Boot Barn (BOOT) 28 Oct 242025 Q2 Earnings call transcript

Good day, everyone, and welcome to the Boot Barn Holdings, Inc.

Second Quarter 2025 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, Senior Vice President of Investor Relations and Finance. sir. ahead, go Please

President afternoon, Financial Boot you XXXX Barn's on and Jim With Good Hazen, Officer; today Digital Chief Earnings joining to me Officer; Conroy, are call discuss Second Watkins, today's Chief everyone. you. Executive for John Chief Thank Jim us Results. and Officer. Thank Quarter Fiscal

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

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

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

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

joining everyone, afternoon. Thank Thank you, Mark, you, us. for good and

after opportunity that currently experience responsible for the over the innovations experience. the stores the brand. I've step has omnichannel many at e-commerce True whom recent Barn search while Hazen, accomplishments partnered release, the as is company proud a team both CEO Boot and Prior Officer, and leading permanent November contributor and our to out making the lifestyle the and built customer a our John will e-commerce, the business Chief in as to my Digital assume grateful of extremely organization shared departure external Religion. with will I very operations, Fox years conducts as includes internal John As an and our marketing action to the of CEO journey. John both XX, running with Barn, this organization. within regarded Boot have press forever highly President is we is and to businesses Stores. digital the culture has before be leader, He collaborative Ross my interim during am sports a decision brand pursue on Barn solid tenure amazing very and closely today's I role, at an and of the and strong to a both made CEO of John's of John decision. at down prior of the store we've announced ran Racing, Boot role experience. merchandising led

extremely orderly Peter transition. role to Additionally, the Pete of into Executive Board of will years committed for the transition knows through an the the working past XX Chairman company Chairman. and the well is

smoothly Grove, and team absence. going my a have John This includes together group decade, Merchandising despite that Retail will CFO; will Watkins, Chief our Chief by Officer; over forward and be supported the management has our for great deal company I Mike confidence Laurie a Jim well our of Officer. worked Love, that the senior operate

John's interim now to turn John? to the call and ability in lead CEO, him. I over pleased as am confident to I'm

I'm and vote a solid of the the has that has attention feel Board, on working this and results, to like fortunate been momentum excited that team I you, Thank progress our place have to healthy, company role. discuss appreciate second quarter strong our the from update together provide and is take in Jim. this point, of an current I new confidence has would made business. the X 'XX on fiscal initiatives for a time. At I turn we our to across long each and strategic you

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

broad-based second across online quarter and major our all are categories, across very We results, and all reflect in-store merchandise strength pleased with which geographies.

sales the will and $X.XX share XX.X%. with During compared of We the same-store $X.XX versus improved I'm Same-store share high with significantly were expansion sales of during industry, market channels revenue the quarter the $X.XX. and second believe execution our stores in and results by in that continue prior in positive growth share of substantial X.X%. year. per revenue were gains. Earnings increasing X.X% the earnings team's quarter our store extremely and sequentially both stores have new into half of the second fiscal year including e-commerce growth our per diluted diluted the and consolidated to quarter, e-commerce the resulting outperformed quarter guidance both range pleased year-to-date our increasing the XX%, increased end believe of and

some strategic time now initiatives. spend of discussing X each our I will

period stores We Let's begin quarter, store with XX across opened ending the in our XXX stores second states. with the base. expanding XX

expectations. engine new our earnings payback to continues Our store meet and sales,

return we store million approximately in of of performance of a a revenue operation. at cash-on-cash XX% $X the modeled first year with As new on capital reminder,

new new expect growth Our to meeting XX new annually. store this commitment our units year, XX% of store healthy, pipeline remains we and open

market doubling store that the open in we count. ongoing potential to XXX the additional than store openings, stores believe new an we our alone, of current have U.S. more success Given the our

same-store sales growth. to Moving second initiative, our driving

major largest drove apparel, a during perspective, ladies The quarter. sequential the high and consolidated experienced merchandise as basis larger men's grew same-store approximately comp which by category in quarter which a transactions, broad-based western X.X%. which same-store transaction. increase with brick-and-mortar was comp all growth quarter, UPT Second in boots XXX was From quarter mid-single driven an increasing collectively first sales points an by in we apparel growth Store sales X.X% average increase the positive, plus AUR comped business, digits positive comped single the than boots better improvement categories second digits. led combined and the in positive Western merchandise

Included positive nearly comps which in men's quarter. ladies comped in business, and our together the is double-digit denim the

comped combined Our positive also low the in flare. apparel in boots single-digit work business

led Moving to sales posted omnichannel sales XX%. comp bootbarn.com our third leadership. second of our approximately strengthening which grew our the in E-commerce quarter, by site, initiative, XX% growth

business X the omnichannel with pleased online sales. innovation and momentum to growth several from ago which experienced solid make app continues approximately Boot Barn's of our on online and We The the that of now the comprises has launched years fronts. very we Boot Barn team, are progress XX%

beginning which Cassidy in-store store named train to to unique solution Cassidy, consumer-driven transaction is experience sales each believe build specific we conversion help test are the customer an associates. and the AI has visit. Additionally, they we potential The tailored new to size through store and

exclusive Now merchandise expansion and margin to fourth initiative, our strategic brands.

which of Exclusive as in growth in merchandise year year basis brand period, second margin prior points, wrapped was guidance the points the over efficiencies. period. by line prior XX the to basis quarter, chain supply penetration driven XX with basis compared decreased points it by by increased During XXX

grow brand approximately second the at year pace normal the expect XXX of half at contributing the year, basis we exclusive penetration prior a growth. to period, substantial merchandise points Looking margin of over to

buying a better of economies of We expansion growth continue supply chain and margin to efficiencies, brand through believe we combination can in exclusive achieve merchandise scale penetration.

to our broad-based XX.X%. basis, continued Turning October, growth October sales business generate increasing with a to store current and X.X% sales. our Through increasing On in comp e-commerce were same-store we business. X.X%, same-store consolidated

quarter's are disproportionate start represents to the earnings. of business December half the October quarter, of with representing quarter's pleased the we revenue the and While more even quarter's third alone our share of with XX% historically third

We best-in-class field feel of customer fresh a well we for about tone season well-prepared the very with and good prepared holiday a believe marketing organization business exciting ready inventory service. successful are campaigns, to provide the and current

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

deleverage in result rate increase distribution by chain XX in rate when The as sales costs of of same-store you, the quarter, to points sales comprised Gross e-commerce In deleverage in in result X.X% increase occupancy in retail by increased and XX.X%. Gross profit increased is of offset basis new of the primarily an increase sales a supply increase same-store while stores. period the prior efficiencies, same-store The $XXX rate store was period. to was margin the and points of compared net year cost XX center in Thank an in was basis and $XXX of sales in the to the profit partially a margin $XXX John. the incremental XX% distribution stores sales. million. basis point increase prior to X.X% in XX The costs. increased occupancy to increase buying, new merchandise profit of buying, increase and center XX.X% sales gross the of same-store driven year of occupancy million result and the compared from consolidated XX.X% second sales net million merchandise

expenses percentage or in of compensation, as Selling, period. lower of current by general the or were as legal net and year, to offset expenses. store higher the the in administrative result XX.X% year and sales increased by $XX primarily XXX for sales prior of a $XXX expenses marketing basis points, million sales a XX.X% incentive-based expenses quarter partially of compared payroll million SG&A

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

finished credit. line $XXX increased XX% the quarter $XX increased and million consolidated cash to On basis, basis. and in X balance the a inventory period our a same-store to revolving XX% with million on Turning prior sheet. drawn $XXX on the of We year million over approximately

quarter. be low to that guidance of of the for any the range my benefits end costs for out remarks. our to the transition. supplemental that the Please our speaking in excludes note both financial to The both high for will raised released following guidance fiscal high I range XXXX. related Turning year CEO and end periods outlook we lays and full today presentation our third the and

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

sales We increase an e-commerce same-store and retail of increase same-store with of X% the sales to X% XX%. consolidated expect store sales increase same-store

million reflects of in deleverage We be buying, partially an XX.X% approximately estimated gross sales. offset costs. center merchandise to basis basis and in $XXX occupancy point XXX of points or margin, profit increase Gross XX expect profit by distribution

And sales. of operations is diluted expect from $X.XX. we be $XX income million XX.X% Our to be to earnings expected per or share

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

same-store to X.X%. increase of sales. growth increase an be year, is end retail For growth to expect expect approximately store our over million now increase sales we total 'XX. fiscal now a same-store our from our of guidance and the of with of XX.X% expect representing sales We of now or gross X% range of X.X% same-store $X.XX $X.XX guide million X.X%. guidance the profit at billion, sales high to billion. increase previous sales This fiscal We over of the growth be consolidated is XX% $XX $XXX full This previous of e-commerce sales sales same-store

to in efficiencies, better continues driven XXX estimated basis points. an in buying and of supply penetration chain exclusive by increase profit growth of basis margins scale Gross economies reflect brand XXX merchandise point

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

to from income be $XXX earnings 'XX expect for $X.XX be our million per prior of share a $X.XX. net We increase diluted guidance fiscal to and $X.XX,

the of We capital tax estimated months expenditures be fiscal effective our the to for to million. continue year, to And XX.X%. be expect rate $XXX is our X remaining

fourth during XX to quarter. year. units opening stores quarter committed remain of the to in XX%, stores We adding our new and in We XX XX by the plan stores grow the third anticipate new a tool

to to the work during but of who all Jim it style passion, and hard contributions Barn thank not into the now a take to today, to is Boot only like for I'd Boot moment worked have with Barn past his have Jim's company leadership have made. and years. XX grown us him vision,

for partner to work. mentor, truly personal enough an I place has Boot and Barn Thank standpoint, done what special From has say friend. a been can't about Jim a you, he me. Jim. incredible

with and of He incredible tremendous role. him had X vision, to in working I've the for with the pleasure John forward last is his with working looking I'm leader an years. new

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

Jim. you, Thank

we performance and to and our extend hard distribution and prepared like We we also pleased business, their successful momentum centers for my I stores, of holiday the to our well with team very for a would work centers, believe call the continued season. across corporate are year-to-date gratitude the dedication. offices and are

to like would questions. call I open Now for Operator? the

Instructions] [Operator from first Boss from question comes The JPMorgan. Matthew

Congrats on the news, Jim.

Thank you.

elaborate saw And the could October maybe comps any categories by as seen on could outliers just across John, trends the walk through notable quarter inflection that you you've or in progressed? you Jim or if So look in second you just that as we material region?

broad-based within organization. the several had The sequential improvement we this Conroy, -- single I'm Jim you quarter, or Matt, is sequential has continued to QX that and unfolding And last one. as better department story just quarter over not the from got as into sure every if the channels where carry categories forward. QX. John, quarters second take good. Very guide see we've that regions know, stores Jim the between first across we and I'll Essentially, the been improvement and

every The was positive we that second and sales the department other every merchandise region really track same-store growth. sales had had major fact country for positive same-store of quarter the nice growth

improvement. we that So very good feel about

off much X is line but for the a is still plus to way We us. positioned think very [ the with There's feel and course, ] about December, inventory a And in -- of with October. a of quarter solid the us, October most we very forward second third ahead looking start is great quarter. with the of strong to we're quarter

and margin you on the the Great. you've follow-up drivers And outlook runway remaining side. elaborate margin embedded just gross then multiyear? Could margin gross XQ maybe a merchandise the you see just in of that margin on expansion for

Sure.

little improve coming call merchandise merchandise from buying better as buying economies we as exclusive XXX basis of seeing expectations we chain more brand as pretty And then expect the seeing margin, better basis of well of quarters. then we've So that chain scale at points margin from improving about, a points continued into half penetration couple last be fourth brand to that efficiencies the in in coming ballpark look XXX in of And things scale, of points. the get should that basis as as XX exclusive supply been to efficiencies points for to quarter, expansion penetration third similar quarter, from that will we including of it, supply look QX. -- the economies well and similar the XXX economies of basis

from comes next Sandler. Keith Piper question from The Peter

company. years know been it's up I And with public coming Jim, you guys great XX on working are right as a you.

it lot quarter, products So you thing sells do you've a done categories up and a better, the not it some the you One share are market your the acceleration. getting of with -- your pharma the with footwear, under what ranch noticed getting the market strongest great that? the We'll guys last apparel drivers categories suggests miss where the on job tenure. for so have you or share sort opinions of might you. be might what we've picking sector be that same better

in X% for had at that you Sure. report I out, think Ranch. minus the and apparel footwear & Farm quarter recent put I Yes. most

of little of benefit us because -- than group is is group there couple pretty may a formidable that I they a think more things them bit a that companies.

businesses, but not company company improvement which sequential better, wildly western nice boots, doesn't very average, ladies the the some seen better average. lady's were particularly in have than catway We

where bit be product little on balanced focused functional more to So we skew they extremely tend only. a

our think the and we're resonating I I coupled stars that connecting very with So do been with actively We've fact that, think brand feel music from that. is benefiting more. like country

think top share if -- yes, our we're think taking of additional in was add other we're outperformance stores, the out in your many I the do So taking share. of market the which we on of comping from competitors I clearly setup spot the fact were getting that we're question on new And the is the based that space. we're comp, to on, sales

that, I great we we're going So about forward. well feel think and positioned

then targeting And Music we've there you that few what those? have Or Country like the demographic past I added? did been are you're Maybe the stores audiences relationships sort the talked you reference around evolve? Great. Morgan And that -- added. know a towards highlight Okay. could it how you And might looks those other with of Stars. been in others sponsorship. there's

on Brad relationships and fabulous have all sure. they for Well, been Miranda us. and we've partners had long-standing Lambert product with the Sure, side Paisley just

You're recent for artists bit for now target segment. more the specific right a rifle Morgan a that to Wallin. call with doing sponsorship out more we're shots are But customer

we've artist done over-index We're a to to us with So for month roll. expand Mexican that's we over been base. some prospect next leaning with a count Hispanic music, pure sort of circles our well. place a to a around or a jelly for bit and owned doing serving and so customer an us strategy -- to has is of larger currently things work good parcel believe, that customer strategy with music part with And is try a exciting we concentric into American the some our western in demographic customer. customer And continue to bridge that

Zaccone Citi. Steven comes The next from question from

business, in what's Is the wishes and the the follow-up-on congrats wanted the are of you around from bit it or seeing the you've Like at little you been Jim, question. better half driver there I the inflection the size? what comps And next the a upside? see drag in you better? first biggest you here incremental a beaten upside? the go, year on to expectations are customer? Matt's step. ask what's transactions? Clearly, Great. business to where are the can here. in look success that of best When areas think about basket Is it still assortment as Where get

Sure. From the in perspective, that been has biggest transactions. change

first first on second were that down in us quarter, an average X positive. was very But basis So that turned in positive for store the the in transactions the slightly. transactions time was And quarters. quarter,

that The great. was other thing

basket to size X%. get is together and you So number, sales that the this those -- because the transactions the were get a X%, about storage up about was stores. up you and X same-store And X.X% to put you in

The really is UPT both thing great and were AUR other up.

So sort were transaction up components the the of all in X of quarter. store

merchandise of standpoint, from I that on negative, our the same-store drags part been couple improvement they the turned we positive. had category a sequential to sales, meaning business. saw think again, slight A virtually every -- in of have businesses were

business turned on apparel positive. slightly boot Western negative. that nice it's digits quarter. The low positive, call slightly about work in the turned slightly negative see last work talked single positive. and to turned Ladies So last the We the slightly was business apparel being

drags our came that a business great of to few feel on together. turned So we quarter the whole side. how the just about positive And

better, and out in much own stores your to in sizes opening Okay. some to to in is have the of just there I call business the performance in the Because newer differences the some Northeast, category differences anything call more been of some The as larger performance? legacy had anything do Mid-Atlantic out Like in or versus there maybe you is there? and follow-up boxes? your stores of are newer there start

Watkins. Jim is across East, stores the North. the whether well new the South, that's country, West, continue the perform The in extremely to this Steve, the

wouldn't much difference. I say there's geographies, between so a of that And

this around was legacy question quarter. lower more stores, the than last know. stores open bit your a volume continuing at new see And think stores. little about -- the to we're talked as and you legacy I versus And we a

to would to as just outperformance in mature seeing And that, say are that the a an second when I year compared of necessarily tied to more comp, we of stores. see geography, not that's but to We more the same-store continue get a that bit little sales class. we the

stores their then -- year of And outperformance the in year the more in so their chain mature year but so have the of year seeing X, big stores. is against that second that comps kind average -- comp, first that the when are X comp line opened with we're stores

comes TD question Rakhlenko from next Max Cowen. The from

a And pleasure Great. with been It's Jim, you. working congratulations.

Thank you. Likewise, I that. appreciate

you've think maybe about actually the store picture, overall Question, And year as lift now last that the on to new -- the a while, historically, should waterfall following X. to comps then the outperform seeing always X, trends over what bigger the we just up appear be for historically business we you're algo just about to year How you've able stabilizing? one. year the X, is. as been say, think course, But

do how So moving ahead? that about think you

Sure.

store that XX or of I chain about. outsized I early the to of average, basis to year the starting is it's outperformance they're is years that So over points picking year and about What not -- bit say talking the points of comp. X X the or X the on still stores a be just with up comp opening. what volume little outperformance second points to X, get going was lift say We're talking new last the that couple comp is would how of

little as new around still guidance have providing a imagine get of And model of a that our quarters, early so as that call next specificity. tailwind couple Max, out-years and through with some opening stores lift to it's to the comp. detail again, any year's in a that outlined we I include are those to waterfalling bit we But and sales more next we'll the how and

algorithm share X% the of pretty has comp the long-term the that it's see get of the to to growth nice As to kind and XX%. target comp been end sales long-term for per sales high to the our earnings that close the year far as again, to see

year, again, year's laid quarters, next we'll still forward are we've of components I think I of in next time. we what into a years no so and guidance give out to we think see meaningful the this And changes coming but and the at are that over as couple back you look intact

it. Got

Okay. change ladies a year, think I And merchant to then earlier made that team. this the you

if you too then how assortment would how how about we function right are ahead? And So fashion assess you soon? evolved, just thinking it's or expect has whether the any, balance if any should and of the verse changes

wouldn't I mostly. a price little had in changes had and specific points tie Yes. did Sure. bit to too some the better, we to we year-over-year, we to try side person, make some good, business. heavily we but inflation good back a of sort the of best, a it of assortment -- fashion of We're felt years best at ladies Western probably of because the And vacated terms price into the eroded boot couple we points. of like I good, better, the leaned had had think looking

more part Western were and now. $XXX sort bring another So reset probably and price business have look points -- Ladies hard and well is we the able And of $XXX Western that functional more some done it, for and our at strongest between, in us. that's into Ladies to lower call Boots quite also the we the took performance-based, of leaning assortment or Boots

think I just was rightsized. So assortment that getting it

apparel the has business side, also turned apparel really positive. denim. by On been the That's driven

on side strong ladies that side quite is for and the men's matter. denim the Our business

Janine from BTIG. question from Stichter next And the comes

you. miss we'll Jim,

Thanks, Janine.

inventory seems about ask it wanted might XX.X% a to like So a It down the same-store running lean. be on bit little just basis.

with feel if brands missing has or anything how wanted it sales you third-party versus mix there's you're about maybe think private of Just any hear where to that like if do some to you areas brands? the

Yes, down was on Janine, it I basis... XX.X%, same-store said apologize, that if the I the misspoke, inventory I

[ X ] minus

Yes, XX.X%. up

of optic, We've a do a the since as So are of Weeks great our grown ago. the into period. markdowns holiday categories down right heading we're intentionally, bought supply inventory we inventory we down into feel very is believe inventory about shopping and from year-over-year. percentage the the year on we're

we're spot couple as into like feel a months. these head really we great So a busy in of -- we

us as we're then your the how And third-party remind on both tariff risk the exposure Perfect. and exclusive about you and on additional side just just potential? can of brand heading to you're brand election, China the into thinking

Sure.

So out China. to XX% we exclusive on product our of used about of brand be north coming

we said last our coming comes out on the order on last China we were year, call what XX% came fiscal XX% we think China. year. approximately product about out last have this that of And of I or is of out

deliverability risk So done to of China. staying happens, of lot what completely are of derisked out a I quality we've exposure the to the China. there we And don't China again, to regardless and feel have our in like product. situation benefits of limiting that a our product I nice and of think but we'll move job tariff balancing exposure while

from question next comes Sole UBS. Jay The from

dig love Jim, the just into change. just to

it? Boot made of on why you choice be about to now, this give can helpful. would was what in you sense talk strategy this change elaborate Barn? Any at Is insight a Just any us why

for decision was personal This family. me a and more of the Sure.

the them the had strategies of same terms X team well, have going years. senior forward, We've same and well. had Barn's XX strategy performed Boot we've pretty In I working for on think

So yes. I would --

decade. lot discussed doing will I last safely take can us we've be a for hopefully the continuity the decade it's next for of say going from think transition, and John we've what forward this to I As been

in I significant the changes traffic. any So expect wouldn't

working out model. stamping are We a

XXX-ish growth consistent than have We've basis. on store can count. We able more a been stores. double to same-store sales We the find for opportunities

potential to proper more the role, and be place able of that. expect this could I you I will miss think but same. I for form don't next this at the So opportunities more is my think certainly speak to

Okay. can just Understood. in If I one more. add

I the Cody last Blag think going? quarter, stores. said XXX you is how on XXXX updates James any like Just you think root

Just talk and the assortment? about how full to in brand where it relative quarter perform is the today did that

outperforming, the seeing of price price in that It's by get haven't and is is, It's we now on to we the questions the one the are stores. partly Coates skin plan in income brand versus side It spend is XXX highest And the well. Black difference skew it part in one more tends point performing leather. the And elevated partly customer it's brand that. expensive a or that because and an is point often quite we seen store. of store, it's boot more towards and because exotic because products of in the

adds we're giving be it of holiday. of the not It's multiple a call, great in work points gone it, It But some of of said, part our a harkening the Hopefully, it's it That comp. sales. last diminish not into excited of of X for will small piece the about it. And sort relatively back that's it's of quantifying just X to in don't comprising terms business. the overall or or I want it, business. but points to excitement our same-store gift

The next question from Baird. from Jonathan comes Komp

think for some bit if some on Jim for of there Conway you just either be could Alex bit take side range October, the for the the walk you of of Could on assumptions through what of to John. Watkins, just the be seems factors is at some the just a have And QX that? you a This really holiday? upside, downside. looking you of comp to maybe a guidance swing

Sure. Yes.

and we few guidance, July, we looked the a the similar balance applying sales, So quarter we've in historical last see that that across rolled several really, approach play September set December is did we taken where third to August accordingly. and would November, our and how at of in on quarters the what then seasonality guide the out years through the and year that forward

really of haircut all that and up for impact months, As take a then around then some took a we shortened period. numbers, in of we QX, and to And October, the into the holiday consideration election those little December we took uncertainty. haircut November also bit macro rolled QX a

October the fiscal And can behind behind as -- different how and our us is those play is out. October ranges so far as us.

is for the our big a November, shopping exact plays range distraction a at for we've there we election and As how look out how depending reasons customers. that those on of nice got the holiday in season

weather and especially. November into sometimes And as and play December January, things get can you into

how the shop of time a so really also our think couple customer continue they last product have the have we've shop. is a visiting is over of needs-based of we there is. our is what our stores resilient to But they to and and that need product. seen Again, range consumer quarters, I on that And outcomes to feeling depending financially are customer the amount and encouraging how for

and a nuances in we're And coming confident few over our there the months. considering couple that put out are optimistic very there guidance next while few distractions we the so way and that a

at maybe permanent That's term but for any a longer you early, this looking can in the bit go helpful. qualities then it's a CEO? little And transition, least as you you -- be maybe through leadership might that

years few and couple was timing that John Well, speak years me. this spoken process. our normal is Conroy, choice I a quarter. having person them succession succeed planning ago just -- of We know a the didn't you as pieces over the this but Jim for Board, be to give don't would last would I the couple of the the over want #X can through with

a think the forward. candidates, to other for considered potentially due choice is So John short leader. a move I of go-forward diligence, look that in happen given make their outside they the all on but like qualities the Board, we And this potentially in a changes he just do certainly going positioned and well take order, think I company extremely has want very to

So accurately strong thought And terms for think Board, of their investment defined while conveying core values the very, all to am community. to culture traits, I rises X we here don't qualities and we process in always I I mean, the of the one that the speak the have, want collaboration. a and to very I one that of is have top of

And team. just that forward at the And other So step people well. as reasons helm successfully is and one feel member I of operate continue the will solid on move we XX,XXX one as already will do I'm the quite of away, a company strongly the forward step team the when I very away I very team. without that that me

answer question. I So the I the best can I think that's -- how

from from The next Williams. Poser Sam comes question

brands do have return give you guess Number you drive? what last you're I Can on track Congratulations, comps customers is you within? there what year and stronger versus two, sort question transactions exclusive breakdown versus seeing of your to continuing customers was can strong some new drove what these us one year? with to that like within and be appear my this everything, Jim. the on penetration -- your

Sure. Sure.

do you is brands about up to that? -- want exclusive take So

Yes. it. Yes, take I'll

That to up you XXX about. For the XX the that I'm was not if points. that Sam, asking were We expecting And basis year. points growth -- basis up be down points. basis year, what XXX was last against quarter, sure of for we're were

about XXX points next up for quarter. basis each the X So quarters

seeing, lot of in coming big strength denim you're a the branded that out than which of not. probably that more As is

think the Also, exclusive ladies will penetrate some growth exclusive little and has -- And more next be in from that. to are We tends on are through a on the a brand seeing nice driver couple quarters, general, our We're nice improvement denim. brands. as in that that growth. nice seeing brand exclusive business, stock I seen we some a of on heavily we get the

store. vendors assortment have of time think some we third-party driver. a year, some But improvements as that just also being last to getting across that's taking in categories, the against look some through adjust at up numbers those couple product big So I really the nice with the last quarters, our had that and

of brands XXX exclusive the that spot team, outsized I coming growing over in back we've nice exclusive we've brand at of product target range, growth third-party XXX got higher long-term a think assortment seen now like that. from much We've penetration than in to years really got basis and to our great the we're our from was where that not some points kind we'll last our be that of few vendors. a

And you. then Got customers? on

X.X We're customers, year. customers. versus XX% of last the up and customer of up about reached retention customers year-over-year. the good again about Sure. count million addition The is We new -- we really feel

legacy get And customers we're Sam, newly being twice a only to As the seeing with customers. transactions new and average of as pretty similar. We pretty for size for really is our brand, customer shop similar customers know, about us. good. -- behavior added do a year, is you basket Their per introduced they pretty number similar feel really

business. business both You've ladies part sales. as apparel boots XX% sales. those really the now and of asked in in to ladies pandemic, customer, growth our total it about of the that about the total I XX% together, put We seeing reengaging when with ladies of past really is prior our ladies us and feel good almost was And

about on So how female them. we younger add to able really good female been hold customers feel more to customers, that we've

Jeremy from comes question next Group. Craig-Hallum The Capital from Hamblin

I'll a to questions fantastic around add tenure. I on my congratulations And to just implications. back some wanted the election come potential

understand, for think Just in you've of had length or of then look b, trends. noted products some a that; there's typical some period are business on happens the might wanted the potential period, distraction? time what And where the also back your you stuff, the sense there as your to kind produced Mexico? of XXXX, that disruption bit you a magnitude tariff that a, of related before XXXX, of the distraction portion to just and be I

Sure.

given coming out is to last of COVID. lot bit XXXX a the gain of information little we're in election So difficult a that from --

probably called presentation it little year it. quantify slide had tricky. negative of points In comp. couple to that think didn't out we January XXXX, was impact. in a Jim's We following in of our of so the a was in January, And quantify that It we a a was had I

to comp, If hurting also of quarter, maybe you weather at there's the noise X points points comp, some was look quarter. not chart of us the XX that on that but X probably closer to

long-winded So there. answer

I that impact until now us think to really does the period the election. is that, time tend

I how couple being distraction over big of up So see the a think that next us. we'll for of weeks ends

as brands comes out question, of far Mexico Mexico. of as XX% then about And the exclusive our

And you the really follow-up current quarter. -- Got on the quarter want comps to strong just other one come had to I a to here -- it. back and start then strong in

color plus able might some into a you some getting on of about XX noted you just -- a just points. about X be that thinking markets higher just the basis the on relative additional in Or estate sense are Is of buying comp a costs costs deleverage bit I occupancy to basis? in real a that. terms of in I the terms there think, quarter. that to get drag that you're And In on maybe wanted share quarter, just

so that new real we're in that expensive real a at they just we're Really, we're existing it's similar but estate not more seeing a Sure. have mature even lower much that as estate, stores, opening stores stores are new cost having sales more stores volume.

have a we QX. you so and at in it's smaller quarter a or a than QX Also, is occupancy see -- the rate occupancy rate And QX higher of of what even small sales.

a and little that also was full we more think your of really I year QX why deleverage, at so to on But we look a around And was provide it utilities. when deleverage. bit question like basis talk There's points. about when leverage we

see utilities I last we that think occupancy second the I in line. the that hit talked that call tend about that higher on quarter to

The William Dylan next from Blair. question from Carden comes

on congrats is the This move. news on with for Alex good Dylan. and Jim, luck your

on the light one current what What what projections look observed to are And macro. your macro the levels Are of early your like? tracking competitors? heading promotional historical? thoughts just start you activity into quarter? and relative In season, to the for on you activity the Is holidays? those the in have promotional at holiday expecting So do similar to

maybe same we the would promotional it's certainly been activity, across react slight of the think much but set, to. competitive a increase nothing in I

very anything to We we'll to a leaning very have low be -- during that I the and don't deeper model, they'll the price our we promotions in few light follow and continue pretty last promotions. terms expect pretty of we an strategy, season, haven't everyday planned increases similar holiday -- cadence for will do we any similar more into discounts or are year.

spoken your to what you prioritized on speak business Higher the longer-term recovery trending EBIT And call have one efficiencies, on And supply can Got of to then know in the drive efforts? you anything of on margin buying your chain out that mid-teens? That's gross you've a side, stuff. of there are level, would you initiatives margin. those else just margin late? the towards economies margin it. how target back few that Specifically, prior front? to I scale Is helpful.

Yes.

really, down that you think suppliers, to We've come also years continued us City facility, continue those worked contracts called one and and fruition road that's I the years we've improvement, driving get likely now. the the up will drive efficiencies. more we'll arena, And more renegotiate supplier we get and out several are stores of we're as couple flexibility X to we distribution long-term merchandise allows years, than and centers up that the margin up business. our in in into and the support we out through us that and the we of a center, will quarter, some as hard with Kansas down that in a seeing the to of ramp efficiencies in we'll third drive e-commerce more and get running our and year helping road, efficiencies continue a this lot distribution support having really also to -- open activity how those

insurance our We the in and also, with side corporate and renewals. negotiating and constantly and providers as some general things, of came up our recently property liability nice our vendors we're on SG&A we improvement on saw

something looking at next but we'll get guidance, this we -- that the on and our so are balance us improvement we get of included into And year. through with as that's see in as have we're some carry on year and is to expecting

the loads about that something getting scale, possession down. taking container the up we of margins. where turn really to vendors we've cost from to additional our product can of there distributing some grow that's full it's call, been years and drive third-party able and and that to pick ourselves at a that discount and So we're we talked Last and for doing try renegotiate every continues

working back down with that suppliers team we're job get of out EBIT cost fantastic So the move The ideas. our back of XX% towards forward and as we has march not a margin. and done to vendors our

follow-up a question have Poser. Sam we And from

Yes. follow-up the There's on margins. a

see On said third Why in the run thinking see that at be X as are we're the the -- if the year full you quarter the about high same you a leverage comp that, a had deleverage point. seeing? should end, as as you SG&A, much as that why Or way?

say it's unforeseen Yes. And and was think the which were make to incentive-based the year, that second of a really would anticipated. as the were bonus dispute had the related with from primarily performance-based a Sam. We year comp, adjustments some annual quarter than projection, it a legal X% of it to off And that would I And the required happened. the quarters say had -- and sales No, comp higher we -- of the stock was rest the base the that compensation, -- relating it's primarily quarter, did a to be X the a on we during flat that and had elevated expenses a EPS X% couple X-year to we fair one last compensation that we guide. we're properties. result calculation at some a then of us saw well. our of settle great accelerated One, in backing couple about things with -- and will we -- get SG&A we question, just did leverage our up, on

at bit And the we that X.X% weren't sales exactly probably leverage being so comp the as comp expense beginning better, could at end anticipating couple prove also little to guide have things year a minus X% a creates some the accurate. additional not our a we had modeled quickly to there accelerating the a but of range, that we are that the of of make and high that points

So...

again the though, comp? about in deleverage talking you're on third quarter, stronger a And

points basis. leverage we tend my full Yes. a like the comment, previous to look on at Again, year

focus there. the that's And what we're it's on there, so we'll some timing guiding again, there's and and in full year

over closing back I remarks. This for like turn question-and-answer conference to session. concludes our Hazen would the to John

the up. would make some the to give to before call we I everyone, opportunity remarks you, joining for closing today. like wrap Thank Conroy Jim

like the Barn take you, Thank the step and you. incredible poised XX Thank heartfelt this truly knowing been family would After company conclude filled immense is today's that And created, healthy. John. something for call. to will company in have journey. built Barn, memories growth. my that successes, future side Barn change wish will partners we gratitude that, and for we've with with by challenges the very I will Boot entire I we incredibly the special good forever and who this a away Boot care. hands shared years Together, Boot at you thank extraordinary throughout from I'm and and

has now concluded. presentation. conference for you attending today's The Thank

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