Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — ICR Conference 2022
39 slides from Boot Barn's conference presentation, Jan 10, 2022
Slide 1: ICR Conference January 2022
ICR Conference January 2022 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: Outsized Sales & Margin Growth Over Multiple Years
Outsized Sales & Margin Growth Over Multiple Years PRELIMINARY METRICS FY 2021 Q3 FY 2020 Q3 FY 2019 Q3 FY 2022 Q3 2 Year Total Sales Growth +71.1% 2 year SSS +61.0% 1 Year Total Sales Growth +60.7% +6.5% +11.8% +13.0% +54.2% +4.6% +6.7% +9.2% 1 Year Same Store Sales Growth Stores +55.7% Stores +1.9
Slide 4: Agenda
Agenda Boot Barn Story 1 Drive Same Store Sales Growth 2 Continue Omni-Channel Leadership Strategic Initiatives 3 Build Out Exclusive Brand Portfolio 4 Expand Our Store Base Investment Thesis 3
Slide 5: Boot Barn Story
Boot Barn Story 4
Slide 6: Our Customers' Lifestyle
Our Customers’ Lifestyle Top 3 Vehicles Sold In 2020 Were Country Music Popularity Popular Spectator Sport Hundreds Of Rodeos Held In Pick-Up Trucks1 Continues To Rise2 The United States 1 Car and Driver 1/6/2021, “25 Best Selling Cars, Trucks and SUVs of 2020” 2 Time 10/28/20, “Why Country Music is
Slide 7: Diversified Sales Mix Mitigates Risk
Diversified Sales Mix Mitigates Risk Western: ~70% of Sales6 • Boots 49% Product Mix1 • Apparel 35% • Hats & Other 16% • Men 62% • Women 26% End User1 • Unisex 8% • Kids 5% • Stores 84% Channel1 • Online 16% 1TTM Fiscal 2022 Q3. 6
Slide 8: History of Profitable Growth
History of Profitable Growth Net Sales ($MM) ~$1.4 Billion $846 $893 $777 $619 $678 $569 $346 $403 $233 2 3 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q3 TTM Adjusted EBIT ($MM)4 ~$240 $95 $68 $79 $39 $46 $41 $49 $23 $32 2 3 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q3 TTM Note: Fisca
Slide 9: Strategic Initiatives
Strategic Initiatives 8
Slide 10: Strategic Initiatives Drive Same Store Sales Growth
Strategic Initiatives 1 Drive Same Store Sales Growth 2 3 4 9
Slide 11: Boot Barn Virtuous Cycle of Growth
Boot Barn Virtuous Cycle of Growth 5 1 Invest in Expand Customer Customer Experience Reach 4 2 Tailor Modernize Customer Communication the Brand 3 Broaden Product Assortment 10
Slide 12: Expand Customer Reach
1 Expand Customer Reach Legacy Customer Expanded Customer Base 11
Slide 13: Modernize The Brand: A Look Back
2 Modernize The Brand: A Look Back Marketing campaigns historically focused on price, promotion and showcasing 3rd party brands Counitcry Sh in e Lik e t h e S t a r s I n GET festival READY Ch Up To $ 50 W het her you’re headed to a fest iv al, concert or just a night out, w e’ll outfit you jus t r
Slide 14: Modernize The Brand: Current Aesthetic
2 Modernize The Brand: Current Aesthetic In order to attract a broader customer group, we worked to modernize the brand Links to Additional Creative Holiday Commercial Updated Creative Fashion Show Teaser 13
Slide 15: Broaden Product Assortment
Women’s Men’s Jeans Western Boots Jeans Western Boots Woven Shirts Western Hats Woven Shirts Western Hats Legacy Offering 3 Broaden Product Assortment Dresses Charlie 1 Horse Knit Shirts Hiking Boots Flare Jeans Accessories Driving Mocs Ball Caps Broader Product Assortment 14
Slide 16: Tailor Customer Communication
Boot Barn Work Email Marketing Wonderwest Email Marketing 4 Tailor Customer Communication 15
Slide 17: Invest in Customer Experience
5 Invest in Customer Experience Legacy Store Updated Design 16
Slide 18: Sales Strength Post-COVID
Sales Strength Post-COVID Post-Pandemic Consolidated SSS% 78.9% 61.7% 54.2% March 2020 Initial impact of COVID-19 26.9% 9.4% 7.8% 6.7% 4.6% -4.7% -5.1% -14.9% 1 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 1Q3 Fiscal 2022 results are preliminary and contain an estimate of result
Slide 19: A Decade of Sales Growth Pre-COVID
A Decade of Sales Growth Pre-COVID Pre-Pandemic Consolidated SSS% 19.6 Annual SSS% averaged +8% for 9 years 18.1 17.8 16.9 16.2 Brand Transformation 14.2 14.1 14.3 13.8 12.1 11.6 11.3 10.7 8.9 9.2 8.7 8.2 7.7 7.5 7.7 7.1 7.3 7.2 7.0 5.6 General Retail 5.2 3.8 Softness 1.8 1.8 1.3 0.1 0.4 0.2 (1.2) (
Slide 20: Continue Omni-Channel Leadership
Strategic Initiatives 1 2 Continue Omni-Channel Leadership 3 4 19
Slide 21: Broadening Our Omni-Channel Capabilities
Broadening Our Omni‐Channel Capabilities • Bring Long Tail to Stores • Ship to Store • BOPIS • Return in Store Drive Store Traffic Experience in Store Improve Online Deliver Digital • Expand Exclusive Brands % Profitability • Range Finder (finite aisle) • Improve ROAS • WHIP (endless aisle) • Lower
Slide 22: Enhancing In Store Assortment
Enhancing In Store Assortment Exotic Boots Expanded Assortment Extended Sizes 21
Slide 23: Build Out Exclusive Brand Portfolio
Strategic Initiatives 1 2 3 Build Out Exclusive Brand Portfolio 4 22
Slide 24: Consistent Growth in Exclusive Brands
Consistent Growth in Exclusive Brands Long-Term EB% Growth1 YTD Q3 EB% vs. LY1 27.9% 27.9% 23.4% 2.6% 2 2 FY2012 FY2022 FY2021 FY2022 'Q3 YTD 'Q3 YTD 'Q3 YTD • Margin enhancement ~1,000 bps • Estimated FY 2022 growth penetration ~450 bps • Q3 FY 2022 growth penetration ~500 bps2 1Represents total co
Slide 25: Expanding Exclusive Brands Portfolio
Expanding Exclusive Brands Portfolio Western Work Artist Inspired Country Rodeo Ranch 24
Slide 26: 3 of the Top 5 Brands are Exclusive Brands
3 of the Top 5 Brands are Exclusive Brands Top 5 Brands1 Western Work / Other 1 2 3 4 5 = Exclusive brands 1Represents top 5 total company brands for fiscal 2022 Q3 YTD. 25
Slide 27: Strategic Initiatives Expand Our Store Base
Strategic Initiatives 1 2 3 4 Expand Our Store Base 26
Slide 28: New Units Growing Annually by 10%+
New Units Growing Annually by 10%+ Historical Store Base 300 273 259 240 219 226 208 169 152 117 86 1 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Target 1Reflects estimated store count with Fiscal 2022 estimate to open 27 stores . 27
Slide 29: Expansion Into New and Existing Markets
Expansion Into New and Existing Markets Today 2012 • 86 stores • 289 stores • 8 states • 37 states • Stores in new markets in the Northeast outperforming expectations • Cannibalization from new stores in existing markets less than anticipated • Expansion into new markets enhances e-commerce sales •
Slide 30: Compelling New Store Economics
Compelling New Store Economics New Stores Opened METRICS Goals After March 2020 Store Size (sq. ft.) ~10,000 ~10,000 Year 1 Net Sales1 $1.7MM $4.0MM Net Capital Investment $0.4MM $0.5MM Net Inventory Investment $0.4MM $0.5MM Cash on Cash Return (Yr. 1)1 ~30% ~100% Payback Period1 ~3 years ~1 year 1I
Slide 31: Updated Store Design
Updated Store Design 30
Slide 32: Updated Store Design
Updated Store Design 31
Slide 33: Updated Store Design
Updated Store Design 32
Slide 34: Investment Thesis
Investment Thesis 33
Slide 35: Results Exceed Long Term Earnings Algorithm
Results Exceed Long Term Earnings Algorithm METRICS Goals1 Results2 + Annual New Unit Growth3 10%+ 13% + Same Store Sales Growth4 Low to Mid Single Digit 11% + Merchandise Margin Expansion5 25-30 bps 80-90 bps = Annual EPS Growth6 20% 40% 24% excluding TTM 1These are not projections; they are goals
Slide 36: Common Investor Questions
Common Investor Questions “Are sales benefiting from a “What is the potential Western fashion trend?” for new unit growth?” 300 Q3 Two Year Sales Growth%1 259 273 226 240 208 219 Total 71% 169 152 117 Ladies Boots & 95% 86 Apparel (Fashion)1 Excl. Fashion 63% FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 1
Slide 37: Boot Barn is a Compelling Investment Story
Boot Barn is a Compelling Investment Story National Leader in World Class Omni-Channel Strong New Unit Growth Attractive Niche Capabilities Opportunities • Leading player in a $20 billion niche • Strong variety of omni-channel • Proven ability to open stores in both industry offerings in place new a
Slide 38: Appendix
Appendix 40
Slide 39: Adjusted EBIT Reconciliation
Adjusted EBIT Reconciliation TTM Ended Fiscal Year Ended (in thousands) December 25, March 27, March 28, March 30, March 31, April 1, March 26, March 28, March 29, March 30, 1 2 2021 2021 2020 2019 2018 2017 2016 2015 2014 2013 Net income $ 172,289 $ 59,386 $ 47,949 $ 39,022 $ 28,879 $ 13,389 $ 9,86