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IRVINE, Calif.--(BUSINESS WIRE)--Jan 25, 2023--
Boot Barn Holdings, Inc. (NYSE: BOOT) today announced its financial results for the third fiscal quarter ended December 24, 2022. A Supplemental Financial Presentation is available at investor.bootbarn.com.
For the quarter ended December 24, 2022:
Jim Conroy, President and Chief Executive Officer, commented “I would like to thank the entire Boot Barn team for continuing to achieve solid sales and margin performance on top of a record-setting holiday season last year. Over the past few years, our annual average store volume has grown by more than 55%, with the elevated level proving sustainable through yet another holiday quarter. This growth, coupled with a very successful new store roll-out program has us on track to nearly double our annual sales this year as compared to pre-pandemic levels. Looking forward, our growth opportunities remain as strong as ever, with very successful recent store openings combined with a robust new store pipeline. We feel good about our level of store inventory with weeks of supply back to pre-pandemic levels and are pleased that our retail store same store sales remain positive on a year-to-date basis. As we head into fiscal 2024, we have multiple levers of earnings growth from same store sales, new store openings, and margin accretion from exclusive brands and lower freight charges.”
Operating Results for the Third Quarter Ended December 24, 2022 Compared to the Third Quarter Ended December 25, 2021
Operating Results for the Nine Months Ended December 24, 2022 Compared to the Nine Months Ended December 25, 2021
Current Business
Our preliminary consolidated same store sales in fiscal January have declined 1.5% compared to the prior-year period, driven by a 16.0% decrease in e-commerce sales, partially offset by growth in retail store same store sales of 1.2%.
Balance Sheet Highlights as of December 24, 2022
Fiscal Year 2023 Outlook
The Company is providing updated guidance for the fiscal year ending April 1, 2023, superseding in its entirety the previous guidance issued in its second quarter earnings report on October 26, 2022. As a result, for the fiscal year ending April 1, 2023, the Company now expects:
For the fiscal fourth quarter ending April 1, 2023, the Company expects:
Conference Call Information
A conference call to discuss the financial results for the third quarter of fiscal year 2023 is scheduled for today, January 25, 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 February 25, 2023, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 13735762. 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 336 stores in 41 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: the effect of COVID-19 on our business operations, growth strategies, store traffic, employee availability, financial condition, liquidity and cash flow; 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)
December 24, | March 26, | |||||||
2022 | 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 50,392 |
| $ | 20,674 |
| ||
| Accounts receivable, net | 14,811 |
| 9,662 |
| ||||
| Inventories | 592,151 |
| 474,300 |
| ||||
| Prepaid expenses and other current assets | 51,524 |
| 37,195 |
| ||||
| Total current assets | 708,878 |
| 541,831 |
| ||||
| Property and equipment, net | 231,651 |
| 155,247 |
| ||||
| Right-of-use assets, net | 307,146 |
| 241,147 |
| ||||
| Goodwill | 197,502 |
| 197,502 |
| ||||
| Intangible assets, net | 60,766 |
| 60,813 |
| ||||
| Other assets | 6,509 |
| 3,315 |
| ||||
| Total assets | $ | 1,512,452 |
| $ | 1,199,855 |
| ||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Line of credit | $ | 59,071 |
| $ | 28,549 |
| ||
| Accounts payable | 153,934 |
| 131,394 |
| ||||
| Accrued expenses and other current liabilities | 182,790 |
| 133,408 |
| ||||
| Short-term lease liabilities | 49,226 |
| 43,117 |
| ||||
| Total current liabilities | 445,021 |
| 336,468 |
| ||||
| Deferred taxes | 27,401 |
| 26,895 |
| ||||
| Long-term lease liabilities | 308,165 |
| 234,584 |
| ||||
| Other liabilities | 2,655 |
| 2,232 |
| ||||
| Total liabilities | 783,242 |
| 600,179 |
| ||||
| Stockholders’ equity: | ||||||||
| Common stock, $0.0001 par value; December 24, 2022 - 100,000 shares authorized, 30,005 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 | 208,945 |
| 199,054 |
| ||||
| Retained earnings | 529,621 |
| 405,477 |
| ||||
| Less: Common stock held in treasury, at cost, 190 and 135 shares at December 24, 2022 and March 26, 2022, respectively | (9,359 | ) | (4,858 | ) | ||||
| Total stockholders’ equity | 729,210 |
| 599,676 |
| ||||
| Total liabilities and stockholders’ equity | $ | 1,512,452 |
| $ | 1,199,855 |
|
Boot Barn Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Thirteen Weeks Ended |
| Thirty-Nine Weeks Ended | ||||||||||||||
December 24, |
| December 25, |
| December 24, |
| December 25, | ||||||||||
2022 |
| 2021 |
| 2022 |
| 2021 | ||||||||||
| Net sales | $ | 514,553 |
| $ | 485,904 |
| $ | 1,231,954 |
| $ | 1,104,948 |
| ||||
| Cost of goods sold | 326,739 |
| 294,245 |
| 777,214 |
| 678,711 |
| ||||||||
| Gross profit | 187,814 |
| 191,659 |
| 454,740 |
| 426,237 |
| ||||||||
| Selling, general and administrative expenses | 115,318 |
| 99,467 |
| 285,669 |
| 230,288 |
| ||||||||
| Income from operations | 72,496 |
| 92,192 |
| 169,071 |
| 195,949 |
| ||||||||
| Interest expense | 2,258 |
| 1,667 |
| 4,345 |
| 5,392 |
| ||||||||
| Other income/(loss), net | 63 |
| 43 |
| (210 | ) | 161 |
| ||||||||
| Income before income taxes | 70,301 |
| 90,568 |
| 164,516 |
| 190,718 |
| ||||||||
| Income tax expense | 17,529 |
| 21,337 |
| 40,372 |
| 42,981 |
| ||||||||
| Net income | $ | 52,772 |
| $ | 69,231 |
| $ | 124,144 |
| $ | 147,737 |
| ||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 1.77 |
| $ | 2.34 |
| $ | 4.17 |
| $ | 5.01 |
| ||||
| Diluted | $ | 1.74 |
| $ | 2.27 |
| $ | 4.09 |
| $ | 4.86 |
| ||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 29,813 |
| 29,637 |
| 29,790 |
| 29,518 |
| ||||||||
| Diluted | 30,294 |
| 30,443 |
| 30,340 |
| 30,382 |
|
Boot Barn Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Thirty-Nine Weeks Ended | ||||||||
December 24, |
| December 25, | ||||||
2022 |
| 2021 | ||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 124,144 |
| $ | 147,737 |
| ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 25,968 |
| 19,800 |
| ||||
| Stock-based compensation | 9,562 |
| 7,807 |
| ||||
| Amortization of intangible assets | 47 |
| 54 |
| ||||
| Noncash lease expense | 35,203 |
| 28,701 |
| ||||
| Amortization and write-off of debt issuance fees and debt discount | 101 |
| 1,834 |
| ||||
| Loss on disposal of assets | 250 |
| 150 |
| ||||
| Gain on adjustment of right-of-use assets and lease liabilities | — |
| (258 | ) | ||||
| Deferred taxes | 506 |
| 689 |
| ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (4,571 | ) | 5,797 |
| ||||
| Inventories | (117,851 | ) | (109,882 | ) | ||||
| Prepaid expenses and other current assets | (14,430 | ) | (41,596 | ) | ||||
| Other assets | (3,194 | ) | (608 | ) | ||||
| Accounts payable | 19,571 |
| 84,411 |
| ||||
| Accrued expenses and other current liabilities | 32,785 |
| 73,490 |
| ||||
| Other liabilities | 423 |
| 1,306 |
| ||||
| Operating leases | (21,464 | ) | (28,876 | ) | ||||
| Net cash provided by operating activities | $ | 87,050 |
| $ | 190,556 |
| ||
| Cash flows from investing activities | ||||||||
| Purchases of property and equipment | $ | (83,056 | ) | $ | (39,749 | ) | ||
| Net cash used in investing activities | $ | (83,056 | ) | $ | (39,749 | ) | ||
| Cash flows from financing activities | ||||||||
| Borrowings on line of credit, net | $ | 30,522 |
| $ | — |
| ||
| Repayments on debt and finance lease obligations | (626 | ) | (112,085 | ) | ||||
| Tax withholding payments for net share settlement | (4,501 | ) | (2,710 | ) | ||||
| Proceeds from the exercise of stock options | 329 |
| 5,554 |
| ||||
| Net cash provided by/(used in) financing activities | $ | 25,724 |
| $ | (109,241 | ) | ||
| Net increase in cash and cash equivalents | 29,718 |
| 41,566 |
| ||||
| Cash and cash equivalents, beginning of period | 20,674 |
| 73,148 |
| ||||
| Cash and cash equivalents, end of period | $ | 50,392 |
| $ | 114,714 |
| ||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for income taxes | $ | 58,324 |
| $ | 41,694 |
| ||
| Cash paid for interest | $ | 4,002 |
| $ | 3,497 |
| ||
| Supplemental disclosure of non-cash activities: | ||||||||
| Unpaid purchases of property and equipment | $ | 27,474 |
| $ | 9,620 |
|
Boot Barn Holdings, Inc.
Store Count
Quarter Ended |
| Quarter Ended |
| Quarter Ended |
| Quarter Ended |
| Quarter Ended |
| Quarter Ended |
| Quarter Ended |
| Quarter Ended | |||||||||
December 24, |
| September 24, |
| June 25, |
| March 26, |
| December 25, |
| September 25, |
| June 26, |
| March 27, | |||||||||
2022 |
| 2022 |
| 2022 |
| 2022 |
| 2021 |
| 2021 |
| 2021 |
| 2021 | |||||||||
| Store Count (BOP) | 321 |
| 311 |
| 300 |
| 289 |
| 278 |
| 276 |
| 273 |
| 266 |
| |||||||
| Opened/Acquired | 12 |
| 10 |
| 11 |
| 11 |
| 11 |
| 3 |
| 3 |
| 8 |
| |||||||
| Closed | — |
| — |
| — |
| — |
| — |
| (1 | ) | — |
| (1 | ) | |||||||
| Store Count (EOP) | 333 |
| 321 |
| 311 |
| 300 |
| 289 |
| 278 |
| 276 |
| 273 |
|
Boot Barn Holdings, Inc.
Selected Store Data
| Thirteen Weeks Ended | |||||||||||||||||||||||||||||||||
December 24, |
|
| September 24, |
|
| June 25, |
|
| March 26, |
|
| December 25, |
|
| September 25, |
|
| June 26, |
|
| March 27, | ||||||||||||
2022 |
|
| 2022 |
|
| 2022 |
|
| 2022 |
|
| 2021 |
|
| 2021 |
|
| 2021 |
|
| 2021 | ||||||||||||
| Selected Store Data: | |||||||||||||||||||||||||||||||||
| Same Store Sales (decline)/growth | (3.6 | ) | % | 2.3 |
| % | 10.0 |
| % | 33.3 |
| % | 54.2 |
| % | 61.7 |
| % | 78.9 |
| % | 26.9 |
| % | |||||||||
| Stores operating at end of period | 333 |
| 321 |
| 311 |
| 300 |
| 289 |
| 278 |
| 276 |
| 273 |
| |||||||||||||||||
| Total retail store square footage, end of period (in thousands) | 3,598 |
| 3,451 |
| 3,333 |
| 3,194 |
| 3,063 |
| 2,940 |
| 2,915 |
| 2,854 |
| |||||||||||||||||
| Average store square footage, end of period | 10,806 |
| 10,751 |
| 10,717 |
| 10,648 |
| 10,597 |
| 10,575 |
| 10,563 |
| 10,455 |
| |||||||||||||||||
| Average net sales per store (in thousands) | $ | 1,320 |
| $ | 966 |
| $ | 1,031 |
| $ | 1,094 |
| $ | 1,372 |
| $ | 965 |
| $ | 942 |
| $ | 792 |
|
View source version on businesswire.com:https://www.businesswire.com/news/home/20230125005468/en/
CONTACT: 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
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: RETAIL FOOTWEAR SPECIALTY FASHION
SOURCE: Boot Barn
Copyright Business Wire 2023.
PUB: 01/25/2023 04:10 PM/DISC: 01/25/2023 04:11 PM
http://www.businesswire.com/news/home/20230125005468/en