Financial Data and Key Metrics Changes - Revenue increased by 16% year-over-year to $706 million, with same-store sales growth of 5.7% [4][13] - Earnings per diluted share rose to $2.79 from $2.43 in the prior year, marking a 14.8% increase [15][16] - Merchandise margin rate improved by 110 basis points compared to the prior year [4][11] Business Line Data and Key Metrics Changes - Consolidated same-store sales grew 5.7%, with brick-and-mortar sales increasing by 3.7% and e-commerce sales up by 19.6% [5][13] - Men's and ladies' western boots saw high single-digit same-store sales growth, while work boots experienced mid-single-digit growth [8][9] Market Data and Key Metrics Changes - The company opened a record 25 new stores in Q3, bringing the total to 514 stores, with plans for 15 more openings in Q4 [6][7] - The company aims for a total of 70 new stores for the fiscal year and estimates 20 openings in Q1 of fiscal 2027 [7] Company Strategy and Development Direction - The company is focused on four strategic initiatives: new store growth, same-store sales, omnichannel expansion, and merchandise margin improvement [4][10] - Plans to launch standalone websites for additional exclusive brands to enhance customer engagement and sales [10][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's underlying strength despite recent winter storms impacting sales [5][25] - The company anticipates total sales for the full fiscal year to reach $2.25 billion, representing an 18% growth over fiscal 2025 [19] Other Important Information - Inventory increased by 17% year-over-year to $805 million, with markdowns below historical levels [16] - The company repurchased approximately 67,000 shares for $12.5 million as part of its share repurchase program [16] Q&A Session Summary Question: Can you elaborate on the drivers of acceleration seen in January? - Management noted that the acceleration was broad-based across major merchandise categories, with work apparel being slightly softer due to warmer weather [25][26] Question: What is the overall visibility for sustaining mid- to high-single-digit comps? - Management feels confident about new store productivity and broad performance across merchandise categories, indicating no structural concerns [28][29] Question: Can you provide more detail on the merchandise margin outlook for Q4? - Management expects a headwind from shrink and freight, with exclusive brand penetration contributing to margin expansion [34][37] Question: Are there any specific categories gaining momentum outside of denim? - Management confirmed that traditional Western silhouettes remain strong, with no significant shifts towards contemporary styles [104][106] Question: How is the performance of exclusive brand websites compared to bootbarn.com? - The exclusive brand websites have attracted net new customers, enhancing overall online growth [72][74]

Core Viewpoint - Boot Barn has raised its guidance for fiscal 2026 after exceeding expectations in Q3, driven by strong sales growth and the ongoing popularity of Western-themed products [1][5]. Financial Performance - In Q3 of fiscal 2026, Boot Barn reported net sales of $705.6 million, a 16% increase from $608.2 million in the same period last year [1]. - Net income for Q3 was $85.8 million, or $2.79 per diluted share, compared to $75.1 million, or $2.43 per diluted share, in the prior-year period [1]. Sales Growth Drivers - The increase in net sales was attributed to new store openings and a rise in consolidated same-store sales [3]. - Boot Barn opened 25 new stores in Q3, bringing the total store count to 514 as of December 27 [3]. Future Expectations - The company anticipates total sales for fiscal 2026 to be between $2.24 billion and $2.25 billion, reflecting a growth of 17% to 18% over fiscal year 2025 [5]. - Net income for the year is expected to be between $222.8 million and $225.8 million, or $7.25 to $7.35 per diluted share [5]. Recent Performance Insights - In the early weeks of the fourth fiscal quarter, consolidated same-store sales grew in the high-single digits, despite recent winter storms impacting sales [4]. - Preliminary same-store sales growth for the five weeks ending January 31 was negatively affected by an estimated $5 million due to store closures from winter storms, but growth was 9.1% for the 26 days prior to the storms [4].

Offering everyone a piece of the American spirit—one handshake at a time. Supplemental Financial Presentation February 2026 0 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. Forward-looking statements refer to Boot Barn Holdings, Inc.'s (the "Company," "Boot Barn," "BOOT," "we," "us," and "ou ...

Core Insights - Boot Barn Holdings, Inc. reported a 16% year-over-year increase in net sales for the third fiscal quarter, reaching $705.6 million, driven by strong demand across various merchandise categories and channels [4][5] - The company achieved a merchandise margin expansion of 110 basis points, contributing to earnings per diluted share of $2.79, up from $2.43 in the prior year [4][5] - Same store sales increased by 5.7%, with retail store same store sales rising 3.7% and e-commerce same store sales growing 19.6% [4][5] Financial Performance - Net income for the quarter was $85.8 million, compared to $75.1 million in the prior-year period [4][5] - Gross profit was $281.2 million, representing 39.9% of net sales, an increase from 39.3% in the previous year [5][6] - Selling, general and administrative (SG&A) expenses rose to $166.5 million, or 23.6% of net sales, up from 22.9% in the prior year [5][6] Store Expansion and Operations - The company opened 25 new stores, bringing the total store count to 514 as of the end of the quarter [4][5] - Average inventory per store increased approximately 4.1% on a same-store basis compared to the previous year [11] - Boot Barn plans to open 70 new stores in the upcoming fiscal year [11] Future Outlook - For the fiscal year ending March 28, 2026, the company expects total sales between $2.24 billion and $2.25 billion, representing growth of 17% to 18% over fiscal year 2025 [11] - SG&A expenses are projected to be approximately 24.5% of net sales, with net income expected to be between $222.8 million and $225.8 million [15]

Financial Results - Boot Barn Holdings, Inc. announced preliminary financial results for Q3 fiscal year 2026, ending December 27, 2025[5]. - A press release detailing financial results is available as Exhibit 99.1, and a supplemental financial presentation is provided as Exhibit 99.2[10]. - The financial information provided is intended to be "furnished" and not "filed" under the Exchange Act[6]. Upcoming Events - The company will participate in the 2026 ICR Conference on January 12, 2026, where further details will be shared[7]. - The fireside chat at the ICR Conference will be webcast live, accessible via the company's investor relations website[7]. Company Information - The company is not classified as an emerging growth company under the Securities Act[4]. - The address of the company's principal executive offices is 17100 Laguna Canyon Road, Irvine, California 92618[2]. - The report was signed by James M. Watkins, Chief Financial Officer and Secretary, on January 9, 2026[14]. Investor Relations - The company reserves the right to discontinue the availability of the investor relations website at any time[9]. - The company disclaims any obligation to update or revise the information in the presentation[9].

Core Viewpoint - Boot Barn Holdings, Inc. is experiencing a positive trend in its consensus price target, reflecting growing analyst confidence in its performance and growth potential [1] Price Target Analysis - The average price target for Boot Barn has increased to $231, up from $229.8 in the previous quarter, indicating strong analyst confidence in the company's growth [2] - A year ago, the average price target was $212.73, showing a significant increase to the current target of $231, which reflects a positive outlook on Boot Barn's growth trajectory [3] Earnings Estimates and Analyst Sentiment - Analysts have raised their earnings estimates for Boot Barn, indicating confidence in the company's growth trajectory and market position [6] - Despite some caution regarding Boot Barn's ability to beat earnings estimates, the overall analyst consensus remains bullish, suggesting potential upward movement in the stock [4][6] Market Position and Performance - Boot Barn has been expanding its retail presence and enhancing its e-commerce capabilities, contributing to its positive performance and growth potential [1][3] - The company has consistently delivered impressive earnings surprises, indicating a strong potential to exceed expectations in its upcoming quarterly report [3]

Core Insights - Boot Barn Holdings, Inc. (BOOT) is expected to report its third-quarter fiscal 2026 earnings on February 4, with revenue estimates at $705.6 million, reflecting a 16% year-over-year growth, and earnings per share expected to be $2.79, indicating a 14.8% increase from the previous year [1] Group 1: Performance Highlights - Boot Barn's preliminary third-quarter results exceeded management's expectations, with strong same-store sales driven by growth across all geographies and major merchandise categories [2] - The company's performance is likely supported by strength in its core western and workwear categories, along with a focus on exclusive brands and private-label offerings [2] - Effective merchandising execution and disciplined inventory management have aligned product flow with demand trends [2] Group 2: Strategic Initiatives - Management has invested in supply chain, store operations, and omnichannel capabilities, improving product availability and customer experience [3] - Store-level initiatives to enhance in-store engagement and steady e-commerce execution have broadened customer reach and convenience [3] - Boot Barn's expansion strategy and brand-building efforts, including new store openings and market penetration initiatives, have strengthened its national footprint [4] Group 3: Technological Advancements - The company is leveraging technology to enhance the in-store experience and improve cross-channel efficiency through initiatives like "WHIP" (endless aisle), a dedicated mobile app, and "Cassidy," an AI-enabled in-store consumer solution [4] Group 4: Market Challenges - A cautious consumer backdrop and ongoing cost-related challenges may have impacted performance, with uneven discretionary spending patterns potentially weighing on demand [5] - Operating expenses related to labor, logistics, and store operations may limit margin expansion, especially if promotional activities increase in competitive categories [5] Group 5: Earnings Prediction - The Zacks model indicates uncertainty regarding an earnings beat for BOOT, with an Earnings ESP of 0.00% and a Zacks Rank of 1 [6][7]

Core Viewpoint - Boot Barn (BOOT) shares have increased by 1% over the past four weeks, closing at $180.21, with a potential upside indicated by Wall Street analysts' price targets suggesting a mean estimate of $231.54, representing a 28.5% upside [1] Price Targets and Analyst Estimates - The mean estimate consists of 13 short-term price targets with a standard deviation of $25.24, where the lowest estimate is $185.00 (2.7% increase) and the highest is $282.00 (56.5% increase) [2] - A low standard deviation indicates a higher agreement among analysts regarding the price targets, suggesting a more reliable consensus [2][9] Earnings Estimates and Analyst Optimism - Analysts are optimistic about Boot Barn's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlate with stock price movements [4][11] - The Zacks Consensus Estimate for the current year has risen by 3.8% over the past month, with six estimates increasing and no negative revisions [12] Zacks Rank and Investment Potential - Boot Barn holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [13] - While consensus price targets may not be entirely reliable, the implied direction of price movement appears to be a useful guide for investors [14]

Economic Outlook - The GDP estimate for the fourth quarter is projected to exceed 5% according to the Atlanta Fed, indicating a potential economic rebound [2] - Full-year GDP estimates for 2026 are being revised upwards to around 3%, compared to previous estimates closer to 2% [3] Market Trends - A new paradigm is emerging with a reflation of cyclical sectors, suggesting a broadening market approach compared to the previous years [2][4] - Positive earnings reports from various sectors, including banks, indicate that economic conditions may be better than previously thought [4] Investment Opportunities - There is a growing focus on semiconductor capital equipment due to increased demand from AI companies, highlighting a significant deficit in the chip equipment ecosystem [5] - Companies involved in workwear, such as Boot Barn, are performing well, with Boot Barn up 7% year-to-date and 21% over the past 52 weeks, suggesting a shift in consumer preferences towards value-oriented goods [9] Consumer Behavior - The consumer market is showing a trend towards more value-driven purchases, particularly in high-end goods, which may indicate a cooling off from the luxury revival seen in recent years [7][8] - The upcoming cold weather is expected to boost demand for workwear, benefiting companies like Carhartt [10]

Industry Overview - The Retail - Apparel and Shoes industry is entering 2026 on a steady footing despite a challenging macroeconomic environment, with demand driven by value-conscious consumers and rapid trend cycles [1] - Lifestyle categories such as athleisure and comfort are attracting younger, digitally native shoppers, while brand strength and product innovation are crucial for maintaining full-price sell-through [1] - Retailers are leveraging e-commerce, omnichannel strategies, and personalized marketing to enhance conversion rates and customer loyalty [1] - Supply chain efficiencies and strategic pricing are helping to mitigate cost pressures, while international expansion and sustainability initiatives offer long-term growth opportunities [1] Key Trends - Consumer spending remains resilient, with U.S. retail sales increasing by 0.6% month-over-month in November, and clothing store sales rising by 0.9% sequentially and 7.5% year-over-year [4] - The Federal Reserve's rate cuts have improved household financial flexibility, encouraging discretionary spending, which benefits the sector [4] - Companies are focusing on consumer engagement through product innovation and personalized shopping experiences, while also tightening inventory management and rationalizing store footprints [5] - Retailers are integrating in-store and online operations through omnichannel capabilities, enhancing customer experiences with loyalty programs and advanced technology [6] Margin Pressures - Intense competition is leading retailers to battle for market share through pricing and product assortment, which is increasing operational costs and putting pressure on margins [7][8] - Companies are actively streamlining operations and optimizing supply chains to balance growth and profitability [8] Investment Opportunities - American Eagle Outfitters, Inc. (AEO) is noted for its strong turnaround, driven by successful marketing and brand desirability, with a projected sales growth of 2.7% for the current financial year [18][19] - Boot Barn Holdings, Inc. (BOOT) is experiencing broad-based growth and executing a "stores-first" strategy, with expected sales growth of 16.9% and EPS growth of 25.1% [22][24] - Victoria's Secret & Co. (VSCO) is revitalizing its brand through product innovation and operational efficiency, with a projected sales growth of 4.7% [26][27] - The Gap, Inc. (GAP) is undergoing an operational turnaround with a focus on high-impact marketing and supply chain modernization, expecting sales growth of 1.9% [30][31] Industry Performance - The Zacks Retail - Apparel and Shoes industry ranks 46, placing it in the top 19% of over 250 Zacks industries, indicating positive near-term prospects [9][10] - The industry's earnings estimate has risen by 9.6% over the past year, reflecting growing analyst confidence in earnings growth potential [11] - The industry has underperformed the broader market, declining by 6.7% over the past year compared to the S&P 500's growth of 16.5% [12]