Boot Barn Holdings, Inc. Announces First Quarter Fiscal Year 2025 Financial Results
For the quarter ended
-
Net sales increased 10.3% over the prior-year period to
$423.4 million . - Same store sales increased 1.4% compared to the prior-year period, comprised of an increase of 0.8% in retail store same store sales and an increase of 6.7% in e-commerce same store sales.
-
Net income was
$38.9 million , or$1.26 per diluted share, compared to$34.3 million , or$1.13 per diluted share, in the prior-year period. Net income per diluted share in the current-year and prior-year period includes an approximately$0.06 and$0.02 per share benefit, respectively, primarily due to income tax accounting for share-based compensation. - The Company opened 11 new stores, bringing its total store count to 411.
Operating Results for the First Quarter Ended
-
Net sales increased 10.3% to
$423.4 million from$383.7 million in the prior-year period. Consolidated same store sales increased 1.4%, with retail store same store sales increasing 0.8% and e-commerce same store sales increasing 6.7%. The increase in net sales was the result of incremental sales from new stores and the increase in consolidated same store sales.
-
Gross profit was
$156.7 million , or 37.0% of net sales, compared to$142.0 million , or 37.0% of net sales, in the prior-year period. Gross profit increased primarily due to an increase in sales and merchandise margin, partially offset by the occupancy costs of new stores. Gross profit rate was flat when compared to the prior-year period, as a result of a 100 basis-point increase in merchandise margin rate, offset by 100 basis points of deleverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was the result of supply chain efficiencies, while the deleverage in buying, occupancy and distribution center costs was driven primarily by the addition of new stores.
-
Selling, general and administrative expenses were
$106.5 million , or 25.2% of net sales, compared to$95.7 million , or 24.9% 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 more stores, corporate general and administrative expenses, and marketing expenses in the current year. Selling, general and administrative expenses as a percentage of net sales increased by 20 basis points primarily as a result of higher marketing expenses and higher corporate general and administrative expenses, partially offset by lower store-related expenses.
-
Income from operations increased
$4.0 million to$50.2 million , or 11.9% of net sales, compared to$46.2 million , or 12.1% of net sales, in the prior-year period, primarily due to the factors noted above.
-
Net income was
$38.9 million , or$1.26 per diluted share, compared to net income of$34.3 million , or$1.13 per diluted share in the prior-year period. The increase 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 an approximately$0.06 and$0.02 per share benefit, respectively, primarily due to income tax accounting for share-based compensation.
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 |
Preliminary |
||||||
|
|
Ended |
|
Four Weeks |
Four Weeks |
Five Weeks |
|
Four Weeks |
One Week Ended |
||||||
|
|
|
|
Fiscal April |
Fiscal May |
Fiscal June |
|
Fiscal July |
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||
Total Net Sales Growth |
|
10.3% |
|
8.2% |
10.5% |
12.0% |
|
8.8% |
11.7% |
||||||
|
|
|
|
|
|
|
|
|
|
||||||
Retail Stores SSS |
|
0.8% |
|
(1.5)% |
1.9% |
1.8% |
|
(0.9)% |
1.6% |
||||||
E-commerce SSS |
|
6.7% |
|
5.0% |
6.0% |
8.7% |
|
5.0% |
12.7% |
||||||
Consolidated SSS |
|
1.4% |
|
(0.8)% |
2.4% |
2.5% |
|
(0.3)% |
2.6% |
||||||
|
|
|
|
|
|
|
|
|
|
||||||
E-commerce as a % of |
|
9.5% |
|
10.0% |
9.5% |
9.0% |
|
9.2% |
9.1% |
||||||
|
|
|
|
|
|
|
|
|
|
Balance Sheet Highlights as of
-
Cash of
$83 million . -
Zero drawn under the
$250 million revolving credit facility. -
Average inventory per store increased approximately 6% on a same store basis compared to
July 1, 2023 .
Fiscal Year 2025 Outlook
The Company is providing updated guidance for the fiscal year ending
- To open 60 new stores.
-
Total sales of
$1.816 billion to$1.850 billion , representing growth of 8.9% to 11.0% over the prior year. - Same store sales decline of approximately (1.0)% to growth of 1.2%, with a retail store same store sales decline of approximately (1.3)% to growth of 0.7% and e-commerce same store sales growth of approximately 3.0% to 5.5%.
-
Gross profit between
$672.0 million and$688.8 million , or approximately 37.0% to 37.2% of sales. -
Selling, general and administrative expenses between
$464.9 million and$469.4 million , or approximately 25.6% to 25.4% of sales. -
Income from operations between
$207.0 million and$219.4 million , or approximately 11.4% to 11.9% of sales. - Effective tax rate of 26.3% for the remaining nine months of the fiscal year.
-
Net income of
$156.1 million to$165.4 million . -
Net income per diluted share of
$5.05 to$5.35 , based on 30.9 million weighted average diluted shares outstanding. -
Capital expenditures between
$115.0 million and$120.0 million , which is net of estimated landlord tenant allowances of$30.2 million .
For the fiscal second quarter ending
-
Total sales of
$405 million to$412 million , representing growth of 8.2% to 10.0% over the prior-year period. - Same store sales decline of approximately (0.5)% to growth of 1.4%, with a retail store same store sales decline of approximately (1.0)% to growth of 1.0% and e-commerce same store sales growth of approximately 3.0% to 5.0%.
-
Income from operations between
$33.2 million and$35.7 million , or approximately 8.2% to 8.7% of sales. -
Net income per diluted share of
$0.81 to$0.87 , based on 30.9 million weighted average diluted shares outstanding.
Conference Call Information
A conference call to discuss the financial results for the first quarter of fiscal year 2025 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 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
|
||||||||
Consolidated Balance Sheets |
||||||||
(In thousands, except per share data) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
|
|
2024 |
|
2024 |
||||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
83,387 |
|
|
$ |
75,847 |
|
Accounts receivable, net |
|
|
7,916 |
|
|
|
9,964 |
|
Inventories |
|
|
627,108 |
|
|
|
599,120 |
|
Prepaid expenses and other current assets |
|
|
37,572 |
|
|
|
44,718 |
|
Total current assets |
|
|
755,983 |
|
|
|
729,649 |
|
Property and equipment, net |
|
|
346,668 |
|
|
|
323,667 |
|
Right-of-use assets, net |
|
|
409,794 |
|
|
|
390,501 |
|
|
|
|
197,502 |
|
|
|
197,502 |
|
Intangible assets, net |
|
|
58,685 |
|
|
|
58,697 |
|
Other assets |
|
|
5,827 |
|
|
|
5,576 |
|
Total assets |
|
$ |
1,774,459 |
|
|
$ |
1,705,592 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
133,974 |
|
|
$ |
132,877 |
|
Accrued expenses and other current liabilities |
|
|
121,378 |
|
|
|
116,477 |
|
Short-term lease liabilities |
|
|
67,764 |
|
|
|
63,454 |
|
Total current liabilities |
|
|
323,116 |
|
|
|
312,808 |
|
Deferred taxes |
|
|
42,111 |
|
|
|
42,033 |
|
Long-term lease liabilities |
|
|
423,374 |
|
|
|
403,303 |
|
Other liabilities |
|
|
4,036 |
|
|
|
3,805 |
|
Total liabilities |
|
|
792,637 |
|
|
|
761,949 |
|
|
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Common stock, |
|
|
3 |
|
|
|
3 |
|
Preferred stock, |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
239,351 |
|
|
|
232,636 |
|
Retained earnings |
|
|
761,935 |
|
|
|
723,026 |
|
Less: Common stock held in treasury, at cost, 297 and 228 shares at |
|
|
(19,467 |
) |
|
|
(12,022 |
) |
Total stockholders’ equity |
|
|
981,822 |
|
|
|
943,643 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,774,459 |
|
|
$ |
1,705,592 |
|
|
||||||
Consolidated Statements of Operations |
||||||
(In thousands, except per share data) |
||||||
(Unaudited) |
||||||
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
||||
|
|
|
|
|
||
|
|
2024 |
|
2023 |
||
Net sales |
|
$ |
423,386 |
|
$ |
383,695 |
Cost of goods sold |
|
|
266,637 |
|
|
241,732 |
Gross profit |
|
|
156,749 |
|
|
141,963 |
Selling, general and administrative expenses |
|
|
106,527 |
|
|
95,718 |
Income from operations |
|
|
50,222 |
|
|
46,245 |
Interest expense |
|
|
351 |
|
|
1,023 |
Other income, net |
|
|
596 |
|
|
224 |
Income before income taxes |
|
|
50,467 |
|
|
45,446 |
Income tax expense |
|
|
11,558 |
|
|
11,193 |
Net income |
|
$ |
38,909 |
|
$ |
34,253 |
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
Basic |
|
$ |
1.28 |
|
$ |
1.14 |
Diluted |
|
$ |
1.26 |
|
$ |
1.13 |
Weighted average shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
30,433 |
|
|
29,922 |
Diluted |
|
|
30,815 |
|
|
30,444 |
|
||||||||
Consolidated Statements of Cash Flows |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
Thirteen Weeks Ended |
||||||
|
|
|
|
|
||||
|
|
2024 |
|
2023 |
||||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net income |
|
$ |
38,909 |
|
|
$ |
34,253 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation |
|
|
14,268 |
|
|
|
10,603 |
|
Stock-based compensation |
|
|
5,764 |
|
|
|
4,953 |
|
Amortization of intangible assets |
|
|
12 |
|
|
|
14 |
|
Noncash lease expense |
|
|
15,908 |
|
|
|
13,117 |
|
Amortization and write-off of debt issuance fees and debt discount |
|
|
27 |
|
|
|
27 |
|
Loss on disposal of assets |
|
|
55 |
|
|
|
176 |
|
Deferred taxes |
|
|
78 |
|
|
|
727 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
2,059 |
|
|
|
1,452 |
|
Inventories |
|
|
(27,988 |
) |
|
|
23,200 |
|
Prepaid expenses and other current assets |
|
|
6,909 |
|
|
|
11,486 |
|
Other assets |
|
|
(251 |
) |
|
|
354 |
|
Accounts payable |
|
|
1,848 |
|
|
|
(24,872 |
) |
Accrued expenses and other current liabilities |
|
|
(6,108 |
) |
|
|
158 |
|
Other liabilities |
|
|
231 |
|
|
|
498 |
|
Operating leases |
|
|
(10,410 |
) |
|
|
(5,344 |
) |
Net cash provided by operating activities |
|
$ |
41,311 |
|
|
$ |
70,802 |
|
Cash flows from investing activities |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
(27,066 |
) |
|
(29,895 |
) |
||
Net cash used in investing activities |
|
$ |
(27,066 |
) |
|
$ |
(29,895 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
||
Payments on line of credit, net |
|
— |
|
|
(39,828 |
) |
||
Repayments on debt and finance lease obligations |
|
|
(211 |
) |
|
|
(213 |
) |
Tax withholding payments for net share settlement |
|
|
(7,445 |
) |
|
|
(2,305 |
) |
Proceeds from the exercise of stock options |
|
|
951 |
|
|
|
345 |
|
Net cash used in financing activities |
|
$ |
(6,705 |
) |
|
$ |
(42,001 |
) |
|
|
|
|
|
|
|
||
Net increase/(decrease) in cash and cash equivalents |
|
7,540 |
|
|
|
(1,094 |
) |
|
Cash and cash equivalents, beginning of period |
|
|
75,847 |
|
|
|
18,193 |
|
Cash and cash equivalents, end of period |
|
$ |
83,387 |
|
|
$ |
17,099 |
|
|
|
|
|
|
|
|
||
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
||
Cash paid for income taxes |
|
$ |
584 |
|
|
$ |
646 |
|
Cash paid for interest |
|
$ |
322 |
|
|
$ |
1,151 |
|
Supplemental disclosure of non-cash activities: |
|
|
|
|
|
|
||
Unpaid purchases of property and equipment |
|
$ |
23,197 |
|
|
$ |
17,517 |
|
|
||||||||||||||||
Store Count |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
2022 |
Store Count (BOP) |
|
400 |
|
382 |
|
371 |
|
361 |
|
345 |
|
333 |
|
321 |
|
311 |
Opened/Acquired |
|
11 |
|
18 |
|
11 |
|
10 |
|
16 |
|
12 |
|
12 |
|
10 |
Closed |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
Store Count (EOP) |
|
411 |
|
400 |
|
382 |
|
371 |
|
361 |
|
345 |
|
333 |
|
321 |
|
|||||||||||||||||||||||||||||||||||||
Selected Store Data |
|||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourteen |
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
Weeks |
|
|
|
|||||||||||||||||||||||||||||||
Thirteen Weeks Ended |
Ended |
Thirteen Weeks Ended |
|||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
2022 |
|
|||||||||||||||||||||
Selected Store Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Same Store Sales growth/(decline) |
|
1.4 |
% |
|
(5.9 |
) |
% |
|
(9.7 |
) |
% |
|
(4.8 |
) |
% |
|
(2.9 |
) |
% |
|
(5.5 |
) |
% |
|
(3.6 |
) |
% |
|
2.3 |
% |
|||||||
Stores operating at end of period |
|
411 |
|
|
400 |
|
|
|
382 |
|
|
|
371 |
|
|
|
361 |
|
|
|
345 |
|
|
|
333 |
|
|
|
321 |
|
|||||||
Comparable stores operating during period(1) |
|
349 |
|
|
335 |
|
|
|
322 |
|
|
|
312 |
|
|
|
302 |
|
|
|
290 |
|
|
|
280 |
|
|
|
275 |
|
|||||||
Total retail store selling square footage, end of period (in thousands) |
|
4,547 |
|
|
4,371 |
|
|
|
4,153 |
|
|
|
4,027 |
|
|
|
3,914 |
|
|
|
3,735 |
|
|
|
3,598 |
|
|
|
3,451 |
|
|||||||
Average retail store selling square footage, end of period |
|
11,063 |
|
|
10,929 |
|
|
|
10,872 |
|
|
|
10,855 |
|
|
|
10,841 |
|
|
|
10,825 |
|
|
|
10,806 |
|
|
|
10,751 |
|
|||||||
Average sales per comparable store (in thousands)(2) |
$ |
980 |
|
$ |
917 |
|
|
$ |
1,256 |
|
|
$ |
950 |
|
|
$ |
1,014 |
|
|
$ |
1,092 |
|
|
$ |
1,424 |
|
|
$ |
1,001 |
|
____________________________ | ||
(1) |
Comparable stores have been open at least 13 full fiscal months as of the end of the applicable reporting period. |
|
(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/20240807317457/en/
Investor Contact:
BootBarnIR@icrinc.com
or
Company Contact:
Senior Vice President, Investor Relations & Financial Planning
BootBarnIRMedia@bootbarn.com
Source: