Boot Barn Holdings, Inc. (NYSE: BOOT) today announced its
financial results for the first fiscal quarter ended July 1, 2023.
A Supplemental Financial Presentation is available at
investor.bootbarn.com.
For the quarter ended July 1, 2023:
- Net sales increased 4.9% over the prior-year period to $383.7
million, cycling 19.4% net sales growth in the prior-year
period.
- Same store sales decreased 2.9% compared to the prior-year
period, cycling 10.0% same store sales growth in the prior-year
period. The 2.9% decrease in consolidated same store sales is
comprised of a decrease in retail store same store sales of 1.8%
and a decrease in e-commerce same store sales of 10.8%.
- Net income was $34.3 million, or $1.13 per diluted share,
compared to $39.3 million, or $1.29 per diluted share in the
prior-year period. Net income per diluted share in the current-year
and prior-year period includes an approximately $0.02 and $0.03 per
share benefit, respectively, primarily due to income tax accounting
for share-based compensation. Excluding the tax benefits, net
income per diluted share was $1.11 and $1.26 in the current-year
and prior-year period, respectively.
- The Company opened 16 new stores, bringing its total store
count to 361.
Jim Conroy, President and Chief Executive Officer, commented “I
am quite pleased with the results of the quarter as we exceeded our
quarterly guidance across nearly every measure. Total revenue
continued to grow, driven by the performance of new stores. From a
same store sales growth perspective, we saw a modest 2.9% decline
despite cycling outsized comp sales growth in the first quarter for
each of the past two years. Once again, we were able to expand our
merchandise margin through a significant increase in the
penetration of our margin enhancing exclusive brands which reached
38% of sales for the quarter. Earnings also surpassed our
expectations, driven by a steadily improving retail store same
store sales trend which turned positive in June and remained
positive in July. While uncertainty in the macro environment
persists, we are pleased with the positive momentum we have seen in
the business.”
Operating Results for the First Quarter Ended July 1, 2023
Compared to the First Quarter Ended June 25, 2022
- Net sales increased 4.9% to $383.7 million from $365.9 million
in the prior-year period. Consolidated same store sales decreased
2.9% with retail store same store sales decreasing 1.8% and
e-commerce same store sales decreasing 10.8%. The increase in net
sales was the result of the incremental sales from new stores
opened over the past twelve months, partially offset by the
decrease in consolidated same store sales. Higher average unit
retail prices, driven in part by inflation, contributed to the
increase in net sales.
- Gross profit was $142.0 million, or 37.0% of net sales,
compared to $137.8 million, or 37.7% of net sales, in the
prior-year period. Gross profit increased primarily due to higher
sales. The decrease in gross profit rate of 70 basis points was
driven primarily by 160 basis points of deleverage in buying,
occupancy and distribution center costs partially offset by a 90
basis-point increase in merchandise margin rate. The increase in
merchandise margin rate was driven by 80 basis points of product
margin expansion resulting primarily from growth in exclusive brand
penetration and a 10 basis-point tailwind from lower freight
expense as a percentage of net sales.
- Selling, general and administrative expenses were $95.7
million, or 24.9% of net sales, compared to $85.4 million, or 23.3%
of net sales, in the prior-year period. The increase in selling,
general and administrative expenses as compared to the prior-year
period was primarily a result of higher store payroll and
store-related expenses associated with operating 50 new stores and
corporate overhead costs in the current year. Selling, general and
administrative expenses as a percentage of net sales increased by
160 basis points primarily as a result of higher payroll and
overhead costs.
- Income from operations decreased $6.2 million to $46.2 million,
or 12.1% of net sales, compared to $52.4 million, or 14.3% of net
sales, in the prior-year period, primarily due to the factors noted
above.
- Net income was $34.3 million, or $1.13 per diluted share,
compared to net income of $39.3 million, or $1.29 per diluted share
in the prior-year period. The decrease in net income is primarily
attributable to the factors noted above. Net income per diluted
share in the current-year and prior-year period includes
approximately $0.02 and $0.03 per share benefit, respectively,
primarily due to income tax accounting for share-based
compensation. Excluding the tax benefits, net income per diluted
share was $1.11 and $1.26 in the current-year and prior-year
period, respectively.
Sales by Channel
The following table includes total net sales growth, same store
sales (“SSS”) growth/(decline) and e-commerce as a percentage of
net sales for the periods indicated below.
Thirteen Weeks
Ended
July 1, 2023
Four Weeks
Fiscal April
Four Weeks
Fiscal May
Five Weeks
Fiscal June
Preliminary
Four Weeks
Fiscal July
Total Net Sales Growth
4.9
%
2.1
%
4.2
%
7.8
%
12.9
%
Retail Stores SSS
(1.8
)%
(5.0
)%
(2.6
)%
1.5
%
1.0
%
E-commerce SSS
(10.8
)%
(19.1
)%
(9.0
)%
(3.5
)%
(11.4
)%
Consolidated SSS
(2.9
)%
(6.9
)%
(3.3
)%
1.0
%
(0.5
)%
E-commerce as a % of Net Sales
9.9
%
10.5
%
10.0
%
9.3
%
9.6
%
Balance Sheet Highlights as of July 1, 2023
- Cash of $17.1 million.
- $26.2 million drawn under our $250 million revolving credit
facility.
Fiscal Year 2024 Outlook
The Company is providing updated guidance for the fiscal year
ending March 30, 2024, superseding in its entirety the previous
guidance issued in its fourth quarter and fiscal year 2023 earnings
report on May 17, 2023. As a result, for the fiscal year ending
March 30, 2024, the Company now expects:
- To open 52 new stores.
- Total sales of $1.715 billion to $1.748 billion, representing
growth of 3.5% to 5.5% over the prior year, which was a 53-week
year.
- Same store sales decline of approximately (5.0)% to (3.0)%,
with retail store same store sales declines of (5.5)% to (3.5)% and
an e-commerce same store sales decline of (4.0)% to flat.
- Gross profit between $629.7 million and $645.7 million, or
approximately 36.7% to 36.9% of sales. Gross profit reflects an
estimated 160 basis-point increase in merchandise margin, including
a 100 basis-point improvement from freight expense. We anticipate
150 basis points of deleverage in buying, occupancy and
distribution center costs.
- Selling, general and administrative expenses between $419.3
million and $422.9 million. This represents approximately 24.4% to
24.2% of sales.
- Income from operations between $210.4 million and $222.8
million. This represents approximately 12.3% to 12.7% of
sales.
- Interest expense of $3.2 million.
- Net income of $154.2 million to $163.4 million.
- Net income per diluted share of $5.05 to $5.35 based on 30.6
million weighted average diluted shares outstanding.
- Capital expenditures between $90 million and $95 million.
For the fiscal second quarter ending September 30, 2023, the
Company expects:
- Total sales of $372 million to $379 million, representing
growth of 5.8% to 7.8% over the prior year.
- Same store sales decline of approximately (5.5)% to (3.5)%,
with retail store same store sales declines of (4.5)% to (2.5)% and
e-commerce same store sales declines of (11.0)% to (9.0)%.
- Gross profit between $130.7 million and $134.2 million, or
approximately 35.1% to 35.4% of sales. Gross profit reflects 180
basis points of deleverage in buying, occupancy and distribution
center costs, and an estimated 50 basis-point increase in
merchandise margin, including flat freight expense
year-over-year.
- Selling, general and administrative expenses between $95.3 and
$96.4 million. This represents approximately 25.6% to 25.4% of
sales.
- Income from operations between $35.4 million and $37.8 million.
This represents approximately 9.5% to 10.0% of sales.
- Net income per diluted share of $0.84 to $0.90 based on 30.6
million weighted average diluted shares outstanding.
Conference Call Information
A conference call to discuss the financial results for the first
quarter of fiscal year 2024 is scheduled for today, August 2, 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
September 2, 2023, by dialing (844) 512-2921 (domestic) or (412)
317-6671 (international) and entering the conference identification
number: 13740369. 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 363 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.
Boot Barn Holdings,
Inc.
Consolidated Balance
Sheets
(In thousands, except per share
data)
(Unaudited)
July 1,
April 1,
2023
2023
Assets Current assets: Cash and cash equivalents
$
17,099
$
18,193
Accounts receivable, net
11,803
13,145
Inventories
566,294
589,494
Prepaid expenses and other current assets
36,828
48,341
Total current assets
632,024
669,173
Property and equipment, net
275,969
257,143
Right-of-use assets, net
334,403
326,623
Goodwill
197,502
197,502
Intangible assets, net
60,737
60,751
Other assets
5,835
6,189
Total assets
$
1,506,470
$
1,517,381
Liabilities and stockholders’ equity
Current liabilities:
Line of credit
$
26,215
$
66,043
Accounts payable
108,203
134,246
Accrued expenses and other current liabilities
123,997
122,958
Short-term lease liabilities
54,670
51,595
Total current liabilities
313,085
374,842
Deferred taxes
33,987
33,260
Long-term lease liabilities
342,456
330,081
Other liabilities
3,246
2,748
Total liabilities
692,774
740,931
Stockholders’ equity:
Common stock, $0.0001 par value; July 1, 2023 - 100,000 shares
authorized, 30,195 shares issued; April 1, 2023 - 100,000 shares
authorized, 30,072 shares issued
3
3
Preferred stock, $0.0001 par value; 10,000 shares authorized, no
shares issued or outstanding
—
—
Additional paid-in capital
215,262
209,964
Retained earnings
610,283
576,030
Less: Common stock held in treasury, at cost, 226 and 192 shares at
July 1, 2023 and April 1, 2023, respectively
(11,852
)
(9,547
)
Total stockholders’ equity
813,696
776,450
Total liabilities and stockholders’ equity
$
1,506,470
$
1,517,381
Boot Barn Holdings,
Inc.
Consolidated Statements of
Operations
(In thousands, except per share
data)
(Unaudited)
Thirteen Weeks Ended
July 1,
June 25,
2023
2022
Net sales
$
383,695
$
365,856
Cost of goods sold
241,732
228,026
Gross profit
141,963
137,830
Selling, general and administrative expenses
95,718
85,405
Income from operations
46,245
52,425
Interest expense
1,023
725
Other income/(loss), net
224
(273
)
Income before income taxes
45,446
51,427
Income tax expense
11,193
12,109
Net income
$
34,253
$
39,318
Earnings per share:
Basic
$
1.14
$
1.32
Diluted
$
1.13
$
1.29
Weighted average shares outstanding:
Basic
29,922
29,747
Diluted
30,444
30,386
Boot Barn Holdings,
Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Thirteen Weeks Ended
July 1,
June 25,
2023
2022
Cash flows from operating activities Net income
$
34,253
$
39,318
Adjustments to reconcile net income to net cash provided by/(used
in) operating activities:
Depreciation
10,603
8,022
Stock-based compensation
4,953
4,701
Amortization of intangible assets
14
16
Noncash lease expense
13,117
11,119
Amortization and write-off of debt issuance fees and debt discount
27
44
Loss on disposal of assets
176
177
Deferred taxes
727
1,575
Changes in operating assets and liabilities:
Accounts receivable, net
1,452
600
Inventories
23,200
(60,080
)
Prepaid expenses and other current assets
11,486
(20,630
)
Other assets
354
(173
)
Accounts payable
(24,872
)
18,024
Accrued expenses and other current liabilities
158
(21,523
)
Other liabilities
498
150
Operating leases
(5,344
)
(7,108
)
Net cash provided by/(used in) operating activities
$
70,802
$
(25,768
)
Cash flows from investing activities
Purchases of property and equipment
$
(29,895
)
$
(20,835
)
Net cash used in investing activities
$
(29,895
)
$
(20,835
)
Cash flows from financing activities
(Payments)/Borrowings on line of credit, net
$
(39,828
)
$
46,324
Repayments on debt and finance lease obligations
(213
)
(220
)
Tax withholding payments for net share settlement
(2,305
)
(4,408
)
Proceeds from the exercise of stock options
345
247
Net cash (used in)/provided by financing activities
$
(42,001
)
$
41,943
Net decrease in cash and cash equivalents
(1,094
)
(4,660
)
Cash and cash equivalents, beginning of period
18,193
20,674
Cash and cash equivalents, end of period
$
17,099
$
16,014
Supplemental disclosures of cash flow information:
Cash paid for income taxes
$
646
$
19,226
Cash paid for interest
$
1,151
$
534
Supplemental disclosure of non-cash activities:
Unpaid purchases of property and equipment
$
17,517
$
17,473
Boot Barn Holdings,
Inc.
Store Count
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
July 1,
April 1,
December 24,
September 24,
June 25,
March 26,
December 25,
September 25,
2023
2023
2022
2022
2022
2022
2021
2021
Store Count (BOP)
345
333
321
311
300
289
278
276
Opened/Acquired
16
12
12
10
11
11
11
3
Closed
—
—
—
—
—
—
—
(1
)
Store Count (EOP)
361
345
333
321
311
300
289
278
Boot Barn Holdings,
Inc.
Selected Store Data
Thirteen
Weeks Ended
Fourteen
Weeks Ended
Thirteen Weeks Ended
July 1,
April 1,
December 24,
September 24,
June 25,
March 26,
December 25,
September 25,
2023
2023
2022
2022
2022
2022
2021
2021
Selected Store Data: Same Store Sales (decline)/growth
(2.9
)%
(5.5
)%
(3.6
)%
2.3
%
10.0
%
33.3
%
54.2
%
61.7
%
Stores operating at end of period
361
345
333
321
311
300
289
278
Total retail store square footage, end of period (in thousands)
3,914
3,735
3,598
3,451
3,333
3,194
3,063
2,940
Average store square footage, end of period
10,841
10,825
10,806
10,751
10,717
10,648
10,597
10,575
Average net sales per store (in thousands)
$
958
$
1,088
$
1,320
$
966
$
1,031
$
1,094
$
1,372
$
965
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230802948361/en/
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
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