Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — Jefferies 2015 Global Consumer Conference
26 slides from Boot Barn's conference presentation, Jun 24, 2015
Slide 1: Jefferies Conference
Jefferies Conference June 24, 2015 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. Forward-looking statements gi
Slide 3: Jefferies Conference
Jefferies Conference June 24, 2015 3 3
Slide 4: An Outsider's Perspective
AN OUTSIDER’S PERSPECTIVE 4 4
Slide 5: America's Lifestyle
AMERICA’S LIFESTYLE #1 spectator sport1 Top 3 selling vehicle(s)2 Most popular music genre3 Fastest growing spectator sport4 1 Forbes.com, 2/27/12, “NASCAR’s back!”; 2 Forbes, 1/7/2015, “America’s Best-Selling Vehicles of 2014 [Infographic]” (#1. F-Series, #2. Silverado, #3. Ram) ; 3 NPD Group, 2/28
Slide 6: Boot Barn Snapshot
BOOT BARN SNAPSHOT SALES COMPOSITION (FY15A) ILLUSTRATIVE STORE Western Work1 66% 34% Hats, Accessories & Other Footwear 17% 51% Apparel 32% Note: Fiscal year ended March. 1 Work also includes sales from “other” 6 6
Slide 7: Everyday Merchandise Assortment
EVERYDAY MERCHANDISE ASSORTMENT BOOTS DENIM WESTERN SHIRTS COWBOY HATS BELTS / BELT BUCKLES WESTERN RUGGED FOOTWEAR OUTERWEAR OVERALLS PANTS SHIRTS WORK Our core assortment is strategically augmented by region to match local preferences 7 7
Slide 8: Over 200 Brands and More Than 1,500 Styles
OVER 200 BRANDS AND MORE THAN 1,500 STYLES WESTERN WORK / OTHER = Private brands 8 8
Slide 9: 9
9 9
Slide 10: Growth Strategies
GROWTH STRATEGIES 1 EXPAND OUR STORE BASE 2 DRIVE SAME STORE SALES GROWTH 3 BUILD OUT PRIVATE BRAND PORTFOLIO 4 GROW ECOMMERCE AND OMNI CHANNEL EXPERIENCE 10 10
Slide 11: Compelling New Store Economics
1 COMPELLING NEW STORE ECONOMICS GOALS Store Size (sq. ft) ~10,000 Year 1 Net Sales ~$1.7mm Net Cash Investment1 ~$0.8mm Minot, ND Cash on Cash Return (Year 1) 31.5% Payback Period 2.7 Years Mall of America Greeley, CO Downtown Norco, CA Nashville Easley, SC Houston, TX (Humble) 11 1 Includes capita
Slide 12: Continuous, Strong Same Store Sales Growth
2 CONTINUOUS, STRONG SAME STORE SALES GROWTH 22 CONSECUTIVE QUARTERS OF POSITIVE SAME STORE SALES GROWTH 19.6% 18.1% 17.8% 16.9% 16.2% 14.2%14.1% 14.3% 13.8% 10.7% AVG: 8.9% 10.8% 8.2% 7.4% 7.7% 7.5% 7.1% 7.7% 7.3% 7.2% 7.0% 3.8% 1.0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 13: Highly Successful Private Brands
3 HIGHLY SUCCESSFUL PRIVATE BRANDS Private brands account for approximately 10% of sales 13 13
Slide 14: Multi-Pronged Ecommerce Growth Strategy
4 MULTI-PRONGED ECOMMERCE GROWTH STRATEGY LOCATION OF BOOT BARN ECOMMERCE SALES E-COMM SALES WITH SHEPLERS ($M) 831 CAGR: 115% 17 12 14 8 FY12 FY13 FY14 FY15 FY15 Note: Red circles represent the location and relative Combined amount of Boot Barn FY14A ecommerce sales Sheplers e-commerce sales 14 14
Slide 15: National Brand with Local Presence
NATIONAL BRAND WITH LOCAL PRESENCE SELECT KEY EVENT SPONSORSHIPS PRESENCE AT WESTERN AND COUNTRY EVENTS WESTERN EVENTS POP-UP SHOPS COUNTRY MUSIC 15 15
Slide 16: Boot Barn Is a Genuine Lifestyle Retail Brand
BOOT BARN IS A GENUINE LIFESTYLE RETAIL BRAND LIFESTYLE CUSTOMER AUTHENTIC SHOPPING EXPERIENCE • Strong affinity for the • Inviting store western lifestyle environment • ~2.6mm loyalty program • Extensive selection members1 • Engaging store • ~90% of sales to loyalty associates program members2 – St
Slide 17: Boot Barn – True to Customers
BOOT BARN – TRUE TO CUSTOMERS 17 17
Slide 18: Introduction to Sheplers
INTRODUCTION TO SHEPLERS KEY FACTS • Authentic western retail and e-commerce business • Rich 116-year heritage – founded in 1899 • Early legacy as a catalog business, with addition of stores in 1961 and e-commerce in 19991 • Key financials (for 12 mos ending March 2015)2: - Total Sales: $157 million
Slide 19: Boot Barn Proven Track Record and Opportunity
BOOT BARN PROVEN TRACK RECORD AND OPPORTUNITY STORES E-COMMERCE SALES ($M) TOTAL SALES ($M) 200 831 5601 169 152 CAGR: 49% 403 117 CAGR: 346 115% 86 233 170 17 12 14 8 FY12 FY13 FY14 FY15 FY15 FY12 FY13 FY14 FY15 FY15 FY12 FY13 FY14 FY15 FY15 Combined Combined Combined Acquired new stores Sheplers e
Slide 20: Strategic Rationale
STRATEGIC RATIONALE 1 Creates the largest omni-channel western & work wear retailer in the U.S. • $83 million1 combined e-commerce revenues (15% of total sales) 2 Enhances key store markets and increases scale with a national Boot Barn brand • $560 million1 national Boot Barn chain (with rebranding
Slide 21: Largest Omni-Channel Western Wear Retailer
1 LARGEST OMNI-CHANNEL WESTERN WEAR RETAILER E-COMMERCE PENETRATION1 OPPORTUNITY FOR DUAL BRAND STRATEGY Product / Lifestyle / Direct-to-Consumer / Omni-Channel Promotional 4% 15% Pre Post Acquisition Acquisition 21 1 Trailing 12 months (TTM) as of March 2015 21
Slide 22: Enhances Key Store Markets
2 ENHANCES KEY STORE MARKETS FY12 FY13 FY14 • 86 stores • 117 stores • 152 stores • 8 states • 21 states • 23 states CURRENT BOOT BARN BOOT BARN + SHEPLERS REBRANDED Sheplers stores to be rebranded Boot Barn • 176 stores • 201 stores • 28 states • 29 states 22 22
Slide 23: 5M+ Combined Customer Database
3 5M+ COMBINED CUSTOMER DATABASE FOUR CUSTOMER CONSOLIDATED CUSTOMER TAILORED OFFER/MESSAGING SOURCES DATABASE SEGMENTS Western Work boots & work wear Boot Barn Stores Casual • Demographics bootbarn.com Integrated • Psychographics CRM Country music Database • Purchase behavior across 5M+ all channel
Slide 24: Significant Financial Benefits
4 SIGNIFICANT FINANCIAL BENEFITS SYNERGIES • Expected $6-8 million annual synergies Sales synergies Margin synergies • Expanded assortments • Purchasing scale (especially work wear) • Private brands penetration • Upgraded stores / • Vendor direct / container-load enhanced store disciplines sourcing
Slide 25: Strong, Experienced Management Execution
STRONG, EXPERIENCED MANAGEMENT EXECUTION SELECT YEARS WITH YEARS OF EXPERIENCE BOOT BARN EXPERIENCE Jim Conroy Chief Executive Officer 2 22 Greg Hackman Joined Chief Financial Officer 29 January 2015 Laurie Grijalva Chief Merchandising Officer 20 32 John Kubo Joined 34 Chief Digital Officer May 2015
Slide 26: Boot Barn Is an Authentic Lifestyle Brand
BOOT BARN IS AN AUTHENTIC LIFESTYLE BRAND 26 26
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