Boot Barn Holdings, Inc. Q1 FY2026 earnings call

• John Hazen reviewed first quarter fiscal '26 results, discussed progress on 4 strategic initiatives. • New store growth: Opened 14 stores, 473 stores across 49 states, on track to open 65-70 new stores in 2026. • Same-store sales: Consolidated +9.4%, brick-and-mortar +9.5%, driven by transactions, units per transaction, and broad category growth. • Omnichannel: E-commerce comp sales +9.3%, AI initiatives like new search functionality, online orders fulfilled by stores. • Merchandise margin: Increased 180 basis points, exclusive brand penetration 40.6%, marketing support for exclusive brands like Hawx and Cody James.

First quarter revenue increased 19% to $504 million. Consolidated same-store sales grew 9.4%. Merchandise margin rate increased 180 basis points. Earnings per diluted share were $1.74, a 38% increase from the prior year. New store growth: Opened 14 stores, ending with 473 stores, on track to open 65-70 new stores in 2026, with new stores projected to generate ~$3.2 million in annual revenue and payback in less than 2 years. Omnichannel: E-commerce comp sales grew 9.3%, bootbarn.com comped low double-digit profit, with AI initiatives rolled out. Exclusive brands: First quarter exclusive brand penetration increased 250 basis points to 40.6% of sales.

• Increased full-year guidance due to strong first quarter and second quarter start. • Full-year sales expected $2.18B (+14% vs 2025), same-store sales +3.5%, merchandise margin $1.10B (50.3% of sales), income from operations $277M, net income $206M, EPS $6.70. • Second quarter sales expected $495M, consolidated same-store sales +6.5%, merchandise margin $249M (50.3% of sales), income from operations $53M, EPS $1.27. • Plan to open 65-70 new stores, capital expenditures $115M-$120M.

• Macro uncertainty and consumer sentiment pose risks. • Impact of tariffs on cost of goods sold could lead to merchandise margin decline in second half. • Uncertainty around the impact of price increases on consumer demand.

Q: Speak to drivers of demand strength in Q1 and acceleration in July, bridge math to flat comps in back half.

A: John Hazen discussed transactions, AUR, broad-based growth, and macro environment impact Q: Thoughts on competitive landscape and share gain opportunity.

A: John Hazen mentioned better position due to exclusive brands and inventory position Q: Inventory risk with flat comps in back half.

A: James M. Watkins discussed comfortable inventory flow Q: Exclusive brand marketing strategy.

A: John Hazen talked about marketing initiatives for Hawx and Cody James, focus on driving sales at Boot Barn Q: Tariff-related price increases.

A: John Hazen discussed mid-single-digit price increases, re-ticketing nearly complete by end of August, holding lower for longer on exclusive brands