Boot Barn (BOOT) 17 May 232023 Q4 Earnings call transcript

Good day everyone and welcome to the Boot Barn Holdings' Fourth Quarter 2023 Earnings Call.

As a reminder, this call is being recorded.

Now, I'd like to turn the conference over to your host Mr. Mark Dedovesh, Vice President of Financial Planning. Please go ahead, sir.

you. Thank everyone. afternoon Good joining fiscal to XXXX for fourth Boot quarter and earnings us you discuss today Barn's Thank results. and Hackman, With Jim me Officer. Vice Greg Chief Conroy, are Officer; President Executive President and Jim on Chief Executive Financial today's Watkins, Chief Operating call and Officer;

will is Boot end of copy call Barn website. days replay of bootbarn.com. after we presentation website call, a release the a Investor the a supplemental along Relations at available A on with Relations this for recording the press on company's financial section today's as available be section of Shortly the of XX Investor

would I Accordingly, on on analysis a of from Boot today forward-looking remind are statements. based statements certain These may affecting Barn's current business. and forward-looking expectations not actual these undue only forward-looking we as results should Boot that differ and will like statements materially number in judgment presentation reliance to make factors place this reflect you statements. of you Barn's

whether a uncertainties our regarding statements or a XXXX undertake included associated the events, during disclaimer. refer with risks statements, statements webcast, SEC you fourth disclaimer is our We more alter and result forward-looking fiscal any or quarter future filings and do to this we of that information, forward-looking be made the otherwise. obligation well release, as to earnings of referenced as forward-looking as in the any not the new thorough with For in that to update call conference and discussion

President Officer. and call the over Executive turn Jim Jim? to Boot now will Barn's Conroy, I Chief

initiatives, call, review made discuss progress for and fiscal current and joining our strategic of Mark and good have you fourth you, afternoon. provide an quarter us. on On business. each we update four everyone this I'll our Thank results, across the XXXX Thank

review we up will questions. performance detail, open our Jim Following in for will financial more call the my remarks, Watkins and then

am Barn Boot on Barn sales, for outsized solid stores, gains entire the year the year. to XX was new continue XXXX as of holding for and driving and opened I record Boot we Fiscal prior for to a proud margin. the achieved results product these from team expand

the sales the driven of strong opened on X.X% top retail growth over year, to total store prior sales comprised prior notable comp online. decline stores year. from XXXX past Consolidated were the we comp last grew a year, as was new in sales of a primarily and same-store store growth growth flat The XX% same-store Fiscal the by XX months. XX% sales cycled XX.X% which XX% stores is in

of that growth Similarly, fiscal XXXX, while cycling and very in our respectively. online comp business strong two fiscal years XXXX XX% is declined, and business XX%

results. Given the extraordinary last revenue are with year, quite pleased we these increase

product we performance, basis for in exclusive by the sales This the reduction net to in merchandise XXX grow In of brand by addition basis in a our through growth basis headwinds, year XX XX to margin margin our able margin. resulting was point freight were offset expansion points, points penetration. primarily

past the over approximately years, points. basis nearly has in XXX than adding merchandise perspective, in more five and doubled, results expanded margin billion has Barn and sales sales our margin Boot put To revenue $X

by fourth continued show total our to solid new driven results, to Turning quarter stores. sales growth, from sales

XX%. prior we sales consolidated and growth cycle declined same-store as basis the on XX% two years a of same-store However, sales X.X% in

sales. Boot of can strength where quarter. Barn saw of margin in expansion a perspective, decline testament expand despite to a the we the a margin points From XX to our product brand, in is we continue It same-store selling basis the margin

year. I of the short record-setting continue we've business on of full to our While am original that overall, top fell grow to a expectations, pleased been our year results able

made have now will initiatives. time I spend recent of we some our the four strategic across progress each highlighting

expanding Let's store begin with base. our

growth Our significantly to outperform expectations. our engine continues

to the months million historically accelerate will XX% generate fiscal store average able unit XX continue of XX% to were believe stores pay XX targeted we've volumes we less to openings, new While XXXX. and back for $X.X in past XX in We opened months. growth the the than

the our states opened openings. XX Maryland, quarter, of further first new and recent double-digit York openings New In include new in These fourth expanding consecutive presence stores, untapped we our of the our into quarter was which sixth unit markets. stores

with in the store in helped the new markets XXX more as United The by performance cannibalization bolsters across the the to both ability and strong stores next States store encouraged the of stores existing be to new further new over are several new performance pipeline, significant markets. lack new continue expand confidence years. a to We store added our to

Moving X.X%, initiative, with driving growth. e-commerce second to quarter X.X% store same-store sales declining and same-store sales our sales same-store declined consolidated Fourth retail declining XX.X%. sales comp

western line work better men's From respectively, include and boots cycled average. apparel, than average XX% both the more and men's performed categories. as a merchandise These work apparel performed department the were and discretionary which better lines than chain departments which a stack two-year ladies functional more the apparel, over declined with boots XX%. men's in boots perspective, chain product of Ladies XX%, and and

customer from across influx that due our research in both were to outsized to work perspective, and the country. customers, to resonate from many conducted our The Western outside confirm of brand we and gains sales was industry. competitors new able From marketing retailers recent part a the continues the

legacy with forward, to prospect look communication. and nurturing print base will continue mail we direct we customers media broadcast new for tailored through our while As channels, customer

base with XX% X.X the our at the our Rewarded with have growth members. seen in active B year customer we members, loyalty in ending expansion continued year-over-year million pleased are We

slight and North our both a standpoint, West East decline comp The Drilling down a a into regions in stores decline. from our geographic and mid-single-digit we regions. South saw experienced business

the average quarter store partially by was we As per in growth during KPIs, look amount. a our transactions decline at store offset in transaction

then a which February more basis, on in in and business Our turned sales same-store negative March. was negative January stores positive

While quarter, pleased was we we're the stack it the expected a the relatively outset XX%. with of softer stores as of performance topline this than recycling result are two-year comp to in at we approximately be

perspective, in an currently high-quality field operational omnichannel offerings our organization responsibilities we stores delivering team many exceptional place, in have the experience. to been continues with all customer deliver operational addition the With to From balancing customer service. has tasked

sales the needs to business. the their adapt to want execution but The ability has appreciation I not to and entire also only for do has challenge, team elevated to store. their our express risen to to sustain my team managed per field of the changing this

omnichannel third third our fourth quarter, are this and initiative, compared our year to expect declines with quarter. our believe leadership. these XX.X%, In of we transitory. be this softness stronger having during strengthening last the will in-stock position line declined performance the same-store a e-commerce result channel We fiscal in to the a saw sales Moving in competitors

For the customer simultaneously including we out store. in-store while returns capabilities, ship-to-store, up Doing years, cross-channel buy the service few past expanding breadth pick to so have online in several options has ship-from-store, successfully and increase the rolled assortment. of online, the us omnichannel enabled

stores. online industry. with a We Today, provide in will integration by our seamless selling in competitive are our way sales two of approximately of touched sustainable advantage create presence our us the store our believe a nationwide channels two-thirds that leveraging some and

we continuing of the make a in been to areas. omnichannel have addition capabilities In are to progress created, that number

to First, country. stores we access the brand we broader resides exclusive across online in strong continue the see assortment in penetration as growth that the all

coming brands, we our exclusive With margin our the years. of profitability the expect in by the provided sales incremental further increase to online

during serves fiscal rolled as for purchasing, traffic. Second, offers in-store a an drive out we more This Boot mobile-friendly customers, option a a shopping additional experience tool and app Barn mobile XXXX, app. creates for convenient to our

stream concerts It local to market, enables customers from country about their app. and the events our shop music learn directly online in store, and their

team incredible did pleased with job the an development are with digital product. very and final we the Our

Lastly, intelligence enhance learning called Bandit. experience. artificial project and shopping utilizes customer a new That underway excited I am machine quite to the about

preferences. devices customers the their guide that with already assortment purchase through stores and decisions All based a are narrowing by filters Barn touchscreen the of on series equipped

added Our tremendously. digital team has to capability this

based integrated develop engine machine basket they market analysis. learning to First, a recommendation have on

created fully customer connection with integrated conversational ChatGPT with provide experience. a a interactive to Second, a they have

For able to rendered items shopping look be will a for together. their Bandit reasons is conversational ask selection, customer country a that in with qualitative boots, western will example, would a a these be outfit now recommendation if they pair that a tone to recommended music of well for women's with good why concert and and wear pair would

by ability much assisting technology providing they associates how customers. product the of experience have we have handheld devices product Boot working will to utilized our team with pay empower and together, harnessed greatly they capability our an or same deep by when of a regardless they have in new at items expertise This are Barn. level the them knowledge our store Additionally,

certainly has both been our applications out drive the new to sales. amount employee-facing we the already customer-facing of recent has I'm discussion of having stores. of offering forward incremental to thrilled customer the potential an a looking experience the be on tremendous are this use there around AI, to enhance rolled While cutting-edge, to and and all

industry to this to want be specifically for enabling to to and Justin the within digital incredible into our Hamlin gratitude team, experience. customer and integrating do the AI developing to express I us [ph] market first my tool

Now, to fourth our strategic brands. exclusive initiative,

penetration fourth to basis points increased exclusive the During XX.X%. quarter, XXX brand

XX% $XXX year, exclusive our the For full brands surpassed and million. sales of were

more than last years. For sales the context, percentage two penetration have brand points over in exclusive increased XX

three Idle selling quarters, five prior Wind. the were with James, Consistent Cody of top and brands

but points financially us not approximately margin. Our with business provide also exclusive only accretive X,XXX they are to by basis the differentiation, competitive of brands

business. current to Turning

We are approximately sales same-store growth period. X.X% halfway to XX.X% the quarter-to-date comparable through prior quarter fiscal declined compared and year our in first

XX.X% is e-commerce a decline decline X.X% consolidated same-store driven by store sales. sales in X.X% The and retail in decrease

from year quarter that the a against to the in improvement the toughest our it see are encouraging into up compares in healthier a sequential first ago Given tone we period, signaling business. March is

now to I'd the turn over Watkins. like to call Jim

fourth Jim. XX% you, million. net quarter, sales $XXX the to increased In Thank

As from same-store months a XXrd opened offset sales our over partially Jim stores the by sales decline past sales X.X%. XX performance mentioned, benefited week, the of from contribution new the and

merchandise or rate and year X% profit in and -- basis XX.X% points of XXX the distribution from Gross decline XXX sales a million buying, profit compared profit The resulted of in million to point basis XXX decrease costs. deleverage point prior and in gross points or of gross sales XXX margin rate center period. $XXX basis a increased basis of in occupancy XX.X% to $XXX

penetration. brand driven basis partially offset expansion a product expense, from freight merchandise from by margin growth in XX The decline exclusive XXX margin rate by higher of in was headwind point basis points resulting

Lower expense freight than of guidance margin line. the on beat primary driver was to merchandise expected the the

As through the sales sold freight expense. expectations, slowed we resulting items during our the P&L quarter, lower to inventory high freight fewer in compared

a we expect basis XXXX of basis forward, to approximately freight expense XXXX. point to fiscal headwind be benefit merchandise points, from fiscal margin Looking recapturing XXX the XXX year

expenses and a year $XX the sales Selling, the expenses, compared for week. marketing million were the of in administrative period. incentive-based leverage XXth and or primarily general, as lower We $XX leveraged XX.X% from XX.X% prior or quarter result to of compensation, sales million expense of SG&A

$X.XX to $X.XX Income sales was the compared prior compared to million operations $XX XX.X% in per ago. XX.X% $XX diluted quarter and $X.XX two period or million of income was from million of year Net share year period. or or prior the $XX diluted or years share sales million in the diluted per share per in $XX

Turning store basis, primarily increased period from to year driven was prior the and $XXX the our inventory XX% new vendors. inflationary consolidated inventory, balance sheet. to On million. exclusive growth a brand This by increase over increases

retail increased growth On sales comp year growth stack XX%. a average our comp of XX% the our stack three-year store Average has basis, store X% of inventory outpaced inventory prior over store approximately three-year same-store period.

revolving million line We be million the to our and with of in on content the $XX with quarter levels. inventory of current $XX credit. $XXX We finished continue drawn cash our pleased million and quantity

outlook I range fiscal today, my we high supplemental both first be released for quarter. Turning out to the both of our the full in lays periods presentation the ranges the for end and to speaking year of end guidance XXXX. then for following remarks. will our financial high The low and

of reminder, sales at a we end to which, our total representing For was the XX-week of growth $X.X expect the fiscal range a year, XXXX, guidance be over high year. billion, X% as

X%. We same-store expect a decline same-store with of sales sales X.X% same-store retail to decline X.X% store growth and sales of e-commerce

sales. profit approximately XX.X% million gross be expect to or of We $XXX

estimated expense. an improvement reflects XXX margin, profit includes which XXX a basis point freight Gross point increase merchandise in from basis

basis to by We penetration brand XXX exclusive grow points. expect

center deleverage of We and also occupancy stores, distribution the deleverage from higher Kansas new in points costs. distribution same-store the buying, XXX new anticipate result This of occupancy cost sales, City is basis the negative primarily of and center.

provide to with you we a occupancy expect some X% On with color center sales distribution basis, and costs like same-store go-forward to around I'd leverage leverage points. a growth. buying consolidated

cost annualization unit the result growth distribution sales of of to week to However, in XX%. benefit fiscal is year costs and our the store required XXrd in remodels same-store in and to leverage Kansas center, occupancy, the XXXX of of current City distribution new the as XXXX, from a buying, the step-up XX% XX%, fiscal center expected in fiscal the the be new

of return point X% expect we items, adjusting to leverage a fiscal these When more normalized in transitory XXXX. for to

on Our consolidated fiscal leverage XXXX is X.X% in comp. a SG&A point

from or XX.X% Our $XXX.X sales. be of income to million expected operations is

income net $X. expect $XXX fiscal be million per for to and to share We diluted XXXX earnings be

We be to million interest capital and our to $XX also expect million. $X.X expense be expenditures

tax the XX.X%. For we effective rate expect year, be to our

year. quarter of new plan XX%, stores opening during the year. stores new each adding to We XX We the units new grow during anticipate by XX

total to end be sales guidance first we $XXX As our expect look the the to we quarter, range at million. of high

X% same-store same-store retail with decline expect of e-commerce X% declining We same-store XX%. sales sales sales declining the and store

$XXX.X profit sales. We approximately expect the gross million XX% or to of be

basis which points new in reflects buying, the expense of assumes deleverage stores from profit City sales, center same-store costs, center. estimated resulting of -- We and occupancy and XXX point XX distribution from year-over-year. in Kansas Gross anticipate an margin, primarily from relating occupancy distribution freight increase the negative flat basis cost merchandise new higher

Our X.X% is income to from $XX.X of million sales. operations expected or be

be per We expect diluted earnings $X.XX. share to

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

Thank you, Jim.

well results fiscal we our and We with are believe to pleased our XXXX continue are positioned growth.

store stores brands country, seventh by exclusive accelerated new the During points. openings record with margin new through fiscal the the expanded XX for and of year XXXX, we product across a the consecutive basis XXX penetration

With your to hard share new increased I'm you deliver channel, course our our integration providing greater on confident entire profitable across all thank proud team very and well value. I exceed continuing work of market targets gains business and store the are financial to growing shareholder with to country, footprint, for want the continued execution. we even our digital and the stores is

a I like growth moment would done brief express that the executives. have to personally. Barn, me to has Greg and of development Thank retiring take the Greg, be your to team company publicly for this also gratitude summer. for you a of on on impact for my had Hackman, you, who Boot all personal the and for will significant Greg

the call Now, questions. I open to would to like your take Shamali?

will Instructions] Thank you. we be [Operator question-and-answer at And this session. time, a conducting

from comes proceed question first line Please Our question. your Boss Matthew the with with of JPMorgan.

Thanks. Great.

down XXXX comps, about we as Two think midpoint. and X.X% FY I questions. the So maybe, at Jim, think, guided

versus you're general trends both? existing customers trend your So, seeing legacy across across just speak customers acquired, today you've that the new can to you that

would quarter really And half? the then terms think relative to build as baked if us back just the relative XXXX that I same-store help. into about in XQ we could the of think sales progresses of back as the guide year the assumptions half, help to you first bottoms-up

our year's out massive into Sure, the give of database. first legacy not last if slightly of I piece there's back, a it. we comp to that read It's like comp even I'll negative customers and this after wouldn't little of customers. hard from we XX.X%, take the it's a exodus new split between cycled bit much

ongoing out called customer we in fact, growth our count. In

specifically, our were we in XXXX. look at last if XX% and year our still And positive stores up stores, fiscal

retail. calling if So, seeing about of I in what in may we're are be think out happening March what many you softness April, that and with think natural the might be it downdraft other some companies just sort

some out of in cycling. cycling respect weren't while companies we that have a we spring, And great were softer marquee have very that called numbers business the deal for, they the companies even

the of we're years. everybody compares next decline down higher down sort slow honestly we else, worried several that fact retail slightly like. seems just be of our of the about for not than And are world the So, just LOI to when sort rest of a the are

could this be transitory think -- just I a for small a amount time. of

the And Matt, volume of sales weekly second part. sales projected we guiding penetration. take few for months last the used the year The sales in the the using of I'll -- the the year, balance and historical

the the the the comp that second as to quarter. year, -- e-com to flat look out run comp are so going quarter with to And is quarter going in second stores to stores improving through flows first that similar

to in e-comm down range, and get QX, stores but what we better projected QX to a QX they're to and be still the QX, improved get still in plus better, that than but mid-single-digit mid-single-digit. positive not As see we'll and

Great. And a just follow-up. then maybe

a industry? about expansion elaborate within you in Or As behavior backdrop? Or XXXX despite a larger it gives of just margin or little XXX seeing demand to today wear points like in confidence profitability own the -- the speak we you're sounds could merchandise promotional softer what Western you side, seeing bit the basis just business? what the you're think that in of your FY

the Sure, sales two that relatively times, nothing pre-pandemic is a across really years the out industry, the But of or and industry's more industry. of than out I perhaps were question would sales with say of amount across Western when ago promotional right, the modest promotional to the tenor ordinary. strong similar promotions

what we the think of from sale industry or our sort in a the of to reduction a promotion rest follow-up reduction does, the across competitors. We proposition in that a really chase beyond Boot maybe price. a any Barn regardless prices goes far -- never short-term of of is, or And point the

our And significant to see make when reductions any we inventory, reason to of no look at the we through product. health move

going with year. brands. our we're exclusive We price tailwind to continue drive nice for get this to We're selling to going So, full continue philosophy. a

So, margin we're looking guess, forward expansion. of eighth I an to, consecutive year

just year. to the basis of add Matt, that, the of for merch expansion basis to tailwind points does XXX the And include margin on points freight XXX

that's points So, XXX it of guiding that we're penetration is growth and expansion. the product for basis year, product of that with basis exclusive driving margin XX margin brand a points to of lot when

luck. of Best Great.

Thanks Matt.

line with from question Citi. Our question. with of Steven next the comes Zaccone Please proceed your

afternoon. I question. for Good taking about Great. question the perspective same-store for far within then seen my Thanks sales. a first And What performance about expectations have Matt's guidance you talk range? how year? a from think we the do thus to performance just transaction quarter? And versus can wanted on from your category in about also, category follow-up ticket you the

Sure.

part, low transactions At second expect we'll really guess we we don't with we traffic continued year. cycle increases the some year. but pressure or our price had to the point, of guidance ticket, a for single-digit per I higher store traffic On inflationary outline in most last or the average see ticket that versus we in probably took the increases

quarter-to-date. staple-type quarter, to fourth -- quarter better. from the first men's Western discretionary, that has Western category the the In sequential improvement first category, do are boots of continue by into terms the apparel roughly more seen flat of businesses for men's some it's What products slight a are less

in in significant that way continue -- any least are purchases, The at discretionary to be down more general. are businesses

down, high XX declines. So, to western Ladies boots be boots continue softer. is Ladies it, points and so. ladies apparel or apparel single-digit is call Lady's

just call XX% the as apparel. it remind and last I growth just ladies ladies If in against growth always both the year was at growth XX% to the is an feel year. enormous numbers example, and up QX, business that an boots look I in QX, obligated up apparel, prior against a

of walls back, that, right? then giving internally on that. wind the of over grew XX top we at if within or that company, fussed the XX% So, XX% We of four up points we get that won't just XX and

that. when a end if back with I we giving little coming of a is bit most And in couple of we modest recent of feel together, put sales, and years a same-store good think pretty all almost the we it years, about should So, decline expected. up off

the Just comment. do a on risk business, now, not categories Like you working the of discretionary to you? you, fashion are last that follow-up of worked slowing confidence that years, gives potentially you some that What maybe whereas it's think right? against for it's fashion to couple year, is

Well, upsized us. we've it would working I the mean ladies business. say growth some in I seen is actually, really against fashion

of sense mindful is the amount that et us that the there's sort categories and for product women Now, believe of cetera. ladies from layer we working, on fact that that But overly being years. in riding was top our tremendous a a we're are basic last of that generalizing there of of helping fashion a are horses, couple

If probably said an help. back quarters, it you go X% was several we

page it, would product. point We by how turned has or you but would point more supplemental within in the XX assortment and us. diluted of X% haven't against our down component the small fashion it's to really to dominated that quantified sort is that how deck functional help probably the I

there's a outsized around our television been feel fashion obligated call something. of is, by historically, thing or shows out growth dialogue second or lot to The I driven being

we things not. this do true the of whether to quarter or is to one And that's validate tried

product So, sell. we a for amount of sell there's that tremendous are there that not data, companies available but publicly

back with And to this page outpaces of anybody seeing the of if Boot which everybody you go macro that you'd growth. the in or fashion. people that document, of to I piece pointed trend you sort a at speaks some mostly same fashion television has seen same the there just XX, you'll again, to show, And was on not based think experienced massive on cycle transitory anything just else see I we industry, far see if Barn, that the artificial growth that execution

floor. the I'll cede detail. the for Thanks Okay.

Thanks Steve.

question -- sorry. is next Our I'm

Piper Peter the comes Sandler. question question. of next Our line with proceed with Please Keith your from

to you at wanted Good afternoon I thanks. everyone. Hey, store the recent growth have. look that

mid-teens up past angle this from double comped to a maturation to continue. in this recent stores you've your digit most the strong of coming new What of are months? pretty but unit The expect from have two. out openings are to So batch gate, you growth year that out historically, last accelerated of the stores XX kind expecting year and XX

The right. out the have you're quickly. Yes, stores gotten of extremely gate

performance year line a first the The been comp. more of has with chain sort bit in little

comping we're positive last positive. when slightly So, year, they were comping slightly

those haven't seen waterfall great We a for recent openings.

been I lot sort do of think of there's around. things other macro a moving

see what So, store we new as the about to to we very continue But years. next up couple open we'll continue that enthusiastic the openings, happens be stores have. over we pipeline of

on be so week, over about it, flow now $XXX with opening through will next a two the million a that years stores and pace for along up add, of store call revenue that. XXX the We're and worth

prospects going growth excited the about forward. we're So,

out and the March negatively last particularly at And weather the in then a back the that all think retail. demand, just there's had debate months? I of and at either the around comp weeks looking investors been recent rain in actually that in positively with that or falloff great. at Okay, two Do trend happened I've you all impacted in guess impact West.

use not to tend we for of know, you a as often as very much anything. reason rationale or weather Well,

that was And it seeing from if do gone around California about talk think I So, time, will the I have course, a as often periods we we have challenge California, in to question normalizes. your impact drought specifically it think torrential it we're is downpours. over on the customer. of particular of

that that industry. the the having on impact extremes farming the seen, we've in is But it's

difficult So, would for that stores. strongholds Valley, thought drought, more example, as agricultural our to started we the had the during rain market. which help we then come, is of in of that Central one market a And the

unclear had much what that be that because flooded. so now rain going It's forward we've farmland seen will they've

XX% so, down, high-volume districts they're those are we businesses, and it, call have So, and being or California very two in they're impacted that districts. specific

Peter, other just be for get that's two and months we'll businesses, months know the pretty on up weather. strongholds real or drivers the that, through years side and But this growth the well, growth five will start pick whether from the passes, those will you six -- been perennial And of as in have more certain great to once team we'll there coming us period, weather and again. or into for see we're

good. Thank you very very Okay, much.

Peter. Thanks

question next line Max TD your the Cowen. proceed of Rakhlenko Our from comes question. Please with with

Hey, thanks a lot guys.

does differences can first, your the when counts or pandemic? cycle being your to then speak able the your new you showing behaving on shoppers Are where to new to basis shoppers? similar So, confidence customer compared hold in you to pre were same-store a versus Western slow? legacy any inevitably And on just them

Max, first can you repeat us? on first the part of your question, it cut out

that. about Sorry

and of overall, a grown you speak it lot stores. obviously, you've typically because on a to accounts same-store customer your basis Just

a like So, just look same-store curious what they on basis.

at you on And in And sure customer stores grew would a less store. that our of not I course, grew than be specifically number we count stores count legacy had could average Rewarded what XX%. to is point hand. B new customer XX%. I'm guess the new

more minimum just on bare store delta seen on the So, two mathematically basis we've average at customers different between an numbers. those

On the second piece, yes.

I conversation are trends fourth would we have that think to again, consider quarter right -- fashionable in for of were comp been there's help sure. that the around all businesses us. headwinds The lot undoubtedly the our given and a fashion now

be shift there's a seen. sure not that I'm will So, big

trend saw earlier, back Western a in would comments that across the of come wear of companies the growth other made the was you have that lot kind I expected our I candidly, to if And see a we space retail. it didn't

to these run, well and can to growth great fashion on only extremely Again, sort were our whatever us, outpaced, but companies I partners standpoint, we from great public are point a there outpace companies, where company underlying get we of was. would page four point to data to considerably cycle you the certainly XX, able

rates, of growth here. is in fashion which have has whatever may portion particularly up a that there certainly fashion. cycle, no been that is longer outsized these We're that apparel, But ladies against

okay. you like what for in it then first it, mix acceleration in in And the a exclusive looks time the penetration your while. do Got exclusive you And XXXX growth raised attribute brand that brand then XQ? for

seeing the that may behaving a is little Are just Thanks bit So, lot. a there differently? shoppers be you're anything differently?

so. I brands it last XX a six added off and continue starts to brands, the traction new Historically, we medium launched into categories. just brand, small get And build stores or X sized sorry, to new brands more think then -- continues and I'm more had our is launch momentum. our build months we new when continue then to to in we

that So, to grow. the business will of part continue

We that exceeded all expectations had and this to year. ago last our has expect grow years years two five year. again we ago it and of It

complements the really we are have great -- them. they've brands responding there. out Customers they're And to just to third-party that

our tertiary general, So, our brands, secondary brands big that are, growth third-party from the most or and would continue of the that you certainly or know, brands names brands exclusive share there. us. non-strategic And in see taking to out with

to we're to of part that see grow. excited So, the continue business

of know. accretive, that as You product It's you well course, at financially Boot can buy only Barn.

a assortment business years. the and hit into happening then to down, for that where a don't So, we've a I slow and work point continue build but ultimately we'll in few category yes, we that say, to we'll see a it ceiling particular

Sorry.

at thought Or a all? sort point, does similar is years it or ceiling as years on two or Just year the ago? three you of what that change last

But was continued has ago, maybe something be years thought, I that we still increased, XX question. in we XX will and then -- we well, to commitment if could think the and our house ago, assortment know years I that maintain you ceiling customers and the and we marched kind XX% and through a to a a do give of compelling brands XX%. could of right your

candidly, and hit that Then happened challenged what was supply COVID chain.

very exclusive where in increase gave and really less exclusive it that a brand to we brands nice had brands. resulted us So, penetration. unplanned access a And experiment access our third-party to in

growing XX%. At were the XX%, time, same sales

exclusive grow the brands. put say, So, as business topline two We certainly when together, can to years see detriment in three don't those we them a look, and growth. we facts double well, we

if that -- on public question, -- I by won't promised to have had this where do go because there I'd that or business dominated to be answer really by category that much call, I national I category have you a I go certain departments and brand If of and less to our the parts brand would strength others certain or are have higher. two ceiling are the

would departments. up So, all as rolling -- a of composite company, those ceiling number our be and

a guys regards. Got and it. very Its helpful. Thanks best lot

you. Thank

Please your question. proceed line next from Komp of Our question comes Jonathan with Baird. with the

about in afternoon. just like ahead. Yes, million that you're hi. broader unit year embedding years. The whole question. Good wanted to volumes mature a volumes seen few the the looks store X.X It ask increase I in past for you've unit

confidence in in change level? holding any your Just that

you up factored you And about the or how provide? think of you macro that then as perspective have any sales give room can starts this the year any Does on unemployment sensitivity? in tick for based if to enough sort build trends, weekly

on is but similar slightly we've to Jon per the -- now in months. the in presentation, which That similar the the says, store sales average a past. used a supplemental is to for look, alluding step-up different a it's had and slide slide So, page we've that been folks in XX, XX call, the

comp we're five roughly to triangulates has while that that gone comp. basis to down X.X And a slightly X.X from negative a

out kind expect same-store business that's it It range be stay better the of X.X-ish that? guide We which there. that in probably. chart the and going bar this to forward, Could is sales than

what's an much in are the cap sort that the retailers of the we have think things discretionary insight out from of happening keep who I into calling some the standpoint, are some of categories, on eye mega a of broader a softness macro trying the to population. portion

we're So, keep little to bit. trying a

guide If you our our gap. more think is our that's than quarter I and look the at guide, current conservative

includes margin, maybe and give center? thank this Any step-up take. how you're that That's perspective you. from question expense rebasing quantifying on or additional growth just margin in unit It the helpful. you profile. share XX% operating And Yes, then year can looks just around much the the like distribution

long-term you year? And realistic then your XXXX it and out algorithm we after reset to the beyond, back earnings get think is to as this to think

and occupancy basis just Yes, Jon, worth guide deleverage of points. of sales some out you walking move same-store year around the the XX is the the through negative for

the us up that at look you from a us cost that getting acceleration step-up XX% of from growth is the ramping on points basis store If XX% new to about deleverage. XX occupancy

to that The rate, center the to run from we're And points full basis one the expecting We're see that's country that we some freight from up Kansas City deleverage. now. relief distribution about XX where expenses. of center is shipping get of once

be XXXX, So, that helping to as run rate fiscal in will us. again, get we full

get approximately We've got we're our that stores doing remodels right. to XX brand some of to some XX stores,

that's a basis from us XX last points. costing about step-up so there, in that's And that's year

then lapping points. XX of there's the week XXrd And basis is a about

in So, point just we year, this are those think that's margin that perspective, are together. things that I a of that from the and leverage slide some outlined dragging put

back we of the back to topline unit future. new whether As recovers be outlined to and sales the at low algorithm, the we XX% would the growth following growth assuming mid-single-digit growth, gets of that get to the continue turn kind year, to expectation to same-store we've into the the the

on occupancy, reason And so but to we of we little can until at least that get algorithm. there's rate that run bit a to more no think wouldn't that a that's back drag full get initially

growth double often we're sales year. around basis assumed use think the algorithm, XX% new exclusive same-store algorithm XXX we doing with at add If brands original that. $X.X stores for If commentary It unit XX% algorithm, new our went through the doing points unit as the million, assumed would just could abbreviation growth. with a grow I new stores I an and growth term it to the we

they've five grown Over two years, the last year. basis a points

XXX.

Right, you, our XXX contribution. basis year. points points a of Thank XX

wildly at of at we this if year, look EPS growth, we're years growth. And to EPS guiding ago, you $X. we're $X sort XX% The would three the at algorithm. were we EPS, really algorithm exceeded So, wildly over XX%

back you would getting period slowdown, at year acceleration if an the look be year's than most So, algorithm other recent to a comp. the multiple

on do the for have quarters. them and all lose of this grow call multiple to the the last we're overachieving everybody of sight want business doesn't make that how I comps So, on other we sure few than levers to

guess any here? I get growth is what back I'm can't asking multiyear you base being reset the And a new with helpful. nice earnings really see there you've that do delivered? reason is, That's XXXX after to Or the strength you

I'll take that.

we obligated guide digesting XXXX just a everybody Jim about give to have guide. So, feel XXXX doesn't their as Watkins

more try I if things to we of or look slightly confidence the keep pretty high growth. have open to the in we'll think a next stores XX% two maybe year, because we'll is we degree XX

to build, lot we or and see a to had a bit to or couple continue exclusive of last it two bit over a The that's piece half three little years. four And continue back whether is We've We've expect points right? same-store points. growth or murky, a more the little perhaps more incredible brands given sales of now.

out want for XX single-digits, back be but months low fiscal intuition me to we'll a guide. lot we're mid-single-digits better My that putting in XXXX, that tells when whole

upcoming the building million sales engine of is. is will momentum. generate lower $XXX be And months beta that worth is, XXX thinking comp where of the and than have the slightly million in is, than that maybe store you're XX if next where or of slightly higher do EBIT regardless really new we will what stores that, But the $XXX the about risk but

comp, or sales going or this to look we're that's sales a fact get EPS growth minus for you $X seeing comping that total a for this And we're see still total if X% X.X% we're continuing we're growing. upcoming than total to year. growth, we're better that to that year, despite down at to guiding Because despite number. sales where slightly And our still the assuming

feel about right how So, positioned good pretty again, now. we're we

Yes, luck. that. through that’s Thanks really all helpful. walking of for Best of

Jon. Thanks

Thanks Jon.

comes question from BTIG. your the question. Janine line next proceed Our Please with with of Stichter

the Hi would to seems than longer weaker It we expected. everyone. for want like about ask have I e-commerce it's a bit business.

business you strategy there of prioritizing and terms profitability that's the the there of So, stores change to with in dollars? just advertising the maybe in of kind might if wanted a there's anything could strategy still e-commerce? change the prioritizing understand potentially anything Or of case

those along in confidence turning wanted then lines, it And to in your flat QX. get just

So, the also part on is e-com? second

Yes.

and accretive. don't more stores, to could retail certainly change. just a the spend of EBITDA channel. focus, Yes. to e-commerce online I on eroding, spending how promotions We not profitability earnings grow that's be to and chase similar going Janine, but we we don't more it short-term of and business as topline No well know, we mean have think EBIT in you our growing the the sort tend marketing boost and is be to

I in XXXX, In terms business been consistent be we of that of where quarter numbers, second cycling we've the it negative pretty think that the fiscal would turn positive. see would

we haven't been surprised. So,

to look flag negative that don't the bootbarn.com if competitive out of people already price as that investors and sheplers.com. be is sort business often ability back the bootbarn.com.com might be surprised thing is the while been sheplers.com, it disappointing other the at brand. business one difference than our being all, a not gives marquee If be. split which when down when it's we've a strategic -- And between we e-commerce, by at at us look It's to isn't had -- ever to us we to dragged

think I we're business been. going as that operate So, to we have to continue

work. done turn just that customers I for organization capabilities that continue quarter think it channels, our building pretty late across some degree and good. still to confidence -- -- focus And the to out by is mid we of of incredible on will it's we positive second they've part are

now now to shipped imagine experience. ability just stores, the amount possibly incredible, The ago couple all stores, product that it's stores our could being build business gives put our that not shipped from of shipments years in versus third from e-commerce a best is the of the our in-store shopping about us of are of you a which

we sell, can the if the And markdowns it doesn't move e-commerce channel. through

can't to I certainly boost to want about team how the dollars been don't and line. the sales say has well digital spend I advertising unprofitable So, enough doing

basis the fit on know freight. you follow-up year. I a said this then And perfect. Okay, points XXX

Should a the not over expect there in that about some thinking think two of we that last basis the sense that I freight back, you've you. it? kind is you're you getting lost is how get that XXXX? from you're Or years, points just headwinds. Thank of fiscal all few it over

question, great a It's Janine.

now, XXX I come to nine think where to months probably pre-COVID from to seeing to the have what in. we'll we'll how of we recovery back we six in what we I for in now XX are have really then or months some see think even down container better XXXX, guiding from comfortable it's that macro stabilize. idea year Again, back We're but the last just going back and gave year, fiscal points levels. following get costs to feel basis of that freight rates a settles

luck. thanks best of very much Great, and

you, Janine. Thank

Our question your question. Bank of next from the Jason with with Haas line of comes Please America. proceed

stores are if the that curious talk afternoon newer the in thanks wouldn't you with my some and concept resonate concern good customers there's in know Northeast. markets, I was the that could how Hey, for questions. your particularly taking I in maybe new about Northeast. performing

could those been stores have us maybe you how tell lately? performing So,

And outperforming markets Sure. $X.X that has thought as true billion. new we New Jersey. Maryland, legacy Virginia, markets well store store do as and like sure. Sure. Pennsylvania, $X or million our new million, New proven for model million updated like be in to could to California we've Historically, $X.X a Texas They're $X.X and York, that

rest to And we Western the while the in seeing the new seem that wisdom, country. country, selling it proportion conventional product in to equal of are stores may part of

new we'll the Island, boots, boots cowboy the and -- deck hats on -- like its Long of not it's be all model on up the page in on we selling eight and a store someplace. it's with par and sorry cowboy page it's work open store on So, jeans selling and

Seven.

sorry. seven, Page

money. summary, we have there's with pleased in And risk either one XXX the quite opening two and up concern or -- today our well, we're in new the stores, then zero while lose new stores of store about, So, markets. downside what's but some new openings or often

pretty downside the for risk is So, low us.

and of So, we're between that continue million $X the expand to will scale, and new across every we'll us revenue million get degree That to for that footprint additional unit continue going build the we to country. has certainty continue a the of more to of economies open. brand high give $X

That's that at great. is think the XXXX? XXXX because Is XXXX a I you. fiscal follow-up, Or in Thank to than And a it more that leverage leverage looking point for point X.X% beyond? good for fiscal was as in XXXX. then fiscal and investments SG&A about less like in there's --

cost-conscious on to it's is bit think higher, what but Boot a here it's maybe to in look I where a update our forward. at line changes we're with maintain we've you use at And and something If trying Barn. but historically, constantly number and that taking we'll on that, good going been it's been. that that [Technical we've improve at little expenses a Difficulty], is culture

away and save And can we some business will going same the into those chip and so provide invest the continue that continue in ways growth costs. us time, at we'll But that things at the to we're of future. to to

Jason. on that, updated you keep we'll So

you. Thank Great.

you. Thank

from of Please with William proceed question. Blair. Dylan next question line Carden the Our comes your with

Thank you.

Just kind of margin conversation. getting back to long-term the

so point, years. Another you've use private added margin, label years, think, way been that penetration. or numbers doubled of points you've basis it's maybe given, business you've question of largely the to of through asking merchandise which kind I however XXX many four over, At

At But XX% yes, gross get the that know know takes a to were this of you to puts lot line guess? between XX.X%. I of structural and in on hood, history, being at kind I else margin behind freight the But deleverage your point, margin. there's business. gets Is math level item guiding simple occupancy. XX%-ish just that XX%, and gross you're of point that I kind equal? of you I a the all guidance.

year. Yes. get In against XX.X% fiscal the did XXXX, to we

marching those and planning sites internally. XX% growth occupancy and XX% we're and I and think to it leveraging costs same-store more is what our is business towards and and we some distribution sales center buying in the have how returning of that back towards

of then remodels. was Excellent. an there offhand And on sort comment

putting But warrant into something increase, remodels last you Any you're I going drive the that? Is kind on or boxes know going the been maybe of to to than in a maybe comp? that did some year. is is you bigger XX think what them comment current I -- that's year -- said number something that retrofitting. more to forward is historically? accelerate, that has that

Yes.

we'll a a And certain a When we'll sales relocations tailwind comp box of the drives nice within do see -- will that the for then pretty of it, comp and bigger some we us. we'll So, we can out often get size. market, drive remodels, a if than some typically growth. expand do and number

that longer lot or now for a stores at the that the chain are so need remodels A the in XX in have we're of been need years looking or and refresh.

need And nice so and to into the stores, there's looking lift not that plan need do we those it's but necessarily future to them a we them and way to. right comp that we get something functioning in brand the

we something stores XX-ish started to stores As as that as look try couple years we'll at those I a smaller we whether to is number, all in last would go continue degree. that's next right. it get into a year we as expect the new of far

shape. years, need several lot the we last of are built If those a the stores to those some But work. about, over other think in stores XXX that, prior you great over all

we're so take off. going to And those

kind You question. next answered my of

kind you as or takes through So, work or year XX as you're saying? years so a those XXX four more kind stores, what round of of numbers, far magnitude, to less

around a little this $XX in million the the Dylan, the Yes, for at maybe year year. budget Yes, number, longer. And

Awesome. lot guys. All a Thanks right.

Dylan. Thanks

Dylan. Thanks

with Tarlowe Our from proceed question. line with the of comes your Jefferies. next question Corey Please

Hi, congrats he's questions. to there, Greg don't if there around announcement. thanks on and retirement know but my good if taking Greg for afternoon And is I his

Corey. you, Thank

are. you So

current to Kansas looks like? one, on maybe you ask built distribution us, I about what you So, number in your Could wanted the remind fleet that center distribution City. just

around next last the fiscal year. added over two stores so XXX adding you you're Jim, that XX years, in mentioned or the you And

to stores the lot benefits some this of that Do a feel new you you us now ahead? clearly, So, of the growth are be built to able there's the new out And that new built? DC store like up. just remind have of you ramping support capacity

Sure.

the that in distribution predominantly. distribution oversimplify have we Wichita, center care on a the takes center California piece, In exclusively. slightly. So, had office fulfillment first of we've going to current I'm e-commerce care a historically, to center close that stores of almost And footprint, relatively takes the

for some stores So, the shipping distribution that only. e-commerce center but a a of line is California bit little Fontana, let's assume blurred there,

of That was hitting we and DC was sort coming. this capacity knew

is our had sales so that a build actually line is but to what City sales -- a way plan we fast had pushed was plan. we Kansas sort Fontana its -- And breaking coming multiyear of fee the we it's grew center. year. And City So, scheduled, so ahead almost as happened distribution our Kansas originally last online of to,

That care of Western with should the four two store a for years. will Fontana half Fontana again, and -- Kansas center states those the sake, take Eastern service and Kansas that split for will five will base, in distribution capacity and City our states. or distribution of good care City centers, We simplicity's be the take standpoint from country

of modeled brand it. we've way assumptions penetration comp the new a low growth then and use to mid-single-digit continuing If unit build, XX% and we that's exclusive to

on that. been to care would or it, East would take stores like on The next XXXX And come be east call Coast. the have the of one XXXX built in it or something even further that

needed that the we'll to store sort in be City be have stores and and will more expense value-added associates two will done and efficient driving service we The case, benefits presently focused are, Two, the of well, done product particular centers is be use D.C. that distribution a are just be because center services freight outbound partners, them, to call will the bit each able distribution stores, labor do store the have we now end some in the stores of of sales course, lower. customer or in floor-ready this primarily the of one, capacity. Kansas which and closer our as to on will

there get we'll probably a timely more fashion. It's in

case. a network to stores from of And or get of end your in your some or other typical sort familiar closer having the out that's benefit you this points

about that it. embedded the And most there's is? prepared on of the that distribution then the in in point? I this I slide what in remarks Got us the guidance. you associated at just that as opening well review center? some the think with what's believe you Can -- talked financial that's your impact Is just that impact remind that

Yes.

So, we and year, We'll $XX center spent million about the distribution in on up spend year. ready. getting this coming last throughout another $X million it

and distribution depreciate And next occupancy in so see of capital and is line. we'll through in that year that expense this we'll have that the starting center and full year to buying fiscal into

labor going The here is coming to shortly. be online

little And some IT in the number to in also. in that SG&A bit and a facility. there's that be related then will to so And that related supplies gross margin the

comps projected up. just also looks great. is be but on then up, Okay, it to projected are me be lastly inventory. are down, from inventory obviously Sales to And like

how of So, at you year? you could throughout the expect your trend of feel you the the maybe talk rest relative inventory about And that to maybe present? how about just positioning

of so. of take it's Cory, that I'll month line my because part Greg. or that's Sure, in sight last my

of increase So, more to of the last is new little that half that added a over in units inventory, year. the related the than XX% we've

stores half the unit first the well that the new as planned of as that growth So, year. of we've kind got in XX%

And centers is to brand. distribution our inventory related that of in XX% then growth about supports exclusive the our

inventory again, in So, to those two centers. brand that distribution need we more grow we house as penetration, of

balance store are dollars up X% the comp right? comp delta inflationary year's last is is of are up stores, related increases. then And cost the our to X% and of year-over-year our units about that price X%, And inventory right? the So, impact growth

we've the XX at at of and year the at the pre-COVID and favorably our of supplemental end look based guide, weeks I'm XXXX when we and of weeks If those deck. years forward that fiscal compares look were inventory got slide at And of about of supply on XX supply, and XX, of XX. weeks to supply we XXXX the XXXX, looking XX, our

about very feel good quality inventory we inventory. And we the very So, about levels. that feel of the good

grown many on for margin and side, of level kind many, merchandise at, on carried same that years, this As again, we we've always we've the of right-hand inventory. look slide

So, inventory that I about don't think anybody should be concerned growth. XX%

Thank so Great. you much best luck. and of

Thanks.

Our proceed Please Sam question with of question. line Williams Trading. from next Poser the with comes your

for Thanks afternoon. taking my Good question.

freight on on it to margin, it freight risk? So, freight How inventory, right have how to roll that to on through you cost the can so benefit the take inventory -- gross you much long take now? going impact the freight then has the that is for full the currently higher of that attached lower of

Yes.

coming been and coming the inventory through get our freight it about a costs year, turn twice summer were in peak they've to then. since months last then we six that so takes down So,

more QX, mostly expense. we'd freight that, QX coming in but thought little it through through we're bit but So, a Sam. a we've guided into so from QX, We flat get we'll of have

I freight with So, capitalized that. the which P&L QX thought through on that we're through didn't capitalized sales through happen. mostly just -- of think We the some get just get we'd additional -- in freight and

fourth ROI when you My business? you pieces mentioned the your discretionary, is, what women's quarter, you marketing of look you especially -- of at look the spend. in question is then about part the your the on when in like that the And reduced marketing

in as parts when investment disproportionate in be even of could evolving are doing better more well on -- aren't rather you business it parts that of that gets Is working than as the theoretically it getting or by as marketing the and could you others the working that businesses return a working get businesses cutting tough, marketing that the them [Indiscernible]? well,

could we flow-through EBIT -- expense marketing marketing, just the more it's question think mean get invested. that's in spend and more as the Sam. it that we as were long marketing, sales certainly prove I old the sales accretive around the out, would that age we if exceeded I

million to XX $X.X from marketing sales We've billion a of Our budget years. hovers $XXX year. in around grown roughly X%

current I or enhancing would So, money particularly online. more EBIT think not the marketing get budget. is just us be lift grow this an place, spending artificial doing I'm to helping at sure some

I least We do know spend personally where what cetera. even, the breaks under think of theory. last essentially, of at how spend there about theoretically, about just value it. lot do the to ROI the on et our going to past higher, don't online the marketing we we notion dollar lifetime be we point know and a subscribe that's to is companies that that I is that the sort way

if digital to we about to, you least be a have spend, at we'll we're -- from ratchet spend get again, trying that think breakeven. comes our pretty return as marketing, spend on if And above aggressive a So, a theoretical we'll dollar last basis, net higher we always a on down, bit back, there. it, marketing, the just return direct more. And

business brand e-commerce Is sort thing. like portion -- percent term -- call directed of that to like the is X%, efforts? last one longer of marketing versus, Just what of what it, -- that

pretty there. XX% tend terms and also of our in we our media channels Roughly of digital between the both some channels, course. continue traditional customers traditional in to all We're specifically. spend of that marketing hopeful probably strongly of But to believe split spend, marketing earmarked invest digital for to is drives and

I business, didn't that. let's versus overall the brand digitally mean marketing that do e-commerce too. can mean, marketing I brand against you -- e-commerce against marketing, say, because I against your not overall meant your

percent spend is you break that really business, how of on, the that of your I'm So, like sort is even to of e-commerce saying which want much against part that what -- total that?

it's back XX%. I'd of have to mean, I you number. get a specific to on north

All right. Thanks very much. Appreciate it.

Sam. Thanks

of Jeremy with Group. question. the Please comes Our your from proceed next question Craig-Hallum Capital Hamblin with line

Jeremy. Thanks This Hi for questions. Cole guys. Jack is on taking for our

that about about So, you'll about in per great? on opening run color be XX average the would And to comments follow then given XX FY construction XX% we assume your XXXX. rate one growth week, per that openings guidance quarter? about XXXX of lead-times, implies or that of unit any Can

the lead phased experiencing. Sure. and we're Yes, XX retailers that roughly are experiencing thing lot stores the that are of a they're time mean look, other a adding I at quarter same --

many kind conservatism see store aren't try developed. that this, some from into the and a in to other doing manage we time-to-time. pipeline it retailers will guess get there of that stores we We but I have the lead-times get just delayed

for few hats department our years off construction now. our we've to But hitting closely number cadence real estate been pretty because of sort and of a

that a the well. there's think as I fact, page In on in deck

digits several first stores quarters the today right two that at out very least quarter year. opened You're to XX this stores consistently we'll actually. call now. been We that it's of strongly double in I for hit feel

throughout put So, again, if phase it a evenly you're model, the I in trying would to or year. them build roughly

just then of to switching And color. great that's kind Great, inventory discussion. back the

you noted pretty feel levels. You comfortable guys with inventory the

specific little deeper. out little there is balance? category-wise? Just give drilling a Are down Or you just of a where any categories could inventory any color

very bit we've into Sure, getting you line, and or boot The about, work cycles a is to They in like categories don't they're to a out in will. the Jack, than we're Greg. probably if still those tend business. evergreen, heavier we'd but like and That's boots it's The two boots area. of and tend the work functional that. be come anything talked

concern So, in we and line. that any don't have we're about that getting

sales we performance be we merchandise expected boots or heavy, of plan good on on sole rubber merchandise were our those progress continued to we've volumes The middle that other our by on. category year. a really in categories, based kind this was And make both and boots bit expect to men's of Western of

color all That’s the Great. for guys. Thanks from me.

you. Thank

comes line Please UBS. your next Jay Our from proceed question with Sole with question. of the

so you much. Thank Great.

in then use And to have talk to how do use enhance Jim, you. Bandit. consumer they when AI ideas about curious for Just Thank mind about Bandit? Maybe, the experiences business? what can you you other

So, this it just week. rolled out

amazing. and at pretty when But of advice well a So, a lot in ask than we this silly it's a a it composite why point remarkable. cases different but or call just yet, for asking gives do it of don't steel toe toe is with is explanation in has crazy you everybody things. it's sort Probably, to pros, have sort experimented it styling of written -- you ChatGPT use some

also So, more help sales. our drive to be to sales associates consumer-facing piece. that's or sales the going used It's partners

of empty get you the the notion jeans they're getting if conversion real-time because because of I it go with with now basket being traffic, and Will drive their will kind levels know, it, about we can available the sort think store next they great store advice don't then do thing? can out walk perhaps belt where would in what this help it several And build handed that first, drive would somebody hey, of of saying, counsel even otherwise increased maybe.

If you associates have it sales more stores because use this least helps it, it experience. to store even more grow knowledge to great associates, if have extend hire can can they now we is and at handheld -- helpful we more quickly maybe continue device for crutch like they because new us appear that their

right? can over their XX into that handheld, we I going, time so go shortfalls cases stop. they're And where use knowledge there's typing are. other of I'll we're look that their logs far at the keep but through, what Then if we understand can I probably could

not say, it. in But like with we're at AI, a We're needless digital about we're the first about industry, We're market to in excited within pretty not But we're first look but if company. company, the retail certainly this. general. Western market to to We native excited native that. an market, feel do analog

great. Well, you it sounds much. Thank so

you. Thank

with line comes Our from proceed the next Please your question Kummetz Research. Mitch with Seaport question. of

that business hopefully taking my to questions. you ladies with line in for chain those comparisons. Yes, When referenced turning have and a Jim, a for on the follow-up. you're And boots apparel, multi-year whole? the that starting what I And of quick and get thanks looking tough more terms in as easier? perform is do a

business. rock-solid we -- looking for quarters growth another ladies cycle of always we're negative two the to think side. boots before merchants we team we and that business in the look, ladies a start apparel I And have on and have

that's vendors, during particular assortment. in we new So, in their a quite closely, They're inventory up category. expanding so their they're get also that don't they're bringing environment overextended managing sales

that towards so -- assortment industry-wide perhaps combination But and we're on marketing our much even growth our now the had drove that. retail we based just up had we against and trend Western of product

And and there's a defense a back around. six little to more time the I next little come just start businesses be those a see play we'll that But months you so, or have bit within prudent. to think

Valley, where districts on then weather, two including that severely comp were I California were Okay. And the mentioned in there that impacted, most down. and particular the they you Central think

that you the think you quarter. in on know XX% as stores I that or but comp? as I many the would was basis was points? don't much said that mid-teens Like impact could be, down XXX how say what XQ

might Valley some forward? can there's outlook snow through Central what's Nevada the then all so? talk summer into going challenging Zero about say and make that, the I you melt factored the also, that And know been

in business. called roughly they're or bigger. of districts XX. Yes XX% because and -- those business it's total half on on XX% right, of We take XX% points districts XXX of our store X% sales. It's And erosion two our store of XX% you if a negative if the -- out of yes, for or and they're two basis down it's sales XX%, comp a

just pressure districts those now, Jim talking down been months have was And the to the ag for XX drought. that related about

less months. we than negative them seen be And cycle to the that what so in to we're quarter, the modeling next as we've begin last in

guys. Good luck. Thanks Okay.

Mitch. Thanks

line John proceed question. Benchmark And Please with from question the comes our with your of Lawrence next Company.

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over There's question. great X.X a it's So, X million. I million, think,

members. A it of go sales two-thirds year last It's dollars our program. that Rewarded think more than million X.X B I little bit was through

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help. Great. thanks Good all luck. Thanks the and for Greg,

You're welcome. Thank you.

I Jim the session. for reached over the question-and-answer turn the remarks. have back to we now And closing of call end Conroy will

went Take I look forward call. Well, care. you first our thank the call We sorry, all for everyone, on today. I'm so joining with you, quarter long. speaking to

you And this concludes and lines may you today's your at participation. Thank conference disconnect this for time. your