Boot Barn Holdings, Inc. · NYSE:BOOT
Boot Barn — Investor Presentation (June 2021)
28 slides from Boot Barn's investor presentation, Jun 1, 2021
Slide 1: June 2021
1 June 2021
Slide 2: Important Information: Forward-Looking Statements
2 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-lookin
Slide 3: Solid 4th Quarter and Fiscal 2021 Growth
3 METRICS Q4 FY 2021 RESULTS Q4 FY 2020 RESULTS Q4 FY 2019 RESULTS Total sales growth +37.2% (2.1)% +12.9% Same store sales growth +26.9% (4.7)% +8.7% SOLID 4th QUARTER AND FISCAL 2021 GROWTH 1Net income per diluted share in Q4 FY 2021 was approximately $0.82, or $0.75 when excluding an approximatel
Slide 4: Agenda: Boot Barn Story, Investment Thesis, Strategic Initiatives
4 INVESTMENT THESIS 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 APPENDIX
Slide 5: Our Customers' Lifestyle
5 1 Car and Driver 1/6/2021, “25 Best-Selling Cars, Trucks, and SUVs of 2020”; 2 “2018 GfK Consumer Life Survey: 9% Five Year Growth Rate” OUR CUSTOMERS’ LIFESTYLE Country music popularity continues to rise2 Top 3 vehicles sold in 2020 were pick-up trucks1 Hundreds of rodeos held in the U.S. Popular
Slide 6: Diversified Sales Mix Mitigates Risk
6 1Fiscal year ended March 27, 2021. 2During the fiscal year ended March 27, 2021, western styles comprised approximately two thirds of our sales, with work related and other styles making up the balance. PRODUCT MIX1 DIVERSIFIED SALES MIX MITIGATES RISK END USER1 CHANNEL1 Footwear 53% Hats, Accesso
Slide 7: Everyday Merchandise with Limited Fashion Risk
7 EVERYDAY MERCHANDISE WITH LIMITED FASHION RISK • Low fashion quotient minimizes markdown exposure • Approximately 75% of store inventory kept in stock through automated replenishment programs • Limited promotional activity maintains margin rate RUGGED FOOTWEAR OUTERWEAR FLAME RESISTANT PANTS SHIRT
Slide 8: History of Profitable Growth
8 HISTORY OF PROFITABLE 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. ¹CAGR
Slide 9: Fiscal 2021 Strength
9 $1.64 $2.01 FY20 FY21 $846 $893 FY20 FY21 FISCAL 2021 STRENGTH NET SALES ($MM) OPERATING INCOME ($MM) $74 $86 FY20 FY21 ~5.7% ~17.2% 1Net income per diluted share in FY 2020 was approximately $1.64, or $1.56 when excluding an approximately $0.07 per share benefit due to income tax accounting for s
Slide 10: Strategic Initiatives: Drive Same Store Sales Growth
10 10 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 11: Targeted Customer Segmentation Strategy
11 Western Work Wonderwest TARGETED CUSTOMER SEGMENTATION STRATEGY Western Work Wonderwest 11 Men’s Country Men’s Work Women’s Country Women’s Work Women’s Contemporary Men’s Western Women’s Western Country Women’s Men’s • Expanded customer segmentation to include “Just Country” • Geared towards the
Slide 12: Just Country Broadens Customer Base
12 JUST COUNTRY BROADENS CUSTOMER BASE
Slide 13: Over a Decade of SSS Growth
13 13.3% 17.5% 11.9% 6.7% 7.3% -0.1% 0.3% 5.2% 10.0% 5.0% 3.1% FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 OVER A DECADE OF SSS GROWTH CONSOLIDATED SSS% 9.4% 7.8% 6.7% -4.7% -14.9% -5.1% 4.6% 26.9% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Recovery in same stor
Slide 14: Strategic Initiatives: Continue Omni-Channel Leadership
14 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 15: Broadening Our Omni-Channel Capabilities
15 BROADENING OUR OMNI-CHANNEL CAPABILITIES 1. SALES ORIGINATING IN STORE o Range Finder o WHIP (endless aisle) 2. SALES ORIGINATING ONLINE o Buy Online Return in Store o Buy Online Ship (from DC) to Store o Buy Online Pick Up in Store o Buy Online Curbside Pickup o In-Store Fulfillment o Same Day D
Slide 16: Strategic Initiatives: Build Out Exclusive Brand Portfolio
16 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 17: Exclusive Brands Positioned Strategically
17 EXCLUSIVE BRANDS POSITIONED STRATEGICALLY 2.6% 23.7% 26.2% FY2012 FY2021 FY2022E (% of Sales) • Margin enhancement ~1,000 bps • FY 2021 growth penetration ~170 bps • FY 2022 estimated growth penetration ~250 bps2 1Represents total company exclusive brand penetration. 2FY2022 is an estimate of exc
Slide 18: Exclusive Brands Are Leading Brands in the Store
18 EXCLUSIVE BRANDS ARE LEADING BRANDS IN THE STORE Western Work / Other Top 5 Brands1 2 1 3 4 5 = Exclusive brands 1Represents top 5 brands in the stores during the fiscal fourth quarter ended March 27, 2021. Idyllwind and Hawx amongst the top 10 selling brands in the store during Q4 FY 2021
Slide 19: Strategic Initiatives: Expand Our Store Base
19 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 20: Customers Continue to Favor the In-Store Experience
20 86% 75% 14% 25% Q1'20 Q1'21 CUSTOMERS CONTINUE TO FAVOR THE IN-STORE EXPERIENCE 85% 83% 15% 17% Q2'20 Q2'21 82% 80% 19% 20% Q3'20 Q3'21 SALES MIX BY CHANNEL Stores E-commerce Following initial impact of COVID-19 •E-commerce mix of business peaked with the initial impact of COVID-19 and stay-at-ho
Slide 21: Compelling New Store Economics
21 COMPELLING NEW STORE ECONOMICS METRIC 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 – Q4’21 130 Average net sales per store in FY21 $2.6 million
Slide 22: Ability to Grow New Units 10% Annually
22 ABILITY TO GROW NEW UNITS 10% ANNUALLY 117 152 169 208 219 226 240 259 273 300 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Outlook HISTORICAL STORE BASE ~11% CAGR 1 1Reflects estimated store count in Fiscal 2022 assuming approximately 10% new unit growth.
Slide 23: Expansion into New and Existing Markets
23 EXPANSION INTO NEW AND EXISTING MARKETS • 276 stores • 36 states CURRENT 2012 • 86 stores • 8 states • Stores in new markets outperforming expectations • Cannibalization from new stores in existing markets less than anticipated • Expansion into new markets enhances e-commerce sales • Opportunity
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Slide 25: Long Term Algorithm
25 LONG TERM ALGORITHM + Same-store sales growth + Merchandise margin expansion = Annual EPS growth + Annual new unit growth 10%+ Low to mid single digits 25-30 bps 20%+ Note: These are not projections; they are goals and are forward-looking, subject to significant business, economic, regulatory and
Slide 26: Boot Barn Is a Compelling Investment Story
26 BOOT BARN IS A COMPELLING INVESTMENT STORY • Strong variety of omni-channel offerings in place • Ability to drive incremental traffic to stores • Improved customer satisfaction with added convenience and quicker delivery WORLD CLASS OMNI- CHANNEL CAPABILITIES NATIONAL LEADER IN ATTRACTIVE NICHE •
Slide 27: Appendix
27 APPENDIX
Slide 28: Adjusted EBIT Reconciliation
28 ADJUSTED EBIT RECONCILIATION (a) Represents non-cash compensation expenses related to stock options, restricted stock awards, restricted stock units and performance share units granted to certain of our employees and directors. (b) Represents the non-cash accrual for future award redemptions in c
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