Boot Barn Holdings, Inc. Announces Third Quarter Fiscal Year 2021 Financial Results

Rhea-AI Summary

Boot Barn Holdings, Inc. (NYSE: BOOT) reported a 6.5% increase in net sales to $302.3 million for the third quarter ended December 26, 2020. Net income rose to $29.6 million, or $1.00 per diluted share, from $24.8 million, or $0.85 per diluted share in the previous year. Same store sales increased 4.6%, driven by a 1.9% increase in retail stores and a 16.3% boost in e-commerce sales. However, net sales for the nine-month period decreased 3.4%, reflecting challenges from COVID-19.

Positive

• Net sales grew by 6.5% to $302.3 million in Q3 2020.
• Net income increased to $29.6 million from $24.8 million year-over-year.
• E-commerce sales surged by 16.3%, indicating strong online performance.
• Improved merchandise margin by 150 basis points, contributing to better profitability.

Negative

• Net sales for the nine-month period decreased by 3.4% due to COVID-19 impacts.
• Retail store same store sales fell by 8.9% over the nine-month period.
• Income from operations dropped by 16.4% compared to the prior year due to decreased sales.

Boot Barn Holdings, Inc. (NYSE: BOOT) today announced its financial results for the third fiscal quarter ended December 26, 2020.

For the quarter ended December 26, 2020:

• Net sales increased 6.5% to $302.3 million.
• Same store sales increased 4.6%, comprised of an increase in retail store same store sales of 1.9% and an increase in e-commerce sales of 16.3%.
• Net income was $29.6 million, or $1.00 per diluted share, compared to net income of $24.8 million, or $0.85 per diluted share in the prior-year period. Net income per diluted share in the current-year period includes an approximately $0.01 per share benefit due to income tax accounting for share-based compensation compared to a $0.04 per share benefit in the prior-year period. Excluding the tax benefit in both periods, net income per diluted share in the current-year period was $0.99, compared to $0.81 in the prior-year period.
• Cash and cash equivalents were $76.3 million.

Jim Conroy, Chief Executive Officer, commented, “Our strong third quarter results against a difficult economic backdrop demonstrate the power of our business model. The work we’ve done over the last several years successfully executing our key strategic initiatives has provided the foundation to navigate the ongoing headwinds from COVID-19 and deliver mid-single digit same store sales growth and a 150-basis point improvement in operating margin. We are encouraged that same store sales have accelerated in the fourth quarter with continued strength in margin. While the near term is likely to remain volatile, we believe our merchandising strategies, omni-channel capabilities and organizational expertise, combined with the adjustments we’ve made to our operating model during the pandemic, have us well positioned to build on our recent accomplishments and head into fiscal 2022 with good momentum.”

Operating Results for the Third Quarter Ended December 26, 2020

• Net sales increased 6.5% to $302.3 million from $284.0 million in the prior-year period. Consolidated same store sales increased 4.6% with retail store same store sales up 1.9% and e-commerce same store sales up 16.3%. The increase in net sales was the result of an increase of 4.6% in same store sales and the sales contribution from new and acquired stores over the past twelve months.

• Gross profit was $106.8 million, or 35.3% of net sales, compared to $97.0 million, or 34.2% of net sales, in the prior-year period. Gross profit increased primarily due to increased sales. The increase in gross profit rate of 120 basis points was driven by a 150-basis point increase in merchandise margin, partially offset by 30 basis points of deleverage in buying and occupancy costs. Merchandise margin increased 150 basis points primarily as a result of better full-price selling and reduced promotions.

• Selling, general and administrative expenses were $65.2 million, or 21.6% of net sales, compared to $62.1 million, or 21.9% of net sales, in the prior-year period. The increase in selling, general and administrative expenses was primarily a result of additional costs to support higher sales and expenses for both new and acquired stores. Selling, general and administrative expenses as a percentage of net sales decreased by 30 basis points primarily as a result of expense leverage on higher sales.

• Income from operations increased 19.0% to $41.6 million, or 13.8% of net sales, compared to $35.0 million, or 12.3% of net sales, in the prior-year period. This increase represents approximately 150 basis points of improvement in operating profit margin.

• Net income was $29.6 million, or $1.00 per diluted share, compared to net income of $24.8 million, or $0.85 per diluted share in the prior-year period. Net income per diluted share in the current-year period includes an approximately $0.01 per share benefit due to income tax accounting for share-based compensation compared to a $0.04 per share benefit in the prior-year period. Excluding the tax benefit in both periods, net income per diluted share in the current-year period was $0.99, compared to $0.81 in the prior-year period.

Operating Results for the Nine Months Ended December 26, 2020

• Net sales decreased 3.4% to $634.6 million from $656.9 million in the prior-year period. Consolidated same store sales decreased 3.2% with retail store same store sales down 8.9% and e-commerce same store sales up 24.9%. The decrease in retail store sales was primarily due to decreased traffic in our stores that resulted from customers staying at home in response to the COVID-19 crisis and temporary store closures.

• Gross profit was $202.5 million, or 31.9% of net sales, compared to $218.5 million, or 33.3% of net sales, in the prior-year period. Gross profit decreased primarily due to decreased sales resulting from the COVID-19 crisis. The decrease in gross profit rate was driven by 140 basis points of deleverage in buying and occupancy costs primarily as a result of lower sales.

• Selling, general and administrative expenses were $149.0 million, or 23.5% of net sales, compared to $154.6 million, or 23.5% of net sales, in the prior-year period. The decrease in selling, general and administrative expenses was primarily a result of reduced marketing expenses and lower payroll.

• Income from operations decreased 16.4% to $53.5 million, or 8.4% of net sales, compared to $64.0 million, or 9.7% of net sales, in the prior-year period. The decline in income from operations is primarily a result of the negative impact on sales and gross margin from decreased traffic in our stores that resulted from customers staying at home in response to the COVID-19 crisis and temporary store closures.

• Net income was $34.8 million, or $1.19 per diluted share, compared to net income of $42.2 million, or $1.45 per diluted share in the prior-year period. Net income per diluted share in the current-year period includes an approximately $0.01 per share benefit due to income tax accounting for share-based compensation compared to a $0.07 per share benefit in the prior-year period. Excluding the tax benefit in both periods, net income per diluted share in the current-year period was $1.18, compared to $1.38 in the prior-year period.

Current Business

The following table includes same store sales, net sales and e-commerce as a percentage of net sales for the periods indicated below:

		Four Weeks Fiscal October		Four Weeks Fiscal November		Five Weeks Fiscal December		Thirteen Weeks Ended December 26, 2020			Preliminary Four Weeks Fiscal January
Retail Stores SSS		0%		1%		3%		2%			20%
E-commerce SSS		12%		20%		16%		16%			7%
Total SSS		2%		4%		6%		5%			17%
Net Sales Increase		6%		8%		6%		6%			21%
E-commerce as % of Net Sales		16%		18%		23%		20%			16%

Fiscal Year 2021 Outlook

Due to the ongoing uncertainty created by COVID-19, the Company is not providing fourth quarter and fiscal year 2021 guidance at this time.

Conference Call Information

A conference call to discuss the financial results for the third quarter of fiscal year 2021 is scheduled for today, January 25, 2021, at 4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in participating in the call are invited to (877) 451-6152. 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 February 25, 2021, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 13715296. 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 265 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)
		December 26,			March 28,
		2020			2020
Assets
Current assets:
Cash and cash equivalents		$	76,342		$	69,563
Accounts receivable, net			13,876			12,087
Inventories			246,008			288,717
Prepaid expenses and other current assets			15,008			14,284
Total current assets			351,234			384,651
Property and equipment, net			109,793			109,603
Right-of-use assets, net			170,311			170,243
Goodwill			197,502			197,502
Intangible assets, net			60,907			60,974
Other assets			2,425			1,738
Total assets		$	892,172		$	924,711
Liabilities and stockholders’ equity
Current liabilities:
Line of credit		$	—		$	129,900
Accounts payable			103,095			95,334
Accrued expenses and other current liabilities			94,831			52,612
Short-term lease liabilities			36,796			34,779
Total current liabilities			234,722			312,625
Deferred taxes			18,651			19,801
Long-term portion of notes payable, net			109,591			109,022
Long-term lease liabilities			165,176			160,935
Other liabilities			1,424			635
Total liabilities			529,564			603,018
Stockholders’ equity:
Common stock, $0.0001 par value; December 26, 2020 - 100,000 shares authorized, 29,044 shares issued; March 28, 2020 - 100,000 shares authorized, 28,880 shares issued			3			3
Preferred stock, $0.0001 par value; 10,000 shares authorized, no shares issued or outstanding			—			—
Additional paid-in capital			175,865			169,249
Retained earnings			188,475			153,641
Less: Common stock held in treasury, at cost, 93 and 71 shares at December 26, 2020 and March 28, 2020, respectively			(1,735)			(1,200)
Total stockholders’ equity			362,608			321,693
Total liabilities and stockholders’ equity		$	892,172		$	924,711

Boot Barn Holdings, Inc. Consolidated Statements of Operations (In thousands, except per share data) (Unaudited)
		Thirteen Weeks Ended						Thirty-Nine Weeks Ended
		December 26,			December 28,			December 26,			December 28,
		2020			2019			2020			2019
Net sales		$	302,338		$	283,997		$	634,619		$	656,947
Cost of goods sold			195,529			186,961			432,119			438,417
Gross profit			106,809			97,036			202,500			218,530
Selling, general and administrative expenses			65,183			62,059			149,034			154,558
Income from operations			41,626			34,977			53,466			63,972
Interest expense, net			2,303			3,155			7,327			10,369
Other income, net			152			37			294			51
Income before income taxes			39,475			31,859			46,433			53,654
Income tax expense			9,909			7,040			11,599			11,434
Net income		$	29,566		$	24,819		$	34,834		$	42,220
Earnings per share:
Basic shares		$	1.02		$	0.87		$	1.21		$	1.48
Diluted shares		$	1.00		$	0.85		$	1.19		$	1.45
Weighted average shares outstanding:
Basic shares			28,912			28,665			28,866			28,516
Diluted shares			29,581			29,367			29,275			29,188

Boot Barn Holdings, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited)
		Thirty-Nine Weeks Ended
		December 26,			December 28,
		2020			2019
Cash flows from operating activities
Net income		$	34,834		$	42,220
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			17,919			15,384
Stock-based compensation			5,011			3,326
Amortization of intangible assets			67			127
Amortization of right-of-use assets			25,342			22,899
Amortization of debt issuance fees and debt discount			663			725
Loss on disposal of property and equipment			23			389
Loss/(gain) on adjustment of right-of-use assets and lease liabilities			295			(186)
Store impairment charge			384			—
Deferred taxes			(1,150)			(736)
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable, net			4,242			290
Inventories			42,709			(32,257)
Prepaid expenses and other current assets			(818)			(1,885)
Other assets			(687)			(559)
Accounts payable			9,753			17,063
Accrued expenses and other current liabilities			42,219			31,929
Other liabilities			789			396
Operating leases			(24,991)			(22,324)
Net cash provided by operating activities		$	156,604		$	76,801
Cash flows from investing activities
Purchases of property and equipment		$	(20,508)		$	(27,550)
Acquisition of business, net of cash acquired			—			(3,688)
Insurance recoveries for property and equipment			—			717
Net cash used in investing activities		$	(20,508)		$	(30,521)
Cash flows from financing activities
(Payments)/Borrowings on line of credit - net		$	(129,900)		$	45,000
Repayments on debt and finance lease obligations			(487)			(65,456)
Debt issuance fees paid			—			(1,221)
Tax withholding payments for net share settlement			(535)			(483)
Proceeds from the exercise of stock options			1,605			4,712
Net cash used in financing activities		$	(129,317)		$	(17,448)
Net increase in cash and cash equivalents			6,779			28,832
Cash and cash equivalents, beginning of period			69,563			16,614
Cash and cash equivalents, end of period		$	76,342		$	45,446
Supplemental disclosures of cash flow information:
Cash paid for income taxes		$	3,684		$	8,139
Cash paid for interest		$	6,731		$	9,472
Supplemental disclosure of non-cash activities:
Unpaid purchases of property and equipment		$	3,703		$	2,659

Boot Barn Holdings, Inc. Store Count
	Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended
	December 26,		September 26,		June 27,		March 28,		December 28,		September 28,		June 29,		March 30,
	2020		2020		2020		2020		2019		2019		2019		2019
Store Count (BOP)	265		264		259		251		248		240		240		234
Opened/Acquired	1		1		5		8		3		8		1		6
Closed	—		—		—		—		—		—		(1)		—
Store Count (EOP)	266		265		264		259		251		248		240		240

Boot Barn Holdings, Inc. Selected Store Data
		Thirteen Weeks Ended
			December 26,			September 26,			June 27,			March 28,			December 28,			September 28,			June 29,			March 30,
			2020			2020			2020			2020			2019			2019			2019			2019
Selected Store Data:
Same Store Sales growth/(decline)			4.6	%		(5.1)	%		(14.9)	%		(4.7)	%		6.7	%		7.8	%		9.4	%		8.7	%
Stores operating at end of period			266			265			264			259			251			248			240			240
Total retail store square footage, end of period (in thousands)			2,787			2,779			2,770			2,722			2,639			2,616			2,537			2,539
Average store square footage, end of period			10,477			10,486			10,491			10,508			10,514			10,549			10,570			10,580
Average net sales per store (in thousands)		$	563		$	565		$	410		$	590		$	903		$	635		$	660		$	666

Debt Covenant EBITDA Reconciliation (Unaudited)
	Thirteen Weeks Ended
	December 26, 2020			September 26, 2020			June 27, 2020			March 28, 2020			December 28, 2019
Boot Barn's Net Income/(Loss)	$	29,566		$	5,758		$	(490)		$	5,729		$	24,819
Income tax expense/(benefit)		9,909			1,979			(289)			930			7,040
Interest expense, net		2,303			2,383			2,641			2,941			3,155
Depreciation and intangible asset amortization		5,994			6,282			5,710			5,872			5,682
Boot Barn's EBITDA	$	47,772		$	16,402		$	7,572		$	{ "@context": "https://schema.org", "@type": "FAQPage", "name": "Boot Barn Holdings, Inc. Announces Third Quarter Fiscal Year 2021 Financial Results FAQs", "mainEntity": [ { "@type": "Question", "name": "What were Boot Barn's net sales for the third quarter of fiscal 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Net sales for Boot Barn in the third quarter of fiscal 2021 were $302.3 million." } }, { "@type": "Question", "name": "How much did Boot Barn's net income increase in the third quarter?", "acceptedAnswer": { "@type": "Answer", "text": "Boot Barn's net income increased to $29.6 million in the third quarter of fiscal 2021." } }, { "@type": "Question", "name": "What were the same store sales growth figures for Boot Barn?", "acceptedAnswer": { "@type": "Answer", "text": "Same store sales increased by 4.6%, with retail store sales up 1.9% and e-commerce sales up 16.3%." } }, { "@type": "Question", "name": "What challenges did Boot Barn face in the nine-month results?", "acceptedAnswer": { "@type": "Answer", "text": "Boot Barn experienced a 3.4% decline in net sales and an 8.9% decrease in retail store same store sales due to COVID-19." } }, { "@type": "Question", "name": "What is Boot Barn's outlook for the fourth quarter of fiscal 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Boot Barn is not providing fourth quarter and fiscal year 2021 guidance due to ongoing uncertainty related to COVID-19." } } ] } FAQ What were Boot Barn's net sales for the third quarter of fiscal 2021? Net sales for Boot Barn in the third quarter of fiscal 2021 were $302.3 million. How much did Boot Barn's net income increase in the third quarter? Boot Barn's net income increased to $29.6 million in the third quarter of fiscal 2021. What were the same store sales growth figures for Boot Barn? Same store sales increased by 4.6%, with retail store sales up 1.9% and e-commerce sales up 16.3%. What challenges did Boot Barn face in the nine-month results? Boot Barn experienced a 3.4% decline in net sales and an 8.9% decrease in retail store same store sales due to COVID-19. What is Boot Barn's outlook for the fourth quarter of fiscal 2021? Boot Barn is not providing fourth quarter and fiscal year 2021 guidance due to ongoing uncertainty related to COVID-19. Boot Barn Holdings, Inc. NYSE:BOOT BOOT Rankings #1425 Ranked by Market Cap N/A Ranked by Dividends BOOT Latest News Oct 28, 2024 Boot Barn Holdings, Inc. Announces Second Quarter Fiscal Year 2025 Financial Results and CEO Transition Sep 9, 2024 Boot Barn Holdings, Inc. Announces Participation in the Piper Sandler Growth Frontiers Conference Aug 7, 2024 Boot Barn Holdings, Inc. Announces First Quarter Fiscal Year 2025 Financial Results Jul 26, 2024 Boot Barn Holdings, Inc. to Report First Quarter Fiscal Year 2025 Results on August 7, 2024 May 15, 2024 Boot Barn Holdings, Inc. Announces May and June Conference Schedule BOOT Stock Data Market Cap 4.23B Float 30.33M Insiders Ownership 0.64% Institutions Ownership 112.5% Short Percent 6.45% Industry Apparel Retail Sector Retail-shoe Stores Website Link Country United States of America City IRVINE Explore About Rhea-AI Sitemap Legal Terms of Use Cookie Notice Privacy Policy Links RSS feed Patreon Discord Server Facebook Reddit Google News © 2020-2024 StockTitan.net