Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — ICR Conference 2023
37 slides from Boot Barn's conference presentation, January 2023
Slide 1: January 2023 ICR Presentation
January 2023 ICR Presentation 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. You can identify forward-looking
Slide 3: Preliminary Q3 FY2023 Results
Preliminary Q3 FY2023 Results Total Sales Growth Same Store Sales % 54.2% 60.7% 11.8% 6.7% 6.5% 5.9% 4.6% Q3 FY20 Q3 FY21 Q3 FY22 Q3 FY23 -3.6% Total Q3 FY20 Q3 FY21 Q3 FY22 Q3 FY23 $284M $302M $486M $515M Store 5.7% Sales 1.9% 55.7% (0.8)% SSS% PRE-COVID COVID PRE-COVID COVID Guide (2.0)% to Flat N
Slide 4: A Decade of Growth
A Decade of Growth Total Sales ($M) $1.6B $1.5B $846 $893 $777 $619 $678 $569 $346 $403 $233 1 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q3 FY23 IPO COVID TTM Operating Income (EBIT) ($M) $258 $232 $74 $86 $64 $35 $36 $46 $21 $30 $9 1 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q3 FY23
Slide 5: Sustainable AUV
Sustainable AUV Annualized Average Unit Volume ($M)1 6 5 4 3 2 1 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2 Nov Dec $4.2M, Fiscal 2022 AUV $2.7M, Pre-COVID AUV 1Annualized average unit volume by month was calculated by annualizing the average monthly unit volume
Slide 6: Sustainable Customer Growth
Sustainable Customer Growth New Customer Growth Where We Gained Market Share1 Active Customers2 Q: If you first purchased from us following the pandemic, where did you shop before COVID? (multiple options could be selected) (in millions) 46% 6.8 5.8 32% 4.7 24% 26% 4.3 20% 3.8 4.0 3.5 15% 3.1 Work R
Slide 7: Strategic Initiatives
Agenda A Lifestyle Brand 1 Expand Our Store Base 2 Drive Same Store Sales Growth Strategic Initiatives 3 Continue Omni-Channel Leadership 4 Build Out Exclusive Brand Portfolio Growth Potential 6
Slide 8: A Lifestyle Brand
A Lifestyle Brand 7
Slide 9: $40 Billion Industry
$40 Billion Industry1 ~$25 Billion ~$15 Billion WESTERN INDUSTRY WORK INDUSTRY COUNTRY LIFESTYLE Country music & lifestyle Blue collar employment Hiking & hunting Western events – Rodeos & Concerts Oil & gas industry Fishing & camping Ranching Construction spending NASCAR Horse ownership Commercial
Slide 10: Countrywide Customer Base
Countrywide Customer Base % of People Listening to Country Music in U.S.1 Country Music is #12 2022 Ranking Demographic #1 #2 #3 Pop Adult Adults 18 - 34 Country Contemporary Contemporary Adult Pop Adults 25 -45 Country Contemporary Contemporary Adult Adults 18+ Country News/Talk Contemporary There
Slide 11: Stores in 43 of the Top 50 U.S. Cities
Stores in 43 of the Top 50 U.S. Cities Pop. Pop. Rank City Stores# Rank City Stores# 1 New York 0 26 Memphis 1 2 Los Angeles 15 27 Detroit 0 3 Chicago 1 28 Baltimore 1 4 Houston 17 29 Milwaukee 0 5 Phoenix 8 30 Albuquerque 3 6 Philadelphia 4 31 Fresno 7 Houston Phoenix 7 San Antonio 6 32 Tucson 3 8
Slide 12: Strategic Initiatives
Strategic Initiatives 11
Slide 13: Expand Our Store Base
Strategic Initiatives 1 Expand Our Store Base 2 3 4 12
Slide 14: New Units Growing Annually by 10%+
New Units Growing Annually by 10%+ Number of Stores 340+ 44 new stores opened in the last 12 months Five consecutive quarters of double-digit store growth 300 273 259 240 226 219 208 169 152 117 86 1 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23E 1Reflects estimated store c
Slide 15: Expansion Into New and Existing Markets
Expansion Into New and Existing Markets Today 2012 • 86 stores • 333 stores • 8 states • 41 states IPO FY2023 New New Legacy METRICS New Store Stores Markets1 Markets1 Algorithm Projection Store Size (sq. ft.) ~10,000 ~12,000 ~10,600 ~12,100 Year 1 Net Sales $1.7M $3.5M $3.7M $4.0M Net Capital Inves
Slide 16: East Region – Cherry Hill, NJ New Store
East Region – Cherry Hill, NJ New Store 15
Slide 17: North Region – Lakewood, CO New Store
North Region – Lakewood, CO New Store 16
Slide 18: South Region – Little Rock, AR New Store
South Region – Little Rock, AR New Store 17
Slide 19: West Region – Fontana, CA New Store
West Region – Fontana, CA New Store 18
Slide 20: The Path to 900 Stores
Looking Forward – The Next Decade The Path to 900 Stores 900 340+ 300 FY22 FY23E FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 19
Slide 21: Drive Same Store Sales Growth
Strategic Initiatives 1 2 Drive Same Store Sales Growth 3 4 20
Slide 22: Boot Barn Virtuous Cycle of Growth
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 21
Slide 23: Targeting an Expansive Customer Base
Targeting an Expansive Customer Base Work Western Country Fashion Mens Womens 22
Slide 24: Expanding Customer Reach & Broadening Assortment
Expanding Customer Reach & Broadening Assortment Legacy Western Customer Legacy Offering Expanded “Country Lifestyle” Customer • Cowboy hat • Ball cap • Western shirt • Plaid shirt • Slightly fitted • Relaxed fit • Western yoke • No yoke • Pearl snaps • Buttons • Tucked shirt • Untucked shirt • West
Slide 25: Tailored Communication with Modernized Branding
Boot Barn Core Western Email Marketing Legacy Offering Boot Barn Work Email Marketing Tailored Communication with Modernized Branding 24
Slide 26: Invest in Customer Experience
Invest in Customer Experience Unique In-Store Experience In-Store Hand-Held Tablets • Product selection & sales • In-store fulfillment • Product lookup • Line busting • Pricing changes Elevated Packaging Boot Barn App 25
Slide 27: A Decade of Strong Sales Across Channels
A Decade of Strong Sales Across Channels Consolidated SSS% Retail Store SSS% 53.7% 57.2% 11.9% 10.0% 7.3% 10.9% 9.5% 6.7% 5.2% 5.0% 6.8% 6.7% 6.1% 3.1% 1.8% 4.5% 3.6% 0.3% -0.1% -1.1% -2.4% -2.3% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q3 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q
Slide 28: Continue Omni-Channel Leadership
Strategic Initiatives 1 2 3 Continue Omni-Channel Leadership 4 27
Slide 29: Expanding Our Omni-Channel Capabilities
Expanding Our Omni-Channel Capabilities Deliver Digital Experience in Drive Store Traffic Stores • Bring Long Tail to Stores • Range Finder (finite aisle) • Ship to Store / BOPIS • WHIP (endless aisle) • Return in Store • Handheld Tablet Roll-out Fulfill Online Demand Efficiently Improve Online Prof
Slide 30: Integrating Channels
Integrating Channels ~60% of Online Orders Involve a E-comm % of Total Sales Store Associate Legacy Digital Omni-Channel 18% 17% 17% 19% 16% Capabilities 15% 15% 13% • Buy Online Pick-Up In Store • Ship from Store • Same Day Delivery • Ship to Store • In-Store Fulfillment FY16 FY17 FY18 FY19 FY20 FY
Slide 31: Build Out Exclusive Brand Portfolio
Strategic Initiatives 1 2 3 4 Build Out Exclusive Brand Portfolio 30
Slide 32: Exclusive Brand Portfolio
Exclusive Brand Portfolio WESTERN 3 OF OUR TOP 5 SELLINGCOUNTRY BRANDS ARE EXCLUSIVE BRANDS ARTIST INSPIRED WORK RANCH & RODEO 31
Slide 33: Exclusive Brand Portfolio
Exclusive Brand Portfolio 3 OF OUR TOP 5 SELLING BRANDS ARE EXCLUSIVE BRANDS 32
Slide 34: Exclusive Brands Penetration Growth
Exclusive Brands Penetration Growth Exclusive Brands Sales ($M) $520 $421 $186 $212 $126 $67 $92 $39 $63 $5 $12 $24 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q3 FY23 TTM Exclusive Brands Penetration % Margin enhancement ~1,000 bps vs. 3rd party brands +570bps vs. LY 34.1% 32.2% 28.3% 28
Slide 35: Growth Potential
Growth Potential 34
Slide 36: Growth Drivers
Growth Drivers New Unit Growth Consolidated Same Store Sales Growth • Proven ability to drive multi-year SSS growth 900 • Opportunity to 53.7% ~triple store count • +560 new stores = $2B sales from new stores only 11.9% 10.0% 340+ 6.7% 7.3% 5.2% 5.0% 3.1% 0.3% 1.8% • Payback <2 years -0.1% FY13 FY14
Slide 37: Thank You
Thank You 36