Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — Investor Presentation (June 2023)
37 slides from Boot Barn's investor presentation, Jun 7, 2023
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: Important Information: Forward-Looking Statements
1 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: Evolution of Growth through Customer Expansion
2 Evolution of Growth through Customer Expansion Mens Womens Western Work Fashion Country
Slide 4: Operating within a $40 Billion TAM
3 Country music & lifestyle Western events – Rodeos & Concerts Ranching Horse ownership Agriculture Operating within a $40 Billion1 TAM WORK INDUSTRY Blue collar employment Oil & gas industry Construction spending Commercial accounts Work safety regulations WESTERN INDUSTRY 1Source: Estimated TAM ca
Slide 5: From a Regional Retailer to a National Brand
4 From a Regional Retailer to a National Brand
Slide 6: From a Regional Retailer to a National Brand
5 From a Regional Retailer to a National Brand
Slide 7: Industry Leading Position
6 1 Store count as of June 6, 2023. 95 National 356 Regional (Mostly Texas) Independent retailers Hundreds National Direct Industry Competitors1 Industry Leading Position Farm & Ranch Competitors Online/Other Competitors Direct to Consumer
Slide 8: Track Record of Profitable Growth
7 Track Record of Profitable Growth $233 $1,723 FY13 FY24 E Total Sales ($M) $9 $210 FY13 FY24 E Operating Income (EBIT) ($M) 1Represents the high-end of the Fiscal 2024 guidance range provided on the Company’s fourth quarter and Fiscal 2023 earnings call on May 17, 2023. 1 1 +33% Annual Growth 20%
Slide 9: Strategic Initiatives: Expand Our Store Base
8 Strategic Initiatives 1 2 3 4 Expand Our Store Base
Slide 10: al
al
Slide 11: 10
10
Slide 12: 11
11
Slide 13: 12
12
Slide 14: Accelerating New Store Openings
13 Accelerating New Store Openings 86 117 152 169 208 219 226 240 259 273 300 345 397 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 E Store Count 1 1Represents management’s guidance to open 52 new stores in Fiscal 2024, provided on the Company’s fourth quarter and Fiscal 2023 earn
Slide 15: Successful Stores in New & Legacy Markets
14 1 Successful Stores in New & Legacy Markets • 356 stores • 44 states • 86 stores • 8 states 2012 Today New Store Economics 10K 12K SqFt $1.7M $3.5M 1st Year Sales $700K $1.4M Investment 32% 75% Return on Investment IPO Model Today 3yr Payback ~1yr Payback
Slide 16: Future Growth Possible – 900 Store Potential
15 Highlights • Opportunity to increase store count equally in new and existing markets • Synergistic sales growth between stores & online when opening in new markets • No meaningful cannibalization when opening new stores in existing markets Future Growth Possible – 900 Store Potential 86 356 FY201
Slide 17: Investor FAQs – New Stores
16 1 Investor FAQs – New Stores “Will opening new stores lead to operating margin erosion?” “Would you slow new unit openings given a negative SSS% environment?” “If you aren’t getting the same comp waterfall as before, will you continue opening new stores?” “Are your new stores in new markets selli
Slide 18: Strategic Initiatives Drive Same Store Sales Growth
17 Strategic Initiatives 1 2 3 4 Drive Same Store Sales Growth
Slide 19: Expansion Strategy Driving Customer Count
18 Expansion Strategy Driving Customer Count Active Customers (in millions)1 3.1 3.5 3.8 4.0 4.3 4.7 5.8 7.1 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 2 1Represents the number of B Rewarded Loyalty Members who have purchased merchandise from us in each of the trailing three-year periods mentioned. Men
Slide 20: A Decade of Strong Sales Across Channels
19 2 A Decade of Strong Sales Across Channels Total Sales Growth % 38.2% 48.4% 16.4% 41.3% 10.7% 7.6% 14.6% 8.8% 5.7% 66.6% 11.4% 4.0% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 E Consolidated SSS% 11.9% 6.7% 7.3% -0.1% 0.3% 5.2% 10.0% 5.0% 3.1% 53.7% -0.1% -4.5% FY13 FY14 FY15 FY16
Slide 21: Sustaining Elevated Store Sales
20 Sustaining Elevated Store Sales $1.9 $1.9 $2.2 $2.3 $2.3 $2.3 $2.4 $2.6 $2.7 $2.6 $4.5 $4.6 $4.4 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 E Average Store Volume (AUV) Excluding New Stores Opened in FY21 – FY24 ($M)1 1Average net sales per store is calculated by dividing ne
Slide 22: Company Initiatives Drove Elevated AUV
21 2 Believe Company Initiatives Drove Elevated AUV $2.6 $4.4 FY21 FY24 E Resulting in Elevated AUV $275.8 $589.5 FY21 FY23 Broadened Assortment 4.7 7.1 FY21 FY23 Average Customers per Store 17.2K 20.6K Customer Count Grew on Average Store Basis Inventory Balance ($M)1 +44% 2-Year Stack Comp Store I
Slide 23: Sales Growth Exceeds Industry Tailwinds
22 Sales Growth Exceeds Industry Tailwinds -20% 28% 9% 4% 12% 6% 67% 11% 25% 96% FY21 FY22 FY23 3 Year CAGR Total Growth Sales Growth % Boot Barn Western & work public companies1 1Western and work public companies is comprised of Levi Strauss & Co. (consolidated revenue), Kontoor Brands, Inc. (Wrang
Slide 24: Basic / Functional Items Driving Volume
23 2 Basic / Functional Items Driving Volume Functional Fashion
Slide 25: Further Support of Elevated AUVs
24 Further Support of Elevated AUVs 22% 31% 36% 45% 52% 56% Other Stores Closed More Time Outdoors More/Better Marketing Wearing for Work Better Product Assortment Needed for Hobby/Lifestyle Why We Added Customers1 New Customer Growth Q: Why did you purchase from Boot Barn for the first time followi
Slide 26: Investor FAQs – Same Store Sales Growth
25 “How are functional versus fashion merchandise categories impacting your comp?” “Are you growing customer count in your comp stores?” 2 Investor FAQs – Same Store Sales Growth “Why have you seen more challenging comps online compared to stores?” “Does your long-term algorithm of low to mid-single
Slide 27: Strategic Initiatives Continue Omni-Channel Leadership
26 Strategic Initiatives 1 2 3 4 Continue Omni-Channel Leadership
Slide 28: Stores Provide Competitive Advantage
27 3 Stores Provide Competitive Advantage Legacy Digital Omni-Channel Capabilities ~60% of Online Orders Involve a Store Associate FY23 Online Orders • Buy Online Pick-Up In Store • Ship from Store • Same Day Delivery • Ship to Store • In-Store Fulfillment
Slide 29: Leveraging New Technologies to Drive Sales
28 Machine Learning Model Driven Product Recommendations ChatGPT Conversational Experience 3 Leveraging New Technologies to Drive Sales • Leverages proprietary market basket analysis. • Runs on in-store RangeFinder application (can be added to online experience at a later date). • Creates intelligen
Slide 30: Investor FAQs – Omni-Channel
29 “Do you expect to see e-commerce penetration of sales get back to historical levels?” “Are the demographics of your online customer and their purchasing behavior different than a stores customer?” 3 Investor FAQs – Omni-Channel
Slide 31: Strategic Initiatives Build Out Exclusive Brand Portfolio
30 Strategic Initiatives 1 2 3 4 Build Out Exclusive Brand Portfolio
Slide 32: New Exclusive Brands Provide Growth Opportunity
31 WESTERN 3 OF OUR TOP 5 SELLING BRANDS ARE EXCLUSIVE BRANDS COUNTRY ARTIST INSPIRED New Exclusive Brands Provide Growth Opportunity WORK RANCH & RODEO 4
Slide 33: Exclusive Brand Sales Growing Exponentially
32 Exclusive Brand Sales Growing Exponentially 3.0% 5.0% 7.0% 9.7% 11.1% 10.7% 13.5% 16.2% 22.0% 23.7% 28.3% 34.0% 38.0% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 E Exclusive Brands Penetration % Margin enhancement ~1,000 bps vs. 3rd party brands $5 $12 $24 $39 $63 $67 $92 $12
Slide 34: Investor FAQs – Exclusive Brands
33 “What is the margin differential you gain on exclusive brands versus third party brands?” “Can you continue to grow exclusive brand penetration with your current portfolio of brands?” 4 Investor FAQs – Exclusive Brands
Slide 35: Growth Potential
34 Growth Potential
Slide 36: Future Growth Potential
35 Future Growth Potential New Unit Growth Merchandise Margin Rate (Year-Over-Year Change) 356 900 Today Future • Opportunity to ~triple store count • +544 new stores = $1.9B sales from new stores only • Payback <18 months +350bps FY21 FY24 E Strong Earnings $2.01 $5.00 FY21 FY24 E Total Sales Growt
Slide 37: Thank You
36 Thank You
Boot Barn Holdings — Investor Presentation (June 2023) on 6ix