Boot Barn(BOOT) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue increased by 17% to $608 million, with consolidated same store sales growth of 8.6% [8][22] - Earnings per diluted share rose to$ 2.43, up from $1.81 in the prior year period, reflecting a$ 0.36 increase above guidance [10][24] - Gross profit increased by 20% to $239 million, with a gross profit rate of 39.3%, up 100 basis points from the prior year [22][23] Business Line Data and Key Metrics Changes - Same store sales in brick-and-mortar increased by 8.2%, while e-commerce sales grew by 11.1% [9][22] - Merchandise margin expanded by 130 basis points, driven by supply chain efficiencies and better buying economies of scale [9][20] - Exclusive brand penetration increased by 180 basis points, building on a prior year expansion of 310 basis points [20] Market Data and Key Metrics Changes - The company opened 13 new stores in the third quarter, bringing the total to 438 stores across 46 states [11] - The company plans to open 21 additional stores in the fourth quarter, aiming for a total of 60 new stores for the fiscal year [12][31] - Active customers in the loyalty program increased to 9.4 million, a 15% increase year-over-year [17] Company Strategy and Development Direction - The company aims to double its store count in the U.S. over the next several years, indicating strong market potential [12] - Focus on expanding omnichannel leadership, with e-commerce comp sales growing significantly [17] - Continued emphasis on merchandise margin expansion through supply chain efficiencies and exclusive brand growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current business tone, with January same store sales up 8.3% [21] - The company is optimistic about maintaining momentum in sales and margins, despite potential challenges in the work boots category [55] - Management noted that inventory levels are healthy, with no significant fashion risk identified [45] Other Important Information - The company raised its full-year guidance, expecting total sales to reach$ 1.92 billion, representing a 15% growth over the previous fiscal year [29][31] - The effective tax rate is estimated to be 25.4% for the fourth quarter [28] Q&A Session Summary Question: Traffic and demand trends in January - Management noted an acceleration in both men's and women's Western categories, with a strong start to the fourth quarter [35][36] Question: Merchandise margin drivers - Management expects merchandise margin to increase by 120 basis points in Q4, driven by supply chain efficiencies and exclusive brand penetration [39] Question: Inventory position and risks - Management confirmed a good inventory position with lower markdown inventory compared to previous years, indicating no fashion risk [45] Question: E-commerce performance - E-commerce growth is attributed to increased traffic and effective advertising strategies, with a focus on converting online customers to in-store visits [118][120] Question: Changes in product assortment - Management is satisfied with the current product assortment and is not planning significant changes, though minor adjustments may be made to appeal to a broader customer base [74][105]