margin Expansion<br>Freight Headwinds<br>$640<br>37.6%<br>80bps<br>(100)bps<br>$625<br>37.4%<br>80bps<br>(100)bps<br>350bps EB pen% + more full price selling<br>Freight headwinds shift to 2H<br>Income from Operations<br>%<br>$255<br>15.0%<br>$243<br>14.6%<br>GAAP Earnings per Diluted Share<br>2<br>$6.20<br>$5.90<br>1<br>FY2023 estimated net sales have been provided on a 53<br>-<br>week basis. The Company estimates sales of $34 million from the 53<br>rd<br>week.<br>2<br>FY2023 estimated earnings per share has been provided on a 53<br>-<br>week basis. The Company estimates that included in FY2023 estimate<br>d EPS is $0.19 attributed to the 53<br>rd<br>week. |
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| 18<br>Full Year FY2023 Financial Guidance<br>1<br>FY2023 estimated net sales have been provided on a 53<br>-<br>week basis. The Company estimates sales of $34 million from the 53<br>rd<br>week.<br>2<br>FY2023 estimated earnings per share has been provided on a 53<br>-<br>week basis. The Company estimates that included in FY2023 estimate<br>d EPS is $0.19 attributed to the 53<br>rd<br>week.<br>Full Year FY2023 Financial Guidance<br>Low End<br>($MM)<br>High End<br>($MM)<br>High End Guidance<br>Comments<br>Total Net Sales<br>1<br>Consolidated SSS%<br>Store SSS%<br>E<br>-<br>commerce SSS%<br>Total Net Sales Growth %<br>New Store Openings<br>$1,650<br>(1.0)%<br>2.0%<br>(13.0)%<br>10.9%<br>40<br>$1,670<br>0.5%<br>3.0%<br>(11.0)%<br>12.2%<br>40<br>Gross Profit<br>%<br>$617<br>~37.4%<br>$625<br>~37.4%<br>80bps product margin expansion vs. LY<br>(100)bps freight headwinds vs. LY<br>Income from Operations<br>%<br>$235<br>14.2%<br>$243<br>14.6%<br>GAAP Earnings per Diluted Share<br>2<br>$5.70<br>$5.90 |
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| 19<br>Q3 FY2023 Financial Guidance<br>Q3 FY2023 Financial Guidance<br>Low End<br>($MM)<br>High End<br>($MM)<br>High End Guidance<br>Comments<br>Total Net Sales<br>Consolidated SSS%<br>Store SSS%<br>E<br>-<br>commerce SSS%<br>Total Net Sales Growth %<br>New Store Openings<br>$502<br>(5.0)%<br>(2.0)%<br>(21.0)%<br>3.3%<br>~9<br>$514<br>(3.0)%<br>Flat<br>(17.0)%<br>5.8%<br>~9<br>Gross Profit<br>%<br>$184<br>~36.8%<br>$189<br>~36.8%<br>60bps product margin expansion vs. LY<br>(200)bps freight headwinds vs. LY<br>Income from Operations<br>%<br>$71<br>14.1%<br>$76<br>14.8%<br>GAAP Earnings per Diluted Share<br>$1.71<br>$1.83 |
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| 20<br>investor.bootbarn.com |
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