Boot Barn Holdings, Inc. (NYSE: BOOT) today announced its
financial results for the fourth fiscal quarter and fiscal year
ended April 1, 2023. A Supplemental Financial Presentation is
available at investor.bootbarn.com.
For the quarter ended April 1, 2023 (14 weeks) compared to the
quarter ended March 26, 2022 (13 weeks):
- Net sales increased 11.0% over the prior-year period to $425.7
million, cycling 48.1% net sales growth in the prior-year
period.
- Same store sales decreased 5.5% compared to the prior-year
period, cycling 33.3% same store sales growth in the prior-year
period. The 5.5% decrease in consolidated same store sales is
comprised of a decrease in retail store same store sales of 3.3%
and a decrease in e-commerce same store sales of 18.4%.
- Net income was $46.4 million, or $1.53 per diluted share,
compared to $44.7 million, or $1.47 per diluted share in the
prior-year period. Excluding a $0.02 per share tax benefit related
primarily to income tax accounting for share-based compensation,
net income per diluted share was $1.51 in the current-year
period.
- The Company opened 12 new stores, bringing its total store
count to 345.
For the fiscal year ended April 1, 2023 (53 weeks) compared to
the fiscal year ended March 26, 2022 (52 weeks):
- Net sales increased 11.4% over the prior fiscal year to $1.658
billion, cycling 66.6% net sales growth in the prior fiscal
year.
- Same store sales decreased 0.1% compared to the prior fiscal
year, cycling 53.7% same store sales growth in the prior fiscal
year. The 0.1% decrease in consolidated same store sales is
comprised of an increase in retail store same store sales of 1.8%
and a decrease in e-commerce same store sales of 10.2%.
- Net income was $170.6 million, or $5.62 per diluted share,
compared to $192.5 million, or $6.33 per diluted share in the prior
fiscal year. Net income per diluted share in fiscal 2023 and fiscal
2022 includes an approximately $0.05 and $0.17 per share benefit,
respectively, primarily due to income tax accounting for
share-based compensation. Excluding the tax benefit in both years,
net income per diluted share in fiscal 2023 was $5.57, compared to
$6.16 in fiscal 2022.
- The Company opened 45 new stores during fiscal 2023, bringing
its total store count to 345.
Jim Conroy, President and Chief Executive Officer, commented “I
am proud of the team for delivering another solid performance as we
were able to hold on to the outsized gains from the prior year. We
experienced double-digit total sales growth while expanding product
margin for the 7th consecutive year. While our e-commerce business
faced top-line sales pressure, our stores achieved positive same
store sales growth for the year as they cycled a remarkable 57%
comp store growth in fiscal 2022. Our new store opening efforts
continue to pay off as we added 45 new stores, including expansion
into five new states. Once again, our exclusive brands have
exceeded our expectations with penetration growing nearly six
percentage points during fiscal 2023. I am encouraged by the
ongoing progress across each of our four strategic initiatives and
feel the Company is well positioned for continued growth.”
Operating Results for the Fourth Quarter Ended April 1, 2023
(14 weeks) Compared to the Fourth Quarter Ended March 26, 2022 (13
weeks)
- Net sales increased 11.0% to $425.7 million from $383.3 million
in the prior-year period. Consolidated same store sales decreased
5.5% with retail store same store sales decreasing 3.3% and
e-commerce same store sales decreasing 18.4%. The increase in net
sales was the result of the incremental sales from new stores
opened over the past twelve months and the extra week of sales in
the fourth quarter of fiscal 2023, partially offset by the
consolidated same store sales decline of 5.5%.
- Gross profit was $155.8 million, or 36.6% of net sales,
compared to $148.8 million, or 38.8% of net sales, in the
prior-year period. Gross profit increased primarily due to
increased sales. The decrease in gross profit rate of 220 basis
points was driven primarily by a 120 basis-point decrease in
merchandise margin and 100 basis points of deleverage in buying,
occupancy and distribution center costs. The decline in merchandise
margin rate was primarily driven by a 140 basis-point headwind from
higher freight expense, partially offset by 30 basis points of
product margin expansion resulting from growth in exclusive brand
penetration.
- Selling, general and administrative expenses were $93.1
million, or 21.9% of net sales, compared to $86.4 million, or 22.6%
of net sales, in the prior-year period. The increase in selling,
general and administrative expenses was primarily a result of an
additional week of operating expenses in the fourth quarter of
fiscal 2023, higher store payroll and increased store-related
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 70 basis points primarily as a
result of lower incentive-based compensation, marketing expenses,
and leverage from the 14th week.
- Income from operations increased $0.3 million to $62.7 million,
or 14.7% of net sales, compared to $62.4 million, or 16.3% of net
sales, in the prior-year period, primarily due to the factors noted
above.
- Net income was $46.4 million, or $1.53 per diluted share,
compared to net income of $44.7 million, or $1.47 per diluted share
in the prior-year period. Excluding a $0.02 per share tax benefit
related primarily to income tax accounting for share-based
compensation, net income per diluted share was $1.51 in the
current-year period.
Operating Results for the Fiscal Year Ended April 1, 2023 (53
weeks) Compared to the Fiscal Year Ended March 26, 2022 (52
weeks)
- Net sales increased 11.4% to $1.658 billion from $1.488 billion
in the prior fiscal year. Consolidated same store sales decreased
0.1% with retail store same store sales increasing 1.8% and
e-commerce same store sales decreasing 10.2%. The increase in net
sales was the result of the incremental sales from new stores
opened over the past twelve months and the additional sales from
the 53rd week.
- Gross profit was $610.6 million, or 36.8% of net sales,
compared to $575.1 million, or 38.6% of net sales, in the prior
fiscal year. Gross profit increased primarily due to increased
sales. The decrease in gross profit rate of 180 basis points was
driven by 110 basis points of deleverage in buying, occupancy and
distribution center costs and a 70 basis-point decrease in
merchandise margin. The decline in merchandise margin rate was
primarily driven by a 100 basis-point headwind from higher freight
expense, partially offset by 30 basis points of product margin
expansion resulting from growth in exclusive brand
penetration.
- Selling, general and administrative expenses were $378.8
million, or 22.9% of net sales, compared to $316.7 million, or
21.3% of net sales, in the prior fiscal year. The increase in
selling, general and administrative expenses was primarily a result
of higher store payroll and store-related expenses, increased
marketing expenses in fiscal 2023 compared to fiscal 2022, and
additional operating expenses in the 53rd week. Selling, general
and administrative expenses as a percentage of net sales increased
by 160 basis points primarily as a result of an increase in
store-related expenses, store payroll and marketing expenses.
- Income from operations decreased $26.6 million to $231.8
million, or 14.0% of net sales, compared to $258.3 million, or
17.4% of net sales, in the prior fiscal year, primarily due to the
factors noted above.
- Net income was $170.6 million, or $5.62 per diluted share,
compared to net income of $192.5 million, or $6.33 per diluted
share in the prior fiscal year. Net income per diluted share in
fiscal 2023 and fiscal 2022 includes an approximately $0.05 and
$0.17 per share benefit, respectively, primarily due to income tax
accounting for share-based compensation. Excluding the tax
benefits, net income per diluted share in fiscal 2023 was $5.57,
compared to $6.16 in fiscal 2022.
Sales by Channel
The following table includes total net sales growth/(decline)
and same store sales growth/(decline) for the periods indicated
below:
Fourteen WeeksEndedApril 1, 2023 Four WeeksFiscal
2023January Four WeeksFiscal 2023February Six
WeeksFiscal 2023March PreliminaryQuarter-to-Datethrough May
15, 2023 High-End GuidanceThirteen Weeks EndingJuly 1,
2023 Total Net Sales Growth/(Decline)
11.0
%
*
4.4
%
5.7
%
19.9
%
*
2.1
%
(0.5)
%
Retail Stores SSS
(3.3)
%
0.6
%
(1.9)
%
(6.2)
%
(4.3)
%
(6.0)
%
E-commerce SSS
(18.4)
%
(16.3)
%
(18.7)
%
(19.4)
%
(15.2)
%
(15.0)
%
Total SSS
(5.5)
%
(2.1)
%
(4.5)
%
(8.0)
%
(5.8)
%
(7.0)
%
*Note: Total net sales growth for the six weeks ended
fiscal 2023 March compares to the five weeks ended fiscal 2022
March. Total net sales growth for the fourteen weeks ended April 1,
2023 compares to the thirteen weeks ended March 26, 2022. Fiscal
2023 was a 53-week year, compared to fiscal 2022 which was a
52-week year.
Balance Sheet Highlights as of April 1, 2023
- Cash of $18.2 million.
- $66.0 million drawn under our $250 million revolving credit
facility.
Fiscal Year 2024 Outlook
The Company is providing guidance for what it can reasonably
estimate at this time. For the fiscal year ending March 30, 2024
the Company expects:
- To open 52 new stores.
- Total sales of $1.690 billion to $1.723 billion, representing
growth of 2.0% to 4.0% over the prior year, which was a 53-week
year.
- Same store sales decline of approximately (6.5)% to (4.5)%,
with retail store same store sales declines of approximately (7.0)%
to (5.2)% and e-commerce same store sales declines of (3.0)% to
growth of 1.0%.
- Gross profit between $613.7 million and $629.7 million, or
approximately 36.3% to 36.5% of sales. Gross profit reflects an
estimated 150 basis point increase in merchandise margin which
includes a 100 basis point improvement from freight expense. We
expect to grow exclusive brand penetration by 400 basis points. We
anticipate 180 basis points of deleverage in buying, occupancy and
distribution center costs primarily resulting from negative same
store sales, higher occupancy from new stores, and the cost of the
new Kansas City distribution center.
- Selling, general and administrative expenses between $416.2
million and $419.8 million. This represents approximately 24.6% to
24.4% of sales.
- Income from operations between $197.5 million and $209.9
million. This represents approximately 11.7% to 12.2% of
sales.
- Interest expense of $4.3 million.
- Effective tax rate of 25.6%.
- Net income of $143.8 million to $153.0 million.
- Net income per diluted share of $4.70 to $5.00 based on 30.6
million weighted average diluted shares outstanding.
- Capital expenditures between $90 million and $95 million.
For the fiscal first quarter ending July 1, 2023, the Company
expects:
- Total sales of $357 million to $364 million, representing a
decline of (2.4)% to (0.5)% over the prior-year period.
- Same store sales decline of approximately (9.0)% to (7.0)%,
with retail store same store sales declines of (8.0)% to (6.0)% and
e-commerce same store sales declines of (17.0)% to (15.0)%.
- Gross profit between $127.5 million and $131.1 million, or
approximately 35.7% to 36.0% of sales. Gross profit reflects an
estimated 80 basis point increase in merchandise margin which
assumes flat freight expense year-over-year. We anticipate 250
basis points of deleverage in buying, occupancy and distribution
center costs primarily resulting from negative same store sales,
higher occupancy from new stores, and the cost of the new Kansas
City distribution center.
- Selling, general and administrative expenses between $93.8
million and $94.9 million. This represents approximately 26.3% to
26.1% of sales.
- Income from operations between $33.7 million and $36.2 million.
This represents approximately 9.4% to 9.9% of sales.
- Net income per diluted share of $0.79 to $0.85 based on 30.6
million weighted average diluted shares outstanding.
Conference Call Information
A conference call to discuss the financial results for the
fourth quarter and fiscal year 2023 is scheduled for today, May 17,
2023, 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 June 17, 2023, by dialing (844) 512-2921 (domestic)
or (412) 317-6671 (international) and entering the conference
identification number: 13738768. 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 352 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; 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; and the effect of COVID-19 on our
business. The Company discusses the foregoing risks and other risks
in greater detail under the heading “Risk factors” in the periodic
reports filed by the Company with the Securities and Exchange
Commission. Although the Company believes that these
forward-looking statements are based on reasonable assumptions, you
should be aware that many factors could affect the Company’s actual
financial results and cause them to differ materially from those
anticipated in the forward-looking statements. Because of these
factors, the Company cautions that you should not place undue
reliance on any of these forward-looking statements. New risks and
uncertainties arise from time to time, and it is impossible for the
Company to predict those events or how they may affect the Company.
Further, any forward-looking statement speaks only as of the date
on which it is made. Except as required by law, the Company does
not intend to update or revise the forward-looking statements in
this press release after the date of this press release.
Boot Barn Holdings,
Inc.
Consolidated Balance
Sheets
(In thousands, except per share
data)
(Unaudited)
April 1,
March 26,
2023
2022
Assets Current assets: Cash and cash equivalents $
18,193
$
20,674
Accounts receivable, net
13,145
9,662
Inventories
589,494
474,300
Prepaid expenses and other current assets
48,341
37,195
Total current assets
669,173
541,831
Property and equipment, net
257,143
155,247
Right-of-use assets, net
326,623
241,147
Goodwill
197,502
197,502
Intangible assets, net
60,751
60,813
Other assets
6,189
3,315
Total assets $
1,517,381
$
1,199,855
Liabilities and stockholders’ equity Current liabilities:
Line of credit $
66,043
$
28,549
Accounts payable
134,246
131,394
Accrued expenses and other current liabilities
122,958
133,408
Short-term lease liabilities
51,595
43,117
Total current liabilities
374,842
336,468
Deferred taxes
33,260
26,895
Long-term lease liabilities
330,081
234,584
Other liabilities
2,748
2,232
Total liabilities
740,931
600,179
Stockholders’ equity: Common stock, $0.0001 par value; April
1, 2023 - 100,000 shares authorized, 30,072 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
209,964
199,054
Retained earnings
576,030
405,477
Less: Common stock held in treasury, at cost, 192 and 135 shares at
April 1, 2023 and March 26,2022, respectively
(9,547
)
(4,858
)
Total stockholders’ equity
776,450
599,676
Total liabilities and stockholders’ equity $
1,517,381
$
1,199,855
Boot Barn Holdings,
Inc.
Consolidated Statements of
Operations
(In thousands, except per share
data)
(Unaudited)
Fourteen WeeksEnded ThirteenWeeks Ended
Fifty-ThreeWeeks Ended Fifty-Two WeeksEnded April
1,2023 March 26,2022 April 1,2023 March
26,2022 Net sales
$
425,661
$
383,308
$
1,657,615
$
1,488,256
Cost of goods sold
269,829
234,472
1,047,043
913,183
Gross profit
155,832
148,836
610,572
575,073
Selling, general and administrative expenses
93,116
86,447
378,785
316,735
Income from operations
62,716
62,389
231,787
258,338
Interest expense
1,535
388
5,880
5,780
Other income/(loss), net
181
(126
)
(29
)
35
Income before income taxes
61,362
61,875
225,878
252,593
Income tax expense
14,953
17,162
55,325
60,143
Net income
$
46,409
$
44,713
$
170,553
$
192,450
Earnings per share: Basic shares
$
1.55
$
1.51
$
5.72
$
6.51
Diluted shares
$
1.53
$
1.47
$
5.62
$
6.33
Weighted average shares outstanding: Basic shares
29,847
29,671
29,805
29,556
Diluted shares
30,422
30,411
30,370
30,391
Boot Barn Holdings,
Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Fiscal Year Ended
April 1,
March 26,
March 27,
2023
2022
2021
Cash flows from operating activities Net income $
170,553
$
192,450
$
59,386
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation
35,883
27,280
24,059
Stock-based compensation
9,711
9,475
7,158
Amortization of intangible assets
62
72
89
Noncash lease expense
47,869
39,286
34,231
Amortization and write-off of debt issuance fees and debt discount
130
1,878
884
Loss on disposal of property and equipment
334
175
87
(Gain)/loss on adjustment of right-of-use assets and lease
liabilities
—
(259
)
295
Store impairment charges
—
—
384
Deferred taxes
6,365
4,902
2,192
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable, net
(2,716
)
5,222
8,050
Inventories
(115,194
)
(198,540
)
12,957
Prepaid expenses and other current assets
(11,276
)
(24,577
)
1,382
Other assets
(2,874
)
(236
)
(1,729
)
Accounts payable
(2,636
)
25,502
12,360
Accrued expenses and other current liabilities
(18,541
)
45,229
25,003
Other liabilities
516
(1,192
)
2,789
Operating leases
(29,299
)
(37,803
)
(33,655
)
Net cash provided by operating activities $
88,887
$
88,864
$
155,922
Cash flows from investing activities Purchases of property
and equipment $
(124,534
)
$
(60,443
)
$
(28,424
)
Net cash used in investing activities $
(124,534
)
$
(60,443
)
$
(28,424
)
Cash flows from financing activities Borrowings/(payments)
on line of credit - net $
37,494
$
28,549
$
(129,900
)
Repayments on debt and finance lease obligations
(838
)
(112,304
)
(667
)
Tax withholding payments for net share settlement
(4,689
)
(2,904
)
(754
)
Proceeds from the exercise of stock options
1,199
5,764
7,408
Net cash provided by/(used in) financing activities $
33,166
$
(80,895
)
$
(123,913
)
Net (decrease)/increase in cash and cash equivalents
(2,481
)
(52,474
)
3,585
Cash and cash equivalents, beginning of period
20,674
73,148
69,563
Cash and cash equivalents, end of period $
18,193
$
20,674
$
73,148
Supplemental disclosures of cash flow information:
Cash paid for income taxes $
60,171
$
41,684
$
11,458
Cash paid for interest $
5,835
$
3,808
$
8,795
Supplemental disclosure of non-cash activities: Unpaid
purchases of property and equipment $
21,487
$
14,963
$
2,642
Boot Barn Holdings,
Inc.
Store Count
Quarter Ended April 1,
Quarter Ended December
24,
Quarter Ended September
24,
Quarter Ended June 25,
Quarter Ended March
26,
Quarter Ended December
25,
Quarter Ended September
25,
Quarter Ended June 26,
2023
2022
2022
2022
2022
2021
2021
2021
Store Count (BOP)
333
321
311
300
289
278
276
273
Opened/Acquired
12
12
10
11
11
11
3
3
Closed
—
—
—
—
—
—
(1
)
—
Store Count (EOP)
345
333
321
311
300
289
278
276
Boot Barn Holdings,
Inc.
Selected Store Data
Fourteen Weeks Ended
Thirteen Weeks Ended
April 1,
December 24,
September 24,
June 25,
March 26,
December 25,
September 25,
June 26,
2023
2022
2022
2022
2022
2021
2021
2021
Selected Store Data: Same Store Sales (decline)/growth
(5.5)
%
(3.6)
%
2.3
%
10.0
%
33.3
%
54.2
%
61.7
%
78.9
%
Stores operating at end of period
345
333
321
311
300
289
278
276
Total retail store square footage, end of period (in thousands)
3,735
3,598
3,451
3,333
3,194
3,063
2,940
2,915
Average store square footage, end of period
10,825
10,806
10,751
10,717
10,648
10,597
10,575
10,563
Average net sales per store (in thousands) $
1,088
$
1,320
$
966
$
1,031
$
1,094
$
1,372
$
965
$
942
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230517005362/en/
Investors: ICR, Inc. Brendon Frey, 203-682-8216
BootBarnIR@icrinc.com
or
Company: Boot Barn Holdings, Inc. Mark Dedovesh,
949-453-4489 Vice President, Investor Relations & Financial
Planning BootBarnIRMedia@bootbarn.com
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