Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — Investor Presentation (June 2024)
50 slides from Boot Barn's investor presentation, Jun 4, 2024
Slide 1: Offering everyone a piece of the American spirit—one handshake at a time
0 Offering everyone a piece of the American spirit—one handshake at a time.
Slide 2: Forward-Looking Statements
1 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. Forward-looking statements refer to Boot Barn Holdings
Slide 3: Agenda
2 • Review Industry Structure • Recap Boot Barn’s Brand Transformation • Discuss Impact On Four Strategic Initiatives • Update Current Business Agenda
Slide 4: Agenda: Review Industry Structure
3 • Review Industry Structure • Recap Boot Barn’s Brand Transformation • Discuss Impact On Four Strategic Initiatives • Update Current Business Agenda
Slide 5: Industry structure: Porter's Five Forces and impact on BOOT
4 • Large ($40 billion) market • Fragmented mom & pop industry • Few large direct competitors • Decades old lifestyle • Predominantly functional merchandise • Extremely loyal lifestyle customers • Little downward price pressure • No dominant single supplier • Small group of vendor partners • Relativ
Slide 6: Agenda: Recap Brand Transformation
5 • Review Industry Structure • Recap Boot Barn’s Brand Transformation • Discuss Impact On Four Strategic Initiatives • Update Current Business Agenda
Slide 7: Brand Transformation Revenue Growing 20% Annually on Average
6 $233 $346 $403 $569 $630 $678 $777 $846 $893 $1,488 $1,658 $1,667 $1,800 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 E Total Sales ($M) 53 weeks ~20% Average Annual Growth 53 weeks Brand Transformation Revenue Growing 20% Annually on Average 1 1Reflects the high end of the Com
Slide 8: Legacy Boot Barn vs Transformed Boot Barn
7 Legacy Boot Barn Transformed Boot Barn Customer Brand Assortment Stores Narrowly Defined • Western (Rancher, Farmer) • Some Work (Oil & Gas) Broader Customer Segments Defined • Western • Work (more industries) • Country Casual; Outdoor • Western Inspired Fashion • Priority to third-party brands •
Slide 9: Strategic Expansion of Customer Segments
8 Western Country Fashion Mens Womens Work Strategic Expansion of Customer Segments
Slide 10: Significant Growth in Customer Loyalty Program
9 Active Customers (in millions) 3.1 3.5 3.8 4.0 4.3 4.7 5.8 7.1 8.4 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Significant Growth in Customer Loyalty Program 1 1Repesents the number of B Rewarded Loyalty Members who have purchased merchandise from us in each of the trailing three-year periods men
Slide 11: Agenda: Four Strategic Initiatives
10 • Review Industry Structure • Recap Boot Barn’s Brand Transformation • Discuss Impact On Four Strategic Initiatives • New Stores • Same Store Sales • Omni-Channel • Exclusive Brands & Margin • Update Current Business Agenda
Slide 12: Legacy Store Format (Pre Brand Transformation)
11 ~$25 Billion Legacy Store Format (Pre Brand Transformation)
Slide 13: New Store Format
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Slide 19: Expanding the Brand Nationally
18 • 406 stores • 46 states • 86 stores • 8 states 2012 Today New Store Economics SqFt $1.7M $3.0M 1st Year Sales $700K Investment Return on Investment FY25 E 3yr Payback ~1.5yr Payback IPO Model $1.5M 32% 12K ~60% 10K Expanding the Brand Nationally
Slide 20: Accelerated New Store Openings to 15% Annually
19 86 117 152 169 208 219 226 240 259 273 300 345 400 460 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 E Annual Store Count 1Represents management’s guidance regarding opening 60 new stores in Fiscal 2025 as provided on the Company’s fourth quarter earnings call on May 14, 2
Slide 21: Roadmap for 900+ Stores in U.S. Alone
20 400 460 900 FY24 FY25 E FY26 FY27 FY28 FY29 FY30 1 Illustrative example of 15% new unit growth annually. 2Represents management’s guidance regarding opening 60 new stores in Fiscal 2025 as provided on the Company’s fourth quarter earnings call on May 14, 2024. New Store Opportunity1 • 500 additio
Slide 22: Agenda: Same Store Sales
21 • Review Industry Structure • Recap Boot Barn’s Brand Transformation • Discuss Impact On Four Strategic Initiatives • New Stores • Same Store Sales • Omni-Channel • Exclusive Brands & Margin • Update Current Business Agenda
Slide 23: Broader Product Assortment Today
22 Men’s Women’s Western Boots Jeans Western Hats Woven Shirts Chelsea Boots Knit Shirts Driving Mocs Ball Caps Fashion Hats Dresses Accessories Flare Jeans Western Boots Jeans Western Hats Woven Shirts Legacy Offering Broader Product Assortment Today Transformed Merchandise Assortment
Slide 24: Former Marketing (Pre Brand Transformation)
23 Former Marketing (Pre Brand Transformation)
Slide 25: Current Marketing (Since Brand Transformation)
24 Current Marketing (Since Brand Transformation)
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Slide 31: Brand Focus & Reduced Promotions Drive Margin
30 +110bps +90bps +90bps +270bps (70)bps +160bps +110bps FY19 FY20 FY21 FY22 FY23 FY24 FY25 E Merchandise Margin Expanded 760 Basis Points (BPS) In Past Seven Years 2 Brand Focus & Reduced Promotions Drive Margin 1FY25 estimated 110 basis points of merchandise margin as provided in the Company’s gui
Slide 32: Clearance on Markdown Product is Minor
31 Ladies & Accessories (Clearance) Ladies & Accessories (Non-Clearance) Hats & Other Men's Boots Clearance promotion targeting ~3% of total inventory Buy one, get one 50% off women’s and kids’ clearance clothing and accessories Clearance on Markdown Product is Minor
Slide 33: Brand Transformation Drove Outsized Growth
32 11.9% 6.7% 7.3% -0.1% 0.3% 5.2% 10.0% 5.0% 3.1% 53.7% -0.1% -6.2% -1.6% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 E Consolidated SSS% FY13 – FY19 +41% seven-year stack, +6% SSS avg FY20 – FY25 E +54% six-year stack, +9% SSS avg 1 1Reflects the high end of the Company’s guid
Slide 34: Average Sales per Comparable Store
33 $2.8 $4.6 $4.1 FY20 FY23 FY24 Average Sales per Comparable Store ($M) Fiscal 2023 45 new stores at ~$3.1M average sales per store Average sales decline of the 290 comparable stores in FY24 1 1 1Average sales per comparable store is calculated by dividing comparable store trailing twelve month sal
Slide 35: Agenda: Omni-Channel
34 • Review Industry Structure • Recap Boot Barn’s Brand Transformation • Discuss Impact On Four Strategic Initiatives • New Stores • Same Store Sales • Omni-Channel • Exclusive Brands & Margin • Update Current Business Agenda
Slide 36: Boot Barn Website (Pre Brand Transformation)
35 Boot Barn Website (Pre Brand Transformation)
Slide 37: Boot Barn Website – Post Brand Transformation
36 Boot Barn Website – Post Brand Transformation
Slide 38: Stores Provide Competitive Advantage
37 Legacy Digital Omni-Channel Capabilities ~60% of Online Orders Involve a Store Associate FY24 Online Orders • Buy Online Pick-Up In Store • Ship from Store • Same Day Delivery • Ship to Store • In-Store Fulfillment Stores Provide Competitive Advantage
Slide 39: Profitable Approach to Omni-Channel
38 Drive Store Traffic • Bring Long Tail to Stores • Ship to Store / BOPIS • Return in Store Deliver Digital Experience in Stores • Mobile App • Range Finder (AI-enabled) • WHIP (endless aisle) Fulfill Online Demand Efficiently • DC Fulfillment • Store Fulfillment • Same Day Delivery Drive Online Pr
Slide 40: Segmented Multi-Brand Strategy Online
39 • Branded site • Same price as stores • Sales performing better than other sites • Most profitable online site • ~75% of Q4 fiscal 2024 online sales • Price sensitive customer • Same assortment as Bootbarn.com • ~13% of Q4 fiscal 2024 online sales • Mostly ladies’ product • More fashionable custo
Slide 41: Moving Quickly with Artificial Intelligence
40 • Generative AI embedded in our in-store branded platform and soon to be enabled online • Helps customers and sales associates build full outfits • Actively working to add new functionality to e-commerce channel over next few months • More fulsome product descriptions • Stronger landing pages to
Slide 42: Agenda: Exclusive Brands & Margin
41 • Review Industry Structure • Recap Boot Barn’s Brand Transformation • Discuss Impact On Four Strategic Initiatives • New Stores • Same Store Sales • Omni-Channel • Exclusive Brands & Margin • Update Current Business Agenda
Slide 43: Pre Brand Transformation – Private Label
42 Pre Brand Transformation – Private Label
Slide 44: Post Brand Transformation – Exclusive Brands
43 WESTERN COUNTRY ARTIST INSPIRED WORK RANCH & RODEO PREMIUM VALUE Represents 3 of our top 5 selling brands. Post Brand Transformation – Exclusive Brands
Slide 45: Exclusive Brands Have Shown Strong Growth
44 3.0% 5.0% 7.0% 9.7% 11.1% 10.7% 13.5% 16.2% 22.0% 23.7% 28.3% 34.0% 37.7% 38.8% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 E Full Year Exclusive Brands Penetration % Margin enhancement ~1,000 bps vs. 3rd party brands $5 $12 $24 $39 $63 $67 $92 $126 $186 $212 $421 $564 $
Slide 46: Exclusive Brands Help Drive Margin Accretion
45 Exclusive Brands Growth & Margin Expansion Estimated 760bps total margin expansion EB Penetration Growth Over Seven Years 13.5% 37.7% 38.8% FY18 FY24 FY25 E EB is Only 1/3 of Margin Appreciation EB Expansion 250bps Improved full-price selling & buying economies of scale 510bps +110bps +90bps +90b
Slide 47: Agenda: Update Current Business
46 • Review Industry Structure • Recap Boot Barn’s Brand Transformation • Discuss Impact On Four Strategic Initiatives • Update Current Business Agenda
Slide 48: Sequential Improvement Continues in Both Channels
47 Store SSS% -9.4% -5.7% 0.8% Q3 FY24 Q4 FY24 Q1 QTD FY25 E-commerce SSS% -11.5% -7.6% 6.7% Q3 FY24 Q4 FY24 Q1 QTD FY25 Broad-based sequential improvement from Q3 to Q4 and then further improvement into FY25 Q1 QTD across: 1. All major merchandise departments 2. Both stores and e-commerce channels
Slide 49: Broad-Based Improvement Across Departments
48 -20% -10% 0% 10% Q3 FY24 Q4 FY24 Q1 QTD FY25 Men’s Western Boots -20% -10% 0% 10% Q3 FY24 Q4 FY24 Q1 QTD FY25 Work Boots -20% -10% 0% 10% Q3 FY24 Q4 FY24 Q1 QTD FY25 Women’s Western Boots -20% -10% 0% 10% Q3 FY24 Q4 FY24 Q1 QTD FY25 Men’s Western Apparel -20% -10% 0% 10% Q3 FY24 Q4 FY24 Q1 QTD FY
Slide 50: Thank You
49 Thank You
Boot Barn Holdings — Investor Presentation (June 2024) on 6ix