Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — ICR Conference 2024
47 slides from Boot Barn's conference presentation, Jan 5, 2024
Slide 1: January 2024 ICR Presentation
0 January 2024 ICR Presentation 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: Agenda
2 Agenda Strategic Initiatives 1 2 3 4 Drive Same Store Sales Growth Continue Omni-Channel Leadership Build Out Exclusive Brand Portfolio Expand Our Store Base Future Growth Potential Boot Barn’s Story Quarter Recap
Slide 4: Solid Q3 Results Despite Challenging SSS%
3 $284 $302 $486 $515 $520 Q3 '20 Q3 '21 Q3 '22 Q3 '23 Q3 '24 E Solid Q3 Results Despite Challenging SSS% Total Sales ($M) Grew 6.7% 4.6% 54.2% -3.6% -9.7% Q3 '20 Q3 '21 Q3 '22 Q3 '23 Q3 '24 E Despite a Decline in SSS% +50bps +150bps +270bps (190)bps +300bps Q3 '20 Q3 '21 Q3 '22 Q3 '23 Q3 '24 E Merc
Slide 5: Solid Q3 Results Despite Challenging SSS%
4 $515 $520 $522 $535 LY Actual Low-End Guidance High-End Guidance Q3 Total Sales ($M) Q3 GAAP EPS $1.74 $1.67 $1.79 LY Low-End Guidance High-End Guidance Actual $72 $70 $75 LY Low-End Guidance High-End Guidance Actual Q3 Income from Operations ($M) 13.3% of sales 14.0% of sales 1.4% growth 1.1% gro
Slide 6: Boot Barn's Story
_ | Boot Barn’s Story _.~
Slide 7: Boot Barn's Story – Key Takeaways
6 Boot Barn’s Story – Key Takeaways • #1 player in a large & fragmented industry • Adding 15% new units annually • Profitable online channel • Full-price retailer with limited fashion risk • Nationally recognized lifestyle brand • Multiple levers for earnings growth ‒ New stores ‒ SSS growth ‒ Exclu
Slide 8: We Service A Broad Customer Base
7 We Service A Broad Customer Base
Slide 9: We Have Built a National Lifestyle Brand
8 We Have Built a National Lifestyle Brand
Slide 10: Boot Barn Brand Awareness is Growing Nationally
9 Boot Barn Brand Awareness is Growing Nationally Boot Barn Brand Awareness by Region1 16% 32% 24% 17% 8% 33% 35% 50% 40% 25% Total Western Southern Northern Eastern 48% 67% 74% 57% 33% 1 Illuminology researchers surveyed a nationally representative, random sample of 2,020 U.S. adults (age 18 and ol
Slide 11: Over a Decade of Strong Sales Growth
10 $233 $346 $403 $569 $630 $678 $777 $846 $893 $1,488 $1,658 $1,704 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 FY24 TTM E Total Sales ($M) Total Sales Growth 38% 48% 16% 41% 11% 8% 15% 9% 6% 67% 11% Over a Decade of Strong Sales Growth +19.8% CAGR 1 1 1 2 1FY17 and FY23 were 53-week
Slide 12: Over a Decade of Strong Earnings Growth
11 $9 $21 $35 $30 $38 $46 $64 $74 $86 $258 $232 $222 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 FY24 TTM E EBIT ($M) Over a Decade of Strong Earnings Growth +34.0% CAGR 1 2 1FY17 and FY23 were 53-week years. The FY24 TTM estimate includes FY23 Q4 which was 14 weeks. 2All Q3 FY2024 fin
Slide 13: Recent Performance Has Been Nationally Recognized
12 Recent Performance Has Been Nationally Recognized
Slide 14: Agenda
13 Agenda Strategic Initiatives 1 2 3 4 Drive Same Store Sales Growth Continue Omni-Channel Leadership Build Out Exclusive Brand Portfolio Expand Our Store Base Future Growth Potential Boot Barn’s Story Quarter Recap
Slide 15: Strategic Initiative: Expand Our Store Base
14 Strategic Initiative: Expand Our Store Base
Slide 16: Boot Barn Prioritizes Store Growth
15 Boot Barn Prioritize Store Growth Boot Barn Sales % TTM1 1 89% 11% Boot Barn Stores Online U.S. Retail Industry % of Sales2 (Clothing & General Merchandise) 86% 14% U.S. Stores Online 2 1All Q3 FY2024 financial results are preliminary and the company’s best Source: Census Bureau of the Department
Slide 17: CEE=
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Slide 21: New Store Opportunity
20 397 900 FY24 E FY25 FY26 FY27 FY28 FY29 FY30 1 Illustrative example of 15% new unit growth annually. New Store Opportunity1 Common Investor Question: New Stores Why are you opening stores in a negative SSS environment? • 500 additional stores opportunity • Expected to contribute ~$1.5 billion in
Slide 22: Strategic Initiative: Drive Same Store Sales Growth
21 Strategic Initiative: Drive Same Store Sales Growth
Slide 23: Boot Barn Virtuous Cycle of Growth
22 Expand Customer Reach Modernize the Brand Broaden Product Assortment Tailor Customer Communication Invest in Customer Experience 1 2 3 4 5 2 Boot Barn Virtuous Cycle of Growth
Slide 24: Prior Marketing Was More Promotional
23 GET festival READY M E N ’S Select Up To Boots J U N E 8 T H - 14 T H W hether you’re headed to a festiv al, concert or just a night out, w e’ll outfit you just right — from head to toe — in our new country chic festiv al w ear. We’v e got all the best brands, at the low est prices, guaranteed. *
Slide 25: We Have Transformed the Brand
24 2 We Have Transformed the Brand
Slide 26: We Have Broadened Our Reach
25 We Have Broadened Our Reach Montana Fouts Alabama Softball Marlon Humphrey Baltimore Ravens Rocker Steiner Bareback Bronc Rider Carolina Cowboys PBR Team Series 2 National Finals Rodeo (NFR) Boot Barn Booth 2023 Zane Smith NASCAR Luke Grimes Actor / Musician
Slide 27: National Marketing – Dallas Cowboys Partnership
26 National Marketing – Dallas Cowboys Partnership Dallas Cowboys Official Sponsor of the 2023-2024 Season 2 • 5x Super Bowl Champions • 8x NFC Champions • “America’s Team” • Most valuable NFL franchise
Slide 28: National Marketing – Morgan Wallen Partnership
27 National Marketing – Morgan Wallen Partnership Morgan Wallen 2024 Headline Tour Sponsor 2 • #1 Spotify album in the U.S. for 2023 (“One Thing at a Time”) • #1 Spotify song in the U.S. for 2023 (“Last Night”) • #3 Spotify artist in the U.S. for 2023 (Taylor Swift #1, Drake #2) • Longest running Bi
Slide 29: Over A Decade of Strong Same Store Sales
28 11.9% 6.7% 7.3% -0.1% 0.3% 5.2% 10.0% 5.0% 3.1% 53.7% -0.1% -6.3% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 FY24 YTD E Consolidated SSS% 2 Over A Decade of Strong Same Store Sales 1 1All Q3 FY2024 financial results are preliminary and the company’s best estimate as the quarter end
Slide 30: When do you think the Ladies' business will be fixed?
29 When do you think the Ladies’ business will be fixed? 139% 115% 88% 72% 23% -1% -9% -12% -7% -9% -16% Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 E Ladies’ Boots & Apparel SSS% Common Investor Question: SSS% 81% 78% 19% 22% FY20 Q3 FY24 TTM E Ladies’ Boots & Appar
Slide 31: Strategic Initiative: Continue Omni-Channel Leadership
30 Strategic Initiative: Continue Omni-Channel Leadership
Slide 32: Differentiated Online Presence
31 3 Differentiated Online Presence • Branded site • Same price as stores • Sales performing better than other sites • Most profitable online site • ~70% of online sales • Price sensitive customer • Same assortment as Bootbarn.com • ~15% of online sales • Mostly ladies’ product • More fashionable cu
Slide 33: Omni-Channel Capabilities Drive Store Traffic
32 3 Omni-Channel Capabilities Drive Store Traffic • Bring Long Tail to Stores • Ship to Store / BOPIS • Return in Store Deliver Digital Experience in Stores • Mobile App • Range Finder (AI enabled) • WHIP (endless aisle) Fulfill Online Demand Efficiently • DC Fulfillment • Store Fulfillment • Same
Slide 34: Integrating Channels
33 Integrating Channels Legacy Digital Omni-Channel Capabilities ~60% of Online Orders Involve a Store Associate Q3 FY24 YTD Online Orders • Buy Online Pick-Up In Store • Ship from Store • Same Day Delivery • Ship to Store • In-Store Fulfillment 3 1 1All Q3 FY2024 financial results are preliminary a
Slide 35: Why hasn't e-commerce grown as a % of sales?
34 Why hasn’t e-commerce grown as a % of sales? $707 $728 $1,258 $1,446 $1,511 FY20 FY21 FY22 FY23 Q3 FY24 TTM E Boot Barn Store Only Sales ($M) 9% 14% 14% 14% 14% 2019 2020 2021 2022 Sep 2023 TTM U.S. Retail Industry Online % of Sales1 (Clothing & General Merchandise) Common Investor Question: Omni
Slide 36: Strategic Initiative: Build Out Exclusive Brand Portfolio
35 Strategic Initiative: Build Out Exclusive Brand Portfolio
Slide 37: Exclusive Brands Portfolio
36 WESTERN 3 OF OUR TOP 5 SELLING BRANDS ARE EXCLUSIVE BRANDS COUNTRY ARTIST INSPIRED WORK RANCH & RODEO 4 Exclusive Brands Portfolio LUXURY PRICE SENSITIVE
Slide 38: Exclusive Brands Sales
37 $5 $12 $24 $39 $63 $67 $92 $126 $186 $212 $421 $564 $643 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 FY24 TTM E Exclusive Brands Sales ($M) 4 Q3 Exclusive Brands Sales ($M) $175 $194 FY23 Q3 Q3 FY24 E Exclusive Brands Sales Growth 1All Q3 FY2024 financial results are preliminar
Slide 39: Can EB penetration continue to grow & provide margin expansion?
38 Can EB penetration continue to grow & provide margin expansion? Common Investor Question: Exclusive Brands 3.0% 5.0% 7.0% 9.7% 11.1% 10.7% 13.5% 16.2% 22.0% 23.7% 28.3% 34.0% 37.9% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 FY24 YTD E Exclusive Brands Penetration % Margin enha
Slide 40: Prior Marketing Was More Promotional
39 Prior Marketing Was More Promotional
Slide 41: Exclusive Brands Growth & Margin Expansion
40 +110bps +90bps +90bps +270bps (70)bps +160bps FY19 FY20 FY21 FY22 FY23 Q3 FY24 YTD E Exclusive Brands Growth & Margin Expansion Merchandise Margin Growth Over Six Years (100)bps Freight +120ps Freight ~650bps total margin expansion Exclusive Brands Penetration 16.2% 37.9% FY19 Q3 FY24 YTD E EB is
Slide 42: Future Growth Potential
41 Future Growth Potential
Slide 43: Overall Boot Barn Story: Long-Term Algorithm
42 Common Investor Question: Overall Boot Barn Story Long-Term Algorithm Actual Performance New Stores +10% new units +15% new units SSS Low single-digit to Mid single-digit +11% SSS average FY20 – FY24 Merchandise Margin Accretion +25bps annually from EB penetration >100bps from EB, full-price sell
Slide 44: Multiple Growth Drivers
43 Multiple Growth Drivers Same Store Sales $1.5B Annual Comp Revenue X 2.5% SSS Annually X 35% Flow-through Illustrative 4-Year Cumulative EBITDA $ = ~$50 Million New Stores 397 Stores X 15% New Units X 30% Proforma EBITDA Margin X ~$3M AUV = ~$270 Million Exclusive Brands & Margin Appreciation 25b
Slide 45: Thank You
44 Thank You
Slide 46: Appendix: Store SSS% by Month
45 -5.0% -2.6% 1.5% 1.1% -3.7% -7.3% -8.8% -11.5% -8.5% Apr May Jun Jul Aug Sep Oct Nov Dec FY23 8.1% 14.8% 8.1% 1.6% 4.4% 5.1% 1.5% 1.9% -3.2% 0.6% -1.9% -6.2% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY24 FY22 323.1% 98.2% 54.0% 74.8% 72.9% 55.5% 50.4% 56.7% 57.8% 38.2% 47.8% 17.3% Apr May
Slide 47: Appendix: Ecommerce SSS% by Month
46 -19.1% -9.0% -3.5% -11.9% -13.0% -10.6% -16.8% -15.1% -8.1% Apr May Jun Jul Aug Sep Oct Nov Dec FY23 13.1% 8.5% 6.4% -3.0% -1.3% -13.5% -18.5% -25.4% -10.1% -16.3% -18.7% -19.4% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY24 FY22 26.1% -4.4% 10.2% 32.1% 40.3% 49.3% 55.5% 59.4% 42.4% 63.1% 5