Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — Investor Presentation (January 2017)
37 slides from Boot Barn's investor presentation, Jan 9, 2017
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: Our Story and Strategic Initiatives
APPENDIX STRATEGIC INITIATIVES CONTINUE OMNI-CHANNEL LEADERSHIP DRIVE SAME STORE SALES GROWTH BUILD OUT PRIVATE BRAND PORTFOLIO EXPAND OUR STORE BASE 1 2 3 4 OUR STORY AGENDA
Slide 3: An American lifestyle
An American lifestyle 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 Marketresearch.com, 6/27/2016, “U.S. Construction Growth to average 6.0% annually
Slide 4: A lifestyle brand for western and work wear
A lifestyle brand for western and work wear
Slide 5: A lifestyle brand for western and work wear
A lifestyle brand for western and work wear
Slide 6: Boot Barn overview
Boot barn overview SALES composition1 Footwear 51% Hats, Accessories & Other 17% Apparel 32% 1Note: Fiscal year ended March 26, 2016, including the sales results of the Sheplers business for the 9 months subsequent to the acquisition. 2Note: Sales by channel data represents e-commerce sales as a per
Slide 7: Everyday merchandise assortment
everyday merchandise assortment RUGGED FOOTWEAR OUTERWEAR OVERALLS PANTS SHIRTS WORK Low fashion quotient minimizes markdown exposure BOOTS DENIM WESTERN SHIRTS COWBOY HATS BELTS / BELT BUCKLES WESTERN
Slide 8: Competitive Landscape: Stores
COMPETITIVE LANDSCAPE: STORES August 2012 August 2013 August 2014 today +
Slide 9: Competitive Landscape: E-commerce
COMPETITIVE LANDSCAPE: E-COMMERCE FY ‘15 FY ‘16 Visitors (Millions) Estimated Traffic based on Alexa data FY ‘17 + Growing online traffic while direct competitors decline +4% FY ‘15 FY ‘16 Visitors (Millions) Estimated Traffic based on Alexa data FY ‘17 + +4% FY ‘15 FY ‘16 Visitors (Millions) Estima
Slide 10: History of growth
History of 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 from
Slide 11: Preliminary Q3 FY2017 results
Preliminary Q3 FY2017 results The preliminary financial information above is unaudited and may vary from our actual financial results for the thirteen weeks ended December 24, 2016. The preliminary financial information above reflects estimates based only on preliminary information available to us a
Slide 12: Agenda: Continue Omni-Channel Leadership
APPENDIX OUR STORY STRATEGIC INITIATIVES DRIVE SAME STORE SALES GROWTH BUILD OUT PRIVATE BRAND PORTFOLIO EXPAND OUR STORE BASE 2 3 4 AGENDA CONTINUE OMNI-CHANNEL LEADERSHIP 1
Slide 13: Omni-channel leadership
Omni-channel leadership DUAL BRAND STRATEGY 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, prior to the acquisition. 2E-commerce sales for the trailing twelve months ended December 24, 2016. 1 E-
Slide 14: Common platform will create scale economies
Common platform will create scale economies 1 Other Targeted / Curated Sites Owned Sites Affiliated Potential Future Sites
Slide 15: Margin expansion opportunity
Margin expansion opportunity 1 Investing in e-commerce automation Owning more of long tail demand
Slide 16: Agenda: Drive Same Store Sales Growth
APPENDIX OUR STORY STRATEGIC INITIATIVES CONTINUE OMNI-CHANNEL LEADERSHIP BUILD OUT PRIVATE BRAND PORTFOLIO EXPAND OUR STORE BASE 1 3 4 AGENDA DRIVE SAME STORE SALES GROWTH 2
Slide 17: Drive same store sales growth
DRIVE same store sales growth 2 Jul/Aug1 Sept Oct Nov Dec Election distraction Markedly warmer weather in Boot Barn markets 1 Note: Cheyenne Frontier Days moved from July to August in Fiscal 2017. 1.0% 7.4% 7.7% 13.8% 16.2% 14.2% 14.1% 18.1% 19.6% 16.9% 17.8% 14.3% 10.7% 7.5% 8.2% 7.1% 3.8% 8.9% 7.7
Slide 18: Drive SSS Growth: Merchandising Initiatives
DRIVE SSs Growth: Merchandising Initiatives Broadening our assortment Expanding performance work boots Introducing new festival wear 2 Targeting specific customer groups
Slide 19: Drive SSS Growth: WHIP
DRIVE SSs Growth: WHIP 2 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 during first 4 weeks of December WHIP: We Have I
Slide 20: Drive SSS Growth: WHIP Holiday Commercial
DRIVE SSs Growth: WHIP HOLIDAY Commercial 2
Slide 21: Drive SSS Growth: growing commercial accounts
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 2
Slide 22: Drive SSS Growth: remodels and relocations
Drive SSS Growth: remodels and relocations 2 Historical Boot Barn Stores
Slide 23: Drive SSS Growth: remodels and relocations
Drive SSS Growth: remodels and relocations 2
Slide 24: Drive SSS Growth: remodels and relocations
Drive SSS Growth: remodels and relocations 2
Slide 25: Drive SSS Growth: remodels and relocations
Drive SSS Growth: remodels and relocations 2
Slide 26: Drive SSS Growth: remodels and relocations
Drive SSS Growth: remodels and relocations 2
Slide 27: Drive SSS Growth: remodels and relocations
Drive SSS Growth: remodels and relocations 2
Slide 28: Agenda: Build Out Private Brand Portfolio
APPENDIX OUR STORY STRATEGIC INITIATIVES CONTINUE OMNI-CHANNEL LEADERSHIP DRIVE SAME STORE SALES GROWTH EXPAND OUR STORE BASE 1 2 4 AGENDA BUILD OUT PRIVATE BRAND PORTFOLIO 3
Slide 29: Highly successful private brands
Highly successful private brands 3 historical Private Brand sales growth 1 1 Represents total Company private brand sales, including stores and bootbarn.com, in Fiscal 2012 and Fiscal 2016. Opportunities for continued growth (more brands and brand extensions) Introduced private brands to sheplers.co
Slide 30: Comprehensive assortment of brands and styles
COMPREHENSIVE ASSORTMENT OF BRANDS AND STYLES = Private brands Western Work / Other TOP 5 brands 2 1 3 4 5 3 1 1 1 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, 2016
Slide 31: Agenda: Expand Our Store Base
APPENDIX OUR STORY STRATEGIC INITIATIVES CONTINUE OMNI-CHANNEL LEADERSHIP DRIVE SAME STORE SALES GROWTH BUILD OUT PRIVATE BRAND PORTFOLIO 1 2 3 AGENDA EXPAND OUR STORE BASE 4
Slide 32: Building national store presence
Building national store presence 4 FY12 86 stores 8 states Current 219 stores 31 states
Slide 33: Opportunity to double store count
Opportunity to double store count 4 Historical and Future Potential Store Base 10% annual growth ~500 Compelling new store economics 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 Time between LOI & Openi
Slide 34: 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 brands Loyal cus
Slide 35: Agenda: Appendix
OUR STORY STRATEGIC INITIATIVES CONTINUE OMNI-CHANNEL LEADERSHIP DRIVE SAME STORE SALES GROWTH BUILD OUT PRIVATE BRAND PORTFOLIO EXPAND OUR STORE BASE 1 2 3 4 APPENDIX AGENDA
Slide 36: Adjusted EBITDA reconciliation
Adjusted ebitda reconciliation (a) Represents non-cash compensation expenses related to stock options, restricted stock awards and restricted stock units granted to certain of our employees and directors. (b) Represents the non-cash accrual for future award redemptions in connection with our custome
Slide 37: Adjusted EBITDA reconciliation
ADJUSTED EBITDA RECONCILIATION Fiscal Year Ended Successor Predecessor (inthousands) March 26, March 28, March29, March 30, Dec. 12, 2011to_Apr.3,2011t0 2016 2015 2014 2013 Mar.31,2012__Dec. 11, 2011 EBITDA Reconailiation: Net income $ 9868 $ 13730 $ 5660 $ 680 $ (401) $ (660) Income tax expense 748
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