Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — ICR Conference 2024
47 slides from Boot Barn's conference presentation, January 2024
Slide 1: January 2024 ICR Presentation
Offering everyone a piece of the American spirit—one handshake at a time. January 2024 ICR Presentation 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: Agenda
Agenda Quarter Recap Boot Barn’s Story Strategic Initiatives 1 Expand Our Store Base 2 Drive Same Store Sales Growth 3 Continue Omni-Channel Leadership 4 Build Out Exclusive Brand Portfolio Future Growth Potential 2
Slide 4: Solid Q3 Results Despite Challenging SSS%
Solid Q3 Results Despite Challenging SSS% Total Sales ($M) Grew Despite a Decline in SSS% 54.2% $486 $515 $520 $284 $302 6.7% 4.6% -3.6% -9.7% 1 1 Q3 '20 Q3 '21 Q3 '22 Q3 '23 Q3 '24 E Q3 '20 Q3 '21 Q3 '22 Q3 '23 Q3 '24 E Merchandise Margin Continued to Grow Modest EPS Growth +300bps +270bps +250bps
Slide 5: Solid Q3 Results Despite Challenging SSS%*
Solid Q3 Results Despite Challenging SSS%* Q3 Total Sales ($M) Q3 Income from Operations ($M) Q3 GAAP EPS $520 $522 $535 $75 $515 $72 * $1.74 $1.79 * $70 $1.67 1.1% 1.4% 4.0% 13.3% 14.0% growth growth growth of sales of sales LY Actual Low-End High-End LY Low-End High-End Actual LY Low-End High-End
Slide 6: Boot Barn's Story
' | Boot Barn’s Story |. ~ ===
Slide 7: Boot Barn's Story – Key Takeaways
Boot Barn’s Story – Key Takeaways • #1 player in a large & fragmented industry • Adding 15% new units annually • Profitable online channel • Full-price retailer with limited fashion risk • Nationally recognized lifestyle brand • Multiple levers for earnings growth ‒ New stores ‒ SSS growth ‒ Exclusi
Slide 8: We Service A Broad Customer Base
We Service A Broad Customer Base 7
Slide 9: We Have Built a National Lifestyle Brand
We Have Built a National Lifestyle Brand 8
Slide 10: Boot Barn Brand Awareness is Growing Nationally
Boot Barn Brand Awareness is Growing Nationally Boot Barn Brand Awareness by Region1 Aided awareness2 Unaided awareness3 74% 67% 57% 48% 35% 50% 40% 33% 33% 25% 32% 16% 24% 17% 8% Total Western Southern Northern Eastern 1Illuminology researchers surveyed a nationally representative, random sample of
Slide 11: Over a Decade of Strong Sales Growth
Over a Decade of Strong Sales Growth Total Sales ($M) $1,704 $1,658 $1,488 +19.8% CAGR $893 $846 $777 $678 $630 $569 $403 $346 $233 1 1 12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 FY24 Total TTM E Sales 38% 48% 16% 41% 11% 8% 15% 9% 6% 67% 11% 3% Growth 1FY17 and FY23 were 53-week y
Slide 12: Over a Decade of Strong Earnings Growth
Over a Decade of Strong Earnings Growth EBIT ($M) $258 $232 $222 +34.0% CAGR $86 $74 $64 $46 $35 $38 $30 $21 $9 1 1 12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 FY24 TTM E 1FY17 and FY23 were 53-week years. The FY24 TTM estimate includes FY23 Q4 which was 14 weeks. 11 2All Q3 FY2024
Slide 13: Recent Performance Has Been Nationally Recognized
Recent Performance Has Been Nationally Recognized 12
Slide 14: Agenda
Agenda Quarter Recap Boot Barn’s Story Strategic Initiatives 1 Expand Our Store Base 2 Drive Same Store Sales Growth 3 Continue Omni-Channel Leadership 4 Build Out Exclusive Brand Portfolio Future Growth Potential 13
Slide 15: Strategic Initiative: Expand Our Store Base
Strategic Initiative: Expand Our Store Base 14
Slide 16: Boot Barn Prioritize Store Growth
1 Boot Barn Prioritize Store Growth Boot Barn Sales % U.S. Retail Industry % of Sales2 TTM1 (Clothing & General Merchandise) Online Online 11% 14% Boot Barn Stores U.S. Stores 89% 86% 1All Q3 FY2024 financial results are preliminary and the company’s best 2Source: Census Bureau of the Department of
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Slide 21: Common Investor Question: New Stores
Common Investor Question: New Stores Why are you opening stores in a negative SSS environment? New Store Opportunity1 900 397 FY24 E FY25 FY26 FY27 FY28 FY29 FY30 1Illustrative example of 15% new unit growth annually. • 500 additional stores opportunity • Expected to contribute ~$1.5 billion in sale
Slide 22: Strategic Initiative: Drive Same Store Sales Growth
Strategic Initiative: Drive Same Store Sales Growth 21
Slide 23: Boot Barn Virtuous Cycle of Growth
2 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 22
Slide 24: Prior Marketing Was More Promotional
2 Prior Marketing Was More Promotional 23
Slide 25: We Have Transformed the Brand
2 We Have Transformed the Brand 24
Slide 26: We Have Broadened Our Reach
2 We Have Broadened Our Reach National Finals Rodeo (NFR) Carolina Cowboys Rocker Steiner Boot Barn Booth 2023 PBR Team Series Bareback Bronc Rider Zane Smith Luke Grimes Marlon Humphrey Montana Fouts NASCAR Actor / Musician Baltimore Ravens Alabama Softball 25
Slide 27: National Marketing – Dallas Cowboys Partnership
2 National Marketing – Dallas Cowboys Partnership Dallas Cowboys Official Sponsor of the 2023-2024 Season • 5x Super Bowl Champions • 8x NFC Champions • “America’s Team” • Most valuable NFL franchise 26
Slide 28: National Marketing – Morgan Wallen Partnership
2 National Marketing – Morgan Wallen Partnership Morgan Wallen 2024 Headline Tour Sponsor • #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 Billb
Slide 29: Over a Decade of Strong Same Store Sales
2 Over A Decade of Strong Same Store Sales Consolidated SSS% 53.7% FY13 – FY19 +41% seven-year stack, +6% SSS avg FY20 – FY24 E +55% five-year stack, +11% SSS avg 11.9% 10.0% 6.7% 7.3% 5.2% 5.0% 3.1% 0.3% -0.1% -0.1% -6.3% 1 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 FY24 YTD E 1All Q
Slide 30: Common Investor Question: SSS%
Common Investor Question: SSS% When do you think the Ladies’ business will be fixed? Ladies’ Boots & Apparel SSS% Ladies’ Boots & Apparel % to Total Sales Despite recent comp declines, Ladies’ 139% share remains higher compared to FY20. 115% Ladies Ladies 88% 19% 22% 72% 23% 81% 78% -1% -9% -7% -9%
Slide 31: Strategic Initiative: Continue Omni-Channel Leadership
Strategic Initiative: Continue Omni-Channel Leadership 30
Slide 32: Differentiated Online Presence
3 Differentiated Online Presence • Branded site • Price sensitive customer • Same price as stores • Same assortment as Bootbarn.com • Sales performing better than other sites • ~15% of online sales • Most profitable online site • ~70% of online sales • Mostly ladies’ product • Least profitable onlin
Slide 33: Omni-Channel Capabilities
3 Omni-Channel Capabilities 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 Fulfillment • B
Slide 34: Integrating Channels
3 Integrating Channels ~60% of Online Orders Involve a Store Associate 1 Legacy Digital Omni-Channel Capabilities • Buy Online Pick-Up In Store • Ship from Store • Same Day Delivery • Ship to Store • In-Store Fulfillment Q3 FY24 YTD Online Orders 1All Q3 FY2024 financial results are preliminary and
Slide 35: Common Investor Question: Omni-Channel
Common Investor Question: Omni-Channel Why hasn’t e-commerce grown as a % of sales? Boot Barn Store Only Sales ($M) U.S. Retail Industry Online % of Sales1 (Clothing & General Merchandise) Stores have demonstrated outsized sales growth. $1,511 $1,446 $1,258 $707 $728 14% 14% 14% 14% 9% FY20 FY21 FY2
Slide 36: Strategic Initiative: Build Out Exclusive Brand Portfolio
Strategic Initiative: Build Out Exclusive Brand Portfolio 35
Slide 37: Exclusive Brands Portfolio
4 Exclusive Brands Portfolio WESTERN 3 OF OUR TOP 5 SELLING BRANDS ARE EXCLUSIVE BRANDS ARTIST INSPIRED COUNTRY WORK RANCH & RODEO LUXURY PRICE SENSITIVE 36
Slide 38: Exclusive Brands Sales Growth
4 Exclusive Brands Sales Growth Q3 Exclusive Brands Sales ($M) Exclusive Brands Sales ($M) $643 $194 $564 $175 $421 $212 $186 $126 $92 $63 $67 $24 $39 $5 $12 1 FY23 Q3 Q3 FY24 E FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q3 FY24 1 TTM E 1All Q3 FY2024 financial results are prelimina
Slide 39: Common Investor Question: Exclusive Brands
Common Investor Question: Exclusive Brands Can EB penetration continue to grow & provide margin expansion? Exclusive Brands Penetration % Margin enhancement ~1,000 bps vs. 3rd party brands 37.9% 34.0% 28.3% 23.7% 22.0% 16.2% 13.5% 11.1% 10.7% 9.7% 7.0% 5.0% 3.0% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY
Slide 40: Prior Marketing Was More Promotional
Prior Marketing Was More Promotional 39
Slide 41: Exclusive Brands Growth & Margin Expansion
Exclusive Brands Growth & Margin Expansion Exclusive Brands Penetration EB is Only 1/3 of Margin Appreciation 37.9% EB Expansion 220bps 16.2% Improved full-price selling & buying economies of scale 430bps FY19 Q3 FY24 1 YTD E Merchandise Margin Growth Over Six Years +160bps +270bps (70)bps +120ps Fr
Slide 42: Future Growth Potential
Future Growth Potential 41
Slide 43: Common Investor Question: Overall Boot Barn Story
Common Investor Question: Overall Boot Barn Story When will Boot Barn revert back to the long-term algorithm? Long-Term Algorithm Actual Performance New Stores +10% new units +15% new units SSS Low single-digit to Mid single-digit FY20 – FY24 +11% SSS average Merchandise Margin +25bps annually >100b
Slide 44: Multiple Growth Drivers
Multiple Growth Drivers Note: The below is an illustration of the potential impacts of multiple growth drivers that impact results, and is not intended as a projection. Actual results will depend on many factors, both within and outside of the Company’s control. See “Forward-Looking Statements.” Ill
Slide 45: Thank You
Thank You 44
Slide 46: Appendix: Store SSS% by Month
Appendix: Store SSS% by Month FY24 1.5% 1.1% -5.0% -2.6% -3.7% -7.3% -8.8% -8.5% -11.5% 1 1 1 Apr May Jun Jul Aug Sep Oct Nov Dec FY23 14.8% 8.1% 8.1% 4.4% 5.1% 1.6% 1.5% 1.9% 0.6% -3.2% -1.9% -6.2% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY22 323.1% 98.2% 74.8% 72.9% 56.7% 57.8% 54.0% 55.5%
Slide 47: Appendix: Ecommerce SSS% by Month
Appendix: Ecommerce SSS% by Month FY24 -9.0% -3.5% -10.6% -8.1% -19.1% -11.9% -13.0% -16.8% -15.1% 1 1 1 Apr May Jun Jul Aug Sep Oct Nov Dec FY23 13.1% 8.5% 6.4% -3.0% -1.3% -13.5% -10.1% -16.3% -18.5% -18.7% -19.4% -25.4% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY22 59.4% 63.1% 57.2% 49.3%