Boot Barn(BOOT)2024-05-15 00:18Financial Data and Key Metrics Changes - Full year fiscal 2024 revenue grew to approximately 388 million, driven by a 5.9% decline in same-store sales [22][23] - Earnings per diluted share for the full year was $4.80, down from the previous year but nearly triple pre-pandemic earnings [8][31] Business Line Data and Key Metrics Changes - Merchandise margin for the full year grew 160 basis points, with a 160 basis point expansion in the fourth quarter driven by freight improvements and supply chain efficiencies [7][9] - Exclusive brands penetration decreased 20 basis points in the fourth quarter but increased 370 basis points for the full year, exceeding the goal of 250 basis points per year [18][19] Market Data and Key Metrics Changes - Same-store sales declined 5.9% in the fourth quarter, with retail store same-store sales down 5.7% and e-commerce same-store sales down 7.6% [22][24] - Each of the four regions showed sequential improvement in the quarter compared to Q3, with the East slightly below the chain average [14] Company Strategy and Development Direction - The company plans to open at least 500 more stores in the U.S., maintaining a pace of adding 15% new units annually [11][12] - Focus on expanding exclusive brands and enhancing merchandise margin through buying economies of scale and supply chain efficiencies [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about recent positive trends in sales, noting that same-store sales are flat through the first six weeks of Q1, with May showing positive growth [20][21] - The macro environment remains uncertain, with persistent inflationary pressures on core customers, leading to conservative guidance for the upcoming year [21][26] Other Important Information - The company opened 55 new stores in fiscal 2024, exceeding original plans, and achieved a 60% cash on cash return on capital in the first year for new stores [6][11] - The e-commerce sales declined 7.6% in the fourth quarter, but the digital team is making progress with AI development to enhance online sales [15][17] Q&A Session Summary Question: Drivers of same-store sales acceleration in April and May - Management noted broad-based sequential improvement across all major product categories, with significant increases in ladies Western boots and work apparel [36][37] Question: Bottom line and EBIT margin forecast - EBIT margin forecast includes 110 basis points of merchandise margin expansion, with deleverage on SG&A due to negative same-store sales guidance [40][41] Question: Impact of Beyonce's album on sales - Management indicated minimal impact from the album on buying behavior, emphasizing that improvements are driven by existing customer trends [46][50] Question: Areas of conservatism in guidance - Conservatism is embedded due to tough year-over-year comparisons in June and macroeconomic uncertainties [56][58] Question: New store performance and comp waterfall - New stores are performing above expectations, with a return to traditional comp performance anticipated over time [64][66] Question: Exclusive brand performance - Exclusive brand penetration is expected to grow again after a temporary decline, with positive trends noted in new brands launched [74][98] Question: Competitive landscape and market share - The company continues to take market share from smaller independent retailers, which have seen more closures than openings post-pandemic [116]