Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — 17th Annual ICR XChange Conference (January 2015)
35 slides from Boot Barn's conference presentation, Jan 12, 2015
Slide 1: ICR XChange Conference
ICR XChange Conference January 12, 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: Today's Presenters
TODAY’S PRESENTERS Jim Conroy Paul Iacono Laurie Grijalva Jim Watkins Chief Executive Officer Chief Financial Officer Chief Merchandising Officer Director of Financial Planning and Analysis 3 3
Slide 4: An Outsider's Perspective
AN OUTSIDER’S PERSPECTIVE 4 4
Slide 5: America's Perspective
AMERICA’S PERSPECTIVE #1 spectator sport1 Highest selling vehicle2 Most popular music genre3 Fastest growing sport4 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 Favori
Slide 6: Boot Barn Snapshot
BOOT BARN SNAPSHOT SALES COMPOSITION (FY14A) STORE FOOTPRINT 166 stores in 26 states1 Work & Other 32% Western 68% Hats, Accessories & Other 17% Apparel 34% Footwear 49% Note: Fiscal year ended March. 1 Store count as of January 12, 2015. 6 6
Slide 7: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE SALES MORE THAN DOUBLED IN TWO YEARS1 SAME STORE SALES GROWTH3 Net Sales (43.2% CAGR) 17.5% Adj. EBITDA (36.2% CAGR) $345.9 11.9% $233.2 6.7% 7.7% 7.3% 7.2% $168.7 $40.3 $21.7 $28.9 FY12A 2 FY13A FY14A Q1 Q2 Q3 FY12A2 FY13A FY14A FY15A FY15A FY15E Note: Fiscal year ended
Slide 8: A Genuine Lifestyle Retail Brand
A GENUINE LIFESTYLE RETAIL BRAND LIFESTYLE CUSTOMER AUTHENTIC SHOPPING EXPERIENCE • Strong affinity for the • Inviting store environment western lifestyle • Extensive selection • ~2.2mm loyalty • Engaging store associates program members1 – Strong product • ~90% of sales to loyalty program expertise
Slide 9: Boot Barn is an authentic...
Sees yo ed iu Boot Barn is an authentic
Slide 10: 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 10 10
Slide 11: Over 200 Brands and More Than 1,500 Styles
OVER 200 BRANDS AND MORE THAN 1,500 STYLES WESTERN WORK / OTHER = Private brands 11 11
Slide 12: Loyal and Growing Customer Base
LOYAL AND GROWING CUSTOMER BASE CUSTOMER OVERVIEW SALES BY END USER (FY14A) • Broad and growing demographic Kids’ 7% Unisex • Shop to fulfill everyday lifestyle needs 8% • Loyalty program members generate significant percentage of sales Men's Women's 27% 58% • ~90% of sales to loyalty program member
Slide 13: Driving Brand Awareness
DRIVING BRAND AWARENESS SELECT KEY EVENT SPONSORSHIPS PRESENCE AT WESTERN AND COUNTRY EVENTS WESTERN EVENTS POP‐UP SHOPS COUNTRY MUSIC We sponsored over 350 events in fiscal 2014 13 13
Slide 14: $20 Billion Industry and Growing
$20 BILLION INDUSTRY AND GROWING $20BN MARKET OPPORTUNITY ATTRACTIVE DYNAMICS STRONG GROWTH OUTLOOK • Highly fragmented • Less fashion driven than Western traditional apparel 3‐5% 2‐4% wear Work 40% wear 60% • Work wear purchases are often non‐discretionary Western wear Work wear Forecasted growth (
Slide 15: Balanced & Diversified Business
BALANCED & DIVERSIFIED BUSINESS DIVISION (% OF NET SALES) NUMBER OF STORES BY STATE Work & Other 32% Western 68% CA LA CATEGORY (% OF NET SALES) TN Hats, Accessories & Other ND 17% TX NM Apparel CO 34% Footwear 49% NV AZ WY GENDER (% OF NET SALES) STORES SERVING ENERGY SECTOR Kids’ Refining Unisex 7
Slide 16: Largest Western and Work Wear Retailer
LARGEST WESTERN AND WORK WEAR RETAILER WESTERN WEAR CHAINS (ESTIMATED STORE COUNT)1 OTHER COMPETITORS Geographic presence Farm supply stores National 166 >2x as many stores as closest Regional competitor (Mostly Texas) 66 Regional 24 Mass merchandisers (Western Canada) Regional 24 Arizona 8 Online N
Slide 17: Our Management Team
OUR MANAGEMENT TEAM SELECT YEARS WITH YEARS OF EXPERIENCE BOOT BARN EXPERIENCE Jim Conroy 2 22 Chief Executive Officer Paul Iacono 5 34 Chief Financial Officer Greg Hackman Starting 30 Chief Financial Officer January 26 Laurie Grijalva 20 32 Chief Merchandising Officer Steve Williams 2 27 Chief Info
Slide 18: Growth Strategies
GROWTH STRATEGIES 1 EXPAND OUR STORE BASE 2 DRIVE SAME STORE SALES GROWTH 3 CONTINUE TO BUILD OUT PRIVATE BRAND PORTFOLIO 4 GROW ECOMMERCE AND ENHANCE OMNI CHANNEL EXPERIENCE 18 18
Slide 19: Significant White Space Opportunity
1 SIGNIFICANT WHITE SPACE OPPORTUNITY STORE OPPORTUNITY HISTORICAL AND FUTURE POTENTIAL STORE BASE • U.S. market can support 400+ stores (number of stores) 400+ • Undeveloped states account for ~45% of ecommerce sales1 • Opened 14 stores in fiscal 2015 to date 166 • All stores in comp base are profi
Slide 20: Compelling New Store Economics
1 COMPELLING NEW STORE ECONOMICS GOALS Store Size (sq. ft) ~10,000 Minot, ND Year 1 Net Sales ~$1.7mm Net Cash ~$0.7mm Mall of America Investment1 Cash on Cash 31.5% Return (Year 1) Greeley, CO Payback Period 2.7 Years Norco, CA Downtown Nashville Houston, TX (Humble) 20 1 Includes capital expenditu
Slide 21: Growth Strategies
GROWTH STRATEGIES 1 EXPAND OUR STORE BASE 2 DRIVE SAME STORE SALES GROWTH 3 CONTINUE TO BUILD OUT PRIVATE BRAND PORTFOLIO 4 GROW ECOMMERCE AND ENHANCE OMNI CHANNEL EXPERIENCE 21 21
Slide 22: History of Strong Same Store Sales Growth
2 HISTORY OF STRONG SAME STORE SALES GROWTH 19.6% 18.1% 17.8% 16.9% 16.2% 14.2% 14.1% 14.3% 13.8% 10.7% 8.9% 8.2% 7.4% 7.7% 7.5% 7.1% 7.7% 7.3% 7.2% 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 '10 '10 '11 '11 '11 '11 '12 '12 '12 '12 '13 '13 '13 '13 '14 '14 '14 '14 '15 '1
Slide 23: Virtuous Cycle Driving Same Store Sales Growth
2 VIRTUOUS CYCLE DRIVING SAME STORE SALES GROWTH Tailored assortment Inviting and engaging One‐stop shopping Passionate store associates Strong in‐stock position Loyalty program Web / mobile enabled High brand visibility Engaging social media Deep customer connection Brand cons
Slide 24: Growth Strategies
GROWTH STRATEGIES 1 EXPAND OUR STORE BASE 2 DRIVE SAME STORE SALES GROWTH 3 CONTINUE TO BUILD OUT PRIVATE BRAND PORTFOLIO 4 GROW ECOMMERCE AND ENHANCE OMNI CHANNEL EXPERIENCE 24 24
Slide 25: Highly Successful Private Brands
3 HIGHLY SUCCESSFUL PRIVATE BRANDS Private brands accounted for 7% of sales in fiscal 2014 25 25
Slide 26: Introducing Moonshine Spirit by Brad Paisley
3 INTRODUCING MOONSHINE SPIRIT BY BRAD PAISLEY PARTNERSHIP OVERVIEW RESULTS Exclusive partnership with Brad Paisley to Launched October 2014 in Nashville develop men’s private brand Rolled out December 2014 in all stores Partnership includes multiple marketing and Strong sales and sell‐thr
Slide 27: Social Media Promotions from Brad Himself
3 SOCIAL MEDIA PROMOTIONS FROM BRAD HIMSELF 27 27
Slide 28: Growth Strategies
GROWTH STRATEGIES 1 EXPAND OUR STORE BASE 2 DRIVE SAME STORE SALES GROWTH 3 CONTINUE TO BUILD OUT PRIVATE BRAND PORTFOLIO 4 GROW ECOMMERCE AND ENHANCE OMNI CHANNEL EXPERIENCE 28 28
Slide 29: Multi-Pronged Ecommerce Growth Strategy
4 MULTI‐PRONGED ECOMMERCE GROWTH STRATEGY LOCATION OF ECOMMERCE SALES (FY14A) Note: Red circles represent the location and relative amount of FY14A ecommerce sales Continue improving Increase traffic Increase purchases experience 7.5 million visitors in FY14 4.1% of sales in FY14 38.2% sales CAGR si
Slide 30: Building Omni Channel Leadership
4 BUILDING OMNI CHANNEL LEADERSHIP IN‐STORE ONLINE AT EVENT DIRECT COMMERCIAL STORE POS SHIP FROM DC SELL ECOM CART TRANSACT FULFILL SPECIAL ORDER SHIP FROM ENDLESS VENDOR AISLE MOBILE COMMERCIAL ECOM ACCOUNTS INFORM TABLET POS (coming INTEGRATED CRM & SOCIAL CUSTOM FIT soon) INVENTORY LOYALTY 30 30
Slide 31: Financial Overview
FINANCIAL OVERVIEW jaan ios —— Q ; wi i : AN ’ i
Slide 32: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE STORE COUNT NET SALES ($MM) 166 152 $372.8 $345.9 117 86 $233.2 $168.7 2 FY12A1 FY13A FY14A As of FY12A 1 FY13A FY14A LTM Q2 FY15A 1/12/15 INCOME FROM OPERATIONS ($MM) ADJUSTED EBITDA ($MM) $44.7 $40.3 $27.7 $28.9 $20.5 $21.7 $8.9 (1.4) FY12A 1 FY13A FY14A LTM Q2 FY15A2
Slide 33: Q3 FY 2015 Preliminary Results
Q3 FY 2015 PRELIMINARY RESULTS PRELIMINARY SALES RESULTS STORE COUNT 169 $130.5 166 $115.4 158 155 152 Q3 FY14A Q3 FY15E FY 14 EOY Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Plan SAME STORE SALES GROWTH 2 17.5% 11.9% 6.7% 7.7% 7.3% 7.2% FY12A 1 FY13A FY14A Q1 Q2 Q3 FY15A FY15A FY15E Note: Fiscal year ended Mar
Slide 34: Outlook for Fiscal Year 2015
OUTLOOK FOR FISCAL YEAR 2015 Outlook for the fiscal year ending March 28, 2015 New store openings 18 Net new store openings 17 Same store sales growth, including e‐commerce 6.0‐7.0% Income from operations $32.0mm – $33.5mm Net income $12.6mm – $13.5 mm Pro forma adjusted net income1 $16.9 mm – $17.8
Slide 35: Investment Highlights
INVESTMENT HIGHLIGHTS Genuine lifestyle retail brand Leading multi‐channel retailer in an attractive and growing industry Consistent same store sales growth and unit economics Significant new store growth opportunity Growing, loyal and engaged customer base Portfolio of exclusive private brands Effi
Boot Barn Holdings — 17th Annual ICR XChange Conference (January 2015) on 6ix