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| Statement |
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| And maybe will be slightly lower than that or slightly higher than that, but the new store engine is really building momentum |
| Our digital team has added to this capability tremendously |
| So, we feel very good about the inventory levels |
| And we feel very good about the quality of that inventory |
| Fiscal 2023 was a solid year for Boot Barn as we achieved record sales, opened 45 new stores, and continue to expand product margin |
| I am proud of the entire Boot Barn team for driving these results and for holding on to the outsized gains from the prior year |
| Fiscal 2023 total sales grew 11.4% on top of 67% growth in the prior year, driven primarily by strong sales from new stores opened over the past 12 months |
| While topline performance in the stores was softer than we expected it to be at the outset of the quarter, we are relatively pleased with this result as we're recycling a two-year stack comp of approximately 60% |
| From an operational perspective, the field organization continues to deliver exceptional customer experience |
| Given the extraordinary revenue increase last year, we are quite pleased with these results |
| We are pleased with our fiscal 2023 results and believe we are well positioned to continue our growth |
| To put our sales and margin results in perspective, over the past five years, Boot Barn revenue has more than doubled, adding nearly $1 billion in sales and merchandise margin has expanded approximately 500 basis points |
| Given that we are up against the toughest compares in the year ago period, it is encouraging to see a sequential improvement from March into our first quarter signaling a healthier tone in the business |
| With new stores continuing to well exceed our financial targets and our growing store footprint, providing even greater integration with our digital channel, we are confident the business is on course to deliver profitable market share gains and increased shareholder value |
| It is a testament to the strength of the Boot Barn brand, where we can continue to expand our selling margin despite a decline in same-store sales |
| While our full year results fell short of our original expectations, overall, I am pleased that we've been able to continue to grow the business on top of a record-setting year |
| Our growth engine continues to significantly outperform our expectations |
| I'm very proud of the entire team across the country, I want to thank you all for your continued hard work and execution |
| And that really resulted in a very nice increase in our exclusive brand penetration |
| Again, I would point you to point to page 10, where our growth sort of considerably outpaced, the only four companies we can get data on from a public company standpoint, and these are great companies, extremely well run, great partners to us, but we certainly were able to outpace whatever underlying fashion cycle there was |
| We continue to be encouraged both by the new store performance in new markets and the lack of significant cannibalization as new stores are added to existing markets |
| The new store performance helped with a strong new store pipeline, further bolsters our confidence in the ability to expand to 900 more stores across the United States over the next several years |
| And those businesses, as you know well, Peter, have been perennial strongholds and just real great growth drivers for us for five or more years coming into this period, and the team will pick up from -- once the weather passes, and we're pretty certain we'll start to see growth there again |
| From a merchandise department perspective, the more functional product lines performed better than the more discretionary categories |
| The amount of shipments that are not now shipped from our stores versus a couple of years ago is just incredible, it's about a third of our e-commerce business now being shipped from stores, which gives us the ability to put the best product that you could possibly imagine in all of our stores, build the in-store shopping experience |
| As we get to Q3 and Q4, the stores get better, but they're still projected to be down in that mid-single-digit range, better than what we'll see in Q1 and Q2, but still not positive and e-comm improved to a plus mid-single-digit |
| So, we're excited about the growth prospects going forward |
| So, we're looking forward to, I guess, an eighth consecutive year of margin expansion |
| We are pleased with the continued expansion we have seen in our customer base with 22% year-over-year growth in our B Rewarded loyalty members, ending the year at 7.1 million active members |
| I feel very strongly that we'll hit at least 13 stores in the first quarter of this year |
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| Fourth quarter consolidated same-store sales declined 5.5% with retail store same-store sales declining 3.3%, and e-commerce comp sales declining 18.4% |
| In the fourth quarter, our e-commerce same-store sales declined 18.4%, in line with the performance we saw in this channel during the third fiscal quarter |
| The consolidated 5.8% decline is driven by a 15.2% decrease in e-commerce sales and 4.3% decline in retail store same-store sales |
| I know that there's maybe some concern that the concept wouldn't resonate with customers in the Northeast |
| We expect the same-store sales decline of 7% with retail store same-store sales declining 6% and e-commerce same-store sales declining 15% |
| We expect same-store sales to decline 4.5% with a retail store same-store sales decline of 5.2% and e-commerce same-store sales growth of 1% |
| The businesses that we would consider fashionable right now are undoubtedly headwinds to our comp and were in the fourth quarter for sure |
| And then while there's some concern often about, well, what's the downside risk of opening up new stores, but we have 352 stores today and either zero or one or two lose money |
| And the bootbarn.com.com business is already back to flag as being dragged down by sheplers.com, which while that might be disappointing when people look at -- when investors look at a negative e-commerce, that business isn't sort of our marquee brand |
| We are halfway through our first fiscal quarter and quarter-to-date same-store sales declined 5.8% compared to approximately 13.4% growth in the comparable prior year period |
| Then candidly, what happened was COVID hit and that challenged supply chain |
| This deleverage is primarily the result of negative same-store sales, higher occupancy from new stores, and the cost of the new Kansas City distribution center |
| Ladies boots and ladies apparel declined 11% and 13%, respectively, as both departments cycled a two-year stack of over 80% |
| The 220 basis point decrease in gross profit rate resulted from a 120 basis point decline in merchandise margin rate and a 100 basis points -- and 100 basis points of deleverage in buying, occupancy and distribution center costs |
| Drilling down into our comp stores business from a geographic standpoint, we saw a slight decline in our East and North regions |
| So, during the drought, we had a more difficult agricultural market in the Central Valley, for example, which is one of our strongholds of stores |
| The West and South regions both experienced a mid-single-digit decline |
| And if they're down 15%, right, it's on and a half -- 150 basis points of comp erosion if you take a negative 15% on 10% of the business |
| So, those businesses, we have two specific districts in California that are being impacted and they're down, call it, 15% or so, and they're very high-volume districts |
| It seems like it's a bit weaker for longer than we would have expected |
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