Boot Barn Holdings, Inc. Announces Third Quarter Fiscal Year 2024 Financial Results
For the quarter ended
-
Net sales increased 1.1% over the prior-year period to
$520.4 million . - Same store sales decreased 9.7% compared to the prior-year period, cycling 51% same store sales growth on a 2-year stack basis. The 9.7% decrease in consolidated same store sales is comprised of a decrease in retail store same store sales of 9.4% and a decrease in e-commerce same store sales of 11.5%.
-
Net income was
$55.6 million , or$1.81 per diluted share, compared to$52.8 million , or$1.74 per diluted share in the prior-year period. - The Company opened 11 new stores, bringing its total store count to 382.
Operating Results for the Third Quarter Ended
-
Net sales increased 1.1% to
$520.4 million from$514.6 million in the prior-year period. Consolidated same store sales decreased 9.7% with retail store same store sales decreasing 9.4% and e-commerce same store sales decreasing 11.5%. 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.
-
Gross profit was
$199.1 million , or 38.3% of net sales, compared to$187.8 million , or 36.5% of net sales, in the prior-year period. Gross profit increased primarily due to merchandise margin expansion and sales growth. The increase in gross profit rate of 180 basis points was driven primarily by a 300 basis-point increase in merchandise margin rate partially offset by 120 basis points of deleverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was driven by a 250 basis-point improvement in freight expense as a percentage of net sales and 50 basis points of product margin expansion resulting primarily from lower promotional activity and growth in exclusive brand penetration. The deleverage in buying, occupancy and distribution center costs was driven primarily by the occupancy costs of 49 new stores and operating costs related to the newKansas City distribution center.
-
Selling, general and administrative expenses were
$124.0 million , or 23.8% of net sales, compared to$115.3 million , or 22.4% 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 general and administrative expenses, store payroll associated with operating 49 new stores and other operating expenses in the current year. Selling, general and administrative expenses as a percentage of net sales increased by 140 basis points primarily as a result of higher overhead, payroll and other operating expenses.
-
Income from operations increased
$2.6 million to$75.1 million , or 14.4% of net sales, compared to$72.5 million , or 14.1% of net sales, in the prior-year period, primarily due to the factors noted above.
-
Net income was
$55.6 million , or$1.81 per diluted share, compared to net income of$52.8 million , or$1.74 per diluted share in the prior-year period. The increase in net income is primarily attributable to the factors noted above.
Operating Results for the Nine Months Ended
-
Net sales increased 3.8% to
$1.279 billion from$1.232 billion in the prior-year period. Consolidated same store sales decreased 6.3% with retail store same store sales decreasing 5.6% and e-commerce same store sales decreasing 11.4%. 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.
-
Gross profit was
$475.0 million , or 37.2% of net sales, compared to$454.7 million , or 36.9% of net sales, in the prior-year period. Gross profit increased primarily due to sales growth and merchandise margin expansion. The increase in gross profit rate of 30 basis points was driven primarily by a 170 basis-point increase in merchandise margin rate, partially offset by 140 basis points of deleverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was driven by a 120 basis-point improvement in freight expense as a percentage of net sales and 50 basis points of product margin expansion resulting primarily from growth in exclusive brand penetration. The deleverage in buying, occupancy and distribution center costs was driven primarily by the occupancy costs of 49 new stores and operating costs related to the newKansas City distribution center.
-
Selling, general and administrative expenses were
$315.0 million , or 24.6% of net sales, compared to$285.7 million , or 23.2% 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 49 new stores and general and administrative expenses in the current year. Selling, general and administrative expenses as a percentage of net sales increased by 140 basis points primarily as a result of higher payroll and overhead costs.
-
Income from operations decreased
$9.1 million to$160.0 million , or 12.5% of net sales, compared to$169.1 million , or 13.7% of net sales, in the prior-year period, primarily due to the factors noted above.
-
Net income was
$117.6 million , or$3.84 per diluted share, compared to net income of$124.1 million , or$4.09 per diluted share in the prior-year period. Net income per diluted share in the current-year period includes an approximately$0.01 per share tax benefit, primarily due to income tax accounting for share-based compensation, partially offset by changes to state tax rates. Net income per diluted share in the prior-year period includes an approximately$0.03 per share tax benefit, primarily due to income tax accounting for share-based compensation. Excluding these net tax effects, net income per diluted share was$3.83 in the current-year period, compared to$4.06 in the prior-year period.
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 |
|
|
|
|
|
|
Fiscal October |
|
Fiscal November |
|
Fiscal December |
|
|
Fiscal January |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net Sales Growth |
|
1.1 |
% |
|
3.0 |
% |
4.2 |
% |
(1.2) |
% |
|
(14.8) |
%* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Stores SSS |
|
(9.4) |
% |
|
(8.8) |
% |
(11.5) |
% |
(8.5) |
% |
|
(7.4) |
% |
E-commerce SSS |
|
(11.5) |
% |
|
(16.8) |
% |
(15.1) |
% |
(8.4) |
% |
|
(12.9) |
% |
Consolidated SSS |
|
(9.7) |
% |
|
(9.7) |
% |
(11.9) |
% |
(8.5) |
% |
|
(8.1) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E-commerce as a % of |
|
13.0 |
% |
|
9.7 |
% |
10.4 |
% |
16.1 |
% |
|
11.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Last year’s fiscal January included the week after Christmas, which is a high-sales volume week. In the current year, the week after Christmas was included in the third fiscal quarter.
Balance Sheet Highlights as of
-
Cash of
$107 million . -
Zero drawn under our
$250 million revolving credit facility. -
Average inventory per store decreased approximately 1% on a same store basis compared to
December 24, 2022 .
Fiscal Year 2024 Outlook
The Company is providing updated guidance for the fiscal year ending
- To open 52 new stores.
-
Total sales of
$1.654 billion to$1.664 billion , representing a change of (0.2)% to 0.4% over the prior year, which was a 53-week year. - Same store sales decline of approximately (7.0)% to (6.3)%, with retail store same store sales declines of (6.3)% to (5.5)% and an e-commerce same store sales decline of (11.7)%.
-
Gross profit between
$605.7 million and$610.6 million , or approximately 36.6% to 36.7% of sales. Gross profit reflects an estimated 170 basis-point increase in merchandise margin, including a 130 basis-point improvement from freight expense. We anticipate 180 basis points of deleverage in buying, occupancy and distribution center costs. -
Selling, general and administrative expenses between
$411.8 million and$412.7 million . This represents approximately 24.9% to 24.8% of sales. -
Income from operations between
$194.0 million and$198.0 million . This represents approximately 11.7% to 11.9% of sales. -
Net income of
$142.8 million to$145.8 million . -
Net income per diluted share of
$4.65 to$4.75 based on 30.7 million weighted average diluted shares outstanding. -
Capital expenditures between
$95 million and$105 million .
For the fiscal fourth quarter ending
-
Total sales of
$376 million to$386 million , representing a decline of (11.7)% to (9.3)% over the prior year, which was a 14-week quarter. - Same store sales decline of approximately (9.0)% to (6.3)%, with retail store same store sales declines of (8.5)% to (5.5)% and an e-commerce same store sales decline of (13.0)%.
-
Gross profit between
$130.7 million and$135.6 million , or approximately 34.8% to 35.2% of sales. Gross profit reflects an estimated 160 basis-point increase in merchandise margin, including a 140 basis-point improvement from freight expense. We anticipate 310 basis points of deleverage in buying, occupancy and distribution center costs. -
Selling, general and administrative expenses between
$96.7 and$97.6 million . This represents approximately 25.7% to 25.3% of sales. -
Income from operations between
$34.0 million and$38.0 million . This represents approximately 9.0% to 9.8% of sales. -
Net income per diluted share of
$0.82 to$0.92 based on 30.7 million weighted average diluted shares outstanding.
Conference Call Information
A conference call to discuss the financial results for the second quarter of fiscal year 2024 is scheduled for today,
About
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
Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
2023 |
|
2023 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
107,166 |
|
|
$ |
18,193 |
|
Accounts receivable, net |
|
|
10,380 |
|
|
|
13,145 |
|
Inventories |
|
|
563,378 |
|
|
|
589,494 |
|
Prepaid expenses and other current assets |
|
|
54,205 |
|
|
|
48,341 |
|
Total current assets |
|
|
735,129 |
|
|
|
669,173 |
|
Property and equipment, net |
|
|
308,085 |
|
|
|
257,143 |
|
Right-of-use assets, net |
|
|
366,745 |
|
|
|
326,623 |
|
|
|
|
197,502 |
|
|
|
197,502 |
|
Intangible assets, net |
|
|
60,710 |
|
|
|
60,751 |
|
Other assets |
|
|
5,334 |
|
|
|
6,189 |
|
Total assets |
|
$ |
1,673,505 |
|
|
$ |
1,517,381 |
|
Liabilities and stockholders’ equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Line of credit |
|
$ |
— |
|
|
$ |
66,043 |
|
Accounts payable |
|
|
131,655 |
|
|
|
134,246 |
|
Accrued expenses and other current liabilities |
|
|
152,704 |
|
|
|
122,958 |
|
Short-term lease liabilities |
|
|
59,243 |
|
|
|
51,595 |
|
Total current liabilities |
|
|
343,602 |
|
|
|
374,842 |
|
Deferred taxes |
|
|
39,949 |
|
|
|
33,260 |
|
Long-term lease liabilities |
|
|
375,345 |
|
|
|
330,081 |
|
Other liabilities |
|
|
3,664 |
|
|
|
2,748 |
|
Total liabilities |
|
|
762,560 |
|
|
|
740,931 |
|
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Common stock, |
|
|
3 |
|
|
|
3 |
|
Preferred stock, |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
229,322 |
|
|
|
209,964 |
|
Retained earnings |
|
|
693,587 |
|
|
|
576,030 |
|
Less: Common stock held in treasury, at cost, 227 and 192 shares at |
|
|
(11,967 |
) |
|
|
(9,547 |
) |
Total stockholders’ equity |
|
|
910,945 |
|
|
|
776,450 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,673,505 |
|
|
$ |
1,517,381 |
|
Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Thirteen Weeks Ended |
|
Thirty-Nine Weeks Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
|
2022 |
|
||||||
Net sales |
|
$ |
520,399 |
|
$ |
514,553 |
|
$ |
1,278,550 |
|
$ |
1,231,954 |
|
|||
Cost of goods sold |
|
|
321,292 |
|
|
326,739 |
|
|
803,564 |
|
|
777,214 |
|
|||
Gross profit |
|
|
199,107 |
|
|
187,814 |
|
|
474,986 |
|
|
454,740 |
|
|||
Selling, general and administrative expenses |
|
|
123,960 |
|
|
115,318 |
|
|
315,016 |
|
|
285,669 |
|
|||
Income from operations |
|
|
75,147 |
|
|
72,496 |
|
|
159,970 |
|
|
169,071 |
|
|||
Interest expense |
|
|
522 |
|
|
2,258 |
|
|
2,008 |
|
|
4,345 |
|
|||
Other income/(loss), net |
|
|
351 |
|
|
63 |
|
|
525 |
|
|
(210 |
) |
|||
Income before income taxes |
|
|
74,976 |
|
|
70,301 |
|
|
158,487 |
|
|
164,516 |
|
|||
Income tax expense |
|
|
19,352 |
|
|
17,529 |
|
|
40,930 |
|
|
40,372 |
|
|||
Net income |
|
$ |
55,624 |
|
$ |
52,772 |
|
$ |
117,557 |
|
$ |
124,144 |
|
|||
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
1.84 |
|
$ |
1.77 |
|
$ |
3.90 |
|
$ |
4.17 |
|
|||
Diluted |
|
$ |
1.81 |
|
$ |
1.74 |
|
$ |
3.84 |
|
$ |
4.09 |
|
|||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
30,293 |
|
|
29,813 |
|
|
30,117 |
|
|
29,790 |
|
|||
Diluted |
|
|
30,649 |
|
|
30,294 |
|
|
30,575 |
|
|
30,340 |
|
Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
Thirty-Nine Weeks Ended |
||||||
|
|
|
|
|
||||
|
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities |
|
|
|
|
||||
Net income |
|
$ |
117,557 |
|
|
$ |
124,144 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation |
|
|
35,801 |
|
|
|
25,968 |
|
Stock-based compensation |
|
|
10,429 |
|
|
|
9,562 |
|
Amortization of intangible assets |
|
|
41 |
|
|
|
47 |
|
Noncash lease expense |
|
|
40,361 |
|
|
|
35,203 |
|
Amortization and write-off of debt issuance fees and debt discount |
|
|
81 |
|
|
|
101 |
|
Loss on disposal of assets |
|
|
660 |
|
|
|
250 |
|
Deferred taxes |
|
|
6,689 |
|
|
|
506 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable, net |
|
|
2,905 |
|
|
|
(4,571 |
) |
Inventories |
|
|
26,116 |
|
|
|
(117,851 |
) |
Prepaid expenses and other current assets |
|
|
(5,945 |
) |
|
|
(14,430 |
) |
Other assets |
|
|
855 |
|
|
|
(3,194 |
) |
Accounts payable |
|
|
2,588 |
|
|
|
19,571 |
|
Accrued expenses and other current liabilities |
|
|
28,476 |
|
|
|
32,785 |
|
Other liabilities |
|
|
916 |
|
|
|
423 |
|
Operating leases |
|
|
(27,071 |
) |
|
|
(21,464 |
) |
Net cash provided by operating activities |
|
$ |
240,459 |
|
|
$ |
87,050 |
|
Cash flows from investing activities |
|
|
|
|
||||
Purchases of property and equipment |
|
$ |
(91,297 |
) |
|
$ |
(83,056 |
) |
Net cash used in investing activities |
|
$ |
(91,297 |
) |
|
$ |
(83,056 |
) |
Cash flows from financing activities |
|
|
|
|
||||
(Payments)/Borrowings on line of credit, net |
|
$ |
(66,043 |
) |
|
$ |
30,522 |
|
Repayments on debt and finance lease obligations |
|
|
(655 |
) |
|
|
(626 |
) |
Tax withholding payments for net share settlement |
|
|
(2,420 |
) |
|
|
(4,501 |
) |
Proceeds from the exercise of stock options |
|
|
8,929 |
|
|
|
329 |
|
Net cash (used in)/provided by financing activities |
|
$ |
(60,189 |
) |
|
$ |
25,724 |
|
|
|
|
|
|
||||
Net increase in cash and cash equivalents |
|
|
88,973 |
|
|
|
29,718 |
|
Cash and cash equivalents, beginning of period |
|
|
18,193 |
|
|
|
20,674 |
|
Cash and cash equivalents, end of period |
|
$ |
107,166 |
|
|
$ |
50,392 |
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information: |
|
|
|
|
||||
Cash paid for income taxes |
|
$ |
45,637 |
|
|
$ |
58,324 |
|
Cash paid for interest |
|
$ |
1,931 |
|
|
$ |
4,002 |
|
Supplemental disclosure of non-cash activities: |
|
|
|
|
||||
Unpaid purchases of property and equipment |
|
$ |
15,427 |
|
|
$ |
27,474 |
|
Store Count |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
Store Count (BOP) |
|
371 |
|
361 |
|
345 |
|
333 |
|
321 |
|
311 |
|
300 |
|
289 |
Opened/Acquired |
|
11 |
|
10 |
|
16 |
|
12 |
|
12 |
|
10 |
|
11 |
|
11 |
Closed |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
Store Count (EOP) |
|
382 |
|
371 |
|
361 |
|
345 |
|
333 |
|
321 |
|
311 |
|
300 |
Selected Store Data |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
|
Thirteen Weeks Ended |
|
Fourteen Weeks Ended |
|
Thirteen Weeks Ended |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
Selected Store Data: |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Same Store Sales (decline)/growth |
|
|
(9.7 |
)% |
|
(4.8 |
)% |
|
(2.9 |
)% |
|
(5.5 |
)% |
|
(3.6 |
)% |
|
2.3 |
% |
|
10.0 |
% |
|
33.3 |
% |
|||||||
Stores operating at end of period |
|
|
382 |
|
|
371 |
|
|
361 |
|
|
345 |
|
|
333 |
|
|
321 |
|
|
311 |
|
|
300 |
|
|||||||
Total retail store square footage, end of period (in thousands) |
|
|
4,153 |
|
|
4,027 |
|
|
3,914 |
|
|
3,735 |
|
|
3,598 |
|
|
3,451 |
|
|
3,333 |
|
|
3,194 |
|
|||||||
Average store square footage, end of period |
|
|
10,872 |
|
|
10,855 |
|
|
10,841 |
|
|
10,825 |
|
|
10,806 |
|
|
10,751 |
|
|
10,717 |
|
|
10,648 |
|
|||||||
Average net sales per store (in thousands) |
|
$ |
1,185 |
|
$ |
909 |
|
$ |
958 |
|
$ |
1,088 |
|
$ |
1,320 |
|
$ |
966 |
|
$ |
1,031 |
|
$ |
1,094 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240131235420/en/
Investor Contact:
BootBarnIR@icrinc.com
or
Company Contact:
Senior Vice President, Investor Relations & Financial Planning
BootBarnIRMedia@bootbarn.com
Source: