Boot barn holdings, inc. announces fourth quarter and fiscal year 2021 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 27, 2021. for the quarter ended march 27, 2021: net sales increased 37.2% to $258.9 million. same store sales increased 26.9%, comprised of an increase in retail store same store sales of 28.5% and an increase in e-commerce sales of 19.5%. net income was $24.6 million, or $0.82 per diluted share, compared to net income of $5.7 million, or $0.20 per diluted share in the prior-year period. net income per diluted share in the current-year period includes an approximately $0.07 per share benefit due to income tax accounting for share-based compensation. net income per diluted share in the prior-year period includes a $0.01 per share benefit due to income tax accounting for share-based compensation and a $0.01 per share benefit from the realization of a state tax operating loss. excluding the tax benefit in both periods, net income per diluted share in the current-year period was $0.75, compared to $0.18 in the prior-year period. the company opened 8 new stores. for the fiscal year ended march 27, 2021: net sales increased 5.7% to $893.5 million. same store sales increased 3.1%, comprised of a decrease in retail store same store sales of 1.1% and an increase in e-commerce sales of 23.6%. net income was $59.4 million, or $2.01 per diluted share, compared to net income of $47.9 million, or $1.64 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. net income per diluted share in the prior-year period includes a $0.07 per share benefit due to income tax accounting for share-based compensation and a $0.01 per share benefit from the realization of a state tax operating loss. excluding the tax benefit in both periods, net income per diluted share in the current-year period grew 23% to $1.92, when compared to $1.56 in the prior-year period. the company opened 15 new stores. jim conroy, chief executive officer, commented, “i am extremely pleased with the strong finish to fiscal 2021. the pace of our business has been accelerating throughout the year, which along with a recent boost from government stimulus, culminated in record fourth quarter and fiscal year results. our merchandise, marketing and omni-channel initiatives drove better full-priced selling, fueling margin expansion and solid profitability. at the same time, we increased our store footprint in existing and new geographies, bringing the full boot barn experience to a wider consumer audience.” mr. conroy continued, “i am very proud of the entire boot barn team, and particularly the stores organization, who have demonstrated incredible resolve throughout the pandemic and have served our customers on the frontline every day. the circumstances of the past year have highlighted the strengths of our business model, enhanced our operational capabilities, and fortified our leadership position in the industry. the combination of solid execution across the organization and macro tailwinds has created tremendously strong topline sales growth in the first six weeks of fiscal 2022. we believe we have started the year with great momentum and sound strategies in place to capitalize on the numerous growth opportunities we believe exist for boot barn over the near and long term.” operating results for the fourth quarter ended march 27, 2021 net sales increased 37.2% to $258.9 million from $188.6 million in the prior-year period. consolidated same store sales increased 26.9% with retail store same store sales up 28.5% and e-commerce same store sales up 19.5%. the increase in net sales was the result of an increase of 26.9% in 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. gross profit was $92.4 million, or 35.7% of net sales, compared to $58.0 million, or 30.7% of net sales, in the prior-year period. gross profit increased primarily due to increased sales. the increase in gross profit rate of 500 basis points was driven by a 300-basis point increase in merchandise margin and 200 basis points of leverage in buying and occupancy costs. merchandise margin increased 300 basis points primarily as a result ofbetter full price selling and a 120-basis point benefit from lower shrink. selling, general and administrative expenses were $59.5 million, or 23.0% of net sales, compared to $48.3 million, or 25.6% 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 increased incentive-based compensation. selling, general and administrative expenses as a percentage of net sales decreased by 260 basis points primarily as a result of expense leverage on higher sales. income from operations increased 238.9% to $32.9 million, or 12.7% of net sales, compared to $9.7 million, or 5.1% of net sales, in the prior-year period. this increase represents approximately 760 basis points of improvement in operating profit margin. net income was $24.6 million, or $0.82 per diluted share, compared to net income of $5.7 million, or $0.20 per diluted share in the prior-year period. net income per diluted share in the current-year period includes an approximately $0.07 per share benefit due to income tax accounting for share-based compensation. net income per diluted share in the prior-year period includes a $0.01 per share benefit due to income tax accounting for share-based compensation and a $0.01 per share benefit from the realization of a state tax operating loss. excluding the tax benefit in both periods, net income per diluted share in the current-year period was $0.75, compared to $0.18 in the prior-year period. operating results for the fiscal year ended march 27, 2021 net sales increased 5.7% to $893.5 million from $845.6 million in the prior-year period. consolidated same store sales increased 3.1% with retail store same store sales declining 1.1% and e-commerce same store sales up 23.6%. the decrease in retail store sales was primarily due to decreased traffic in our stores in the first half of our fiscal year that resulted from customers staying at home in response to the covid-19 crisis and temporary store closures. the increase in net sales was the result of incremental sales from new stores opened during the past twelve months and an increase of 3.1% in same store sales. gross profit was $294.9 million, or 33.0% of net sales, compared to $276.5 million, or 32.7% of net sales, in the prior-year period. gross profit increased primarily due to increased sales. the increase in gross profit rate of 30 basis points was driven by a 90-basis point increase in merchandise margin, partially offset by 60 basis points of deleverage in buying and occupancy costs. merchandise margin increased 90 basis points primarily as a result of better full-price selling, lower shrink and increased exclusive brand penetration. selling, general and administrative expenses were $208.6 million, or 23.3% of net sales, compared to $202.8 million, or 24.0% of net sales, in the prior-year period. the increase in selling, general and administrative expenses was primarily a result of higher store labor and increased incentive-based compensation, partially offset by reduced marketing spend. selling, general and administrative expenses as a percentage of net sales decreased 70 basis points primarily as a result of expense leverage on higher sales. income from operations increased 17.2% to $86.3 million, or 9.7% of net sales, compared to $73.7 million, or 8.7% of net sales, in the prior-year period. this increase represents approximately 100 basis points of improvement in operating profit margin. net income was $59.4 million, or $2.01 per diluted share, compared to net income of $47.9 million, or $1.64 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. net income per diluted share in the prior-year period includes a $0.07 per share benefit due to income tax accounting for share-based compensation and a $0.01 per share benefit from the realization of a state tax operating loss. excluding the tax benefit in both periods, net income per diluted share in the current-year period was $1.92, compared to $1.56 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: 84,934 16,763 50,562 407 % 68 % 14,149 10,414 7,902 36 % 79 % 99,083 27,177 58,464 265 % 69 % 38,650 13,241 24,386 192 % 58 % 7,249 6,871 3,992 % 82 % 45,899 20,112 28,378 128 % 62 % balance sheet highlights as of march 27, 2021 cash of $73.1 million. average inventory per store decreased approximately 8.7% on a same store basis compared to march 28, 2020. total debt of $111.5 million, including zero balance drawn under the $165 million revolving credit facility. subsequent to march 27, 2021, the company made a voluntary prepayment of $41.5 million on the term loan facility, reducing the outstanding principal balance to $70.0 million. fiscal year 2022 outlook the company is not providing complete full-year fiscal 2022 guidance, but is providing the following outlook for the full fiscal year: new unit growth of 10%. exclusive brand penetration growth 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 fourth quarter and fiscal year 2021 is scheduled for today, may 12, 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 june 12, 2021, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 13719472. 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 275 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) 2021 2020 73,148 69,563 12,771 12,087 275,760 288,717 12,777 14,284 374,456 384,651 110,444 109,603 186,827 170,243 197,502 197,502 60,885 60,974 3,467 1,738 933,581 924,711 — 129,900 104,641 95,334 77,615 52,612 39,400 34,779 221,656 312,625 21,993 19,801 109,781 109,022 181,836 160,935 3,424 635 538,690 603,018 3 3 — — 183,815 169,249 213,027 153,641 (1,954) (1,200) 394,891 321,693 933,581 924,711 boot barn holdings, inc. consolidated statements of operations (in thousands, except per share data) (unaudited) $ 258,872 $ 188,628 $ 893,491 $ 845,575 166,493 130,667 598,612 569,084 92,379 57,961 294,879 276,491 59,519 48,265 208,553 202,823 32,860 9,696 86,326 73,668 2,115 2,941 9,442 13,310 71 (96) 366 (45) 30,816 6,659 77,250 60,313 6,264 930 17,864 12,364 $ 24,552 $ 5,729 $ 59,386 $ 47,949 $ 0.84 $ 0.20 $ 2.05 $ 1.68 $ 0.82 $ 0.20 $ 2.01 $ 1.64 29,122 28,786 28,930 28,583 30,033 29,310 29,477 29,220 boot barn holdings, inc. consolidated statements of cash flows (in thousands) (unaudited) 2021 2020 2019 59,386 47,949 39,022 24,059 21,211 18,256 7,158 4,908 2,873 89 172 646 34,231 31,091 — 884 946 1,235 87 417 23 295 (186) — — — 312 384 191 455 — — (28) 2,192 2,599 4,172 8,050 5,721 (3,706) 12,957 (45,622) (27,702) 1,382 (2,351) 4,179 (1,729) (548) (254) 12,360 (13,810) 14,191 25,003 6,310 6,882 2,789 (3,611) 2,704 (33,655) (30,070) — 155,922 25,317 63,260 (28,424) (37,195) (27,525) — 717 184 — (3,688) (4,424) (28,424) (40,166) (31,765) (129,900) 129,900 (21,006) (667) (65,553) (10,554) — (1,221) — (754) (532) (474) 7,408 5,204 8,137 (123,913) 67,798 (23,897) 3,585 52,949 7,598 69,563 16,614 9,016 73,148 69,563 16,614 11,458 13,391 649 8,795 11,958 14,947 2,642 6,066 1,877 — — 171 boot barn holdings, inc. store count 2021 2020 2020 2020 2020 2019 2019 2019 266 265 264 259 251 248 240 240 8 1 1 5 8 3 8 1 (1) — — — — — — (1) 273 266 265 264 259 251 248 240 boot barn holdings, inc. selected store data 2021 2020 2020 2020 2020 2019 2019 2019 26.9 % 4.6 % (5.1) % (14.9) % (4.7) % 6.7 % 7.8 % 9.4 % 273 266 265 264 259 251 248 240 2,854 2,787 2,779 2,770 2,722 2,639 2,616 2,537 10,455 10,477 10,486 10,491 10,508 10,514 10,549 10,570 792 889 565 410 590 903 635 660 debt covenant ebitda reconciliation (unaudited) 24,552 29,566 5,758 (490) 5,729 6,264 9,909 1,979 (289) 930 2,115 2,303 2,383 2,641 2,941 6,162 5,994 6,282 5,710 5,872 39,093 47,772 16,402 7,572 15,472 2,147 1,482 1,705 1,824 1,582 (255) 697 372 (302) (447) 64 (19) 46 (4) 28 - - 295 - - - - 384 - 191 41,049 49,932 19,204 9,090 16,826 673 165 1,115 1,590 2,269 41,722 50,097 20,319 10,680 19,095
