Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — Investor Presentation (June 2024)
50 slides from Boot Barn's investor presentation, June 2024
Slide 1: Offering everyone a piece of the American spirit
Offering everyone a piece of the American spirit—one handshake at a time. 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. Forward-looking statements refer
Slide 3: Agenda
Agenda • Review Industry Structure • Recap Boot Barn’s Brand Transformation • Discuss Impact On Four Strategic Initiatives • Update Current Business 2
Slide 4: Agenda
Agenda • Review Industry Structure • Recap Boot Barn’s Brand Transformation • Discuss Impact On Four Strategic Initiatives • Update Current Business 3
Slide 5: Review of Industry and Attractiveness
Review of Industry and Attractiveness1 Competitor Rivalry Bargaining Power of Customers Threat of New Entrants • Large ($40 billion) market • Extremely loyal lifestyle customers • Relatively low barriers to entry • Fragmented mom & pop industry • Little downward price pressure • Competition from onl
Slide 6: Agenda
Agenda • Review Industry Structure • Recap Boot Barn’s Brand Transformation • Discuss Impact On Four Strategic Initiatives • Update Current Business 5
Slide 7: Revenue Growing 20% Annually on Average
Revenue Growing 20% Annually on Average Total Sales ($M) $1,800 ~20% Average Annual Growth $1,658 $1,667 $1,488 Brand Transformation $893 $846 $777 $678 $630 $569 $403 $346 $233 1 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 E 53 weeks 53 weeks 1Reflects the high end of the Compa
Slide 8: Brand Transformation Led to Outsized Growth
Brand Transformation Led to Outsized Growth Legacy Boot Barn Transformed Boot Barn Narrowly Defined Broader Customer Segments Defined Customer • Western (Rancher, Farmer) • Western • Some Work (Oil & Gas) • Work (more industries) • Country Casual; Outdoor • Western Inspired Fashion Brand • Priority
Slide 9: Strategic Expansion of Customer Segments
Strategic Expansion of Customer Segments Western Work Country Fashion Mens Womens 8
Slide 10: Significant Growth in Customer Loyalty Program
Significant Growth in Customer Loyalty Program Active Customers (in millions) 1 8.4 7.1 5.8 4.7 4.3 4.0 3.8 3.5 3.1 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 1Repesents the number of B Rewarded Loyalty Members who have purchased merchandise from us in each of the trailing three-year periods menti
Slide 11: Agenda
Agenda • 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 10
Slide 12: Legacy Store Format (Pre Brand Transformation)
Legacy Store Format (Pre Brand Transformation) ~$25 Billion 11
Slide 13: New Store Format
New store Format E tot it Boe kis il -—- ie
Slide 14: 13
13
Slide 15: 14
14
Slide 16: DS ats ode ad
DS ats ode ad Sida aw aed
Slide 17: 16
16
Slide 18: 17
17
Slide 19: Expanding the Brand Nationally
Expanding the Brand Nationally Today 2012 • 86 stores • 406 stores • 8 states • 46 states New Store Economics 12K $3.0M ~60% ~1.5yr 10K Payback $1.7M $1.5M 32% IPO Model 3yr $700K Payback FY25 E SqFt 1st Year Sales Investment Return on Investment 18
Slide 20: Accelerated New Store Openings to 15% Annually
Accelerated New Store Openings to 15% Annually Annual Store Count 460 400 345 300 273 259 240 219 226 208 169 152 117 86 1 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 E 1Represents management’s guidance regarding opening 60 new stores in Fiscal 2025 as provided on the Compa
Slide 21: Roadmap for 900+ Stores in U.S. Alone
Roadmap for 900+ Stores in U.S. Alone New Store Opportunity1 900 460 400 2 FY24 FY25 E FY26 FY27 FY28 FY29 FY30 1Illustrative 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
Slide 22: Agenda
Agenda • 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 21
Slide 23: Transformed Merchandise Assortment
Women’s Men’s Jeans Western Boots Jeans Western Boots Woven Shirts Western Hats Woven Shirts Western Hats Legacy Offering Dresses Fashion Hats Knit Shirts Chelsea Boots Transformed Merchandise Assortment Flare Jeans Accessories Driving Mocs Ball Caps Broader Product Assortment Today 22
Slide 24: Former Marketing (Pre Brand Transformation)
Former Marketing (Pre Brand Transformation) 23
Slide 25: Current Marketing (Since Brand Transformation)
Current Marketing (Since Brand Transformation) 24
Slide 26: 25
25
Slide 27: 26
26
Slide 28: 27
27
Slide 29: 28
28
Slide 30: 29
29
Slide 31: Brand Focus & Reduced Promotions Drive Margin
Brand Focus & Reduced Promotions Drive Margin Merchandise Margin Expanded 760 Basis Points (BPS) In Past Seven Years +110bps +160bps +270bps (70)bps 2 +90bps +90bps +110bps 1 FY19 FY20 FY21 FY22 FY23 FY24 FY25 E 1FY25 estimated 110 basis points of merchandise margin as provided in the Company’s guid
Slide 32: Clearance on Markdown Product is Minor
Clearance on Markdown Product is Minor Clearance promotion targeting ~3% of total inventory Ladies & Accessories (Clearance) Ladies & Accessories (Non-Clearance) Hats & Other Boots Men's Buy one, get one 50% off women’s and kids’ clearance clothing and accessories 31
Slide 33: Brand Transformation Drove Outsized Growth
Brand Transformation Drove Outsized Growth Consolidated SSS% FY20 – FY25 E +54% six-year stack, +9% SSS avg 53.7% FY13 – FY19 +41% seven-year stack, +6% SSS avg 11.9% 10.0% 6.7% 7.3% 5.2% 5.0% 3.1% 0.3% -0.1% -0.1% -1.6% -6.2% 1 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 E 1Ref
Slide 34: Store Volumes Remain High Post Transformation
Store Volumes Remain High Post Transformation • Average sales per comparable store have remained elevated compared to historical levels (pre-pandemic). • Negative retail store SSS% has put pressure on year-over-year comparable store sales in combination with adding new stores with lower average sale
Slide 35: Agenda
Agenda • 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 34
Slide 36: Boot Barn Website (Pre Brand Transformation)
Boot Barn Website (Pre Brand Transformation) 35
Slide 37: Boot Barn Website – Post Brand Transformation
Boot Barn Website – Post Brand Transformation 36
Slide 38: Stores Provide Competitive Advantage
Stores Provide Competitive Advantage ~60% of Online Orders Involve a Store Associate Legacy Digital Omni-Channel Capabilities • Buy Online Pick-Up In Store • Ship from Store • Same Day Delivery • Ship to Store • In-Store Fulfillment FY24 Online Orders 37
Slide 39: Profitable Approach to Omni-Channel
Profitable Approach to Omni-Channel Deliver Digital Experience in Drive Store Traffic Stores • Bring Long Tail to Stores • Mobile App • Ship to Store / BOPIS • Range Finder (AI-enabled) • Return in Store • WHIP (endless aisle) Fulfill Online Demand Drive Online Profitability Efficiently • DC Fulfill
Slide 40: Segmented Multi-Brand Strategy Online
Segmented Multi-Brand Strategy Online • 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 ladie
Slide 41: Moving Quickly with Artificial Intelligence
Moving Quickly with Artificial Intelligence • 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
Slide 42: Agenda
Agenda • 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 41
Slide 43: Pre Brand Transformation – Private Label
Pre Brand Transformation – Private Label 42
Slide 44: Post Brand Transformation – Exclusive Brands
Post Brand Transformation – Exclusive Brands WESTERN COUNTRY ARTIST INSPIRED WORK RANCH & RODEO PREMIUM VALUE Represents 3 of our top 5 selling brands. 43
Slide 45: Exclusive Brands Have Shown Strong Growth
Exclusive Brands Have Shown Strong Growth Full Year Exclusive Brands Sales ($M) $698 $628 $564 $421 $186 $212 $126 $63 $67 $92 $12 $24 $39 $5 1 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
Slide 46: Exclusive Brands Help Drive Margin Expansion
Exclusive Brands Exclusive (EB)Growth Brands Help Drive Margin & Margin Accretion Expansion EB Penetration Growth Over Seven Years EB is Only 1/3 of Margin Appreciation 37.7% 38.8% EB Expansion 250bps Improved full-price selling & 13.5% buying economies of scale 510bps 1 FY18 FY24 FY25 E Merchandise
Slide 47: Agenda
Agenda • Review Industry Structure • Recap Boot Barn’s Brand Transformation • Discuss Impact On Four Strategic Initiatives • Update Current Business 46
Slide 48: Sequential Improvement Continues in Both Channels
Sequential Improvement Continues in Both Channels 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 3. All four regional geographies Store SSS% E-commerce SSS% 6.7% 0.8% -
Slide 49: Broad-Based Improvement Across Departments
Broad-Based Improvement Across Departments Men’s Western Boots Men’s Western Apparel 10% 10% 0% 0% -10% -10% -20% -20% 1 1 Q3 FY24 Q4 FY24 Q1 QTD FY25 Q3 FY24 Q4 FY24 Q1 QTD FY25 Work Boots Work Apparel 10% 10% 0% 0% -10% -10% -20% -20% 1 1 Q3 FY24 Q4 FY24 Q1 QTD FY25 Q3 FY24 Q4 FY24 Q1 QTD FY25 Wom
Slide 50: Thank You
Thank You 49
Boot Barn Holdings — Investor Presentation (June 2024) on 6ix