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Business Wire 28-Oct-2024 4:05 PM
Boot Barn Holdings, Inc. (NYSE:BOOT) (the "Company") today announced its financial results for the second fiscal quarter ended September 28, 2024. A Supplemental Financial Presentation is available at investor.bootbarn.com.
In addition, the Company announced that Jim Conroy plans to step down as the Company's Chief Executive Officer (CEO) and President and as a member of the Company's Board of Directors, effective November 22, 2024, to pursue an opportunity as CEO of Ross Stores, Inc (NASDAQ:ROST).
CEO Transition
The Company further announced that John Hazen, the Company's current Chief Digital Officer, will assume the role of Interim CEO, effective November 22, 2024. Mr. Hazen joined the Company in 2018 with responsibility for e-commerce, marketing, and the customer experience. Additionally, Peter Starrett, the Company's current Chairman of the Board of Directors, will assume the role of Executive Chairman, effective November 22, 2024. Mr. Conroy will remain with the Company through November 22, 2024 to assist with an orderly transition.
Mr. Starrett stated, "John Hazen is very highly regarded within the Boot Barn organization and has a diverse background that includes brand building, digital, and store roles. He has a strong track record of growing sales and profits both at Boot Barn and prior to joining the Company. He also has been extremely instrumental in advancing Boot Barn's customer-facing technology capabilities including many industry-leading applications of artificial intelligence. I am confident in his ability to step into the role as Interim CEO. Personally, I am looking forward to providing oversight and mentorship as Executive Chairman while the Board conducts an internal and external search before making a permanent decision on our next CEO."
John Hazen commented, "I am deeply honored to step into this role and incredibly grateful to Jim for his visionary leadership and unwavering support. I also want to express my heartfelt thanks to the Board for their trust and to every member of this incredible team for their dedication that makes this Company exceptional. Together, we will continue building on the strong foundation that we have created and will move forward with confidence, tenacity, and purpose."
Mr. Starrett added, "The Board recognizes the great contributions Jim has made during his tenure as Boot Barn's CEO. When he assumed the CEO reins 12 years ago, Boot Barn was one of several regional retail chains specializing in western and work products. His focused approach on the execution of our strategic initiatives has led to one of the most exceptional growth stories in the retail industry. Today, Boot Barn is a national chain of 426 stores and the industry leader by a wide margin. On behalf of all Boot Barn partners, we wish Jim continued success in his next endeavor."
Mr. Conroy commented, "After 12 incredible years, I am filled with immense gratitude for this Company and the extraordinary people who have been by my side throughout this journey. Together, we've built something truly special, and I will forever cherish the shared successes, challenges, and memories we created. Thank you for your trust, dedication, and passion—I leave with a heart full of pride and appreciation for every one of you."
Second Quarter Fiscal Year 2025 Financial Results
For the quarter ended September 28, 2024 compared to the quarter ended September 30, 2023:
Jim Conroy, President and Chief Executive Officer said, "Our fiscal second quarter saw broad-based growth in same store sales, the addition of 15 new stores and a healthy beat to guidance in earnings per diluted share. Our team's excellent execution has driven improving trends across all channels, store geographies, and major merchandise classifications, positioning us well for the upcoming holiday season. As we manage through an orderly transition over the next month, I feel great about the condition of the business and am confident in the team's ability, under John's leadership, to execute on the four strategic initiatives and to drive future growth in sales and earnings."
Operating Results for the Second Quarter Ended September 28, 2024 Compared to the Second Quarter Ended September 30, 2023
Operating Results for the Six Months Ended September 28, 2024 Compared to the Six Months Ended September 30, 2023
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 |
|
|
|
|
|
|
|
|
Preliminary |
|||||||
|
|
Ended |
|
Four Weeks |
Four Weeks |
Five Weeks |
|
Four Weeks |
||||||||||
|
|
September 28, 2024 |
|
Fiscal July |
Fiscal August |
Fiscal September |
|
Fiscal October |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Net Sales Growth |
|
13.7 |
% |
|
8.8 |
% |
14.7 |
% |
16.8 |
% |
|
14.6 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Retail Stores SSS |
|
4.3 |
% |
|
(0.9) |
% |
5.3 |
% |
7.5 |
% |
|
4.3 |
% |
|||||
E-commerce SSS |
|
10.1 |
% |
|
5.0 |
% |
12.1 |
% |
12.2 |
% |
|
12.5 |
% |
|||||
Consolidated SSS |
|
4.9 |
% |
|
(0.3) |
% |
6.0 |
% |
8.0 |
% |
|
5.1 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
E-commerce as a % of Net Sales |
|
9.5 |
% |
|
9.2 |
% |
9.4 |
% |
9.9 |
% |
|
9.3 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Highlights as of September 28, 2024
Fiscal Year 2025 Outlook
The Company is providing updated guidance for the fiscal year ending March 29, 2025, superseding in its entirety the previous guidance issued in its first quarter earnings report on August 7, 2024. Please note that the Company's guidance excludes any benefits and costs related to the CEO transition.
For the fiscal year ending March 29, 2025 the Company now expects:
For the fiscal third quarter ending December 28, 2024, the Company now expects:
Conference Call Information
A conference call to discuss the financial results for the second quarter of fiscal year 2025 is scheduled for today, October 28, 2024, at 4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in participating in the call are invited to dial (844) 481-2552. 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 28, 2024, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 10193684. 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 426 stores in 46 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 the Company's current expectations and projections relating to, by way of example and without limitation, the Company's 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 that 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)
|
|
September 28, |
|
March 30, |
||||
|
|
2024 |
|
2024 |
||||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
37,377 |
|
|
$ |
75,847 |
|
Accounts receivable, net |
|
|
7,886 |
|
|
|
9,964 |
|
Inventories |
|
|
712,991 |
|
|
|
599,120 |
|
Prepaid expenses and other current assets |
|
|
48,851 |
|
|
|
44,718 |
|
Total current assets |
|
|
807,105 |
|
|
|
729,649 |
|
Property and equipment, net |
|
|
368,289 |
|
|
|
323,667 |
|
Right-of-use assets, net |
|
|
429,020 |
|
|
|
390,501 |
|
Goodwill |
|
|
197,502 |
|
|
|
197,502 |
|
Intangible assets, net |
|
|
58,677 |
|
|
|
58,697 |
|
Other assets |
|
|
6,184 |
|
|
|
5,576 |
|
Total assets |
|
$ |
1,866,777 |
|
|
$ |
1,705,592 |
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
153,564 |
|
|
$ |
132,877 |
|
Accrued expenses and other current liabilities |
|
|
134,302 |
|
|
|
116,477 |
|
Short-term lease liabilities |
|
|
70,540 |
|
|
|
63,454 |
|
Total current liabilities |
|
|
358,406 |
|
|
|
312,808 |
|
Deferred taxes |
|
|
41,267 |
|
|
|
42,033 |
|
Long-term lease liabilities |
|
|
446,068 |
|
|
|
403,303 |
|
Other liabilities |
|
|
4,378 |
|
|
|
3,805 |
|
Total liabilities |
|
|
850,119 |
|
|
|
761,949 |
|
|
|
|
|
|
|
|
||
Stockholders' equity: |
|
|
|
|
|
|
||
Common stock, $0.0001 par value; September 28, 2024 - 100,000 shares authorized, 30,824 shares issued; March 30, 2024 - 100,000 shares authorized, 30,572 shares issued |
|
|
3 |
|
|
|
3 |
|
Preferred stock, $0.0001 par value; 10,000 shares authorized, no shares issued or outstanding |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
244,931 |
|
|
|
232,636 |
|
Retained earnings |
|
|
791,363 |
|
|
|
723,026 |
|
Less: Common stock held in treasury, at cost, 298 and 228 shares at September 28, 2024 and March 30, 2024, respectively |
|
|
(19,639 |
) |
|
|
(12,022 |
) |
Total stockholders' equity |
|
|
1,016,658 |
|
|
|
943,643 |
|
Total liabilities and stockholders' equity |
|
$ |
1,866,777 |
|
|
$ |
1,705,592 |
|
Boot Barn Holdings, Inc. Consolidated Statements of Operations (In thousands, except per share data) (Unaudited)
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|||||||||
|
|
September 28, |
|
September 30, |
|
September 28, |
|
September 30, |
|||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
Net sales |
|
$ |
425,799 |
|
$ |
374,456 |
|
|
$ |
849,185 |
|
$ |
758,151 |
Cost of goods sold |
|
|
272,941 |
|
|
240,540 |
|
|
|
539,578 |
|
|
482,272 |
Gross profit |
|
|
152,858 |
|
|
133,916 |
|
|
|
309,607 |
|
|
275,879 |
Selling, general and administrative expenses |
|
|
112,879 |
|
|
95,338 |
|
|
|
219,406 |
|
|
191,056 |
Income from operations |
|
|
39,979 |
|
|
38,578 |
|
|
|
90,201 |
|
|
84,823 |
Interest expense |
|
|
384 |
|
|
463 |
|
|
|
735 |
|
|
1,486 |
Other income (loss), net |
|
|
949 |
|
|
(50 |
) |
|
|
1,545 |
|
|
174 |
Income before income taxes |
|
|
40,544 |
|
|
38,065 |
|
|
|
91,011 |
|
|
83,511 |
Income tax expense |
|
|
11,116 |
|
|
10,385 |
|
|
|
22,674 |
|
|
21,578 |
Net income |
|
$ |
29,428 |
|
$ |
27,680 |
|
|
$ |
68,337 |
|
$ |
61,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.96 |
|
$ |
0.92 |
|
|
$ |
2.24 |
|
$ |
2.06 |
Diluted |
|
$ |
0.95 |
|
$ |
0.90 |
|
|
$ |
2.21 |
|
$ |
2.03 |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
30,510 |
|
|
30,137 |
|
|
|
30,471 |
|
|
30,029 |
Diluted |
|
|
30,899 |
|
|
30,627 |
|
|
|
30,859 |
|
|
30,540 |
Boot Barn Holdings, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited)
|
|
Twenty-Six Weeks Ended |
||||||
|
|
September 28, |
|
September 30, |
||||
|
|
2024 |
|
2023 |
||||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net income |
|
$ |
68,337 |
|
|
$ |
61,933 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation |
|
|
29,540 |
|
|
|
22,597 |
|
Stock-based compensation |
|
|
10,864 |
|
|
|
7,833 |
|
Amortization of intangible assets |
|
|
20 |
|
|
|
27 |
|
Noncash lease expense |
|
|
32,229 |
|
|
|
26,487 |
|
Amortization and write-off of debt issuance fees and debt discount |
|
|
54 |
|
|
|
54 |
|
Loss on disposal of assets |
|
|
134 |
|
|
|
298 |
|
Deferred taxes |
|
|
(766 |
) |
|
|
2,993 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
2,097 |
|
|
|
3,046 |
|
Inventories |
|
|
(113,871 |
) |
|
|
3,921 |
|
Prepaid expenses and other current assets |
|
|
(4,397 |
) |
|
|
9,243 |
|
Other assets |
|
|
(608 |
) |
|
|
1,302 |
|
Accounts payable |
|
|
19,722 |
|
|
|
7,051 |
|
Accrued expenses and other current liabilities |
|
|
9,897 |
|
|
|
13,600 |
|
Other liabilities |
|
|
573 |
|
|
|
510 |
|
Operating leases |
|
|
(20,283 |
) |
|
|
(15,435 |
) |
Net cash provided by operating activities |
|
$ |
33,542 |
|
|
$ |
145,460 |
|
Cash flows from investing activities |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(65,403 |
) |
|
|
(64,687 |
) |
Net cash used in investing activities |
|
$ |
(65,403 |
) |
|
$ |
(64,687 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
||
Payments on line of credit, net |
|
|
— |
|
|
|
(66,043 |
) |
Repayments on debt and finance lease obligations |
|
|
(423 |
) |
|
|
(428 |
) |
Tax withholding payments for net share settlement |
|
|
(7,617 |
) |
|
|
(2,412 |
) |
Proceeds from the exercise of stock options |
|
|
1,431 |
|
|
|
8,582 |
|
Net cash used in financing activities |
|
$ |
(6,609 |
) |
|
$ |
(60,301 |
) |
Net (decrease)/increase in cash and cash equivalents |
|
|
(38,470 |
) |
|
|
20,472 |
|
Cash and cash equivalents, beginning of period |
|
|
75,847 |
|
|
|
18,193 |
|
Cash and cash equivalents, end of period |
|
$ |
37,377 |
|
|
$ |
38,665 |
|
|
|
|
|
|
|
|
||
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
||
Cash paid for income taxes |
|
$ |
17,770 |
|
|
$ |
2,822 |
|
Cash paid for interest |
|
$ |
677 |
|
|
$ |
1,399 |
|
Supplemental disclosure of non-cash activities: |
|
|
|
|
|
|
||
Unpaid purchases of property and equipment |
|
$ |
24,061 |
|
|
$ |
14,103 |
|
Boot Barn Holdings, Inc. Store Count
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
|
|
September 28, |
|
June 29, |
|
March 30, |
|
December 30, |
|
September 30, |
|
July 1, |
|
April 1, |
|
December 24, |
|
|
|
2024 |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
Store Count (BOP) |
|
411 |
|
|
400 |
|
382 |
|
371 |
|
361 |
|
345 |
|
333 |
|
321 |
Opened/Acquired |
|
15 |
|
|
11 |
|
18 |
|
11 |
|
10 |
|
16 |
|
12 |
|
12 |
Closed |
|
(1 |
) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
Store Count (EOP) |
|
425 |
|
|
411 |
|
400 |
|
382 |
|
371 |
|
361 |
|
345 |
|
333 |
Boot Barn Holdings, Inc. Selected Store Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourteen |
|
Thirteen |
||||||||||
|
|
Thirteen Weeks Ended |
|
Weeks Ended |
|
Weeks Ended |
||||||||||||||||||||||||
|
|
September 28, |
|
June 29, |
|
March 30, |
|
December 30, |
|
September 30, |
|
July 1, |
|
April 1, |
|
December 24, |
||||||||||||||
|
|
2024 |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
||||||||||||||
Selected Store Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Same Store Sales growth/(decline) |
|
|
4.9 |
% |
|
1.4 |
% |
|
(5.9 |
)% |
|
(9.7 |
)% |
|
(4.8 |
)% |
|
(2.9 |
)% |
|
(5.5 |
)% |
|
(3.6 |
)% |
|||||
Stores operating at end of period |
|
|
425 |
|
|
411 |
|
|
400 |
|
|
|
382 |
|
|
|
371 |
|
|
|
361 |
|
|
|
345 |
|
|
|
333 |
|
Comparable stores operating during period(1) |
|
|
363 |
|
|
349 |
|
|
335 |
|
|
|
322 |
|
|
|
312 |
|
|
|
302 |
|
|
|
290 |
|
|
|
280 |
|
Total retail store selling square footage, end of period (in thousands) |
|
|
4,720 |
|
|
4,547 |
|
|
4,371 |
|
|
|
4,153 |
|
|
|
4,027 |
|
|
|
3,914 |
|
|
|
3,735 |
|
|
|
3,598 |
|
Average retail store selling square footage, end of period |
|
|
11,105 |
|
|
11,063 |
|
|
10,929 |
|
|
|
10,872 |
|
|
|
10,855 |
|
|
|
10,841 |
|
|
|
10,825 |
|
|
|
10,806 |
|
Average sales per comparable store (in thousands)(2) |
|
$ |
952 |
|
$ |
980 |
|
$ |
917 |
|
|
$ |
1,256 |
|
|
$ |
950 |
|
|
$ |
1,014 |
|
|
$ |
1,092 |
|
|
$ |
1,424 |
|
(1) Comparable stores have been open at least 13 full fiscal months as of the end of the applicable reporting period. |
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(2) Average sales per comparable store is calculated by dividing comparable store trailing three-month sales for the applicable period by the number of comparable stores operating during the period. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241028994741/en/