Boot Barn(BOOT) - 2025 Q3 - Quarterly Report

Company Overview - Boot Barn operates 438 stores across 46 states and has a strong e-commerce presence through multiple websites and an app[102]. - Boot Barn's product offerings include western and work-related footwear, apparel, and accessories, targeting a broad demographic[102]. Financial Performance - Net sales increased by $87.8 million, or 16.9%, to$ 608.2 million for the thirteen weeks ended December 28, 2024, compared to $520.4 million for the same period in 2023[126]. - Gross profit rose by$ 39.8 million, or 20.0%, to $238.9 million, with a gross profit margin of 39.3%, up from 38.3%[127]. - Income from operations increased by$ 24.3 million, or 32.4%, to $99.5 million, representing 16.4% of net sales, up from 14.4%[131]. - Net income for the thirteen weeks ended December 28, 2024, was$ 75.1 million, compared to $55.6 million for the same period in 2023[134]. - For the thirty-nine weeks ended December 28, 2024, net sales increased by$ 178.8 million, or 14.0%, to $1.457 billion[135]. - Gross profit for the thirty-nine weeks increased by$ 73.5 million, or 15.5%, to $548.5 million, with a gross profit margin of 37.6%[136]. Expenses - Selling, general and administrative (SG&A) expenses increased by$ 15.4 million, or 12.5%, to $139.4 million, with SG&A as a percentage of net sales decreasing to 22.9% from 23.8%[128][130]. - SG&A expenses for the thirty-nine weeks rose by$ 43.8 million, or 13.9%, to $358.8 million, maintaining a percentage of 24.6% of net sales[137][138]. - Selling, general and administrative (SG&A) expenses are anticipated to rise due to stock-based compensation and increased store count[119]. Cash Flow and Investments - Net cash provided by operating activities for the thirty-nine weeks ended December 28, 2024, was$ 190.7 million, compared to $240.5 million for the same period in 2023[160][161]. - Net cash used in investing activities was$ 108.3 million for the thirty-nine weeks ended December 28, 2024, compared to $91.3 million for the same period in 2023[162][163]. - Net cash used in financing activities was$ 5.3 million for the thirty-nine weeks ended December 28, 2024, down from $60.2 million for the same period in 2023[164][165]. - The company plans to invest between$ 115.0 million and $120.0 million in capital expenditures for fiscal 2025, including a new distribution center in Kansas City[148]. Debt and Credit Facilities - The company has a$ 250.0 million revolving credit facility with Wells Fargo, maturing on July 11, 2027[149]. - The borrowing base of the Wells Fargo Revolver is calculated monthly based on eligible credit card receivables, commercial accounts, inventory, and available reserves[151]. - As of December 28, 2024, the Company was in compliance with the Wells Fargo Revolver debt covenants[156]. - The Company pays a commitment fee of 0.25% per annum on the actual daily amount of unutilized revolving loans[150]. - The applicable margin for Term SOFR loans ranges from 1.00% to 1.25%[150]. - Total interest expense incurred on the Wells Fargo Revolver during the thirty-nine weeks ended December 28, 2024, was $0.6 million, with a weighted average interest rate of 7.8%[152]. - The Company incurred a total interest expense of$ 0.4 million and $1.5 million for the thirteen and thirty-nine weeks ended December 30, 2023, respectively, with a weighted average interest rate of 8.5%[152]. Operational Metrics - The company focuses on net sales and gross profit as key performance indicators, with additional metrics including same store sales and new store openings[106]. - Same store sales are calculated from stores open for at least 13 months, and include e-commerce sales, with new store openings contributing to overall growth[109][111]. - Gross profit is calculated as net sales minus cost of goods sold, which includes various operational costs and is expected to increase as the company grows[115]. - The fiscal year ends on the last Saturday of March, with both fiscal 2025 and fiscal 2024 consisting of 52 weeks[124]. - The company emphasizes the importance of consumer discretionary spending and is sensitive to economic conditions and consumer confidence[100]. - The company aims to provide a one-stop shopping experience, leveraging its extensive store network for economies of scale and enhanced supplier relationships[103].