Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — Q4 2023 Earnings Presentation
26 slides from Boot Barn's earnings presentation, May 17, 2023
Slide 1: Supplemental Financial Presentation May 2023
Offering everyone a piece of the American spirit—one handshake at a time. Supplemental Financial Presentation May 2023 0
Slide 2: Important Information
Important Information 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-looking
Slide 3: Q4 Fiscal 2023 Results
Q4 Fiscal 2023 Results Q4 Total Sales ($M) Q4 Same Store Sales % $426 33.3% $383 26.9% $259 12.1% $171 $193 $189 8.7% $163 -0.9% -4.7% -5.5% 1 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY17 FY18 FY19 FY20 FY21 FY22 FY23 +9.1% +4.8% +12.9% (2.1)% +37.2% +48.1% +11.0% New Unit Growth Q4 GAAP EPS $1.47 $1.53
Slide 4: Full Year Fiscal 2023 Results
Full Year Fiscal 2023 Results Full Year Total Sales ($M) Full Year Same Store Sales % 53.7% $1,658 $1,488 $846 $893 $777 $630 $678 10.0% 5.2% 5.0% 3.1% 0.3% -0.1% FY17 FY18 FY19 FY20 FY21 FY22 FY23 1 FY17 FY18 FY19 FY20 FY21 FY22 FY23 +10.7% +7.6% +14.6% +8.8% +5.7% +66.6% +11.4% Store Count Full Ye
Slide 5: Full Year Fiscal 2023 Highlights
Full Year Fiscal 2023 Highlights Results Fiscal 20231 Total Sales $ $1.7 Billion Total Sales Growth % +11.4% (0.1)% Consolidated Same Store Sales Growth % Stores +1.8% E-comm (10.2)% Active B Rewarded Customers Purchasing 7.1M2 +22% New Store Openings 45 +15% Exclusive Brand Penetration % 34.0% +570
Slide 6: Strategic Initiatives Update
Strategic Initiatives Update 1 Expand Our Store Base 2 Drive Same Store Sales Growth 3 Continue Omni-Channel Leadership 4 Build Out Exclusive Brand Portfolio 5
Slide 7: Store Count
1 15% New Unit Growth in FY23 & Projected for FY24 Store Count 397 345 300 273 259 240 219 226 208 169 152 117 86 1 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 E 1Represents management’s guidance to open 52 new stores in Fiscal 2024, provided on the Company’s fourth quarter and
Slide 8: Expansion Into New and Existing Markets
1 Expansion Into New and Existing Markets Today 2012 • 86 stores • 352 stores • 8 states • 44 states New Store Economics 12K $3.5M $1.4M 75% 10K ~1yr Payback $1.7M $700K 32% IPO Model 3yr Payback Today SqFt 1st Year Sales Investment Return on Investment 7
Slide 9: Added Kansas City DC to Support New Store Growth
1 Added Kansas City DC to Support New Store Growth • Located in the center of the country to support the eastward expansion of Boot Barn. • 460K sq ft facility utilizing automation (robots). • Capacity for approximately 6 million units. • Build-out completed March 2023. Receiving activity commenced
Slide 10: A Decade of Strong Sales Across Channels
2 A Decade of Strong Sales Across Channels Total Sales Growth % Consolidated SSS% 66.6% 53.7% 48.4% 41.3% 38.2% 16.4% 14.6% 10.7% 11.4% 11.9% 10.0% 7.6% 8.8% 6.7% 7.3% 5.7% 4.0% 5.2% 5.0% 3.1% 0.3% -0.1% -0.1% -4.5% 1 1 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 E FY13 FY14 FY15 FY1
Slide 11: Sales Growth Exceeds Industry Tailwinds
2 Sales Growth Exceeds Industry Tailwinds Sales Growth % 96% 67% 28% 25% 9% 11% 12% 6% 4% -20% 4 3 FY21 FY22 FY23 3 Year CAGR Total Growth 4 4 2 Boot Barn Western & work public companies 1 1Western and work public companies is comprised of Levi Strauss & Co. (consolidated revenue), Kontoor Brands, I
Slide 12: Sustaining Elevated Store Sales
2 Sustaining Elevated Store Sales Average Store Volume (AUV) Excluding New Stores Opened in FY21 – FY24 ($M)1 $4.6 $4.5 $4.4 $2.6 $2.7 $2.6 $2.3 $2.3 $2.4 $2.2 $2.3 $1.9 $1.9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 E 1Average net sales per store is calculated by dividing net
Slide 13: Functional Product Selling Dominates Fashion
2 Functional Product Selling Dominates Fashion Historical Sales Penetration % (Comp Stores)1 91% 92% 91% 91% 92% 89% 89% 89% 9% 8% 9% 9% 8% 11% 11% 11% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 E Retail Store (2.3)% +6.1% +9.5% +4.5% (1.1)% +57.2% +1.8% (5.2)% SSS% Functional – Comprised of men’s boot
Slide 14: Healthy Inventory Position
2 Healthy Inventory Position • Modest average comp store inventory growth (8% dollars, 3% units). • 24% total inventory growth. • 3-year retail store SSS% stack is outpacing 3-year stack comp store inventory growth. • 30 weeks of store supply (lower than pre-pandemic levels). ~500bps Merchandise Mar
Slide 15: Stores Provide Competitive Advantage
3 Stores Provide Competitive Advantage ~60% of Online Orders Involve a Store Associate Legacy Digital Omni-Channel Capabilities • Buy Online Pick-Up In Store • Ship from Store • Same Day Delivery • Ship to Store • In-Store Fulfillment FY23 Online Orders 14
Slide 16: Integrating Channels
3 Integrating Channels Boot Barn Mobile App • Drive customer traffic to stores • Shop local store • Mobile shopping • Concerts & events calendar • Music streaming 15
Slide 17: Leveraging New Technologies to Drive Sales
3 Leveraging New Technologies to Drive Sales Machine Learning Model Driven ChatGPT Product Recommendations Conversational Experience • Leverages proprietary market basket analysis. • Runs on in-store RangeFinder application (can be added to online experience at a later date). • Creates intelligent a
Slide 18: Exclusive Brands Portfolio
4 Exclusive Brands Portfolio WESTERN COUNTRY ARTIST INSPIRED WORK RANCH & RODEO 17
Slide 19: Exclusive Brands Penetration Growth
4 Exclusive Brands Penetration Growth Exclusive Brands Sales ($M) $655 $564 $421 $186 $212 $126 $63 $67 $92 $12 $24 $39 $5 1 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 E Exclusive Brands Penetration % Margin enhancement ~1,000 bps vs. 3rd party brands 38.0% 34.0% 28.3% 22.0% 23
Slide 20: FY24 Guidance
FY24 Guidance 19
Slide 21: Full Year FY24 Financial Guidance
Full Year FY24 Financial Guidance Low End High End High End Guidance Full Year FY24 Financial Guidance ($M) ($M) Comments Total Net Sales $1,690 $1,723 Consolidated SSS% (6.5)% (4.5)% Store SSS% (7.0)% (5.2)% E-commerce SSS% (3.0)% +1.0% Total Net Sales Growth % 2.0% 4.0% New Store Openings 52 52 $3
Slide 22: Historical Sales & EPS Growth
Historical Sales & EPS Growth Total Sales ($M) GAAP EPS $1,723 $5.00 +174% Growth Over 800% Growth +15% CAGR +37% CAGR $630 $0.53 1 1 FY17 FY24 E FY17 FY24 E 1Reflects the high end of the Company’s Fiscal 2024 guidance range provided on their May 17, 2023 earnings call. 21
Slide 23: FY24 Leverage Points
FY24 Leverage Points FY24 Estimated Buying/Occupancy/DC Leverage Point FY24 Consolidated SSS% Leverage Point 14% 53rd Week (2)% Annualizing New Unit Growth (3)% from 10% to 15% Kansas City Distribution Center (3)% Comp Store Remodels (2)% Proforma Leverage Point 4% FY24 Estimated SG&A Leverage Point
Slide 24: Q1 FY24 Financial Guidance
Q1 FY24 Financial Guidance Low End High End High End Guidance Q1 FY24 Financial Guidance ($M) ($M) Comments Total Net Sales $357 $364 Consolidated SSS% (9.0)% (7.0)% Store SSS% (8.0)% (6.0)% E-commerce SSS% (17.0)% (15.0)% Total Net Sales Decline % (2.4)% (0.5)% New Store Openings 13 13 +80bps merch
Slide 25: Investment Considerations
Investment Considerations National Leader in World Class Omni-Channel Strong New Unit Growth Attractive Market Capabilities Opportunities • Leading player in estimated $40 • Strong variety of omni-channel • Proven ability to open stores in both billion industry offerings in place new and existing ma
Slide 26: investor.bootbarn.com
BOOT BARN investor.bootbarn.com