Boot Barn Holdings, Inc. Q4 FY2025 earnings call

• Fiscal 2025 results were strong with revenue at a record $1.9 billion, driven by 60 new stores opened and strong same-store sales. • Four strategic initiatives discussed: new store growth (planning to open 15% new units in fiscal 2026, aiming to double store count in US), same-store sales (driven by transactions and broad category growth, customer loyalty database grew 14% to 9.6M), omnichannel (e-commerce comp sales up 9.8% in Q4 2025 with bootbarn.com making up ~75% of online sales), merchandise margin expansion and exclusive brands (merchandise margin up 210 basis points in Q4 2025, exclusive brand penetration up 90 basis points in fiscal 2025). • Current business: strong start to fiscal 2026 with 9% consolidated same-store sales growth, but uncertainty around tariffs and third-party vendor price increases.

For fiscal 2025, full-year revenue reached a record $1.9 billion. Fourth quarter total revenue increased 17% to $454 million. Consolidated same-store sales grew 6%, with stores up 5.5% and e-commerce up 9.8%. Merchandise margin expanded 210 basis points in the fourth quarter. For the full year, merchandise margin increased 130 basis points, and exclusive brand penetration was 38.6%, equating to 1,500 basis points of growth over the last four fiscal years. Exclusive brand penetration is expected to grow 100 basis points in fiscal 2026.

• Fiscal 2026 guidance has low and high ends. High end: total sales $2.15B (13% growth from 2025), same-store sales 2% (retail store 1.5%, e-commerce 7.5%), merchandise margin $1.08B (flat to prior year), net income $197M, EPS $6.40. Low end: total sales $2.07B (8% growth from 2025), same-store sales decline 2%, income from operations $228M, EPS $5.50. • Plan to grow new units by 15% (65-70 new stores), capital expenditures $115M-$120M. • Share repurchase program authorized for up to $200M, with planned quarterly execution.

• Uncertainty around tariffs, which could lead to price increases and impact consumer demand. • Third-party vendor price increases in summer 2026, which may affect merchandise margin if not fully mitigated. • Potential softening of consumer demand due to price increases and tariff impacts.

Q: Exclusive brand price holding and new style opportunities.

A: Holding price on certain items based on psychological breakpoints, exclusive brands remain competitive as third-party prices increase, with opportunity to expand into new styles that are more attractive to consumers.

Q: Merchandise margin guide breakdown and exclusive brand penetration by quarter.

A: Merchandise margin guide embeds tariff expense absorption, exclusive brand penetration expected to be up 190 bps in Q1 2026 and above 100 bps for the year, with potential for further growth in second half.

Q: SG&A leverage and summer calendar headwinds/tailwinds.

A: SG&A leverage expected due to normalized incentives and legal expenses, summer calendar has festivals and rodeo sponsorships, with new Cody James stage at a festival in Gulf Shores, Alabama.