Boot Barn (BOOT) 16 May 182018 Q4 Earnings call transcript

Good day, ladies and gentlemen and thank you for standing by. Welcome to the Boot Barn Holdings Fourth Quarter Fiscal Year 2018 Earnings Conference Call.

As a reminder, this conference is being recorded.

Now I would like to turn the conference over to your host, Mr. Jim Watkins, Vice President, Investor Relations for Boot Barn. Mr. begin. may you Watkins,

XX Conroy, as afternoon, Boot you fiscal Financial Barn's me copy are a results. Good and only the on to the after Shortly remind forward-looking and available Executive for forward-looking judgment Barn's number today Boot press Hackman, Greg XXXX these on presentation joining will based to Relations today Accordingly, With Jim like you company's call will we today's this discuss place of certain fourth that on current call, results should of section Chief and everyone. Boot business. this and of you. Chief for Officer; statements a Thank us we earnings President statements from Thank release reflect the the replay materially may on be of quarter bootbarn.com. available Barn's these Officer. days website section Relations as at in not you and A make statements. recording reliance call would statements Investor of analysis differ website. today's expectations, is forward-looking a Boot of affecting factors I Barn's actual undue end in Investor are and

Chief statements, information, events, to Officer. now the Jim? update thorough our statements forward-looking fourth obligation do as well conference and We regarding result release, or webcast, otherwise. call included and and not For filings uncertainties Boot you to this of or Executive over new that on any the fiscal future associated the with in is a discussion disclaimer quarter risks more SEC call of the earnings in statements Conroy, we alter President a made with forward-looking any as as the referenced XXXX Barn's be to I'll forward-looking that Jim turn to our refer whether disclaimer. undertake

joining key of for in our I'll outlook Thanks a XXXX. and will our update review Greg you, more be providing initiatives. Jim of afternoon. us. review and our will call, strategic In fiscal performance detail for an Thank our provide everyone good financial then today's and results

in call Following XX our with up an comps four net to were have retail earnings merchandise income in fourth as basis returned our outstanding of pleased significantly your open We're very were eCommerce in our guidance. the and that resulted up which the consecutive questions. positive quarter our will Greg, for stores quarters. to points territory and well. for fiscal XX.X% quarter year. of sales positive been store represent with combined last double-digits we exceeded double-digits results margin and year expansion Comps finish now growth Same up

set that initially for the the financial business. full results exceeded our to expectations we Moving the year,

growth same-store During of fiscal points and XX X.X%, basis of XX merchandize income. basis XXX% XXXX, achieved operating improvement in we net points expansion, increase of sales margin margin

our U.S. country our improvement From position perspective, a business national a we radio to to marketing, enhanced private our out to boot began our brands creative, With improve portfolio. on advertising performance and intelligent platform rolled bolster regard adjusted branding mix new basis. media marketing and initiatives made strengthened leading western the work retailer as gains drove ladies most and the merchandising a and the significant and of regions Our our in in in topline merchandizing we

As and platform our to invest it initiative, center. our e-commerce we in to continue our fulfillment channel relates Omni

and combination proof concept we during store the Wood's at of acquisitions, named new in acquisition four through of successful stores including year stores growth, a of the Looking store added Boots. nine a tuck

initiatives. update and earnings the now few spend continue strategic on drive us like sales well have providing future. I growth to to an minutes to investments these that confident are into a our would growth four We positioned

growth. Let's quarter retail the were with driving growth growth broad-based up fourth the begin across our fiscal chain. same-store Sales double-digit with sales in stores in

Texas and very showed We macroenvironment. season. Tennessee. not apparel particularly a growth sales is rates growth the the results the to due major all New be store quarter, California, strong holiday only Western straight believe a sequentially and healthier the same Mexico in in extent While and strong, part category Apparel positive investments in in merchandising continue standpoint, we growth grow From the across to Arizona, did also benefitting merchandising we've continue but made during for both they experienced of most marketing. and ongoing sales from strong post apparel Work growth. work some was to men's Western improved every in product to the country, also boots also from ladies

also We segment to shop continue often customer our as to it stores analytics to understand enabling habits and email analytics relates overlap as customer, drive marketing their existing how efficiencies providing customer CRM improve strategy, customer helped with us us segments our our new We and our better a believe more our customers and spend. sites. buying e-commerce to which direct have is marketing while and marketing base been and forward target of result a they fashion group. the to more three identified CRM female particularly incremental this skews and determine that the Work we to into these we've Western, categories, Through focused each and which segment West, as attract have customers, than other mail our Wonder analytics, categories. able is in younger, approach enhanced properly sales have Core augmented These more

very marketing discussing from Rodeo XXXX, analytics System allows a hours from and to perspective, optimize Finally, key in our labor to realize campaigns. From Scheduling growth also like to us drive in that for improved performance at benefits from we doing which in things service customer pleased year, I’d times. selling Labor We're the learnings continue fiscal store continue fiscal our standpoint, few stores helped based and our same spend mix to we prior help moment Texas, we're upcoming on to implemented our adjust strong preparation a us continuing a a we're XXXX. sales the media with the season,

in our national radio, We've effectively We've by and customers. use business As media our for reach creative both our for our developed mix the and for of direct the starting some nice developing the We're also and we television, to expands, upgrading that and a Shyanne. area we're of believe a also store our to methodology revenue. ROI will sales social catalog evaluating maximize James mail a reach list. segment refining able improved we're contribution process productivity. standpoint, of optimize of greater Cody or media build each merchandising each maximize consumer to From the customized number to denim momentum in mailing our footprint brand

to are customer and in with raise service Additionally, invested launch our sales an and platform, it new pleased the we explorer providing profitability. perspective, we have store store. training both of the is in From this the for are return brands knowledge that year, our product two and improve to efforts private service. customer and in the sales should associate skills intensified in We've us both preparing help

channel Moving to Omni our our leadership. initiative, second strengthening

audience competition Sheplers brands is and three wider shared our extremely promotional WHIP to appealing base. the differentiate and connected is our target to stores. directly platform. while core has brand product Omni a that online to us benefiting to the large Our positioned consumer is allow from from continue assortment, be channel an to a us customer bad

While Country Outfitter provides customer. fashion a for oriented more curated assortment

and sites platform a upgraded order During three and fiscal new front system our XXXX, end end ecommerce we completed to the common back migration operations. of management performing

we bootbarn.com, transition, inventory integrated access and result to As is Sheplers.com now have by one this a selection a that of common countryoutfitter.com managed team.

and material carousels performance installed and of management center our Wichita is system now substantially our also held. conveyors online We new product a handling implemented where warehouse inventory all and the Kansas

new cause it the we growth to have organizational digit disruptions and While From line systems us Fox spent time successfully has extensive believe and experience Racing, our and the are and sales background those that perspective, utilize Origin, recruited both at store was Chief video pleased recently in John both online door Officer company. quarter. to who named we platform we announce Hazen, retail the Ring, the the to with ecommerce at sales True Hurley has having ecommerce soft migration same deep store. an Digital during behind happy a returned are during year, John double new fourth now most headwinds a we're and automation

ecommerce focus the developing largest be an through building to the leadership the is ecommerce holiday several year. the to Well, also of on brand he Over under not over orderly ensure of business Hampton, but He the has Sheplers Sheplers institutional industry, to the working our end his former site of through will at months, the agreed continue Mark transition. credited knowledge. alongside past decades. retiring the in transfer only into next the our for Sheplers.com head season several for John Mark will John's be

reducing we forward return eliminating XXXX, marketing, costs. financial As and and by ecommerce online, on we unnecessary to unprofitable look brands of by increasing were of efficiencies items, the focused penetration the low sites, contributions on fiscal our improving improving driving private margin investment,

year work increasing of number product our brands XXXX compared brands, initiative, our a five with third brands brands rates that portfolio For the period when point three this basis penetration Cody to brands our number growth our approximately margin. increased merchandise, full help enabled increase additional successfully up exclusive total With private fiscal top and way brands. has The merchandise basis the marketing of specific penetration most and the margin our exceed quarter our traffic. in Shyanne exclusive to margin grew expanding including to quality sales. sales XX.X% selling to branded to XXXX customer actually exclusive the Now third-party and represented prior up drive superior our and of compared of XXX James strategic point of of with brand coupled their we year in fourth approximately Throughout

the new fall by investments Idyllwind which Miranda we’ll and competitive of several the Looking ahead traffic. will of focus allow these additional launch this believe fueled year. We exclusive brand a work customer we’ll even development differentiation including in Lambert and momentum both to greater continued of drive through create the view on initiatives us of

in locations with Finally total. stores our our this initiative fiscal we finishing nine base, XXXX, XXX expanding fourth added past store year

our XXXX to opportunity add expansion acquisition double that quality strong of stores, tuck-in as our of growth performance unit we reflecting by locations We new our and to stores. pipeline In the are number that continue a recent believe the of and are to store XX% well we've to base encourage as opportunities both plan the calibrating fiscal identified. XX

the blueprint casual, stores year, payback to five lone fiscal expectations. outside was western So star Woods XX. chain and we added acquisition ourselves including continues after when that have of store we far This Woods in this three and Boots established modeled Dallas. acquired we a exceed

and better a As reminder, stores staying three site our targeted we expand backward, in on we our to disciplined nationally. are committed selection footprint okay as new

Greg current trend categories and has Now physically fiscal was I performance, Boot call leading progress terrific we're we point the industry geographic most presence business, on to market regions. made performance additional the In that position. the continued we to with solid to are online summary, confident quarter from our at quarter year SaaS our turning it the gains is to as has with strong now and the turn and margin first strengthened the SaaS further really prior over like led prior now all share and expanding quarter a that and halfway the Barn Hackman. for our across have

would of normalize in sales. increase by first our net and first basis Jim. The the week $XX.Xmillion net reviewing our over improvement quarter in costs occupancy by everyone. $XXXmillion XX increase Thank will prior quarter by from basis point basis in year a The Operating we to was the in further sales contributions the of The leverage fourth sales gross of profit foot net period. resulted Gross selling an for point margin to basis offset we of grew more XX.X% sales Good the on of to I sales that buying the on XXXX. to in area. driven past year prior prior profit quarter XX.X% store outlook or quarter expense. we XX.X% or fourth increase million $XX.X and margin year begin added increase XX the to months increased adjusted a the and you price comment rate Country and site fiscal In for of million for stores comparative by then XX from sales and net prior compared nine in XX year. getting exclusive results the increase $XX.X full the acquired. were from profit afternoon X.X% in and XX.X% have net week expense in rate XX gross gross or the resulted in partially XX% period, XXXX Outfitter for fewer February expense additional and or brand quarter promotions If merchandise and rate $XX.X sales buying penetration. profit operating XX increase million merchandise year occupancy compared sales same

prudent of the impairment fourth sales management reminder $XXX,XXX sales. approximately higher a charges. expense quarter operating costs. a expense on million QX result expense operating includes decreased of excludes of and Year-over-year operating As leverage offering percentage Adjusted as store in expense secondary as a and prior-year $X.X

up from the fourth or operations sales operations. Net of $X.X the of quarter of in sales per for XXXX share; X.X% income income year to in period. increase income in was $X.X or $X.XX was XX of million to or operations million $X.XX prior prior fiscal compared income year adjusted diluted the period. Interest adjusted in the in the from $XX.X period, $X.X net basis year million per X.X quarter adjusted in quarter was expense fourth share compared Our the X.X% from million prior diluted from

$X.XX period, benefit guidance. of the per EPS diluted $X.XX approximately was in per adjusted impact XXXX extra fourth quarter $X.XX Excluding The includes in per share our the prior $X.XX the tax income what the share. share week $X.XX net of of fiscal of additional $X.XX earnings of year to in included above

inventory million year-over-year ago rose balance increased available shipped year and $XXX sheet program a inventory basis our our the the period. to a XX compared opened support brands compared in Turning which to purchase The store to year. warehouses on On inventory fees was to in drive to to basis up the of improve our sales margin. accounted inventory merchandise inventories warehouses from at and comp months the for last per X.X% consolidated our of to Stores container increase acquired XX% resulted increase growth be drop during to reduce primarily a exclusive also full inventory. our on ship portion store

is and first entering current quarter inventory Our the fiscal XXXX levels. at appropriate

XXXX $XX Subsequent million payment XX, principle $XXX year million loan. a including March million $XXX credit the the of term outstanding had As million of we a for of had revolving the in we to debt our facility. made $XX end of

Now for I our outlook fiscal would like XXXX. to

We levels issued XX% our mid grow we year rate sales growth. on see we equates to to as our in sales EBIT will approximately single X.X% these sales X digit growth same-store expect improvement leverage same-store same-store and stack. At which

million full million. operations count to fiscal year. to a expect We based XX.X earnings represents of average from range share share of weighted of XX.X diluted per the income million $X.XX estimated This share for $XX.X shares an on $X.XX diluted in per the

impact expense million be expect between and guidance full range and We XX% over to interest fiscal of fiscal earnings of to of The between rate $XX.X million. $XX year tax million earnings normalize XXXX of the $X.XX net XXXX be reform. and by million $XX income expect from high-end XXXX applying XXXX represents we our $XX.X share to per effective XX% our fiscal fiscal to – growth tax

and and be $XX We to newly majority performance capital our acquired to million million expect related the range to expenditures in stores $XX the of investment center.

year we growth through acquisitions. during earlier to and organic both stores in the mentioned add Jim tuck As plan XX

to earnings sales we margin guidance, XXXX from fiscal million the and on quarter shares. continues diluted $X.XX and business and sales be Accordingly, be $X.XX share same a perspective. strong quarter to to approximately both be Turning to average expected growth our XX.X for store first first per between weighted based of XX%

back to turn to like remarks. for I'd closing some call Now the Jim

Thanks, Greg.

was saddened to continue regained upcoming will penetration our to We're momentum business and Brick enhanced and exclusive and year margin sales and opportunities in and we XX%. about Turning successful XXXX. recently & ecommerce fiscal to business the to expect brand more accelerate the we key we have year Omni that Mortar continuing growth channel very the store strengthen we our a stores the drive through our

executive Anne resigned has Before we to been went change directors, share replacing Simmons marketing Mcdonald branding Fred regarding and wrap up, who I the was directors our announced that to back experienced made some from board and our the on news of board. We appointed today. has board an of

a brings exclusive AT&T also Fred this into ability nationally enhance will for lead have the and Procter growth the that growing across Barn Fred to company revenue iconic tremendous of kind develop we and and supportive opportunity launch agency served team grow the composition he's Hut. combination and companies Pizza agency marketing Officer the as board taking a personally And contributions nurture & to extensive as of companies a enhance tenure, brands. several of business to tremendous senior including with brands past a including Boot marketing management for experience and to of Anne great by Gamble, the having Boot of experience each and that will country. the our continue to our Anne Barn world our He class background further brand Insurance. brings Travelers begin me. of his a a personal years. Barn thank lifestyle help Macy's, me Citigroup global Boot XXX% and brings several his Let over inspiration during Macdonald national Chief Marketing expertise, advising

for delivered XXXX. call results thank work tremendous entire ahead the I and we they team’s terrific for achieve the like to in fiscal and hard Barn I Boot opportunities us team open their to Before great questions, the about up feel would dedication ability of them. and to the

to to Now your open I call questions. the Anna? like would take up

And we'll go JPMorgan. first Instructions] [Operator to Boss Matthew with

Thanks. great quarter guys. Congrats a on

Thank you Matt.

On growth oil you into the and how the country guy year, is sales? have your mid what best maybe that single think sales same I gas single of your for the rest versus about next ecommerce guess, digit invented in market and digits for and to store that

Sure.

digits. So now back in double we feel great ecommerce that is

of and money We combination Digital expect that year. a and lot that most and our with see former will doing. expecting to Hazen we're recent some team time year this pay lot continue off Chief fiscal work the invested throughout work has We've a in been and of new under Mark of hard the Officer the John

that So a business. I I would as double think digit about would growth

of strong been continues that Texas of for be non-Texas, the rest business and improving. oil terms In and non-oil the to has or Texas business the also sure

actually QX in we outside the sequential rest saw same of the So Texas between and quarters. between then bigger the improvement two of sequential QX business in improvement Texas

to And into to really broad So comp we get together the a And say to we you of a be your We'll you single, kind cycle we're to for high a you'd than it's got that's are and left great numbers third expecting Keep the tremendous a single business double now. specific of address the just to know the amount mid these continue you're of chain, digits do. We've way fourth year. just of well, to as through and question, that going the of some start balance know see get the quarter. higher to XX% based digit Texas year. mid in to all to then running growth. it going

coming out the about feel and very for into the to that feel momentum quarter. we we positive optimistic quarter coming of trying But a year good out about. we're fourth first the and guide So put the certainly

follow Great. And the as just then up year. Jim for

year of range. So digits target next unit guidance same growth now back mid sales historical the to high end XX% single that's year

low algorithm model for same multiyear model annual fair it that used income high Jim to operating the to next growth the I year. about that I comfortable guess think that net is mid XX% talk single to to has store digit growth our teens to income you're say returned sales? points plus

Yes, year, pointed with and And remains as XX% share that and It intact. EPS this and out feel comfortable question. increase guide is in good is and about EPS. stores. investments year particular this the brands, associated that a great interest we Greg you if new algorithm offsetting out our in calling in we're are guided expense times about, increase growth we any opening that food think in or at particular private count and were growth making cost In

this or three it. given year and things So year against sort I we've is four this think of that unique that working

algorithm But Incidentally feel the winded in pretty had great answer confident the over lost term Algorithm. the long winning feels back about last are long side. to, the here to So do certainly it long I never we and be I confidence XX term months. on

hear, to again. congrats Great

We'll go next to Peter Keith with Piper Jaffray.

afternoon. to is well of Good dig as great of on Could a I got label shelves? us chunks the that hitting sense you product give to product of some you've some launches. start kind on interesting when new that's private the rollout. and the in quarter. into wanted pipeline I going larger congratulations My the know a

in is time, just holiday It Apparel so launch top a the is stores really we be it deliveries so line and we September-ish together to yesterday. that and and exciting the more Idyllwind how by in Boots in coming great feel all can will that bottom, one jewelry Miranda fall, the September that and product should following plus call Lambert timeframe. about and is accessories reviewed assortment

January, but next it grander spring the The brand launch store by start bring certain fall, September have in kind we'll work in of and other the it, in a be to fully fall should wear is year. will February and categories October of pieces that in of exclusive brand a

rolled of other timelines be – out will selling Christmas. that to categories start categories, some but after have So in in the see be certain won't we’ll until it longer fall

quarter you're XXX accelerate that - most forward? seeing or to expect you that to recent penetration continue XXX basis we label trending something is decelerate. points, should private about basis would think How this the that And Okay.

year consistent pretty of basis over been points last years. each the few We've growing penetration XXX XXX or

think move anything that certainly as all. slowed I at number has we forward if

Sorry a bit. Yeah.

that's you doing for take how two were plus traditional So expansion to Shyanne they points it's brands those not that penetration not how going to some six brands in aren’t months see two – going modeled new number once them because or we've each from can partly to this year – benefit from to increased more expansion going to XX one it’s the customer really And for to brands three of get additional benefit for them XX year. jeans XXX% so. months,

recall last you can Thank talk Okay. back about steady even that XXXX One comp I was you at the early running of run X% a rate. XXXX used business for to question steadiness in we the one. Jim.

kind conversations like to of I feels you're today, remarkably if store think just we starting memory the there more across had see base talked steady week lot to there's how week was, about that a if consistency. curious it

Just of given of usage functional lot product sell. a you the

you a we've you a the And we've for sales. taken a flattish in it's to the outsized It little business much double had visibility up the a and But headwind steady digit better the away as a I consistent. day day it's decade. consistent XX or more the it's first to We tailwind know numbers mid for certainly business at It's Up down side, open when always and until of bit single think tailwind a we inherent each of a incredibly that to recently question. standpoint. we've to incredible a you take out just been makes context consistency feel the digits. When the week, from Peter, strip and and And on and oil couple now think very average comp bigger you months. last it's week day impact has Yes got predictable. see you historical great look is now. the just you certainly more call it's I it the week been if headwind a up weeks rest remarkably if now

Okay. Great feedback. Thanks a good luck. lot and

with Jonathan Baird. next go to Komp We'll

attribute Especially with Yeah. oil internal versus you how follow for the back in double out of there. tailwinds about could step when if the do to business I the you out try at maybe results initiatives to to question the what you'd comps look it the and to the really exceeded quarter. and want the above up you you How obviously planned a digit pretty some last handily just strike? drivers much you external the of environment. $XX think more But pass when try now barrel some the on

questions wrestle we with question is Fantastic when the time. all

have that being through Having of in of other at retailers handy for comp the external credit an place. comp for upside, and internal comp we maybe of and initiative, is some downside think lot kind doesn't would we looking it's some third rippling that doing I'm we're like positive would the of that are other I'm e-commerce in business benchmark a things that, feel comp. half ecommerce balance On one first negative and it it the of function to change we're may in internally, from a take to getting went the I that said the I rather still And quarter. acknowledge said honest the quarter against. some it And posted strong a while, I for the step think many clearly help. a to numbers I it's ourselves third fourth the on the me help If tailwinds. would negative be created have naturally it's that

that from stores strip were we're from of the service. is in what doing what piece So training terms is sort doing and customer you doing balance a perspective, merchandising to what we're marketing of perspective, that if out the team in-store the

that's way it. think So the about I

that ask Okay stack. about Greg I to I be digit great. then a heading you're I follow is running up to at And how wanted that think, trends the just starting year. and would the based ask time did that, this formulate in on context what the you you I comps about in for mid or to improve And think to mentioned want year currently I you're XX% last thinking single your of think terms

running but you're digits, thinking that a little just be ahead like if you of seems the double now So wanted there? to clarify it might bit

Jon plus We’re plus we in of were roughly the was way year we QX XX. were was obviously X X and last year roughly the XX% then QX and softest comp roughly our QX through quarter X this and

through digit that which benefit of think where we sales of business the are tougher of year and is were compares the half So that felt comes about the the was come plus roughly The are X planning our single mid our is inventory back year model weighted, XX% we replenishment. of that in the automatically the more way is the given business. the to right given

So we can quickly. into that get inventory

we've feel we proven also position you So got but know like for the in growth, business fashion. a planning

Obviously, on if had any me, last and quarter. quite direction was perspective if strong could the of the it merchandise one it the improvement. you Got I for margin in

takes and you might So look the be? there forward puts to just as wondering what

I Yeah so. think

increase be the the get the points point on XX to basis it extent increase. brand X.X to XX X know so to penetration upside percentage private of we'll we private that You continues or do brand in penetration

fleet. for for that you continue that a at to to and done promotions a know know you quarters there that's And continue little we've addition out radar. continue In to of something to to we hard but exactly we out. material is we and couple me be but look our worth, what that's do look you It us certainly we row a to that on a to tell headwind that's going in our at that and hard see hasn't something it been bit evaluate it's in work

So I those minuses, about. guess the would pluses kind think and are of I

increase continues in e-commerce fill of profitability turns and us. the The that other thing may we're is as fact the that Jim working around also the about to talked to for a be and that improve business hard

very Okay Thank you. thank great. you and much

with Konik We'll Jefferies. go next to Randy

given buys think the architecture, past? the follow about further the long private March between umbrella margin on label the see the Greg, to that at opportunity spread up spread when look think little about well. a topic. guess versus label product, private-label when thought private of for you guess I term might business do would or first private you it, do a label, label of about had more I scale in you for lot. curious get bit I bigger economies branded, potentially as penetration as scale as say widen private-label you first I Great the or product just than success that that have from increasing your talk to guess benefits on thanks for want think do more first as for you've private you source in about you I you Jim you of

or our think strongly in really a coming the so. on that are we XX% that brands I we improved we point-ish about looking branded but want and each expect I good do have that people our to Justin, wouldn’t and our our get the XX% of also feels having differentiated brands. XXX to XX%, and Yeah great, we're that relationships those just couple the years So warehouse it's penetration maybe year, enhancing, product, first business of piece, acknowledge margin even that feel up to future Carhartt, types XXX in success Wrangler, in would very us for it's of vendor I so will partners Ariat with feel pretty private or brands terrific to

a careful So help the part we exciting private and that of the helped is brands that third-party marketplace are that they are need grow new customer We part what it's want size have in brands is find today. showcasing I business of the balance. and our that and the and bringing to to us think and

X,XXX terms basis margin do expansion want one. that of In you points and the

Yeah sure.

Randy expand So there beyond that is I basis the do think points. opportunity conceptually some X,XXX to

making class do class. we to we've private of these stands of in our into product, best the what wanted is developed that one that to of so products that or out money things best in is of is some brands back invest is the and the One the

team again that quantities. scale do experience design we and and to that we as be team, store but continue invest perhaps I the able doing to that, are base, in do bigger the to as that we continue we some grow So and get more think continue combine will the to

could think a just at to read. all lead trying things basis X,XXX points, those the differential I So us expansion through of again not but talk we're

putting are product. We make into the the

even some of guess analytics you How there that term. can do topic, analytics ad for different I of media budget to distort we base, around can e-commerce use different etcetera? give you what's perspective on to or on allocations how or forward the give in I chain, then about, long looking or venues to medium types can perhaps us will your different, of side, and currently enhance that second using project you're on it at think kind us supply your look guess analytics, us Got anything some inventory give help going

from and a Yeah perspective of has marketing more good question. and of as set using more There of that of fresh eyes are of doing modern an brought to number the sort approaches. to Hayes recent things e-commerce in traffic certainly Jan we're grow kind how appointment

etcetera. to around try of more media, We've Instagram to each So really how our the that's of and traffic done drive work within much and some you how site step do social terms drive everything evaluate influencers eyes shoppable continue improved funnel in those they intended stories from think I and all the conversion. have gotten to more to

for focusing sorts go a internal honest opportunities a might are In terms on question I there giving of management think we somewhat or perhaps now, contrarian those and of analytics be of supply-chain answer, answer things to some The that. your us is after from some day right things, standpoint. using simple and supply-chain other keeping

is a work size store very if particular Our for replenished. and we a predictable that and store boot, sells XX, gets It's highly XX size boot replenishable. order base work business

a our good got on pretty handle we've think I investment.

I I of think now doing, country the on other the but tremendous much are money a get on nuances that buyers right have a things return aren’t fantastic chain bigger handle but spend supply on assorting think we or some intending of different growing a the amount is we time that demand. initiatives parts to we're different with of

Great.

thing on and like is about one that think ask look or there to about term the the feel the just the of have lower, talked just that's suggesting a sensitivity curious the you it nine does thanks? want just Greg not at am the is to promotional was comp sounded frequency you six greater was the at generally all I right I either kind opportunity months less a consumer consumer mere I when basis, look sensitive. little think how Lastly, maybe shopping price price ago cadence being how you or maybe about is feeling is of that do there now, versus business like and curious or consumer then just that

can one. I that take

we frequency bigger you and we slightly time, always around that know shop full increasing lower haven’t and a question, to to and trained a Barn we selling is model nor fair them retailers us. forward a what's for virtually wait stock in to can many very that we're next or we that over intensity get in As dept, they period and But sale. margin offer before price. promote with it we what mostly the perhaps them customers, priced either intend think basket, just what pulling we're are moving founded need for their we and demand your Boot particular or sale a We're recognizing I found at of back train do to begin our promotional they

you more are part and of shopping frequently frequently doing had to be line has item. items necessity improvement and the the most buying that discretionary of fourth is a while, of that western and the they're we're right. be and the ladies a a less business shopping or difficult which of an might terms slightly between part might example, sequential they frequently, more that more macro-environment third discretionary apparel, think tremendous what In not part, been It's I probably for quarter for a give product internally. a bit quarter

and a they work product always they're always they they as but improved improved, be were needed just outside going had in has So wear some the of their buy that a and their or booths, customer to has economy if they perhaps items and think buying discretionary. core them, are and wallet the of pair I work might come more core,

her part comp than what's more and differently we're fire we her, our the the it's communication. what's the had mostly segmentation driving we now broad-based and in our general fueling and with to that's very with core think of and communicating Western differently are customer that I treating So past

Thanks. perspective. Appreciate guys. Great it

you. Thank

We'll and Oliver go next to Company. with Cowen Chen

Hi Jim and congratulations. Greg,

Thanks Oliver.\

building high lifestyle On brands. inventory launch the having exclusive thoughts right high developing your familiarity what managing brand around awareness as really exclusive a and the the on well the as appropriately of our accounts risk your by your and on indicate with thoughts brand, you are as guardrails but of satisfaction degree brands rates, brands and existing new new

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mark were while out, pointed achieve higher up. had a Greg As undoubtedly we

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that focused located? you is close actually channel? you. vintage of Okay visit on know of there and look great. that the digital If store a really My more And eliminated be you trends would digital improve our often. about next them. a term inform of question question also we shoppers to lot is, thinking help some was to digital where across survey stores and physical you're should are And as expansion drivers what that did profitability a your related Thank within longer about

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two think connected. that have So is that channels the I way that one

piece? you question second the can me The remind second on the question, digital

time, the happen? But convenience Digital what you also do and customers at you've shipping see margins mix comes over think what costs. happening shipments a and cost? in key you profitability drivers to managing drivers what the are and which good and see as the job key a margin I value split done do

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operational some So we've efficiency is there. seen

own a and can profitable of which as one A been you them. is the click have can dropship lose more at us. simply more Greg inventory and spending as pay amount did selection a they or that couple partners that the our we of tremendous back things looking if vendor assortment We demand spend time of have at we paper looking customer other and for have click ad through fee in And found on don't XX% that some click. return not we're ship paper continuing since acquisition and far that, distribution we for that of some we pocket money can realized learn called far, so there. of that a we we on to shown realize avoid that we paper our But inventory our center, test charge we're you to me the when do spend can make of we've

continue nice X distribution see working we to another team thing last can area cost have one And center the brands is we growth. starting can that we as to avoidance. that's one some scale, So and I said just with build

leverage fixed overhead components of will the We e-commerce the business.

are private improvement on kind online of you of a I the of at stores get brands, stores year the contribution we together that the with to of fixed and brands. and convergence think want contribution perhaps market leverage perspective, to want you get lot to and month get of of coupled they point where pull the an to a to least that. agnostic in the get where in will the retail we with are with December, that or with for associated exception every when more interact there occupancy our be a in online financial But way with buying any aside if buying indifferent between we storefront will a costs setting certainly customer you going for them

you. Thank

what's as your last Thank of think reality offer you? collect versus data is And Amazon between the that for to the and they thinking incremental that question and breath relationship Our what you costs about about the framework well? about you. the you tradeoff as

us and ability our it's in and right. brand eyeballs very for brands of and Barns marketplace to millions customers Boot get in strong in front with They presence of or etcetera. with careful an Well marketplace a balance have or Shepler's incredibly the

quickly. business is now XX% Amazon the third is of second Barn small. get I is biggest, very brands or what If is platform their little abandon made on Amazon front the Prime now. to of share, million in and biggest to we're sell us not less piece Boot starting be to and they've but But of And very would it, on our diminish out piece our right rev it profitable numbers unique bit. a sales online that bit our brands little as do As pretty remind of and small pretty business it the marketplace a increased Amazon probably a our we private diminish XX% everybody our Amazon it I marketplace. of them that I piece gives is the XXX business right partners it's biggest Shepler's we'll a that, with with continue think a think

XXXX. something started of that's looking as we're get that into So to forward kind fiscal we

regards. you. Best Thank

to Citi. Lejuez go We’ll Paul with next

timing your Thanks store label a then second we're card the year? talk the how guys. and helping might that private locations this focus the about for be sales if year, talk to throughout point could got, One, of whether this size credit Two the be year? you've going the view on and of about you credit know Thanks. much the And credit you questions. can just card opening curious in greater

of comp? card which Greg. Paul, big and our I business credit we will credit them loyalty card When provide take really how the was going a its that's we be ourselves. the incremental seen for how buy think and really to is business it And introduced to open what the far. program was part, first to is didn't is and some so create really it we've some customers it to helping

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Great. luck. Thanks and good

Wells next We'll with Fargo. go to Tom Nikic

margin my Thanks business, on everyone. operating afternoon of question. for based sort your guidance. structure ask and about taking the EPS the income Good I tried of to

SG&A rates or to X% to it's And the of on range of than years operating couple of X% leverage comps? versus back looking a leverage of last sort margin positive X% business? or guess QX than more of given to the the year? of Should the full of kind gross out like think trends sort Xinsh you Thanks. was you're occupancy sort margin ago versus know just then the is level X% your get I about that the long You can more and opportunity markdown that do your about we we the the know that there longer of being line lately figure term been you margin in couple that and some term worse just and opportunity range how for kind of and what better kind for penetration years on think

Yeah.

basis the our we points So it's versus to private if margins on Thank of you be brand structure Greg that little will, bit it's expand margin. XX maybe penetration it P&L very you and something higher a expect emerge the much. like dependent will

get from leverage So line, little you comp year up pressure if our that the bit bit and pressure group puts occupancy occupancy and we that the a the We've and north really causing buying the of so expense average X.X a at is on those combined a this that one comp are but and that of of This this added a occupancy roughly in see folks year that on that's buying beefed private roughly that. little for designers with brand will that line. we've roughly X.X -- line line but X.X% you so thing it's its year. of buying SG&A

$X margins mix extra expect that business before EBIT of of up we number. so – incentive add their to a million of Last was margins continue we week you business which an XX more $X of and took roughly before private we was down to had against it Shepler's each going do end. in XX% EBIT as the But terms to ecommerce, was expand heavily X% XX you start expanded back basis week was well in penetrated which as we compensation that million got In year we was year a had points e-commerce margin to step know year. quoted EBIT we as, a based that

grow XX adjust on have for continue EBIT should expansion you all than basis that. to things when we expect we and So points to of those better margin

share. to like I'd good, Sounds

next with Lawrence go John We'll to Palmer. Coker &

doing comment Thanks. guys. about the commented mentioned then a And Would you performance Tennessee. little you bit really state of Greg afternoon well. bit, little Good you new a store

you've made situation that could Can So got there, you opportunity. unique really there investment some well, is you you've comment the be more places downtown that replicate environment, Nashville unusual to the that like I know are country unique there doing an with model?

away it's all feel and cylinders square there better undue there to management of acquire of ladies turn we'll now to acquire Having is, stores great while business. attention that it. In highway capital. foot Downtown a simple kind Yeah, with going tend like basic are our could model stores and and that places into continue adjacent store, we are hitting to a on opportunistic is like to in the maybe and that, square XX,XXX said Nashville to they the handful and about model and our Nashville, design close the or that and Broadway frankly or that, keep incredible we just things the have won't are store. one forward we and expansion a box build Yes, be we course part of space fit going deals Downtown look, square continue XX,XXX foot, stores our freeway time, of are there love

So model as fairly ramp time life everybody's managers, operators, store simpler spend buyers, with more to a just we let up, and looking them out we're customers. life to their standard roll keep district keep

a to it's working comment, to which Just really be seems unique situation well.

fun store. a It's you. Thank

Yes.

We'll Mitch Pivotal Kummetz final question take from with our Research.

comp my have let guess Yes, on performance in so first the some lapping taking of the piece, you're the e-com I questions. start I be weak for year. thanks two, half think going to I me

inflected. being about talked that You’ve self

performance your deflated artificially think would I So there.

those won't talk any e-com first about, the of mean comp. I Greg is the least half So in believe stack overall think said you’ve there about better lapping reason at if you could strong? in be weak XX% kind that that on a potentially so, unusually that standpoint? numbers to two-year that some and contemplated particularly would bit is e-com the e-com a of from the margin performance be quite plan I a that than

our in year it and look some two kind We by contemplated plans of stack bigger at sure. store of It's versus e-com for stores. our

platform business and and transition when into and going it’s pretty of bootbarn.com start cycle we out September transitioned when it contemplated So the coming it, we of change, to we incredibly strong. get the strong to the was platform darn was bootbarn.com

and last we'll we a of had the get for So have business much months might ahead that gets were improved that and at cycle us difficult cycle bit to steeper while Sheplers a will difficult easy incline in road September. we a business sheplers.com few between against and The then business now and September, unfortunately Christmas, we back. year's for a up

might be when problems a get that into we chain So given had. bit artificial November-December we help supply the an of

e-commerce back months, difficult all the and we it's hit bottom easy and to we have transition I of a kind business more of for when answer we're we the it's built bit a get when in question, up thinking the about the the compare from bootbarn.com. then to suppose yeah perspective your from in September bit getting So next the little way contemplated and specific up of few an

or Is is to was of about much perspective, category of think that? the the can then when you how it by or on comp, there. either Okay. you have way speak others about their or boots in there bit prepared a the of seeing you trends it's rank how of merchandise your women's whether to confidence contribute in Western plan things any you you more sounds And or And terms that like category in work across based men's then areas like guys you're you more to that XXXX business there don’t the or the from Jim talked strength do terms know there comp. to way texture contribution if but think little sort like some out are where actually apparel. I or versus they overall any to know I these don’t to things some provide in remarks putting

boots to work growth. size probably Sure department company, men's growth, overall work has steady boots out and the rate, more even had rising nice groups. the biggest if healthy quite work that acknowledge growth, rivaling and of part boots single you not is growth some the business had while steady work apparel, have and work Western we trend had as growth And outsized big, in

see our And growth the business. a final changed in then bit. growth. is fourth side, towards We've assortment television We is than ladies, Start and quarter our apparel the some ladies the launched has view West, our showcases things apparel sequential piece the helped of part a the but a apparel the there guess the ladies is third strong which rate combination helping are been between brand as It's it less store or of business, the of of between third to in younger, fourth of really the more slow men's Western Wonder the growth parts signs but of their So but those be new expected been over see that's the and the rate business business business men's and the the I've boots I biggest business, two is quarter. and slowing single strong, see terrific apparel The that of both really grow a upside. DNA in not ladies any small has frankly quarter of as of don’t business, XX% our not customer. sort has added better between the has to relatively already. growth and We of quite been is outsized quarters exceptional huge collection They’ve really the once quarter we business. change last store I been particularly and in new the I terms and that on and the down spot work out that quite fashion or majority, female, a strong those might few more which our think think and our oriented we circuiting there. down got developed

together growing related to is terrific denim starting smaller big just bigger quite as Men's Western So apparel as but is even and not is build put strongly, some is work business recap, really it and to and business strongly. momentum. business, get apparel going even work to and growing boots and a strongly

helpful. I that color. That's Got it. appreciate

And to concludes back additional any question-and-answer session. turn over remarks. I'll that for it the Jim Conroy or closing

Well call. forward for care. thank Take all on you quarter with our Look speaking August. you in today's first earnings everyone to joining

Thank your participation. today's And that you concludes conference. for

now may disconnect. You