IRVINE, Calif.--(BUSINESS WIRE)--
Boot Barn Holdings, Inc. (NYSE:BOOT) today announced preliminary results
for the third quarter of fiscal year 2016 ended December 26, 2015 in
preparation for participation in the ICR Conference on Tuesday, January
12, 2016.
Preliminary Results for the Third Quarter of Fiscal Year 2016
Estimated results for the third quarter ended December 26, 2015 were as
follows:
-
Preliminary net sales increased 49% to approximately $194 million;
-
Opened 5 new stores and completed the rebranding of 19 Sheplers stores;
-
Preliminary consolidated same store sales (which include e-commerce
and Sheplers sales) declined approximately 2.0%, with Boot Barn and
Sheplers performing similarly. This compares with previous third
quarter guidance of positive low single digits;
-
Preliminary adjusted net income per diluted share between $0.43 to
$0.44, compared to previous guidance of $0.47 to $0.49.
1) Adjusted net income is a non-GAAP measure. An explanation of the
computation of this measure and a reconciliation to GAAP net income is
included below. See also "Non-GAAP Financial Measures."
Jim Conroy, Chief Executive Officer, commented, “During the third
quarter we faced increasing headwinds due to the softening of local
economies dependent on oil and other commodities, and a challenging
retail environment due to unseasonably warm weather in many of our
markets. We also continued to integrate the newly acquired Sheplers
business, which is now largely complete, and we feel very good about the
acquisition. The Sheplers e-commerce business achieved solid growth for
the quarter. The nineteen rebranded stores were negative for the quarter
as a result of disruption from remodeling construction, and cycling
outsized promotional activity in the prior year period. These stores
have turned positive post-Christmas, albeit later than we had
anticipated. On a consolidated basis, our same store sales declined in
October and November before improving to nearly flat in December.
Fortunately, we managed our merchandise levels prudently, resulting in a
healthy and clean inventory position as we entered the fourth quarter,
which is off to a strong start in the first two weeks.”
Mr. Conroy continued, “We are pleased with the double digit growth we
were able to achieve in our combined e-commerce channel. We also feel
good about the overall Boot Barn concept as we have continued to
experience strong same store sales growth in many of our core markets
without significant exposure to commodity prices, including California,
Arizona and Nevada. Finally, we have continued to execute on our growth
strategies, further expanding our store footprint, improving the
merchandise margin at both Boot Barn and Sheplers stores and increasing
our private brand penetration, while further solidifying our position as
the largest omni-channel western and work wear retailer in the U.S.”
The company will report actual third quarter fiscal 2016 results on
February 2, 2016 and will then update its full year guidance.
ICR Conference 2016
The Company will be presenting at the ICR Conference 2016 held at the JW
Marriott Orlando Grande Lakes in Orlando, Florida, on Tuesday, January
12, 2016 at 1:00 pm Eastern Standard Time.
The audio portion of the presentation will be webcast live over the
internet and can be accessed under the Investor Relations section at www.investor.bootbarn.com.
An online archive will be available for a period of 90 days following
the presentation.
About Boot Barn
Boot Barn is the nation’s leading lifestyle retailer of western and
work-related footwear, apparel and accessories for men, women and
children. The Company offers its loyal customer base a wide selection of
more than 200 work and lifestyle brands. Boot Barn now operates 205
stores in 29 states, in addition to an e-commerce channel, including
both www.bootbarn.com
and www.sheplers.com.
For more information, call 888-Boot-Barn or visit www.bootbarn.com.
Non-GAAP Financial Measures
The Company presents adjusted net income and has included a preliminary
range of estimated adjusted net income per diluted share to help the
Company describe its operating and financial performance. Adjusted net
income per diluted share is a non-GAAP financial measure and should not
be construed in isolation or as an alternative to actual net income and
actual net income per diluted share and other income or cash flow
statement data (as presented in the Company’s consolidated financial
statements in accordance with generally accepted accounting principles
in the United States, or GAAP), or as a better indicator of operating
performance or as a measure of liquidity. Adjusted net income per
diluted share, as defined by the Company, may not be comparable to
similar non-GAAP financial measures presented by other companies. The
Company’s management believes that adjusted net income per diluted share
provides investors with transparency and helps illustrate financial
results by excluding items that may not be indicative of, or are
unrelated to, the Company’s core operating results, thereby providing a
better baseline for analyzing trends in the underlying business. See the
table at the end of this press release for a reconciliation of the
preliminary adjusted net income per diluted share range to net income
per diluted share.
Forward Looking Statements
This press release contains forward-looking statements that are subject
to risks and uncertainties. All statements other than statements of
historical fact included in this press release are forward-looking
statements. You can identify forward-looking statements by the fact that
they generally include words such as "anticipate," "estimate," "expect,"
"project," "plan,“ "intend," "believe," “outlook” and other words and
terms of similar meaning in connection with any discussion of the timing
or nature of future operating or financial performance or other events
but not all forward-looking statements contain these identifying words.
These forward-looking statements are based on assumptions that the
Company’s management has made in light of their industry experience and
on their perceptions of historical trends, current conditions, expected
future developments and other factors they believe are appropriate under
the circumstances. As you consider this press release, you should
understand that these statements are not guarantees of performance or
results. They involve risks, uncertainties (some of which are beyond the
Company’s control) and assumptions. These risks, uncertainties and
assumptions include, but are not limited to, the following: the failure
to realize the anticipated synergies from the Sheplers acquisition and
other risks of integration, declines in consumer spending or changes in
consumer preferences and the Company’s ability to effectively execute on
its growth strategy; to maintain and enhance its strong brand image; to
compete effectively; to maintain good relationships with its key
suppliers; and to improve and expand its exclusive product offerings.
The Company discusses the foregoing risks and other risks in greater
detail under the heading “Risk factors” in the periodic reports filed by
the Company with the Securities and Exchange Commission. Although the
Company believes that these forward-looking statements are based on
reasonable assumptions, you should be aware that many factors could
affect the Company’s actual financial results and cause them to differ
materially from those anticipated in the forward-looking statements.
Because of these factors, the Company cautions that you should not place
undue reliance on any of these forward-looking statements. New risks and
uncertainties arise from time to time, and it is impossible for the
Company to predict those events or how they may affect the Company.
Further, any forward-looking statement speaks only as of the date on
which it is made. Except as required by law, the Company does not intend
to update or revise the forward-looking statements in this press release
after the date of this press release.
Boot Barn Holdings, Inc.
Supplemental Information -
Preliminary reconciliation of GAAP to Non-GAAP Financial Measures
We have not yet finalized our financial results for the third quarter of
fiscal year 2016 ended December 26, 2015, and the preliminary estimated
financial results included below are subject to revision pending the
completion of the accounting and financial reporting processes necessary
to complete our financial closing procedures and financial statements
for the period.
|
|
Thirteen Weeks Ended
|
(Dollars in millions)
|
|
December 26, 2015
|
Reconciliation of GAAP net income attributed to Boot Barn
Holdings, Inc. to preliminary adjusted net income attributed to Boot
Barn Holdings, Inc.
|
|
|
Low
|
|
High
|
Preliminary GAAP net income attributed to Boot Barn Holdings, Inc.
|
|
$
|
9.3
|
|
9.7
|
Amortization of inventory fair value adjustment (a)
|
|
|
(0.2)
|
|
(0.2)
|
Acquisition-related integration expenses (b)
|
|
|
3.4
|
|
3.4
|
Loss on disposal of assets and contract termination costs (c)
|
|
|
0.1
|
|
0.1
|
Secondary offering costs (d)
|
|
|
0.3
|
|
0.3
|
Provision for income taxes
|
|
|
6.4
|
|
6.6
|
Adjusted provision for income taxes (e)
|
|
|
(7.8)
|
|
(8.1)
|
Preliminary adjusted net income attributed to Boot Barn Holdings,
Inc.
|
|
$
|
11.5
|
|
11.8
|
Preliminary adjusted net income per diluted share (based on 26.9
million outstanding shares)
|
|
$
|
0.43
|
$
|
0.44
|
|
|
|
|
|
|
(a) Represents the amortization of purchase-accounting adjustments that
decreased the value of inventory acquired to its fair value.
(b) Represents certain store integration, remerchandising, inventory
obsolescence and corporate consolidation costs incurred in connection
with the integration of Sheplers, which we acquired in June 2015.
Includes an adjustment to normalize the gross margin impact of
discontinued inventory from Sheplers.
(c) Represents loss on disposal of assets and contract termination costs
from store closures and unused office and warehouse space.
(d) Represents professional fees and expenses incurred in connection
with a secondary offering.
(e) The provision for income taxes uses an effective tax rate of 40.6%
and applies it to the non-GAAP income before taxes.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160111006473/en/
Source: Boot Barn Holdings, Inc.