Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — Investor Presentation (June 2019)
31 slides from Boot Barn's investor presentation, Jun 4, 2019
Slide 1: Important Information: Forward-Looking Statements
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 s
Slide 2: Agenda: Boot Barn Story and Strategic Initiatives
APPENDIX STRATEGIC INITIATIVES CONTINUE OMNI-CHANNEL LEADERSHIP BUILD OUT EXCLUSIVE BRAND PORTFOLIO EXPAND OUR STORE BASE 1 2 3 4 BOOT BARN STORY AGENDA DRIVE SAME STORE SALES GROWTH
Slide 3: Boot Barn Is a Compelling Investment Story
BOOT BARN IS A COMPELLING INVESTMENT STORY Healthy same store sales growth in stores and online Importance of quality and fit Lifestyle experience across stores, e-commerce and events Significant e-commerce penetration STRONG OMNI-CHANNEL BRAND PRESENCE NATIONAL LEADER IN ATTRACTIVE NICHE Leader and
Slide 4: A New Perspective on America
A NEW PERSPECTIVE ON AMERICA 1Source: https://www.bloomberg.com/graphics/2018-us-land-use/ Pasture/Range 35% Forest 28% Cropland 21% Miscellaneous 3% Special Use 9% Urban 4% ~85% of U.S.
Slide 5: A True American Lifestyle
1 Fox News 1/4/2019, “The 10 best-selling vehicles in the United States in 2018 were mostly trucks and SUVs”; 2 Forbes.com, 10/31/16, “Country Music’s Popularity and Influence Continues to Rise” A TRUE AMERICAN LIFESTYLE Country music popularity continues to rise2 Top 3 vehicles sold in 2018 were pi
Slide 6: Large $20 Billion Industry Provides Growth Opportunity
LARGE $20 BILLION INDUSTRY1 PROVIDES GROWTH OPPORTUNITY Drivers of work wear growth Blue collar employment Strength in oil & gas Construction spending Commercial accounts Work safety regulations Country music Western events Ranching Horse ownership Agriculture Drivers of western wear growth ATTRACTI
Slide 7: Diversified Sales Mix Mitigates Risk
1 Fiscal year ended March 30, 2019. 2As of March 30, 2019, western styles comprised approximately 70% of our sales, with work related and other styles making up the balance. PRODUCT MIX1 DIVERSIFIED SALES MIX MITIGATES RISK END USER1 CHANNEL1 Footwear 52% Hats, Accessories & Other 14% Apparel 34% Wo
Slide 8: Everyday Merchandise with Limited Fashion Risk
EVERYDAY MERCHANDISE WITH LIMITED FASHION RISK RUGGED FOOTWEAR OUTERWEAR Flame resistant PANTS SHIRTS WORK & Other BOOTS DENIM WESTERN SHIRTS COWBOY HATS BELTS WESTERN Low fashion quotient minimizes markdown exposure Vast majority of our merchandise sales are at full price1 ¹Excludes sheplers.com sa
Slide 9: Boot Barn Has a History of Growth
BOOT BARN HAS A HISTORY OF GROWTH Note: Fiscal year ends March. FY13 includes 29 stores acquired from RCC with 7 month net sales of $35.5 million. FY14 includes 30 stores acquired from Baskins with 10 month net sales of $63.4 million. Sheplers was acquired June 29, 2015, the beginning of Q2 FY16. ¹F
Slide 10: Recap of Fourth Quarter Results
RECAP OF FOURTH QUARTER RESULTS INCOME FROM OPERATIONS ($MM) 12.9% Growth Q4 FY2019 6.6% of sales 8.6% of sales NET SALES ($MM) SAME STORE SALES $170.8 $192.8 Q4 FY2018 Q4 FY2019 $11.3 $16.5 Q4 FY2018 Q4 FY2019 8.7% 9.8% 3.3% Consolidated Stores E-commerce
Slide 11: Recap of Fiscal 2019 Results
RECAP OF FISCAL 2019 RESULTS 14.6% Growth FY2019 6.8% of sales 8.3% of sales SAME STORE SALES NET SALES ($MM) INCOME FROM OPERATIONS ($MM) $677.9 $776.9 FY2018 FY2019 $46.3 $64.3 FY2018 FY2019 10.0% 9.5% 12.2% Consolidated Stores E-commerce
Slide 12: Strategic Initiatives Continue
STRATEGIC INITIATIVES CONTINUE OMNI-CHANNEL LEADERSHIP BUILD OUT EXCLUSIVE BRAND PORTFOLIO EXPAND OUR STORE BASE 1 2 3 4 DRIVE SAME STORE SALES GROWTH
Slide 13: Segmentation Drives Marketing & Merchandising Execution
SEGMENTATION DRIVES MARKETING & MERCHANDISING EXECUTION SEGMENTATION MERCHANDISING MARKETING
Slide 14: Enhanced In-Store Experience Should Drive Conversion
ENHANCED IN-STORE EXPERIENCE SHOULD DRIVE CONVERSION RANGE FINDER (BOOT SELECTOR) Creates in-store experience & increases in-store conversion Assists customers in finding in-store inventory Trains store associates Provides brand and product information ENDLESS AISLE CAPABILITY We Have It Promise (WH
Slide 15: Strong SSS Growth While Reducing Promotions
STRONG SSS GROWTH WHILE REDUCING PROMOTIONS (Consolidated SSS) SSS +7.5% QTD through our May 16th earnings call SSS has remained strong since May 16th Average SSS growth of 8.1% over the last 37 quarters 7.4% 7.7% 13.8% 16.2% 14.2% 14.1% 18.1% 19.6% 16.9% 17.8% 14.3% 10.7% 7.5% 8.2% 7.1% 3.8% 8.9% 7
Slide 16: Strategic Initiatives Continue
STRATEGIC INITIATIVES CONTINUE OMNI-CHANNEL LEADERSHIP EXPAND OUR STORE BASE 1 2 3 4 DRIVE SAME STORE SALES GROWTH BUILD OUT EXCLUSIVE BRAND PORTFOLIO
Slide 17: Three Distinct Brands Online
THREE DISTINCT BRANDS ONLINE
Slide 18: Digital Innovation
DIGITAL INNOVATION BUY ONLINE PICK UP IN STORE SEAMLESS E-COMMERCE RETURNS IN STORE B2B WEBSITE LAUNCHED MAY 2019 SOCIAL SHOPPING INTEGRATION
Slide 19: Profitability Initiative Driving Improved E-commerce EBIT
PROFITABILITY INITIATIVE DRIVING IMPROVED E-COMMERCE EBIT Increasing the penetration of exclusive brands online Lowering drop ship fees from our vendors Optimizing marketing spend (ROAS) Eliminating unprofitable and low-margin items 1 2 3 4
Slide 20: Strategic Initiatives
STRATEGIC INITIATIVES BUILD OUT EXCLUSIVE BRAND PORTFOLIO EXPAND OUR STORE BASE 1 2 3 4 DRIVE SAME STORE SALES GROWTH CONTINUE OMNI-CHANNEL LEADERSHIP
Slide 21: Exclusive Brands Positioned Strategically
MEN’S LADIES LEGACY CUSTOMER EXCLUSIVE BRANDS POSITIONED STRATEGICALLY WORK MEN’S LADIES LEGACY CUSTOMER EXPANDED CUSTOMER BASE
Slide 22: Penetration of Exclusive Brands Continues to Grow
Fiscal 2020 growth penetration > 400 basis points Margin enhancement (900 - 1,000 bps) EXCLUSIVE Brand opportunities EXCLUSIVE Brand sales PENETRATION1 (% of sales) 1 Represents total company exclusive brand penetration. PENETRATION OF EXCLUSIVE BRANDS CONTINUES TO GROW 2.6% 16.2% FY2012 FY2019
Slide 23: Exclusive Brands Are Leading Brands in the Store
EXCLUSIVE BRANDS ARE LEADING BRANDS IN THE STORE Western Work / Other TOP 5 brands 2 1 3 4 5 = Exclusive brands
Slide 24: Strategic Initiatives Continue
STRATEGIC INITIATIVES CONTINUE OMNI-CHANNEL LEADERSHIP BUILD OUT EXCLUSIVE BRAND PORTFOLIO EXPAND OUR STORE BASE 1 2 3 4 DRIVE SAME STORE SALES GROWTH
Slide 25: Opportunity Exists to Double Store Count
OPPORTUNITY EXISTS TO DOUBLE STORE COUNT HISTORICAL STORE BASE COMPELLING NEW STORE ECONOMICS GOALS Store Size (sq. ft.) 10,000 Year 1 Net Sales $1.7mm Net Cash Investment $0.8mm Cash on Cash Return (Yr. 1) ~30% Payback Period ~3 Years New stores/Tuck-ins FY12 – FY19 93 15.8% CAGR 1 1Reflects estima
Slide 26: Reach of E-commerce Supports Store Expansion
REACH OF E-COMMERCE SUPPORTS STORE EXPANSION Today 240 stores 33 states STORES 1Represents e-commerce sales dollars by state for the fiscal year ended March 30, 2019. More Less E-COMMERCE 1
Slide 27: U.S. Western Wear Chains (Estimated Store Count)
U.S. WESTERN WEAR CHAINS (ESTIMATED STORE COUNT)1 > 2.5x as many stores as closest competitor National Regional (Mostly Texas) Independent retailers North & South Carolina 1 Store count as of May 28, 2019. Thousands TUCK-IN ACQUISITIONS ADDING OUTSIZED SALES PER STORE Tuck-In Acquisitions: Average u
Slide 28: Tuck-In Acquisitions Adding Outsized Sales Per Store
TUCK-IN ACQUISITIONS ADDING OUTSIZED SALES PER STORE U.S. WESTERN WEAR CHAINS (ESTIMATED STORE COUNT)" LEpoe ne Independent retailers a > 2.5x as many 82 stores as closest competitor I: * store count ae of May 28,2019. Tuck-In Acquisitions: Average unit volume more than twice new store target Woods
Slide 29: Adjusted EBITDA and Adjusted EBIT Reconciliation
Adjusted ebitDA and Adjusted EBIT reconciliation (a) Represents non-cash compensation expenses related to stock options, restricted stock awards and restricted stock units granted to certain of our employees and directors. (b) Represents the non-cash accrual for future award redemptions in connectio
Slide 30: Potential Tariff Exposure
POTENTIAL TARIFF EXPOSURE Approx. % of Total Sales Sourced from China & Mexico Approx. % of Total Sales with Tariff Exposure ~ 25% ~ 25% ~ 40% ~ 10% Non - China & Non - Mexico sourced all brands China sourced exclusive b rands China sourced 3 rd p arty vendor brands Mexico sourced 3 rd party & exclu
Slide 31: Potential Tariff Exposure
China sourced Product tariffed at Non-China & Non-China & ‘ 10%, recenth n-Mexi exclusive Non-Mexico 10%, recently SS Non-Mexico brands ~~ pee Increased to 25% sourced all (incl. in FY20 brands bean) guidance) China sourced 3 Mexico sourced ‘Not yet subject to party vendor siaek aioe aie Mexico sour
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