Boot barn holdings, inc. announces fourth quarter and fiscal year 2022 financial results
Irvine, calif.--(business wire)--boot barn holdings, inc. (nyse: boot) today announced its financial results for the fourth fiscal quarter and fiscal year ended march 26, 2022. the company has also filed a supplemental financial presentation that has been made available on the investor relations section of its website. for the quarter ended march 26, 2022: net sales increased 48.1% over the prior-year period to $383.3 million. net sales increased 103.2% compared to the quarter ended march 28, 2020, two years ago. same store sales increased 33.3% compared to the prior-year period, comprised of an increase in retail store same store sales of 30.7% and an increase in e-commerce same store sales of 49.5%. net income was $44.7 million, or $1.47 per diluted share, compared to $24.6 million, or $0.82 per diluted share in the prior-year period. net income per diluted share in the prior-year period includes an approximately $0.07 per share benefit primarily due to income tax accounting for share-based compensation. excluding the tax benefit in the prior-year period, net income per diluted share grew 96.0% in the current-year period to $1.47, compared to $0.75 in the prior-year period. the company opened 11 new stores bringing its total store count to 300. for the fiscal year ended march 26, 2022: net sales increased 66.6% to $1.488 billion. net sales increased 76.0% compared to the fiscal year ended march 28, 2020, two years ago. same store sales increased 53.7% compared to the prior-year period, comprised of an increase in retail store same store sales of 57.2% and an increase in e-commerce same store sales of 38.7%. net income was $192.5 million, or $6.33 per diluted share, compared to $59.4 million, or $2.01 per diluted share in the prior-year period. net income per diluted share in the current-year and prior-year periods includes an approximately $0.17 and $0.09 per share benefit, respectively, primarily 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 $6.16, compared to $1.92 in the prior-year period. the company opened 28 new stores and closed one store. 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: 328,221 221,631 156,769 48 % 109 % 55,087 37,242 31,859 48 % 73 % 383,308 258,873 188,628 48 % 103 % 86 % 86 % 83 % 14 % 14 % 17 % “it was an incredible year by every measure,” said jim conroy, president and chief executive officer. “with our top-line increasing 67% over the previous year, we far surpassed the one-billion-dollar mark for the first time, generating $1.5 billion in sales for fiscal 2022. importantly, our performance was highlighted by very strong full-price selling, which contributed to a 270-basis point increase in merchandise margin and a more than tripling of our earnings per share to a record $6.33. we are excited about the strength in the business through the first six weeks of fiscal 2023, with consolidated same store sales growth of approximately 12% compared to the prior-year period.” mr. conroy continued, “looking forward, i am excited to announce that, based in part on a third-party study, we have updated our estimated total addressable market to $40 billion, compared to our previous $20 billion estimate. additionally, we have established a new long-term store count target and now believe we can triple from our current base to 900 stores. we believe our progress in expanding our business and attracting new consumers to our brand is proving successful and has established a strong foundation for future growth.” operating results for the fourth quarter ended march 26, 2022 compared to the fourth quarter ended march 27, 2021 net sales increased 48.1% to $383.3 million from $258.9 million in the prior-year period. consolidated same store sales increased 33.3% with retail store same store sales up 30.7% and e-commerce same store sales up 49.5%. the increase in net sales was the result of an increase of 33.3% in consolidated same store sales and the incremental sales from new stores opened over the past twelve months. gross profit was $148.8 million, or 38.8% of net sales, compared to $92.4 million, or 35.7% of net sales, in the prior-year period. gross profit increased primarily due to increased sales. the increase in gross profit rate of 310 basis points was driven by 190 basis points of leverage in buying and occupancy costs as a result of expense leverage on higher sales and a 120-basis point increase in merchandise margin. merchandise margin increased 120 basis points primarily as a result of better full-price selling and growth in exclusive brand penetration, partially offset by a 60-basis point increase in freight charges. selling, general and administrative expenses were $86.4 million, or 22.6% of net sales, compared to $59.5 million, or 23.0% 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 store overhead and increased marketing expenses in the current-year period compared to the prior-year period. selling, general and administrative expenses as a percentage of net sales decreased by 40 basis points primarily as a result of expense leverage on higher sales. income from operations increased $29.5 million to $62.4 million, or 16.3% of net sales, compared to $32.9 million, or 12.7% of net sales, in the prior-year period. this increase represents 360 basis points of improvement in operating profit margin. net income was $44.7 million, or $1.47 per diluted share, compared to net income of $24.6 million, or $0.82 per diluted share in the prior-year period. net income per diluted share in the prior-year period includes an approximately $0.07 per share benefit primarily due to income tax accounting for share-based compensation. excluding the tax benefit in the prior-year period, net income per diluted share in the current-year period was $1.47, compared to net income per diluted share of $0.75 in the prior-year period. operating results for the fiscal year ended march 26, 2022 compared to the fiscal year ended march 27, 2021 net sales increased 66.6% to $1.488 billion from $893.5 million in the prior-year period. consolidated same store sales increased 53.7% with retail store same store sales up 57.2% and e-commerce same store sales up 38.7%. the increase in net sales was the result of an increase of 53.7% in consolidated same store sales, the incremental sales from new stores opened over the past twelve months, and the sales contribution from temporarily closed stores that were excluded from the comp base. 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 $575.1 million, or 38.6% of net sales, compared to $294.9 million, or 33.0% of net sales, in the prior-year period. gross profit increased primarily due to increased sales. the increase in gross profit rate of 560 basis points was driven by 290 basis points of leverage in buying and occupancy costs as a result of expense leverage on higher sales and a 270 basis point increase in merchandise margin. merchandise margin increased 270 basis points primarily as a result of better full-price selling and growth in exclusive brand penetration. selling, general and administrative expenses were $316.7 million, or 21.3% of net sales, compared to $208.6 million, or 23.3% 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 store 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 210 basis points primarily as a result of expense leverage on higher sales. income from operations increased $172.0 million to $258.3 million, or 17.4% of net sales, compared to $86.3 million, or 9.7% of net sales, in the prior-year period. this increase represents 770 basis points of improvement in operating profit margin. net income was $192.5 million, or $6.33 per diluted share, compared to net income of $59.4 million, or $2.01 per diluted share in the prior-year period. net income per diluted share in the current-year and prior-year periods includes an approximately $0.17 and $0.09 per share benefit, respectively, primarily 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 $6.16, compared to net income per diluted share of $1.92 in the prior-year period. balance sheet highlights as of march 26, 2022 cash of $20.7 million. average inventory per store increased approximately 36% on a same store basis compared to march 27, 2021. $28.5 million balance drawn under our $180 million revolving credit facility. fiscal year 2023 outlook the company is providing guidance for what it can reasonably estimate at this time. for the fiscal year ending april 1, 2023 the company expects: to open 40 new stores. same store sales growth of 4.8%. total sales of $1.740 billion. gross profit of $652 million or 37.5% of sales. selling, general and administrative expenses of $386 million or 22.2% of sales. capital expenditures of $87 million. income from operations of $266 million or 15.3% of sales. interest expense of $3 million. effective tax rate of 25.2%. net income of $197 million. net income per diluted share of $6.41 based on 30.7 million weighted average diluted shares outstanding. fiscal year 2023 is a 53-week year and the company expects to generate approximately $34 million of sales and earn approximately $0.19 per diluted share in the 53rd week, which is included in the above guidance range. for the fiscal first quarter ending june 25, 2022, the company expects: same store sales growth of 10%. total sales of $367 million. income from operations of $47 million or 12.8% of sales. net income per diluted share of $1.14 based on 30.5 million weighted average diluted shares outstanding. conference call information a conference call to discuss the financial results for the fourth quarter and fiscal year 2022 is scheduled for today, may 10, 2022, at 4:30 p.m. et (1:30 p.m. pt). investors and analysts interested in participating in the call are invited to dial (866) 524-3160. 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 supplemental financial presentation will also be available on the investor relations section of the company’s website at least 15 minutes prior to the conference call. a telephone replay of the call will be available until june 10, 2022, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 10166886. 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 304 stores in 38 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) 2022 2021 20,674 73,148 9,662 12,771 474,300 275,760 37,195 12,777 541,831 374,456 155,247 110,444 241,147 186,827 197,502 197,502 60,813 60,885 3,315 3,467 1,199,855 933,581 28,549 — 131,394 104,641 133,408 77,615 43,117 39,400 336,468 221,656 26,895 21,993 — 109,781 234,584 181,836 2,232 3,424 600,179 538,690 3 3 — — 199,054 183,815 405,477 213,027 (4,858) (1,954) 599,676 394,891 1,199,855 933,581 boot barn holdings, inc. consolidated statements of operations (in thousands, except per share data) (unaudited) $ 383,308 $ 258,872 $ 1,488,256 $ 893,491 234,472 166,493 913,183 598,612 148,836 92,379 575,073 294,879 86,447 59,519 316,735 208,553 62,389 32,860 258,338 86,326 388 2,115 5,780 9,442 (126 ) 71 35 366 61,875 30,816 252,593 77,250 17,162 6,264 60,143 17,864 $ 44,713 $ 24,552 $ 192,450 $ 59,386 $ 1.51 $ 0.84 $ 6.51 $ 2.05 $ 1.47 $ 0.82 $ 6.33 $ 2.01 29,671 29,122 29,556 28,930 30,411 30,033 30,391 29,477 2022 2021 2020 192,450 59,386 47,949 27,280 24,059 21,211 9,475 7,158 4,908 72 89 172 39,286 34,231 31,091 1,878 884 946 175 87 417 (259) 295 (186) — 384 191 4,902 2,192 2,599 5,222 8,050 5,721 (198,540) 12,957 (45,622) (24,577) 1,382 (2,351) (236) (1,729) (548) 25,502 12,360 (13,810) 45,229 25,003 6,310 (1,192) 2,789 (3,611) (37,803) (33,655) (30,070) 88,864 155,922 25,317 (60,443) (28,424) (37,195) — — 717 — — (3,688) (60,443) (28,424) (40,166) 28,549 (129,900) 129,900 (112,304) (667) (65,553) — — (1,221) (2,904) (754) (532) 5,764 7,408 5,204 (80,895) (123,913) 67,798 (52,474) 3,585 52,949 73,148 69,563 16,614 20,674 73,148 69,563 41,684 11,458 13,391 3,808 8,795 11,958 14,963 2,642 6,066 boot barn holdings, inc. store count 2022 2021 2021 2021 2021 2020 2020 2020 289 278 276 273 266 265 264 259 11 11 3 3 8 1 1 5 — — (1) — (1) — — — 300 289 278 276 273 266 265 264 boot barn holdings, inc. selected store data 2022 2021 2021 2021 2021 2020 2020 2020 33.3 % 54.2 % 61.7 % 78.9 % 26.9 % 4.6 % (5.1) % (14.9) % 300 289 278 276 273 266 265 264 3,194 3,063 2,940 2,915 2,854 2,787 2,779 2,770 10,648 10,597 10,575 10,563 10,455 10,477 10,486 10,491 1,094 1,372 965 942 792 889 565 410
