Boot Barn (BOOT) 2 Aug 232024 Q1 Earnings call transcript

Good day, everybody, and welcome to Boot Barn Holdings First Quarter 2024 Earnings Call.

As a reminder, this call is being recorded.

I would now like to turn the conference over to your host, Mr. Mark Dedovesh, Senior Vice President of Investor Relations and Financial Planning. Please go ahead, sir.

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

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

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

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

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

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

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

to XXXX and We’re our quarter with our very year first fiscal pleased the start results.

the last from feel by was and by performance offset We same-store periods. prior XX XX% a quarter, about and a business over sales. this growth the stores X.X%, sales months, decline, XX% year driven consolidated and in low-single that ago given new two-year sales added increased the consolidated During great plus and same-store primarily cycling digit partially total sales the plus X.X% negative

are sales stores with we pleased online Additionally, for quarter. outperforming both both the in our quite businesses and results the with guidance

drove by growth combined in start $X.XX of compared expense the points line to diluted per to sales of deliver pleased basis strong control earnings In share during during to product with extremely with achieved quarter, margin guidance I’m of we points brand and addition team’s the our primarily execution results. XX sales continues with quarter to both the and and more solid strength top The XXX of performance margin year the expansion penetration. basis exclusive bottom than $X.XX. our driven

I’ll time now four strategic initiatives. discussing of each spend our some

Let’s base. begin with expanding store our

years. openings, states. to to New expectations. With across top able stores stores ended opening two the over our our to continue the the add have first acceleration line XX stores outperform been in XXX XX growth store quarter, of new open and quarter stores last of new with XX we our we With

teams stores up thank built new running merchandising these estate persistence the digital and collaboration operations to like real I’d and getting construction store their in and for successfully.

strong or of stores to first ability long-term continue XXX to the volumes months XX with unit the United year in in stores goal pay average Our fewer stated achieve States. more and our confident remain in new across our than back

negative, in declined and sequential X.X% bulk month sequentially same-store comps a with the still sales Moving consolidated improvement improvement in throughout improved average sales by the growth, to in by our store. driven quarter transactions sales X.X% store declining per store Notably, while comps declining second was sequential initiative first driving same-store quarter sales e-commerce same-store XX.X%. channels. retail And same-store

department Men’s low-single boots western positive merchandise two-year our from in and and double-digit showed sequential major year-end from perspective, in and boots apparel From first end. a Ladies periods. nearly digit categories sequential year merchandise all apparel comps. quarter, improvement while cycling showed improvement ago achieve year the declined comps the fiscal but in ago quarter strong a

growth The chain stores same-store decline and South with From and North a better average active perspective, performed members the line program we we pleased continue sales slight B and mid-single are chain chain West in quarter. base very in a From lagged geographic with end customer a of as the see the decline customer in the than Rewarded our our of both with to showed the with our East first performed regions a average. million digit standpoint, average. X.X in loyalty

the growth of as from This represents of of XXXX. million XX% end quarter members of X.X first fiscal our

of segmentation reach western the the attract brand Barn have as broader work customers. Boot strategically foundation narrowly the more of we Historically, Over on extend a focused few a to customer past used consumers. the was range and and our years,

lifestyle the the Over we’re while western a [indiscernible] the and ongoing we smaller as count encouraging quite fashion. few targeting development somewhat segments both size as we the is of years, expanding core newly segment past also women seeing work customer customer of seeking added inspired as The added segment groups. a country are western well the

of store brand stores, also new seeing would we considerable customer performed. we customer of spend a base, in of provide a legacy the highlighting while to number our growth the recent strength customer healthy country. capturing survey as to in-depth In like I minute Similarly, order are with builds a across in customers the our portfolio count understanding the more

part wardrobe. that is of than product confirmed elevated over customers fashion of the trend by us seen as driven further a lifestyle volumes everyday store purchasing last results their with of not and and more survey the have were years First, we average western XX% couple are the because work transitory

a Second, as the factor for responses our the to over we saw wearing Yellowstone not the acceleration significant customer sales reason seem X% only with several in product. a years television behind show last citing be does of Yellowstone

to propensity shop months. customer’s very shop XX to to of likely continues customers with high be very at extremely over over XX% Barn Boot likely the our us next or either Lastly, again with

there While sample we acknowledge that data new their the consistent see is bias and that are preferences. with results customers in are that to shopping a we regarding pleased server receive, our CRM responses the we

results, we financial survey more refer details to today. the For presentation released on the please supplemental that

over fourth our the fiscal the to third was Sheplers decline in sales which the the for growth brand Boot declined did sales quarter. in strengthening Moving our Country leadership. see e-commerce enough offset initiative an our XX% Barn In our but same-store not and Notably, big first from XX.X%, a quarter, weakness Outfitter brands. of the to omni-channel quarter, positive improvement

beginning early a with We omni-channel continue growth have September back are last e-commerce sales, quite business many we trajectory achievements when our in to in late easier. or to positive the year slowness pleased we perspective. believe the comparisons an become October that seen e-commerce Despite the from

greatly our First, stores. the has expanded digital influence the in team

intelligence to facing get in Bandit, out have rolled shopping adds styling store. We artificial tablet, expert advice customers to customer helping our which

and same have to equipped have from or the great ability our artificial we every shopping we provide e-commerce We’ve all capabilities nearly and Today, most of with intelligence progress enable center ship fulfillment made orders addition, recommendations. store store call an operators product perspective. to from center. much In them distribution also associates e-commerce any the knowledge richer to

minimize we through that limited system-wide have geographically to This will less by amount time shipping a by of margin closer clearance It’ll us moving cost enable to us shipping the customer selling aggressive demand. and markdown. to help maximize at orders also

fourth Now initiative, our strategic brands. to exclusive

of to This of XXX increased greater points is our XXX exclusive basis points brand compared During basis XXX to of to points XXX of points our quarter, year-over-year the than XX%. quarter third basis first stated growth. our historical growth basis penetration over consecutive goal

now We an growth exclusive to basis exclusive margin providing to has of to sales. the third-party profile. year basis brand added points expect brands. With XXX our brands X,XXX compared to XX% incremental penetration penetration This points by meaningfully fiscal for grow margin of

the recently Missouri. of brand last our adding have in support chain by center capability To in count the exclusive and we supply over distribution couple store Kansas City, growth our we additional seen substantial expanded an years, in business

As not pass inventory does stores most is a through third-party vendors to reminder, fulfilled and center. Barn a our directly distribution by Boot our

merchandise However, comes that when ourselves. it to and brand our demand we in our product, the store replenish warehouse exclusive DCs

up DC opened of and goods running smoothly their time on over the the up We operating IT any few disruptions. and begin as the to to getting throughput world-class supply thank for is to and our report execution pleased without want months. I entire DC the new are major ramp new next facility chain teams that we and

quarter, July On from a current declined a was improvement business X.X%, our our to which Turning first slight an June. but business. deceleration basis, consolidated on

Our same-store the performance retail e-commerce of XX.X% the sales positive remained month for July, month. in declined sales while store

it to comp also business ranging months. has four proven with to the to unpredictable it exciting While performance be is the X% see over tone improve, negative past to begin of weekly somewhat positive from X%

to for Watkins Jim on volatility this provide sales our of will the in the attempted guide capture this which Accordingly, second call. we quarter, have later balance

balance pipeline comp to of about and for year. the locations new beyond feel of store continue great sales the Looking growth, we the performance the the new

which any positioned brands, an extremely comes are summary, we that well We’re growth the a also margin through has In with environment feel our month. quite that macro exclusive way. penetration for strong July saw nearly to for product solid uncertainty our persists, pleased navigate in we to contributed while

like over the I’d call Jim. to turn to now

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

months, our decrease of partially from X.X% the of and e-commerce As same-store stores sales in comprised sales decline performance XX.X%. of X.X%, sales open a during benefited a of new a by Jim decrease past mentioned, sales offset retail consolidated same-store same-store store in XX

million, XX of buying basis point deleverage point XX margin basis The of percentage and exclusive resulted X% and from in costs, sales. resulting distribution in freight merchandise driven compared primarily rate. a increased a XX basis rate sales of sales in increase $XXX Gross in The of point basis profit $XXX product point period. year increase center points or lower was gross prior expansion, gross penetration points margin XX.X% a or profit brand million basis occupancy expense of as XXX the offset profit in tailwind margin merchandise partially basis by decrease XX by a in XX.X% XXX from increase to from to of rate

the or Selling, million the to expenses The or general, of compared XX.X% XX.X% $XX increase year million sales over primarily was associated stores expenses expenses prior the corporate sales in store result of for compared of in quarter prior administrative period period. with period the related higher and year year operating costs were to SG&A year. store prior current the $XX in a additional an overhead and payroll XX

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

Turning $XXX to to period increased increase partially cash consolidated On inventory driven million year million finished the primarily with by revolving million store in We credit. over decrease sheet. basis, average a growth balance $XXX X% and an offset new line in drawn our on $XX exclusive was million. of store inventory. the approximately brand inventory This by comp X% the $XX and prior quarter

Turning fiscal to outlook for our XXXX.

guidance second our year. quarter both outlined financial and As our we’re for supplemental full raising presentation, in the

presentation range high periods, both the for will end guidance the lays only I to end the As in our out high and low my remarks. of following range of the speak

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

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

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

XXX expense flat in Gross of and profit costs. We reflects distribution occupancy basis anticipate deleverage an freight estimated margin, including merchandise increase year-over-year. XX buying points in basis point center

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

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

quarter our our for of year are and first quarter, second guidance. full performance estimate result the we raising a our As updated

remains Our unchanged. of guidance for the year the second half

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

This of compares our guidance previous billion. $X.XX

and store decline X% XX.X% of an to decline deleverage center and $XXX sales. a same-store expect sales We expect same-store retail sales anticipate of of from e-commerce approximately merchandise our sales. decline points X%. distribution gross XXX in same-store and buying XXX same-store now sales previous be store X.X% compares a X.X% profit This e-commerce retail of including flat basis margin, in guidance point We profit a XXX with to same-store basis X.X% decline with growth Gross increase of We sales freight point or a improvement basis estimated reflects costs. of expense. to occupancy million sales of

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

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

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

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

Jim. you, Thank

acknowledge Newsweek well-deserved We’re year, an America’s of Boot during the the want the some team best I and their year. are conducts list performance recognition. briefly the survey looking entire consumer Barn retailers. financial quite to a work assembles balance with independent pleased Every thank quarter third-party and our for first and do hard to forward of

measures assessment few well product factors. assortment, and merchandising, on view a in-store the as store design The service, customer’s other as

nationwide Barn all working deserve. XXXX, highest forgetting the accolades thank entire Boot to Congratulations. that XX across of list you team so the for you For score topped and A hard any heartfelt with that retailing. different the categories of company

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

Thank you. with Matthew Please proceed. JPMorgan. first question is [Operator Our from Instructions] Boss

nice Great, another thanks congrats quarter. and on

Thanks Matt.

comps maybe best saw help return down of which through just level that about obviously positive June how that And the your do you to comp the embedded, then just you sequential as cited think both quarter, you and assumptions notably could traffic to Jim, a drivers the embed July. So forward of break you’ve acceleration deceleration? in store

that of Sure. that did answer a Matt, you nice clarifying to job one. wanted you Jim

it depending Conroy to take will to from crack. – I’ll improved channel a will want you look QX on, different first things or few QX, if this category, Jim by by at So The et a be takea merchandise progression cetera.

negative points. while our still improved sequentially X First, by about business, e-commerce

Our store two division, about business region full west by improved our improved notably points. our west

men’s the Within had some basis points. And improvement, western both apparel western by boots ladies’ also western the XXX hierarchy, merchandise boots trend men’s sequential about those nice improved turning had sequential improvement, positive. some of nice negative,

you’re So within there was by by whether looking number a or stores category at it of geography different channel by the factors, or merchandise business.

to the guidance Jim. looking piece, I’ll that turn In forward terms the of on other over

Hey, Matt.

we’ve of just largely sales decreased unchanged year for – four September sales well. left e-commerce sales over the increase August the off the been the the seeing So assumptions did bit the little second last business as and a half and We of what are unchanged weeks. left based we’ve and in store little a bit

and July August to with planned minus for improving September So September August e-commerce negative X% are in stores looks similar single digits. and to a

curves. at projecting approach volume using the periods again, when looked took contemplating And and the kind for last balance reminder, varying really four the we from the the April a which those guide regardless sales a similar spot got time and as also for just recent then March were weeks of quarter quarter, were a – of similar weekly most And of to and and the for call, used. of this it using sales we at recapping periods looking time of we at we year balance this historical the February, from the sales we

And then new color. follow-up you great that’s to Okay, stores maybe on that cited. just

that growth? recent now that structural some to the newer you’ve higher mid-teen of on productivity business key you And builds maybe that touch on across support you any store the can store your elaborate made could So just seeing from regions? you’re changes

that is we new $X.X million Matt, in had as algorithm. we’ve the original The long-term calling our And in store been what new recognize, sales recently. double line with fully you productivity nearly out that is store Sure. thought originally

develop coast changes, infrastructure one to maker the to east In have terms of the of added help part that run pretty do sort estate lean, the tend that we on we of sits country. real what deal

continue working within people setup, merchandising we more network. of We organization, some We’ve the think of cetera. bit, course. broker visual have project few in the ads et then couple solid added a help training the use program with managers extensive that process an field in-store a within a organization, And even maybe more our where store onboarding new new And and than new quite teams to really we have a I changed managers a we’ve for store. and to

that transfer bring to promote a to soon As manager relied the assistant to as out it them part apparent Barn HR Boot has weren’t in methods we on store and external able to going be figure always be them the manager store a of well. extremely country, and teach to to really another became sort team we that Barn an the team culture. to Boot way and the ops the worked talent of And

openings, about our top is side at continue to to optimistic XXX. working very be out We of what continue feel their pipeline, store just proven target stamp to our least new kind we’ll a And of performance, model. our

helpful of luck. Really best color,

Matt. Thanks,

question next Steven Our is Citi. Please Zaccone proceed. with from

anything Great. wanted anything potential trade on I’m been that changing a week for about my so perspective be volatility purchase taking How to Good your much the from by just that’d has I in curious nature commentary that follow-up whether guess, that. question. down regarding over activity, last south, for in there of consumer hot And is or weather? guys. months. I Thanks the two been it’s it’s comps helpful. know We afternoon of the your some

– necessarily didn’t always tougher down been it’s We’ve extremely submit pin out, big Conversely, to you’ve weather to had – have We’ve concerts have difficult down. concerts business that had would period correlate LOI a parts the factor. external hot particular of that some that just spiked business. town it in I we’ve country come in conversely Steve, pointed into the that that some of as our great to brought business.

to important other is because used little call been July a of the just good fact tone second June choppy wasn’t that’s the in July great, quarter, of recently we choppy. do take out, feel it to and word week So of when note we to the by has we felt a the we been kind guidance been present reporting was out and last that, lay companies were business, but public the about were It’s trying wanted great. so it for

kind uncertainty into hope that quarter let’s for guide a build that the or balance that to So for of year. all for build and of just the of the matter

Okay, changed, to that Then for detail. Watkins, I be doesn’t margin much gross question freight Jim still has I but in it the expected sound on year-over-year. appreciate outlook, I noticed a guess quarter, just flat second the like

So that largely weighted. be back Is like it going benefit freight sounds is fair? to half that

seeing were That that’s again, what this and is quarter we with right. kind The freight we last of the reported the this would year Yes. first consistent half flat be and then get the on get QX basis that we’d points into XXX we really significantly year. tailwind and QX as to and full benefit of to a us up pretty see pick of

Okay, thanks. Thanks very much.

Steve. Thanks,

Rakhlenko Our next is from question Please TD Cowen. Max proceed. with

Bradley for on is this Jamison Hi, Max.

can percentage higher fluctuate So could more to of a gross state compared normalized now to Jim or margin. sticking then is this sort of you today how with your pre-pandemic? that expect or trend do lower where you to ahead? And first goods ahead? Is markdown they speak Watkins,

in markdown very and as it to sales again, place couple of pre-pandemic low historically the of that expect where we but is to great over in it’s a The we seen we’ve the pre-pandemic. move years, line the and forward. going historically markdown with back we throughout year it question. stay was Yes, percentage, where similar a much saw years percentage last And

implications footwear and the footwear years will Conroy, Jim Thanks you that mix shift think what trend then over you lower that few And of XX% think year do mix last the the you guys. few do a in to fiscal over prior declined to from And continue could What attribute be? to XX% decline to has the do Great. time? in past your pandemic. years XX% to

ladies tend a share glass It’s most grows grow more XXX – And Sure. some ladies much, a We’ve little to a under XXX%. had Great percent pressure a be considerably. more one apparel of would guess, of plus business pushes XXX. to we category half add question. had course, roughly And to it recently, full. the view businesses year because businesses, I that has it a that when apparel I a just where need while so the I bit. is remaining as, to been it’s down grew notably

flows I either a now, now, XX-XX, and is don’t think we’ll way that footwear other XX-XX. from again, ongoing this of years ebbs five years five be we’ll one over the I on the see or few next years, will side trend think probably XX%, roughly from

but mean, margin are the the split nothing across In really footwear doesn’t hierarchy, looking apparel, further footwear between you the almost terms it the margins businesses the margin if differences of into to apparel. some read just less get and profile between into the of profile, and there’s meaningful business. I merchandise similar at change you’re pretty that. There are once

you bit And reaching might an means, have they outside western looking it’s of over like of to already on tangentially apparel. what be think a I Barn Boot ticket brand footwear. Barn, more out brand definition Boot a interested work time, easier anecdotally, And enter customers then like them I more may in the as give or purchase we little customers. first the with broadened two more that higher the that, one sentences invest the in into core think to for I’ve categories

of Great. Thanks guys. Best luck.

Thanks, Bradley.

you. Thank

Please of Bank Our question proceed. Jason America. is with from next Haas

my and taking Hey, good thanks for questions. afternoon

on It now. drag, what provide least the bit a the a wanted could biggest more e-commerce business. at quarters is if been was business. up on I follow I couple curious going on to color little just Sheplers the for like So sounds you with that’s

and has to doing, to So start the you’re start just this, but curious get will I what just easy, try why declines. been if softer compares to know lessen business I’m to anything lap you’ll those curious that

line, question. business challenged that both Sheplers The come and have top have traffic conversion great Sure, their down. has dimensions two

So something we for cetera. on about site, tide conversion is on internally the trying to anything can to the sure et stem work are we the there’s setup,

the is perspective, to traffic paid Sheplers of half traffic. a about traffic From

and – a view very to we on top out we So hold have ourselves metric. return a is go spend algorithmic traffic how sites, to our funnel of which profitable ad we drive of and

in return spend So on down while it be once we could lock that ad would spend, if we improve eroding. traffic and EBIT traffic, is more

So we I purchase, – unprofitable we the be do customer next after going it. if and bottom really we line just don’t mean, go an we to is behave look them. at won’t the contribution

we improve to certainly to business. to ways that are looking try find So

around other of plus is bootbarn.com has the dimension, the country. think billboards I course, XXX

they’re We’re players share, at – look will in et with always vendors, cetera. XX% whether portfolio the that we’re taking time. the business, stores. company or over we sales grow we the that we entrants But think business an come through while the business omnichannel are that that full prioritize There new e-commerce the clearly the are when other play of of

when I head coming five-year are as we’ve has more think a on several And now last of digital for see I stores, starting for us to and start native strategy open got people the others. we all get difficult Yes, years, the strategy pay start to starting now worked us for them. while that to for somewhat e-commerce look stores, at over back unconventional and and that to us is brands to off traffic

to on of That’s mentioned you. great, you And concerts thank volatility. response comment the earlier a then some in as an follow-up,

about I but that. this Thank tour. if what know other you. We’re to you’re to could don’t ones, Swift’s or get you referring clarify help that’s maybe questions continuing Taylor yes,

Sure.

the is actually massive out one when leaves she western our who most the George that town sort comes drive out sake an performer, business are artists our for town. freak Morgan will Garth of everybody don’t we artists. to business – Brooks, names or in The While traditional there the from Taylor of The for swings these of see Strait, Wallen, now amazing part Swift. more

Phoenix was a business Phoenix the Morgan so tremendously. weeks Wallen in spike few And we ago, saw

concert this I the Garth cycling week. in last upcoming We’re period a think year Brooks in Houston,

So what we week-to-week the out overall to try the of normalize business low is in denominator called can month or quarter – piece in a this it or And becomes a shrink you a business. over the over in events digit concert enough, volatility certainly we’ve and the our single impactful. the of if look it year. period months a ourselves at past, that market, for just and It in

Got it. Thank That’s you. helpful.

course. Of

Our next proceed. Please with is Baird. Jonathan question Komp from

little year and on Hi, then I full recovery from second to a April, comp March volumes believe guidance changed Yes. share was haven’t you make more, look those and good afternoon, at and sounds it when based like then, And your lows. those the your want I you do bit just could Jim. ask, saw what you back back half guidance. you of just the softness you that

contemplated think and conservatism, degree it So you’ve of the of how half will? kind should just we second that you if and how about

Yes.

around the the balance for in year for the the starting comps of So of – month. with a months those store kind got perspective, that question Page were the of by on those softer seeing guidance what from deck goes and our year. XX slide we’re months through comp a we’ve Those the pure

kind the Slide of half made and recent back volatility the of for half it’s given little the conservatism is months, last there of now at embedded year. seen is, that right lot again, the where again, XX, the it we’ve half year of there more the back a sales But year in at sense. And leaving probably a the over looked the few the least in the so as of of bit back business, on depicted we’ve trends for

least that And recent again, the conservatism recent good seemed year, guidance we bit and XX weeks sense leaving earlier, made in again, approach. getting most through weeks at I did take of at recent cuts the probably it the leaving mentioned was as four most XX it and a and half it QX, looking where different most the like of back a there, little was it but and the some where weeks,

follow-up, happened to you changed maybe back at and looking and sort just of April, any there? what did what turned pretty And more and insight on have diagnostic quickly March

just whether don’t or we COVID thing against out in stimulus there I the the the we I of rain lot there. up there where credits point can omicron heavy and noise heavy around tax then and a any around rain one a prior back have that tax tax No. going know child market noise coming and was or lot or know we of or of weather that of onset and refunds to. volatility years were had

or ago bit little So March something three-year the maybe prior that in two-year saw where of is we there’s a noise. Particularly that in and is or creating April four-year comp the was years.

That a cost of sense. then you’ve year can Jim, support the I healthy plus maintained looks store on it base. investment obviously makes to in And follow-up this like pace SG&A, if initiatives growing

back and the level on should overall? really rate growth forward As SG&A showing timeline the and get we to of leverage SG&A, about think on to look comps we how

Yes.

We’ve question. around call I comp. think a points last being leverage on talked X.X% great is a it about around the SG&A,

our But where I X.X%, to positive if this look X%, of so we’ll think the tune and we’ve have returned leverage. guidance again, through and is. then XXXX to we fiscal into then some comp year can get sales And get something growth, what that’s a

that utilities just some seen some insurance thing. and over sort an years have inflationary of and the around pressure and supplies and last of rate costs the We several wage

so would around subside, that’s as SG&A inflationary help the also an line. something pressures And that

of helpful. Perfect. Thanks. really luck. Best That’s

Thanks, Jon.

Thanks, Jon.

is with Our from next proceed. question Blair. William Dylan Please Carden

Thank you.

Just sort business? distribution the support of level new of how kind added thought business curious couple of It’s think Kansas capacity I a you’re broadly you’ve that higher sort ago. even private out label for and we’d that growing City, and of years can that of of thinking what levels even still

basis points We seven it east should coast. take modeled more the before increase an add on our of store we have likely Yes, we’d to care a of and way penetration have absolutely or year. it sure. exclusive growth additional needs. capacity – XX% which be of brand trajectory probably XXX it about If facility, – has have Well, stay six the years each we on is been would

and to sort the brand partners, your Does channel. to half? inflection? Got Can But the you. own back as have you you’re you times of the some but the here it, couple the that business sort And to part or the of of what brand online help with guidance, there channel, necessarily is in conservatism. the comparisons, sort I’m channel understand related of you’ve I understand partner get about it guess, a your of part level also been to on do I kind stack brand what of basis. seeing maybe I us just easier a guess you behavior that it’s of not trying asked of seeing look and are

Sure.

a about couple are there think you’re – if vendor our yes. partners, talking I

their think out in business. are that’s there our increase at are of there’s in are DNA, a other on to they years. I higher always for few They step right, consumer. been up marketing of spend. I’m direct the than digital seeking last the from our But in perhaps sure instances can course not been maybe certain that margins least digital encroaching get kind vendors that going an

have and to so does is come under a is just starting store’s where I when back I you think this, probably feel channel of think some – I pressure split. e-commerce the where I some retailers examples just think pressure. is for business there’s – gut there. – other the about It competitive there also

morning their on a theoretically Steve great in the reported to negative Madden could they’re company great brand a e-commerce a getting and business, And ongoing e-commerce. is – this direct be decline and consumer, – growth which

just site we’re can for novel sort could try to other different change on finger be ways the I really that fact more continue could the we it’s be to merchandising ways we be EBIT on because specifically, with It of and the spend, we’ll business But it put but to us. for the either So conversion. won’t the or the look – against, it going as as to operationally, many could grow improve competitive traffic can’t business pressure. chase a it, [indiscernible] ad dilutive some

far volume what week weekly builds as just Dylan, year, the the at goes month. sales that how and over guidance as the and stores, month the similar with look we to and, sites e-commerce about And did talked over we throughout of business the week that and

rest build updated in at of sales weekly as the guide And the quarter, were the volumes this looking for so those we there. we

year its on and it’s how a – and so the impacted. relation of seasonally percentage And as sales

that us the to e-commerce we had there put the that the guide to where it. gives year back so And confidence half and of leave

activity again, And partners sort reflush lapping own their really from the inventory brand of back just the balances, promotional that, right? they as the half is

a see Page that end Again, this you’re about And quarter. XX, that’s chart at look it that QX talked like Yes. the of some or of as at, of Yes. at QX if the where there’s which business returning early into QX. sounds that little in get on end you’ll September we positive. you bit to of we And looking

Thanks lot guys. a Awesome.

Thanks, Dylan.

Dylan. Thanks,

is Stichter Our Janine BTIG. with question from proceed. Please next

I label XX% be business. what’s then growing like a on looks Hi, penetration about you on the the Wanted XX%. like the It’s bit sounds there. And by Congrats nicely. expected. elaborate to ask momentum. It close of to at bit And than a maybe really we’ll everyone. think more end year, better it private working

what thoughts So business. is for the How could we’d love it become? on ultimately ceiling some big Thanks. updated that

Cody to It’s very, is only That biggest continue wind. incredibly is exclusive only strong. category. solidly. brands biggest brands Cody ground. one success which of company, that gain broad-based think is for exclusive for to the – doesn’t Shyanne brand remarkable brands I now James our seen We’ve our and the in James there, Sure. growth very that growing single five brand and business every just in some idle compete that really ago, years started terrific be a We’ve partnership brand. men’s from And continues seen

right? dog. that’s a our top of And of house of any In extremely always just maybe penetration had We’ve haven’t some sort complete brand target, and adding Others little all added side our And then terms a be of the slower, a our had come but business that we has brands. new brands new been gate new to just will we out brands, quickly.

grow know why the find I see that our that able there want any – don’t to to national store. our They to in find think to certainly over We industry. But in the brands is a five year trusts customer iconic space. big is continue to our we next reason going us the consumer be those want always to in time. for get learned, and three XX% just so, can’t the points authoritative years or XX% we’ll as the source It’s or what we’ve I

what shelf, put the we’re how the towards. in shelf, as we we what assort we’ve to going the put on what believe and So store, credibility assortment on bought built that, the comes curator we of customer in, a gravitate and we’ve the they’re the and

and brands where IMU product stepped really margin growth. typically their also in really and gotten some their had instances sort attractive of up It can’t they’ve But we’ve well – we improved have very brands where and party really, is assortment their profile, invested and third-party have third provides their as though know, outsized nice you compete.

want with brands us. in it’ll hand hearts. for from always So But big regardless over partners the Jim. degree in vendor – Thanks, the as to have out his on and a home partner putting his some to our it’s they’ll reactions depend Jim heart. our there, to how they store the

national if they No, or work of And view guess, brands curious be that’s they are your helpful. I Barn perspective done your know just or to on aware brands? survey Boot any Do how had view brands. exclusive maybe would I you’ve their you consumers them as

see question. We – of media track Reddit answering perhaps It’s do for they’re I Barn don’t a sometimes a and sometimes bag. our suggestion, unfettered you mixed quite we’re great posts research Boot should. know it’s social because you to were It’s we’ve they’re brands have think feedback they because to we happy isn’t track customer and head your get through we brand complaining, sometimes and that specifically pour a and if on. that done this question, no good It’s and all a trying would they But sometimes idea. that,

a think think I – I So mixed bag. do it’s

Idyllwind then in they some for great a as have they’re have and I others, brand. think legacy would Miranda built and independence is and anchored aren’t bigger brands us “store that James camp. advocate more in And that the same to more the Cody I put name for the Cheyenne Lambert probably brand. Idyllwind I store the their brands”. mean, indication probably

is to any and do with priced more sentence as just one position brands. – They’re pause. higher We good we try I’ll national And quality. They’re regular frequency brands. every right? other brands, in then They’re not in line promote them them – bit than

a act they kind look and So feel, and feel they national like of brand.

much. so Thanks Perfect.

you. Thank

is Corey next question with Jefferies. Please from Tarlowe proceed. Our

of really in topic time, for this it the inventories for quite inventory like year. a significant now Great. about my seems how are rest conversation. felt thinking control. question. taking was But throughout of some it some pricing Thanks like curious Obviously I’m you’re well inflation’s and receded

of a rest for about the So expectation you inventory the bit little your maybe could also throughout talk year?

Sure.

what entire that tried we’ve could On this you’d over hold recognize have inevitably – on months the across we have while in we could, pressure of you the push supply arithmetic as brands, transactions there pricing out national as the some reset a through et AORs pricing chain, piece, XX our freight, we last our pricing. do did comp, inbound you And to our our – where And had – gone we’ve some our cetera. [ph] retail was if called and that much the all up. to that inflationary we to brands,

where where retails. be I think we now, we’ll places there’s obvious no raising stand

has had maintaining vendors and retail price markup candidly, a the for percent. a lower at of point. us a they’ve higher slightly those – we’ve have in the seen lowered We the lower velocity price that worked couple store same And cost strategy wholesale their

pricing in a have gyration equilibrium meaningful not we down up going more be way. to there’s in or So a where think reached I a stable somewhat

Yes.

to were then We’re question where would we around down as just that ago. we’re seeing million is your number the we that where just as come bit pleased Corey inventory, from see going, back $XX down price which that three increases And [indiscernible] to really little regular we far see months we’re a nice. where

quarter the of during Despite exclusive new growth the and brands. the addition and stores the continued

sure So got a the to sales the we’ve of really level. the the making and right inventory nice managing job teams inventory doing through support

balance and through in want of able inventory how being chain it last fixed with I we’re get too to And years than supply the managed. and we’re a that we not the where guiding while is that’s the And line couple with it being more lot the of is of more with happy product so was, it. want where the think when that year, we we’re

men’s there any you would Thank specific you some have the just Great. momentum much. you And another business like driving say on are call pretty within question that really then there. Are the men’s momentum very it business, sounds decent there? outs

notable It’s of skin We’ve category exotic points been which in maybe seen highest is pretty that’s the the higher is points and our piece outsized in frankly the that boots, boots store. price within the in price growth based. broad

out in business non-denim, So apparel split non-denim cetera, with men’s within discussion highest within denim denim and into and the stronger lot at we apparel, the a around trading hasn’t level, than played our better business. the men’s men’s has of people down, that et boots, we – been the

those call the big kind of think I two the are outs.

much Great. Very of luck. best you Thank helpful. and very

Thank you.

Thanks.

proceed. Our Sole Jay next question Please UBS. with from is

newer markets new that the on Great. commentary talk investor – from of follow-up specific and just – you the stores talk work. possible you Can of to to of are stores stores from talk new like where of the people just the don’t to Boot Manchester, the a people some Thank about think to the recently. like new you how Is of so some Southwest most doing opened store a as too Barn some think traditionally traditionally get about a stores. it the the Can I store Connecticut like Texas, that? where on much. markets? wanted in California, compared some Not about side like the

well, feel states is, answer two quite quick in new contort they’re those the Texas outside a Those They stand particularly outside there’s if same sell or those store a the states We in a men’s of our or a that or rest of – rest look store lot ladies with The new Sure. retail unit like assortment. and are if at we sell Connecticut Philadelphia and store you average say, product country highest cowboy We of boots looks just look and out. Niagara our traditional boots volumes for higher, brand store. cowboy the most product footprint. or in the California, doing let’s open notably the in or hats. them open When the Falls cowboy nearby, new well. in two don’t a and men’s two roughly a Albany, of western store they Sure. proportion. the you not oriented But our of those store the exclude store of country, in

product by minimize us haven’t the happens it hard is to concept merchandise And to roll of continue we strategically big because model. to at rest with major And below making to the the and the skin don’t a and do that us emboldens categories to the line what changes to are allocation want brands of of all little roughly the most planners product for the that the by a tweaks the And in percent the bit, we’re the team in we total little in country. the are are because but stores, terms bit. all of tweak sort the out merchants just does that the had significant I make work level

much the a own Idyllwind, and Got enhance it. them just then follow-up then into what them how maybe you on like place of brands right brands than about I – one Cody Jim, question because to see success, their trying websites, bigger are in and like you in creating Boot product, Cheyenne that’s what these or think talked more, Pinnacle and turning enhance can just do success the by like super of James and doing. creating when really boutiques Barn you just maybe is, they the interesting. lot their If terms out and Barn building turn sort Boot own in premium in more is things like that brands, like of to

pull perhaps bit kind on of that more that one a future. battle ongoing will in and string an the It’s we

– right? our that rider wears our We established pretty one up a some Rocker rodeo not We done saddle coming, athletes wear things, and bronc an now brands. RANK of up and Steiner and newer exclusive brands XX, really have have

but perhaps done equity we further do on in pedestal than we that. them at So more over stores. bit And brands, we time, will them in of them a have just invest even a further brand as the put the least and treat the to build inventory really and quasi that positioning

Got it.

Okay. you Thank much. so

Thank you.

next proceed. Poser Williams with is from Our Sam Trading. question Please

you’ve the gets squeezed a of questions. store Well, here. as the thank out your mentioned, national business assortment what you you all – sort as everything because grow is the mean, brand brands having can’t have How I couple for taking to you and time. you’re the changing? I get One to well. committed my exclusive into

the grows, of do sort you what So as how to manage falls that penetration side?

category spy. or because third the minimized brands player brands store sales in or turn is or Sam, right? changes. they And you’re stock of either to have particular in exclusive rest the the Typically at their merchant and fourth versus some make look earn brand line Great at then eliminated takes product what do third-party heart, Sure. we’ll line brands, the that ratios the We to then keep, in happens exclusive for exclusive a roughly question. gets a or with

– if the people western brands, arena, brands think most – – not we They’re whether work squeeze in out. our to But customers want do tend bigger to of the to they you seed that’s we names or the ones iconic them we want less the that that smaller the share the market store us have brands. to marketing, exclusive have. brands because are the ones known, brands, But to well less we they tend come to to expect

and Thank your app, website the what touch your you. then mean, mobile what than And percent driver the trend is comps actually traffic just talk then than maybe – I does are touch talk or secondly, presence comes than to more consumer on rather of a the sales e-commerce, your about revenue, about may your sales – the than like more the digital doing the store? show?

Yes, does absolutely. team Absolutely, awful of course, drive store and the digital to here traffic. help an lot

is which even So in and the journeys that mobile. which and believe if that built in not continue they stores invest why is online, handheld. we shopping start view, particularly just they’re a that, buying omni-channel on we And certainly digitally I the why to that app, many

sign – your – the a for and you have in are do so up measurement And you is hear us sign for polling up about you come of when they that How have or there membership you on? customers? did or

I don’t research have a that’s that. great round customer for our something add next Perhaps of answer though. to we’ll

mean, better the than of to you ask And was it then or follow-up, to came this I you beginning try in I’m at going the time asked call, anticipated your one – significantly in what guidance. more prior the

guiding that And in happen? doing upcoming you’re it can guiding, us – year. there let’s some give way a year so versus that, Could approach two there are more to anything guidance, guys the has the within – and change that, And appears the secondly, or color please? way the a one, to did quarters you lot me a at to you’re can you there is in you change giving on could a say that attribute ago, if making been the balance that you you – be you of

question, I’ll Yes, Sam. that with second start

explaining maybe the the out for think for bit Historically, as trend I going sales more guiding the it I how trend year. seeing back trend stop was, weekly providing we after. methodology. use we’re and a the guidance, years again, what and the around we the we’re of rest that that and couple we’re The way that because made COVID or sales during that monthly think that plays of up sales weekly pre-COVID did percent a to year little

now two-year our what with comp lined the comp or easier I more against year and And year two-year what’s with and looking of up different to whether at is that comps up we’re stack comps, some harder prior and out saw at one stack that coming year the the it’s year that think is one we our variability the bit. on saw we two-year guidance looking fell to or with a comp display a and guidance. of or apart provide a last COVID a And little

We’ve leaned each looking the is. year approach as build more scientific at to historical the into the compares more whatever how the month a penetrations and during year or of that percent of it

Thank you.

Sam. Thanks,

Capital question Please next proceed. Jeremy with from is Our Craig-Hallum Group. Hamblin

I it’s a wanted and now back little five flash the roughly XX% another to going ask penetration was Thanks, and as your and that. years congrats than on exclusive when double question the your brands be ago, just to strong on results. we less to –

think brand basis I basis points the of You expected at XXX kind to penetration. exclusive XXX time of points

XX,XXX dedicated of exclusives. wanted the the that really year. we’ve much how store, space foot of kind as XXXX exception I a But gotten you’ve floor the foot COVID calendar with really like XX,XXX square is square from gone of to the to change to store double roughly just to

in So been of lockstep is brands? seeing velocities really a really national outpacing these we exclusives other of just or that kind lot of

think a correlated, in the don’t and I the while completely different the very if to hypothesis. in got that I size penetration the question will. decisions you of great two increase we They and a through tell you It’s store – of those logic would the causal. brands good it’s increase flows, exclusive

things happened the that of how difficult well, spread COVID chains coming news of one penetration, around brand exclusive supply the out On were. widespread was

their they best product that our to the shipping honestly off have vendors everything way. us, that best but could their business in did to efforts meaningful help pretty year COVID we to us third-party taking even vendors after that a try were And Our was get despite short.

chain ordered could that control our we the of we even brands. supply what and exclusive got was And better it one XXX%

to put we resounding, consumers a it we all more well, into product was up have cases And a an in store. think What we doing, not the many answer sales didn’t will brand takeoff that were back respond those came if set So will a exclusive cases. brands in happen? and which experiment and most to

build helped confidence. that think our I And

supply difficult brands challenging a team. and thought. some equity upgraded but we’ve associate then consumer we have a than of great did came brand Boot very originally recognition be added strength terrible Barn And the our time, lessons some we out we pandemic, and And We’ve So valuable a then chain, that there. learn brand first. really may more had the brand and new designers awareness exclusive

there has leader years there been couple a have We a now. for relatively new of

design I well the think between there. we work and really organization buying stores the organization and throw in

initiative ongoing business an get been that of it’s the to think going. part I So

increase it chicken may built and to had increased as a or had store to stores, store bigger the we sales, size had In we more just a more – needed because started and as store. we terms that sales egg started bigger we been we realize sales we the of size, have an

to we in store, Erie, store the new average that inventory just track opening of to a think And what do the it So play X.X We to store actually and levels of size and increase were come store, volumes to new we one was where made of we first decision time, store, the but a offense stores new store larger more day the it was ago around started trying was higher. increase the the the see store. decided also and to it. with more inventory, about Pennsylvania years we

but that separate was investment with continued in really our inventory distinct from just it and exclusive we the So and brands. strategy,

Thanks. volumes That’s able you’ve a as higher great well. these point, I why sustain of to guess, been

seen So really within noticeable that I of was question the Any changes here – markdown the from quick promotion industry? just standpoint. you’ve a other kind competitor

of don’t longer mean, I running it past, to most track and we store store they’ve that promotion different week what a or on you a by basis the running a starting Not we as is are competitors on in well time. the that the compete they’re it tend we that some of change run one do anything margin, have but industry our typical people one but against doing. wouldn’t though, based market the really. – some we on are And at doing store. And they really know what or the

our plan. have We

more We’re lower going promotional, not our to companies of to impact if raise to stick us. it’s plan kind and it prices just going prices, – become

wishes. Great. Thanks for color. the Best

you. Thank

Thanks.

with Kummetz proceed. Research. Mitch from is Seaport question next Please Our

for Yes. down Thanks boots on apparel. questions. and more Drill my taking bit a ladies little

last. respectively, you that XX% this down XX% a quarter, boots boots from last – you that than said mentioned stack. two-year down Jim, were against and ladies apparel an and XX% XX and points X and ladies more quarter like I was believe, So that improved apparel

kind for was? you what quarter So and comps the of just maybe say two-year can compare you give the those us can

for The those course, things – And was The apparel apparel and improvement the comps. of and XX%-plus year XXX% sequential recycling line. and The those is boots start were apparel. both And of one businesses this QX over the quite at QX you to not were have where year crazy COVID a also thing. year but year strong. X I QX business of was comps looking comps. and Sure. last QX roughly they’re point between the both QX in May April after boots were XXXX, prior last year, was year, in after And – which

the prior maximizing think – our to merchants business this I So calls, but I’ve want – all are doing always really you drive their grow, of nice yourself all job the in can but we they businesses said on and a of mad, business.

against just numbers. Some strong of them up are against others are numbers and up monster very

July not giving investors, so to has So all We see. steady what was ladies sort an a the you ladies a a sequentially get and or of as fact the and business it we great of seems That’s certainly – that is thing that’s love doubled is more passing each of nice to we and potential speaking well, and going as back, – more progression has that anything, narrative than better. of average store business to been, given up to the time see remote. what’s there see that of I sort businesses know, gone with that it’s be piece love all with eventuality example this strengthening it’s been to right? quarter of back in much, see boots the the was part out But positive

over just that it years, – – the it Is does multi-year thinking gets know starting is when on on easier? last the depending I then about tricky maybe the year-over-year in at basis a business all noise ladies when And did looking is get XQ? XQ the just few but that or it the

start is easier. XQ to where cycle In we

The negative?

Yeah.

All right. Thanks. luck. Good

Thanks, Mitch.

Thanks.

the John Benchmark from with Please proceed. is Lawrence question final Company. our And

Hi guys, congrats.

John. you, Thank

Thanks, John.

fleet do neighborhoods little if Yes. for a Jim stores improvements, change, little if to construction obviously comment traffic older Conroy, little, change or expansion and there and some get then playing place? patterns takes a you any store the return expansion just higher bit, bit. those when either that, do would Are you that of of a the slated of you some older stores at stores you that on get look a productivity those little

of three Sure. just a Absolutely. some an is different program ongoing Well, really One on have we buckets. in full relocation. cases

store So a remodel in well, and it taking doing the doing town, still particular part reasonably making moving we rebrand. and like latest putting location of across growing full on that’s store or it the the a city bigger, a

we we a a not differently, to we typically, have see in nice a then pickup tranche. And nice of or maybe we tend we third kind pickup when do expect said that, And in sales. remodel a full sales do unless

so or the the the over We to way Boot more decision are, last creative, Barn elevate, we’ve five go-to-market change strategic a if brand the aspirational, make perspective. brand to you years, a to look marketing we from for aesthetic the at made

basically promotion legacy to director of Americana, kind creative heritage that. our completely to view western stores got went sort Boot match from And the of and price changed need trajectory of mean, Barn. brand the and I and away and

XX-year new the have to did needed we certainly some but So design that XX, store does, old stores be upgraded.

old year just remodel, on perhaps full and doing a in see that won’t will stores but fixtures. some a we’ll probably it some touch the They So on we we’re get get pull carpeting at brand, change we investment change get return and they’ll cases to some and necessarily XX lighting know out this capital right? store

I And you’ve done five that pipeline years. the categories last six I adjacencies much and still strong? going or products me pipeline look mean, as thing brand different still forward, so there for you exclusive is, last over for just that at new when years

Yes.

see I basis basis Maybe brands, think point XXX of X some a of in in we’ll at or growth back year. maybe we’ll probably not but to exclusive points growth. growth penetration X points come points XXX or

then of what called sort new a and brand launches spreads Well, categories. some You the happens is within typically out. store to include it

found new it James business a few market men for wasn’t sports now we that brand Cody what that a jackets ago. and of was So in styled years have in a kind western

a it take they’ll sizes or we’ll in penetration. sizes and different the wide So subcategories little sizes they’ll a extended or boots brand extend or get and find into bit more

brand, sometimes losses doubling as a finding the isn’t stuff it’s it’s not working what’s and So the brand always cutting of launch well. on working new the just of ones, expanding some working down out that – maybe the and

for me luck. Thanks squeezing Thanks. Great. in. Good

you. Thank problem. No

Thanks, John.

for the have I Conroy Jim back to We of reached turn would closing conference end like over comments. our session. question-and-answer to the

thank call. second joining forward we today, on Well, earnings care. you our speaking everyone for and the Take look to call you, with quarter

This will today’s you. conference. Thank conclude

this may you time You for participation. your thank at your lines and disconnect