BOOT
$96.81
Boot Barn Holdings
$3.18
3.40%
Earnings Details
1st Quarter June 2021
Wednesday, August 04, 2021 4:10:00 PM
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Summary

Boot Barn Holdings Beats

Boot Barn Holdings (BOOT) reported 1st Quarter June 2021 earnings of $1.26 per share on revenue of $306.3 million. The consensus earnings estimate was $0.92 per share on revenue of $287.3 million. The Earnings Whisper number was $1.04 per share. Revenue grew 107.3% on a year-over-year basis.

Boot Barn Holdings Inc operates specialty retail stores that sell western and work boots and related apparel and accessories. It operates retail locations throughout the U.S. and sells its merchandise via the Internet.

Results
Reported Earnings
$1.26
Earnings Whisper
$1.04
Consensus Estimate
$0.92
Reported Revenue
$306.3 Mil
Revenue Estimate
$287.3 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Boot Barn Holdings, Inc. Announces First Quarter Fiscal Year 2022 Financial Results

IRVINE, Calif.--(BUSINESS WIRE)--Boot Barn Holdings, Inc. (NYSE: BOOT) today announced its financial results for the first fiscal quarter ended June 26, 2021.

Due to the impact of COVID-19 on the Company’s results in its first fiscal quarter ended June 27, 2020, it has provided the below quarterly highlights in comparison to its first fiscal quarter ended June 29, 2019, two years ago.

For the quarter ended June 26, 2021:

  • Net sales increased 64.9% to $306.3 million, compared to June 29, 2019, two years ago.
  • Compared to June 29, 2019, same store sales increased 52.3%, comprised of an increase in retail store same store sales of 51.7% and an increase in e-commerce same store sales of 55.8%.
  • Net income was $40.6 million, or $1.35 per diluted share, compared to $9.7 million, or $0.33 per diluted share in the two-year ago period. Net income per diluted share in the current-year and two-year ago periods includes an approximately $0.09 and $0.01 per share benefit, respectively, due to income tax accounting for share-based compensation. Excluding the tax benefit in both periods, net income per diluted share in the current-year period was $1.26, compared to $0.32 in the two-year ago period.
  • The Company opened 3 new stores during the thirteen weeks ended June 26, 2021.

The Company has also provided the below table which includes year-over-year comparisons of retail store sales, e-commerce sales, and total net sales for each of the periods indicated below. In addition, the following table includes retail store sales and e-commerce sales as a percentage of total net sales for the periods indicated below:

(all $ in thousands)Q1 FY2022 Q1 FY2021 Q1 FY2020 % Change
Q1 FY2022 vs.
Q1 FY2021
% Change
Q1 FY2022 vs.
Q1 FY2020
Retail Stores$

265,106

$

110,586

$

159,346

140

%

66

%

E-commerce$

41,221

$

37,180

$

26,421

11

%

56

%

Total Net Sales$

306,327

$

147,766

$

185,767

107

%

65

%

 
Retail Stores as a % of Net Sales

87

%

 

75

%

 

86

%

E-commerce as a % of Net Sales

13

%

 

25

%

 

14

%

 

Jim Conroy, President and Chief Executive Officer, commented, “It has been a fantastic start to fiscal 2022 with sales and profitability up significantly on a two-year basis. While we believe there are macro tailwinds at play, our strategy to expand our addressable market, coupled with superb execution by the entire team in securing merchandise and staffing the stores to meet the additional demand, has resulted in another exceptional quarter. We believe that our sharp focus on our merchandise, marketing and omni-channel initiatives over the past several years combined with the expansion of our store base has increased our market share and strengthened our foundation for outsized growth. We have maintained our strong momentum thus far in the second quarter as the team continues to perform extremely well managing the ongoing strength in demand.”

Operating Results for the First Quarter Ended June 26, 2021 Compared to the First Quarter Ended June 27, 2020

  • Net sales increased 107.3% to $306.3 million from $147.8 million in the prior-year period. Consolidated same store sales increased 78.9% with retail store same store sales up 104.5% and e-commerce same store sales up 9.8%. The increase in net sales was the result of an increase of 78.9% in consolidated same store sales, the sales contribution from temporarily closed stores that were excluded from the comp base, and the incremental sales from new stores opened over the past twelve months. Net sales in the prior-year period were adversely impacted by decreases in retail store sales resulting from decreased traffic in our stores from customers staying at home in response to the COVID-19 crisis and temporary store closures.
  • Gross profit was $116.4 million, or 38.0% of net sales, compared to $40.2 million, or 27.2% of net sales, in the prior-year period. Gross profit increased primarily due to higher sales. The increase in gross profit rate of 1,080 basis points was driven by 660 basis points of leverage in buying and occupancy costs as a result of expense leverage on higher sales and a 420-basis point increase in merchandise margin rate. Merchandise margin rate increased 420 basis points primarily as a result of the increased penetration of store sales, which generate higher merchandise margins than e-commerce, when compared to the prior year, in addition to better full-price selling and growth in exclusive brand penetration.
  • Selling, general and administrative expenses were $62.8 million, or 20.5% of net sales, compared to $38.4 million, or 26.0% of net sales, in the prior-year period. The increase in selling, general and administrative expenses was primarily a result of higher store payroll, higher overhead and increased marketing expenses in the current-year period compared to the prior-year period which was impacted by COVID-19. Selling, general and administrative expenses as a percentage of net sales decreased by 550 basis points primarily as a result of expense leverage on higher sales.
  • Income from operations increased $51.8 million to $53.6 million, or 17.5% of net sales, compared to $1.8 million, or 1.2% of net sales, in the prior-year period. This increase represents 1,630 basis points of improvement in operating profit margin.
  • Net income was $40.6 million, or $1.35 per diluted share, compared to a net loss of $0.5 million, or $0.02 per diluted share in the prior-year period. Net income per diluted share in the current-year period includes an approximately $0.09 per share benefit due to income tax accounting for share-based compensation. Excluding the tax benefit in the current-year period, net income per diluted share in the current-year period was $1.26, compared to a net loss per diluted share of $0.02 in the prior-year period.

Current Business

The following table includes retail store sales, e-commerce sales, and total net sales for the periods indicated below. It also includes the year-over-year change in retail store sales, e-commerce sales, and total net sales for each of the periods indicated below:

(all $ in thousands)Preliminary
Five Weeks
Q2 FY22 QTD
Five Weeks
Q2 FY21 QTD
Five Weeks
Q2 FY20 QTD
% Change
Five Weeks
Q2 FY22 QTD
vs.
Five Weeks
Q2 FY21 QTD
% Change
Five Weeks
Q2 FY22 QTD
vs.
Five Weeks
Q2 FY20 QTD
Retail Stores$

99,702

$

53,184

$

60,121

87

%

66

%

E-commerce$

15,499

$

11,843

$

9,626

31

%

61

%

Total Net Sales$

115,201

$

65,027

$

69,747

77

%

65

%

 

Balance Sheet Highlights as of June 26, 2021

  • Cash of $49.6 million.
  • Average inventory per store was flat on a same store basis compared to June 29, 2020.
  • The Company prepaid $61.5 million of its term loan facility, reducing total debt to $50.0 million, including a zero balance drawn under the $165 million revolving credit facility.

Subsequent to June 26, 2021, the Company expanded its revolving credit facility to $180.0 million.

Fiscal Year 2022 Outlook

The Company is providing the following full-year fiscal 2022 guidance:

  • New unit growth of 10%.
  • Exclusive brand penetration growth of 350 basis points, which represents an increase from the Company’s prior outlook of 250 basis points.
  • Effective tax rate of 26.0%.
  • Capital expenditures between $33.0 to $36.0 million.

Conference Call Information

A conference call to discuss the financial results for the first quarter of fiscal year 2022 is scheduled for today, August 4, 2021, at 4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in participating in the call are invited to (800) 263-0877. The conference call will also be available to interested parties through a live webcast at investor.bootbarn.com. Please visit the website and select the “Events and Presentations” link at least 15 minutes prior to the start of the call to register and download any necessary software. A telephone replay of the call will be available until September 4, 2021, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 1539926. Please note participants must enter the conference identification number in order to access the replay.

About Boot Barn

Boot Barn is the nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children. The Company offers its loyal customer base a wide selection of work and lifestyle brands. As of the date of this release, Boot Barn operates 276 stores in 36 states, in addition to an e-commerce channel www.bootbarn.com. The Company also operates www.sheplers.com, the nation’s leading pure play online western and work retailer and www.countryoutfitter.com, an e-commerce site selling to customers who live a country lifestyle. For more information, call 888-Boot-Barn or visit www.bootbarn.com.

Forward Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements refer to our current expectations and projections relating to, by way of example and without limitation, our financial condition, liquidity, profitability, results of operations, margins, plans, objectives, strategies, future performance, business and industry. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate", "estimate", "expect", "project", "plan“, "intend", "believe", “may”, “might”, “will”, “could”, “should”, “can have”, “likely”, “outlook” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. These forward-looking statements are based on assumptions that the Company’s management has made in light of their industry experience and on their perceptions of historical trends, current conditions, expected future developments and other factors they believe are appropriate under the circumstances. As you consider this press release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond the Company’s control) and assumptions. These risks, uncertainties and assumptions include, but are not limited to, the following: the effect of COVID-19 on our business operations, growth strategies, store traffic, employee availability, financial condition, liquidity and cash flow; decreases in consumer spending due to declines in consumer confidence, local economic conditions or changes in consumer preferences; the Company’s ability to effectively execute on its growth strategy; and the Company’s failure to maintain and enhance its strong brand image, to compete effectively, to maintain good relationships with its key suppliers, and to improve and expand its exclusive product offerings. The Company discusses the foregoing risks and other risks in greater detail under the heading “Risk factors” in the periodic reports filed by the Company with the Securities and Exchange Commission. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the Company’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. Because of these factors, the Company cautions that you should not place undue reliance on any of these forward-looking statements. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict those events or how they may affect the Company. Further, any forward-looking statement speaks only as of the date on which it is made. Except as required by law, the Company does not intend to update or revise the forward-looking statements in this press release after the date of this press release.

Boot Barn Holdings, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)

 

June 26,

March 27,

2021

2021

Assets
Current assets:
Cash and cash equivalents$

49,640

$

73,148

Accounts receivable, net

10,000

12,771

Inventories

296,762

275,760

Prepaid expenses and other current assets

20,055

12,777

Total current assets

376,457

374,456

Property and equipment, net

114,573

110,444

Right-of-use assets, net

197,172

186,827

Goodwill

197,502

197,502

Intangible assets, net

60,867

60,885

Other assets

3,924

3,467

Total assets$

950,495

$

933,581

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$

110,876

$

104,641

Accrued expenses and other current liabilities

96,686

77,615

Short-term lease liabilities

41,266

39,400

Total current liabilities

248,828

221,656

Deferred taxes

16,102

21,993

Long-term portion of notes payable, net

49,314

109,781

Long-term lease liabilities

192,382

181,836

Other liabilities

3,992

3,424

Total liabilities

510,618

538,690

 
Stockholders’ equity:
Common stock, $0.0001 par value; June 26, 2021 - 100,000 shares authorized,
29,661 shares issued; March 27, 2021 - 100,000 shares authorized, 29,348
shares issued

3

3

Preferred stock, $0.0001 par value; 10,000 shares authorized, no shares issued
or outstanding

Additional paid-in capital

190,632

183,815

Retained earnings

253,672

213,027

Less: Common stock held in treasury, at cost, 130 and 96 shares at June 26,
2021 and March 27, 2021, respectively

(4,430)

(1,954)

Total stockholders’ equity

439,877

394,891

Total liabilities and stockholders’ equity$

950,495

$

933,581

 

Boot Barn Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

 

Thirteen Weeks Ended

June 26,

June 27,

2021

2020

Net sales$

306,327

$

147,766

Cost of goods sold

189,900

107,565

Gross profit

116,427

40,201

Selling, general and administrative expenses

62,784

38,403

Income from operations

53,643

1,798

Interest expense

2,563

2,641

Other income, net

104

64

Income/(loss) before income taxes

51,184

(779)

Income tax expense/(benefit)

10,539

(289)

Net income/(loss)$

40,645

$

(490)

 
Earnings/(loss) per share:
Basic shares$

1.38

$

(0.02)

Diluted shares$

1.35

$

(0.02)

Weighted average shares outstanding:
Basic shares

29,361

28,826

Diluted shares

30,213

28,826

 

Boot Barn Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 

Thirteen Weeks Ended

June 26,

June 27,

2021

2020

Cash flows from operating activities
Net income/(loss)$

40,645

$

(490)

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation

6,152

5,688

Stock-based compensation

3,201

1,824

Amortization of intangible assets

18

22

Amortization of right-of-use assets

9,221

8,277

Amortization and write-off of debt issuance fees and debt discount

1,064

221

Gain on disposal of assets

(4)

(4)

Gain on adjustment of right-of-use assets and lease liabilities

(33)

Deferred taxes

(5,891)

344

Changes in operating assets and liabilities, net of acquisition:
Accounts receivable, net

4,912

1,872

Inventories

(21,002)

27,171

Prepaid expenses and other current assets

(7,309)

778

Other assets

(457)

(389)

Accounts payable

5,252

(11,096)

Accrued expenses and other current liabilities

19,071

(3,306)

Other liabilities

568

409

Operating leases

(9,080)

(8,188)

Net cash provided by operating activities$

46,328

$

23,133

Cash flows from investing activities
Purchases of property and equipment$

(9,294)

$

(8,944)

Net cash used in investing activities$

(9,294)

$

(8,944)

Cash flows from financing activities
Repayments on debt and finance lease obligations$

(61,682)

$

(148)

Tax withholding payments for net share settlement

(2,476)

(485)

Proceeds from the exercise of stock options

3,616

4

Net cash used in financing activities$

(60,542)

$

(629)

 
Net (decrease)/increase in cash and cash equivalents

(23,508)

13,560

Cash and cash equivalents, beginning of period

73,148

69,563

Cash and cash equivalents, end of period$

49,640

$

83,123

 
Supplemental disclosures of cash flow information:
Cash paid for income taxes$

$

10

Cash paid for interest$

1,496

$

2,696

Supplemental disclosure of non-cash activities:
Unpaid purchases of property and equipment$

4,130

$

2,159

Boot Barn Holdings, Inc.
Store Count

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

June 26,

 

March 27,

 

December 26,

 

September 26,

 

June 27,

 

March 28,

 

December 28,

 

September 28,

 

2021

 

2021

 

2020

 

2020

 

2020

 

2020

 

2019

 

2019

 

Store Count (BOP)

273

266

265

264

259

251

248

240

Opened/Acquired

3

8

1

1

5

8

3

8

Closed

(1)

Store Count (EOP)

276

273

266

265

264

259

251

248

 

 

Boot Barn Holdings, Inc.
Selected Store Data

Thirteen Weeks Ended

 

June 26,

 

 

March 27,

 

 

December 26,

 

 

September 26,

 

 

June 27,

 

 

March 28,

 

 

December 28,

 

 

September 28,

 

 

 

 

2021

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

 

2019

 

Selected Store Data:
Same Store Sales growth/(decline)

78.9

%

26.9

%

4.6

%

(5.1)

%

(14.9)

%

(4.7)

%

6.7

%

7.8

%

Stores operating at end of period

276

273

266

265

264

259

251

248

Total retail store square footage, end of period (in thousands)

2,915

2,854

2,787

2,779

2,770

2,722

2,639

2,616

Average store square footage, end of period

10,563

10,455

10,477

10,486

10,491

10,508

10,514

10,549

Average net sales per store (in thousands)$

942

$

792

$

889

$

565

$

410

$

590

$

903

$

635

 

Debt Covenant EBITDA Reconciliation
(Unaudited)

Thirteen Weeks Ended

June 26,
2021

 

March 27,
2021

 

December 26,
2020

 

September 26,
2020

 

June 27,
2020

 

 

June 29,
2019

Boot Barn's Net Income/(Loss)$

40,645

$

24,552

$

29,566

$

5,758

$

(490)

$

9,721

Income tax expense/(benefit)

10,539

6,264

9,909

1,979

(289)

2,447

Interest expense

2,563

2,115

2,303

2,383

2,641

3,904

Depreciation and intangible asset amortization

6,170

6,162

5,994

6,282

5,710

4,802

Boot Barn's EBITDA$

59,917

$

39,093

$

47,772

$

16,402

$

7,572

$

20,874

 
Non-cash stock-based compensation (a)$

3,201

$

2,147

$

1,482

$

1,705

$

1,824

$

965

Non-cash accrual for future award redemptions (b)

339

(255)

697

372

(302)

97

(Gain)/loss on disposal of assets (c)

(4)

64

(19)

46

(4)

12

(Gain)/loss on adjustment of right-of-use assets and lease liabilities (d)

(33)

-

-

295

-

(193)

Store impairment charge (e)

-

-

-

384

-

-

Boot Barn's Adjusted EBITDA$

63,420

$

41,049

$

49,932

$

19,204

$

9,090

$

21,755

 
Additional adjustments (f)

1,046

673

165

1,115

1,590

847

Consolidated EBITDA per Loan Agreements$

64,466

$

41,722

$

50,097

$

20,319

$

10,680

$

22,602

 
(a) Represents non-cash compensation expenses related to stock options, 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 connection with our customer loyalty program.
(c) Represents (gain)/loss on disposal of assets.
(d) Represents (gain)/loss on adjustment of right-of-use assets and lease liabilities.
(e) Represents store impairment charges recorded in order to reduce the carrying amount of the assets to their estimated fair values.
(f) Adjustments to Boot Barn's Adjusted EBITDA as provided in the 2015 Golub Term Loan and June 2015 Wells Fargo Revolver include pre-opening costs, franchise and state taxes, and other miscellaneous adjustments.

 

Investors:
ICR, Inc.
Brendon Frey, 203-682-8216
BootBarnIR@icrinc.com

or

Media:
Boot Barn Holdings, Inc.
Jim Watkins, 949-453-4428
Senior Vice President, Finance & Investor Relations
BootBarnIRMedia@bootbarn.com

Source: Boot Barn Holdings, Inc.