Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — ICR XChange Conference 2017
38 slides from Boot Barn's conference presentation, Jan 10, 2017
Slide 1: ICR XChange Conference
ICR XChange Conference January 10, 2017 1
Slide 2: 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 3: Agenda
AGENDA OUR STORY STRATEGIC INITIATIVES 1 CONTINUE OMNI‐CHANNEL LEADERSHIP 2 DRIVE SAME STORE SALES GROWTH 3 BUILD OUT PRIVATE BRAND PORTFOLIO 4 EXPAND OUR STORE BASE APPENDIX 3
Slide 4: An American Lifestyle
AN AMERICAN LIFESTYLE #1 spectator sport1 Highest selling vehicle2 Most popular music genre3 Fast growing sport5 Growing construction industry4 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 Rise
Slide 5: A Lifestyle Brand for Western and Work Wear
A LIFESTYLE BRAND FOR WESTERN AND WORK WEAR 5
Slide 6: A Lifestyle Brand for Western and Work Wear
A LIFESTYLE BRAND FOR WESTERN AND WORK WEAR 6
Slide 7: Boot Barn Overview
BOOT BARN OVERVIEW SALES COMPOSITION1 Hats, Accessories & Other Footwear 17% 51% Apparel 32% SALES BY END USER1 Kids’ Unisex 5% 9% Men's 60% Women‘s 26% SALES BY CHANNEL2 E‐commerce 18% Stores 82% 7 1Note: Fiscal year ended March 26, 2016, including the sales results of the Sheplers business for the
Slide 8: Everyday Merchandise Assortment
EVERYDAY MERCHANDISE ASSORTMENT BOOTS DENIM WESTERN SHIRTS COWBOY HATS BELTS / BELT BUCKLES WESTERN RUGGED FOOTWEAR OUTERWEAR OVERALLS PANTS SHIRTS WORK Low fashion quotient minimizes markdown exposure 8
Slide 9: Competitive Landscape: Stores
COMPETITIVE LANDSCAPE: STORES AUGUST 2012 AUGUST 2013 AUGUST 2014 TODAY + 9
Slide 10: Competitive Landscape: E-Commerce
COMPETITIVE LANDSCAPE: E‐COMMERCE E‐COMMERCE SITE TRAFFIC + 15 +4% Visitors (Millions) 10 5 ‐ Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY ‘15 FY ‘16 FY ‘17 Estimated Traffic based on Alexa data Growing online traffic while direct competitors decline 10
Slide 11: History of Growth
HISTORY OF GROWTH STORE COUNT NET SALES ($MM) 219 208 169 $616 152 $569 117 $403 86 $346 $233 $169 1 FY12 FY13 FY14 FY15 FY16 Q3 FY17 FY12 1 FY13 FY14 FY15 FY16 TTM Q3 FY17 ADJUSTED EBIT ($MM)2 ADJUSTED EBITDA ($MM) $46 $39 $60 $32 $48 $40 $23 $19 $29 $22 1 1 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14
Slide 12: Preliminary Q3 FY2017 Results
PRELIMINARY Q3 FY2017 RESULTS • Preliminary net sales increased 3% to approximately $199 million. • Opened 7 new stores. • Preliminary total same store sales increased approximately 0.2%, with e‐ commerce sales outperforming stores. This compares with previous third quarter guidance of slightly posi
Slide 13: Agenda
AGENDA OUR STORY STRATEGIC INITIATIVES 1 CONTINUE OMNI‐CHANNEL LEADERSHIP 2 DRIVE SAME STORE SALES GROWTH 3 BUILD OUT PRIVATE BRAND PORTFOLIO 4 EXPAND OUR STORE BASE APPENDIX 13
Slide 14: Omni-Channel Leadership
1 OMNI‐CHANNEL LEADERSHIP E‐COMMERCE SALES ($M) DUAL BRAND STRATEGY 18% 111 E‐commerce as % of total sales 83 4% 17 14 1 2 FY14 FY15 FY16 TTM Q3 FY17 1 E‐commerce sales for the year ended March 26, 2016, which does not include Sheplers e‐commerce revenue for the first three months of the fiscal year
Slide 15: Common Platform Will Create Scale Economies
1 COMMON PLATFORM WILL CREATE SCALE ECONOMIES Owned Sites Potential Future Sites Other Targeted / Curated Sites Affiliated 15
Slide 16: Margin Expansion Opportunity
1 MARGIN EXPANSION OPPORTUNITY Owning more of long tail demand Investing in e‐commerce automation 16
Slide 17: Agenda
AGENDA OUR STORY STRATEGIC INITIATIVES 1 CONTINUE OMNI‐CHANNEL LEADERSHIP 2 DRIVE SAME STORE SALES GROWTH 3 BUILD OUT PRIVATE BRAND PORTFOLIO 4 EXPAND OUR STORE BASE APPENDIX 17 17 17
Slide 18: Drive Same Store Sales Growth
2 DRIVE SAME STORE SALES GROWTH 3.6% 2.3% 0.8% 0.8% Nov Jul/Aug1 Sept Oct Dec 19.6% 18.1% 17.8% 16.9% 16.2% • Election distraction 14.2% 14.1% 14.3% • Markedly warmer weather 13.8% ‐5.2% in Boot Barn markets 10.7% 8.9% 8.2% 7.4% 7.7% 7.5% 7.1% 7.7% 7.3% 7.2% 7.0% 5.6% 3.8% 1.8% 1.0% 0.1% 0.4% 0.2% ‐
Slide 19: Drive SSS Growth: Merchandising Initiatives
2 DRIVE SSS GROWTH: MERCHANDISING INITIATIVES Expanding performance work boots Introducing new festival wear Targeting specific customer groups Broadening our assortment 19
Slide 20: Drive SSS Growth: WHIP
2 DRIVE SSS GROWTH: WHIP WHIP: We Have It Promise • In‐store touch screen devices • One kiosk • Plus handhelds • Access to millions of items from: • E‐commerce DC • Vendor DCs for drop ship • Free two‐day shipping on boots • Combines in‐store service with on‐line assortment • 2% of store sales durin
Slide 21: Drive SSS Growth: WHIP Holiday Commercial
2 DRIVE SSS GROWTH: WHIP HOLIDAY COMMERCIAL 21
Slide 22: Drive SSS Growth: Growing Commercial Accounts
2 DRIVE SSS GROWTH: GROWING COMMERCIAL ACCOUNTS • B2B relationships • Contractors • Municipalities • Events • Separate dedicated organization • Commercial Accounts specialists in select stores • Expanded work assortment in key markets 22
Slide 23: Drive SSS Growth: Remodels and Relocations
2 DRIVE SSS GROWTH: REMODELS AND RELOCATIONS Historical Boot Barn Stores 23
Slide 24: Drive SSS Growth: Remodels and Relocations
2 DRIVE SSS GROWTH: REMODELS AND RELOCATIONS 24
Slide 25: Drive SSS Growth: Remodels and Relocations
2 DRIVE SSS GROWTH: REMODELS AND RELOCATIONS 25
Slide 26: Drive SSS Growth: Remodels and Relocations
2 DRIVE SSS GROWTH: REMODELS AND RELOCATIONS 26
Slide 27: Drive SSS Growth: Remodels and Relocations
2 DRIVE SSS GROWTH: REMODELS AND RELOCATIONS 27
Slide 28: Drive SSS Growth: Remodels and Relocations
2 DRIVE SSS GROWTH: REMODELS AND RELOCATIONS 28
Slide 29: Drive SSS Growth: Remodels and Relocations
2 DRIVE SSS GROWTH: REMODELS AND RELOCATIONS 29
Slide 30: Agenda
AGENDA OUR STORY STRATEGIC INITIATIVES 1 CONTINUE OMNI‐CHANNEL LEADERSHIP 2 DRIVE SAME STORE SALES GROWTH 3 BUILD OUT PRIVATE BRAND PORTFOLIO 4 EXPAND OUR STORE BASE APPENDIX 30 30 30
Slide 31: Highly Successful Private Brands
3 HIGHLY SUCCESSFUL PRIVATE BRANDS HISTORICAL PRIVATE BRAND SALES GROWTH 1 (in millions) 2 $59 CAGR: 85% $5 FY2012 FY2016 PRIVATE BRAND GROWTH PLAN 2 • Opportunities for continued growth (more brands and brand extensions) • Introduced private brands to sheplers.com in Q3 • FY ‘17 private brand sales
Slide 32: Comprehensive Assortment of Brands and Styles
3 COMPREHENSIVE ASSORTMENT OF BRANDS AND STYLES TOP 5 BRANDS WESTERN WORK / OTHER 1 1 1 2 1 3 2 4 2 5 = Private brands 1 Note: Top three third‐party brands represent ~40% of total sales as of March 26, 2016. 2 Note: Boot Barn private brands are number four and five of our top brands as of March 26,
Slide 33: Agenda
AGENDA OUR STORY STRATEGIC INITIATIVES 1 CONTINUE OMNI‐CHANNEL LEADERSHIP 2 DRIVE SAME STORE SALES GROWTH 3 BUILD OUT PRIVATE BRAND PORTFOLIO 4 EXPAND OUR STORE BASE APPENDIX 33
Slide 34: Building National Store Presence
4 BUILDING NATIONAL STORE PRESENCE FY12 CURRENT • 86 stores • 8 states • 219 stores • 31 states 34
Slide 35: Opportunity to Double Store Count
4 OPPORTUNITY TO DOUBLE STORE COUNT HISTORICAL AND FUTURE POTENTIAL COMPELLING NEW STORE ECONOMICS STORE BASE ~500 GOALS Store Size (sq. ft.) 10,000 Year 1 Net Sales $1.7mm Net Cash Investment1 $0.8mm Cash on Cash Return (Yr. 1) ~30% Payback Period ~3 Years 219 Time between LOI & Opening 6 months 20
Slide 36: Conclusion
CONCLUSION 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 Proven ability to drive same store sales growth Strong portfolio of exclusive private brand
Slide 37: Agenda
AGENDA OUR STORY STRATEGIC INITIATIVES 1 CONTINUE OMNI‐CHANNEL LEADERSHIP 2 DRIVE SAME STORE SALES GROWTH 3 BUILD OUT PRIVATE BRAND PORTFOLIO 4 EXPAND OUR STORE BASE APPENDIX 37 37
Slide 38: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Fiscal Year Ended Successor Predecessor (in thousands) March 26, March 28, March 29, March 30, Dec. 12, 2011 to Apr. 3, 2011 to 2016 2015 2014 2013 Mar. 31, 2012 Dec. 11, 2011 EBITDA Reconciliation: Net income $ 9,868 $ 13,730 $ 5,660 $ 680 $ (4,601) $ (660) Income tax