Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — Investor Presentation (January 2016)
25 slides from Boot Barn's investor presentation, Jan 12, 2016
Slide 1: Forward Looking Statements
FORWARD LOOKING STATEMENTS Forward-Looking Statements This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this presentation are forward-looking statements. You can identify forward-look
Slide 2: Agenda: Overview of Boot Barn
OVERVIEW OF BOOT BARN STRATEGIC INITIATIVES BUSINESS UPDATE FINANCIAL UPDATE AGENDA
Slide 3: Everyday American customers
Everyday American customers 1 Forbes.com, 2/27/12, “NASCAR’s back!”; 2 Mlive blog, 1/4/2014, “America’s Top 20 Best-Selling Vehicles of 2013”; 3 NPD Group, 2/28/13, “Country Music Rises to Become America’s Favorite Genre”; 4 Forbes.com, 8/30/2013, “America’s Fastest Growing Sport: Professional Bull
Slide 4: Everyday merchandise assortment
everyday merchandise assortment RUGGED FOOTWEAR OUTERWEAR OVERALLS PANTS SHIRTS WORK Low fashion quotient enables high degree of replenishment BOOTS DENIM WESTERN SHIRTS COWBOY HATS BELTS / BELT BUCKLES WESTERN
Slide 5: Boot Barn snapshot
Boot barn snapshot SALES composition1 Footwear 51% Hats, Accessories & Other 17% Apparel 32% Illustrative Store 1Note: Fiscal year ended March 28, 2015, excluding Sheplers. Sales by End User1 Kids’ 5% Unisex 9% Men's 60% Women's 26%
Slide 6: Over brands and more than 1,500 styles
Over 200 brands and more than 1,500 styles = Private brands Western Work / Other
Slide 7: History of solid growth
History of solid growth Note: Fiscal year ends March. FY13 includes 29 stores acquired from RCC with 7 month net sales of $35.5 million. FY14 includes 30 stores acquired from Baskins with 10 month net sales of $63.4 million. Sheplers was acquired June 29, 2015, the beginning of Q2 FY16. ¹ The period
Slide 8: Largest western and work wear retailer
Largest western and work wear retailer Western Wear Chains (Estimated STORE COUNT)1 Other Competitors >2.5x as many stores as closest competitor National Regional (Mostly Texas) Geographic presence Independent retailers Regional (Western Canada) Arizona North & South Carolina 1 Store count as of Jan
Slide 9: Boot Barn strategic positioning
Boot barn strategic positioning Genuine lifestyle retail brand Clear national leader in a large and fragmented market niche Significant new store growth opportunity Great omni channel brand plus leading pure play e-commerce brand Long history of same store sales growth Strong portfolio of exclusive
Slide 10: Strategic Initiatives
1 EXPAND OUR STORE BASE 2 3 4 DRIVE SAME STORE SALES GROWTH BUILD OUT PRIVATE BRAND PORTFOLIO GROW E-COMMERCE AND OMNI CHANNEL EXPERIENCE STRATEGIC INITIATIVES
Slide 11: Building a national store presence
Building A NATIONAL STORE PRESENCE FY12 86 stores 8 states FY13 117 stores 21 states 152 stores 23 states FY14 Compelling new store economics Current Boot barn 205 stores 29 states 1 GOALS Store Size (sq. ft.) 10,000 Year 1 Net Sales $1.7mm Net Cash Investment1 $0.8mm Cash on Cash Return (Yr. 1) 31.
Slide 12: Same store sales growth
same store sales growth 2 Over 6 Years of positive same store sales growth 1 1 Core Boot Barn same store sales, which include bootbarn.com and exclude Sheplers. 2 Includes the same store sales growth for the 9 months ended December 26, 2015. 2 0.2% 13.3% 17.5% 11.9% 6.7% 7.3% 0.3% 1.2% FY 2010 FY 20
Slide 13: Highly successful private brands
Highly successful private brands Private brands account for approximately 13% of sales 3 Core Boot Barn Private Brand Penetration 1 1 Excludes Sheplers 3% 5% 7% 10% 13% FY2012 FY2013 FY2014 FY2015 YTD Q3 FY2016
Slide 14: Leading omni channel & e-commerce brands
LEADING omni channel & leading e-commerce brands DUAL BRAND STRATEGY Product / Lifestyle / Omni-Channel Direct-to-Consumer / Promotional 1 Trailing 12 months (TTM) as of December 26, 2015. 4 E-comm sales with sheplers ($M) 1 94 8 12 14 17 FY12 FY13 FY14 FY15 Q3 FY16 TTM Combined CAGR: 83%
Slide 15: Agenda: Business Update
OVERVIEW OF BOOT BARN STRATEGIC INITIATIVES BUSINESS UPDATE FINANCIAL UPDATE AGENDA
Slide 16: Sheplers acquisition overview
Sheplers acquisition Overview Background Authentic western retail and e-commerce business Rich 116-year heritage – founded in 1899 Leading Direct to Consumer brand with catalog legacy 1 The 3rd largest western retailer in the U.S. 19 stores rebranded to Boot Barn Sheplers.com continues as leading e-
Slide 17: Sheplers acquisition update
sheplers acquisition update Accomplishments Sheplers Q3 Results Consolidated / integrated all Corporate and Field functions Converted POS and most back office systems Launched new product assortment and rebranded Sheplers stores Rolled out Boot Barn private brands Implemented Boot Barn marketing and
Slide 18: E-commerce traffic by competitor
E-COMMERCE TRAFFIC BY COMPETITOR FY 2015 FY 2016 + Visitors (Millions) Estimated Traffic based on Alexa data Acquisition
Slide 19: E-commerce traffic by competitor
Visitors (Millions) E-COMMERCE TRAFFIC BY COMPETITOR 15 10 Estimated Traffic based on Alexa data BARN cave See - Acquisition - --" aa az a3 a4 ai az a3 FY 2015 FY 2016
Slide 20: Q3 business update
Q3 business update Sales in markets exposed to oil and commodities continued to be pressured (including North Dakota, Colorado, Wyoming and Texas) Disruption from Sheplers store construction coupled with a highly promotional prior year period led to a decline in Sheplers store sales (which turned po
Slide 21: Agenda: Financial Update
OVERVIEW OF BOOT BARN STRATEGIC INITIATIVES BUSINESS UPDATE FINANCIAL UPDATE AGENDA
Slide 22: Preliminary Q3 FY2016 results
Preliminary Q3 FY2016 results The preliminary financial information above is unaudited and may vary from our actual financial results for the thirteen weeks ended December 26, 2015. The preliminary financial information above reflects estimates based only on preliminary information available to us a
Slide 23: Preliminary Q3 FY2016 results
PRELIMINARY Q3 FY2016 RESUL * Preliminary net sales increased 49% to approximately $194 million. * Opened 5 new stores and completed the rebranding of 19 Sheplers stores. * Preliminary total same store sales (which include e-commerce and Sheplers sales) declined approximately 2.0%, with Boot Barn an
Slide 24: Adjusted EBITDA reconciliation
Adjusted ebitda reconciliation (a) Represents non-cash compensation expenses related to stock options and restricted stock awards granted to certain of our employees and directors. (b) Represents non-cash accrual for future award redemptions in connection with our customer loyalty program. (c) Repre
Slide 25: Adjusted EBITDA reconciliation
ADJUSTED EBITDA RECONCILIATION ™ Fiseal Year Ended Succesor Predecessor September Dec 12, Apr3, 2011 (in thousands) 26, Makeh28, March28, Mareh30, 2011 to to 2015 2014 2013) 3 raz 201 EBITOA Reconcliation Net income $6851 $ 13730 $ S660 $ 680 $ (4601) $ (660) Income tax expense scss 8466 3321 26 (10
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