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What changed in Boot Barn Holdings, Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Boot Barn Holdings, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+92 added−100 removedSource: 10-K (2024-05-15) vs 10-K (2023-05-18)

Top changes in Boot Barn Holdings, Inc.'s 2024 10-K

92 paragraphs added · 100 removed · 81 edited across 6 sections

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeOur lease expires November 30, 2032 and contains two options to renew, each for an additional five years. Most of our stores are occupied under operating leases. The store leases generally have a base lease term of five or 10 years, with one or more renewal periods of five years, on average, exercisable at our option.
Biggest changeThe store leases generally have a base lease term of five or 10 years, with one or more renewal periods of five years, on average, exercisable at our option. Of the store leases that will reach their termination date during fiscal 2025, thirteen of those leases do not contain an option to automatically extend the lease term.
Item 2. Propertie s Our Store Support Center, e-commerce operations and distribution centers are located in California, Kansas, and Missouri. As of April 1, 2023, our Store Support Center is located in Irvine, California, where we currently occupy an 84,580 square foot building.
Item 2. Propertie s Our Store Support Center, e-commerce operations and distribution centers are located in California, Kansas, and Missouri. As of March 30, 2024, our Store Support Center is located in Irvine, California, where we currently occupy an 84,580 square foot building.
This lease expires August 31, 2035 and contains four additional options to renew, each for a period of five years. We also lease an additional freestanding building in Wichita, Kansas, totaling 21,275 square feet. The building is being used as office and distribution center space to support our e-commerce business.
In Wichita, Kansas, we lease a 133,428 square foot distribution center to support our e-commerce business and 30,000 square feet of office space. This lease expires August 31, 2035 and contains four additional options to renew, each for a period of five years. We also lease an additional freestanding building in Wichita, Kansas, totaling 21,275 square feet.
The existing lease will expire August 31, 2024, and does not contain an option to renew beyond the current lease term. In Fontana, California, we lease a 398,471 square foot distribution center that holds inventory to support our exclusive brand initiatives, bulk purchasing programs, event sales, new store openings, and our e-commerce business.
In Fontana, California, we lease a 398,471 square foot distribution center that holds inventory to support our exclusive brand initiatives, bulk purchasing programs, event sales, new store openings, and our e-commerce business. Our existing lease expires May 31, 2026, and contains one option to renew, for an additional period of five years.
The lease expires September 30, 2023 and does not contain an option to renew, but we are seeking an additional two year extension. In Kansas City, Missouri, we lease a 459,680 square foot distribution center that will hold inventory to support our exclusive brand initiatives, bulk purchasing programs, and our e-commerce business.
In Kansas City, Missouri, we lease a 459,680 square foot distribution center that holds inventory to support our exclusive brand initiatives, bulk purchasing programs, and our e-commerce business. Our lease expires November 30, 2032 and contains two options to renew, each for an additional five years. Most of our stores are occupied under operating leases.
Of the store leases that 35 Table of Contents will reach their termination date during fiscal 2024, twenty-two of those leases do not contain an option to automatically extend the lease term. We are generally responsible for the payment of property taxes and insurance, utilities and common area maintenance fees.
We are generally responsible for the payment of property taxes and insurance, utilities and common area maintenance fees.
Removed
Our existing lease expires May 31, 2026, and contains one option to renew, for an additional period of five years. In Wichita, Kansas, we lease a 133,428 square foot distribution center to support our e-commerce business and 30,000 square feet of office space.
Added
The existing lease will expire January 31, 2025, and does not contain an option to renew beyond the current lease term. We have entered into lease agreements to lease a 116,261 square foot building in Irvine, California. We will be relocating our Store Support Center during fiscal 2025.
Added
The building is being used as office and distribution center space to support our e-commerce business. The lease expires September 30, 2025 and does not contain an option to renew, but we are seeking an additional two year extension.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeThe majority of these indemnifications and commitments do not provide for any limitation of the maximum potential future payments we could be obligated to make, and their duration may be indefinite. We have not recorded any liability for these indemnifications and commitments in the consolidated balance sheets as the impact is expected to be immaterial. Item 4.
Biggest changeThe majority of these indemnifications and commitments do not provide for any limitation of the maximum potential future payments we 35 Table of Contents could be obligated to make, and their duration may be indefinite. We have not recorded any liability for these indemnifications and commitments in the consolidated balance sheets as the impact is expected to be immaterial.
Mine Safety Disclosure s Not applicable. ​ 36 Table of Contents PART I I
Item 4. Mine Safety Disclosure s Not applicable. ​ 36 Table of Contents PART I I
Removed
On May 8, 2019, Sheplers LLC (formerly known as Sheplers, Inc. prior to September 26, 2021), a wholly-owned subsidiary of the Company, was named as defendant in a class-action complaint filed in the Superior Court of California, County of Los Angeles. Among other things, the complaint generally alleged deceptive pricing on merchandise sold on Sheplers’ e-commerce site.
Removed
The Company reached a settlement for an amount that is not material to the consolidated financial statements, and all settlement amounts have been paid as of April 1, 2023.
Removed
On February 27, 2020, one employee, on behalf of themself and all other similarly situated employees, filed a class action lawsuit against the Company, which includes claims for penalties under California’s Private Attorney General Act, in the Sacramento County Superior Court, Case No. 34-2019-00272000-CU-OE-GDS, alleging violations of California’s wage and hour, overtime, meal periods and rest breaks, and an alleged violation of the suitable seating requirement as per California Labor Law among other things.
Removed
As of April 1, 2023, the Company has entered a motion for preliminary approval of class action settlement and has recorded an amount for the estimated probable loss, which is not material to the consolidated financial statements. Subsequent to April 1, 2023, the Company received a court order granting approval of settlement.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe graph also assumes that the initial price of our common stock, the NYSE composite Total Return index and the Peer Group on March 29, 2018 were the closing prices on that trading day. 37 Table of Contents Comparison of Cumulative Total Return Assumes Initial Investment of $100 March 2018 - April 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ March 30, ​ March 28, ​ March 27, ​ March 26, ​ April 1, ​ ​ 2018 ​ 2019 ​ 2020 ​ 2021 ​ 2022 ​ 2023 Boot Barn Holdings, Inc. $ 100.00 ​ $ 166.05 ​ $ 75.41 ​ $ 357.02 ​ $ 544.44 ​ $ 432.26 NYSE Composite—Total Return $ 100.00 ​ $ 104.55 ​ $ 86.05 ​ $ 135.57 ​ $ 148.29 ​ $ 139.26 Peer Group $ 100.00 ​ $ 137.87 ​ $ 106.92 ​ $ 234.32 ​ $ 320.21 ​ $ 336.02 ​ ​ Item 6. [Reserved]
Biggest changeThe graph also assumes that the initial price of our common stock, the NYSE composite Total Return index and the Peer Group on March 30, 2019 were the closing prices on that trading day. 37 Table of Contents Comparison of Cumulative Total Return Assumes Initial Investment of $100 March 2018 - April 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 30, ​ March 28, ​ March 27, ​ March 26, ​ April 1, ​ March 30, ​ ​ 2019 ​ 2020 ​ 2021 ​ 2022 ​ 2023 ​ 2024 Boot Barn Holdings, Inc. $ 100.00 ​ $ 45.41 ​ $ 215.01 ​ $ 327.89 ​ $ 260.33 ​ $ 323.20 NYSE Composite—Total Return $ 100.00 ​ $ 82.31 ​ $ 129.68 ​ $ 141.84 ​ $ 133.21 ​ $ 161.69 Peer Group $ 100.00 ​ $ 71.71 ​ $ 161.11 ​ $ 211.80 ​ $ 220.59 ​ $ 259.08 ​ ​ Item 6. [Reserved]
Item 5. Market for Registrant’s Common Equit y, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock has been listed on the New York Stock Exchange under the symbol “BOOT” since October 30, 2014, the day after our initial public offering. As of May 17, 2023, we had 3 stockholders of record.
Item 5. Market for Registrant’s Common Equit y, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock has been listed on the New York Stock Exchange under the symbol “BOOT” since October 30, 2014, the day after our initial public offering. As of May 13, 2024, we had 4 stockholders of record.
This graph assumes an initial investment of $100 on March 29, 2018 in our common stock, the NYSE Composite Total Return index and the Peer Group, and assumes the reinvestment of dividends, if any.
This graph assumes an initial investment of $100 on March 30, 2019 in our common stock, the NYSE Composite Total Return index and the Peer Group, and assumes the reinvestment of dividends, if any.
Securities Authorized for Issuance Under Equity Compensation Plans The information required by this Item is incorporated herein by reference to the Company’s Proxy Statement for the 2023 Annual Meeting of Stockholders, which will be filed with the SEC no later than 120 days after the close of the fiscal year ended April 1, 2023 (the “2023 Proxy Statement”).
Securities Authorized for Issuance Under Equity Compensation Plans The information required by this Item is incorporated herein by reference to the Company’s Proxy Statement for the 2024 Annual Meeting of Stockholders, which will be filed with the SEC no later than 120 days after the close of the fiscal year ended March 30, 2024 (the “2024 Proxy Statement”).
Stock Performance Graph The graph set forth below compares the cumulative stockholder return on our common stock between March 29, 2018 and April 1, 2023 to the cumulative return of (i) the NYSE Composite Total Return index and (ii) an index of peer and comparable companies as determined by the Company (“Peer Group”).
Stock Performance Graph The graph set forth below compares the cumulative stockholder return on our common stock between March 30, 2019 and March 30, 2024 to the cumulative return of (i) the NYSE Composite Total Return index and (ii) an index of peer and comparable companies as determined by the Company (“Peer Group”).

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeItem 6. ​ [Reserved] ​ 38 ​ Item 7. ​ Management’s Discussion and Analysis of Financial Condition and Results of Operations ​ 38 ​ Item 7A. ​ Quantitative and Qualitative Disclosures About Market Risk ​ 52 ​ Item 8. ​ Consolidated Financial Statements and Supplementary Data ​ 53 ​
Biggest changeItem 6. ​ [Reserved] ​ 38 ​ Item 7. ​ Management’s Discussion and Analysis of Financial Condition and Results of Operations ​ 38 ​ Item 7A. ​ Quantitative and Qualitative Disclosures About Market Risk ​ 51 ​ Item 8. ​ Consolidated Financial Statements and Supplementary Data ​ 52 ​

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

64 edited+9 added−13 removed85 unchanged
Biggest changeFiscal 2023 was a 53-week period and fiscal 2022 and 2021 were each 52-week periods. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ April 1, March 26, March 27, (dollars in thousands) 2023 ​ 2022 ​ 2021 Consolidated Statements of Operations Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 1,657,615 ​ $ 1,488,256 ​ $ 893,491 ​ Cost of goods sold ​ 1,047,043 ​ 913,183 ​ 598,612 ​ Gross profit ​ 610,572 ​ 575,073 ​ 294,879 ​ Selling, general and administrative expenses ​ 378,785 ​ 316,735 ​ 208,553 ​ Income from operations ​ 231,787 ​ 258,338 ​ 86,326 ​ Interest expense ​ 5,880 ​ 5,780 ​ 9,442 ​ Other (loss)/income, net ​ ​ (29) ​ ​ 35 ​ ​ 366 ​ Income before income taxes ​ 225,878 ​ 252,593 ​ 77,250 ​ Income tax expense ​ 55,325 ​ 60,143 ​ 17,864 ​ Net income ​ $ 170,553 ​ $ 192,450 ​ $ 59,386 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage of Net Sales (1) : ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ 100.0 % 100.0 % 100.0 % Cost of goods sold ​ 63.2 % 61.4 % 67.0 % Gross profit ​ 36.8 % 38.6 % 33.0 % Selling, general and administrative expenses ​ 22.9 % 21.3 % 23.3 % Income from operations ​ 14.0 % 17.4 % 9.7 % Interest expense ​ 0.4 % 0.4 % 1.1 % Other (loss)/income, net ​ ​ — % ​ — % ​ — % Income before income taxes ​ 13.6 % 17.0 % 8.6 % Income tax expense ​ 3.3 % 4.0 % 2.0 % Net income ​ 10.3 % 12.9 % 6.6 % (1) Percentages may not total 100% due to rounding. ​ Fiscal 2023 compared to Fiscal 2022 Net sales.
Biggest changeFiscal 2024 was a 52-week period, fiscal 2023 was a 53-week period and fiscal 2022 was a 52-week period. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ March 30, April 1, March 26, (dollars in thousands) 2024 ​ 2023 ​ 2022 Consolidated Statements of Operations Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 1,667,009 ​ $ 1,657,615 ​ $ 1,488,256 ​ Cost of goods sold ​ 1,052,585 ​ 1,047,043 ​ 913,183 ​ Gross profit ​ 614,424 ​ 610,572 ​ 575,073 ​ Selling, general and administrative expenses ​ 416,210 ​ 378,785 ​ 316,735 ​ Income from operations ​ 198,214 ​ 231,787 ​ 258,338 ​ Interest expense ​ 2,238 ​ 5,880 ​ 5,780 ​ Other (loss)/income, net ​ ​ 1,396 ​ ​ (29) ​ ​ 35 ​ Income before income taxes ​ 197,372 ​ 225,878 ​ 252,593 ​ Income tax expense ​ 50,376 ​ 55,325 ​ 60,143 ​ Net income ​ $ 146,996 ​ $ 170,553 ​ $ 192,450 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage of Net Sales (1) : ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ 100.0 % 100.0 % 100.0 % Cost of goods sold ​ 63.1 % 63.2 % 61.4 % Gross profit ​ 36.9 % 36.8 % 38.6 % Selling, general and administrative expenses ​ 25.0 % 22.9 % 21.3 % Income from operations ​ 11.9 % 14.0 % 17.4 % Interest expense ​ 0.1 % 0.4 % 0.4 % Other (loss)/income, net ​ ​ 0.1 % ​ — % ​ — % Income before income taxes ​ 11.8 % 13.6 % 17.0 % Income tax expense ​ 3.0 % 3.3 % 4.0 % Net income ​ 8.8 % 10.3 % 12.9 % (1) Percentages may not total 100% due to rounding. ​ Fiscal 2024 compared to Fiscal 2023 Net sales.
The interest on the base rate loans under the Wells Fargo Revolver is payable in quarterly installments ending on the maturity date and for Term SOFR loans is payable on the earlier of the last day of each interest period applicable thereto, or on each three-month interval of such interest period.
The interest on base rate loans under the Wells Fargo Revolver is payable in quarterly installments ending on the maturity date and for Term SOFR loans is payable on the earlier of the last day of each interest period applicable thereto, or on each three-month interval of such interest period.
Same store sales The term “same store sales” generally refers to net sales from stores that have been open at least 13 full fiscal months as of the end of the current reporting period, although we include or exclude stores from our calculation of same store sales in accordance with the following additional criteria: ● stores that are closed for five or fewer consecutive days in any fiscal month are included in same store sales; ● stores that are closed temporarily, but for more than five consecutive days in any fiscal month, are excluded from same store sales beginning in the fiscal month in which the temporary closure begins (and for the comparable periods of the prior or subsequent fiscal periods for comparative purposes) ; until the first full month of operation once the store re-opens; ● stores that are closed temporarily and relocated within their respective trade areas are included in same store sales; ● stores that are permanently closed are excluded from same store sales beginning in the month preceding closure (and for the comparable periods of the prior or subsequent fiscal periods for comparative purposes) ; and ● acquired stores are added to same store sales beginning on the later of (a) the applicable acquisition date and (b) the first day of the first fiscal month after the store has been open for at least 13 full fiscal months regardless of whether the store has been operated under our management or predecessor management.
Same store sales The term “same store sales” generally refers to net sales from stores that have been open at least 13 full fiscal months (“comparable stores”) as of the end of the current reporting period, although we include or exclude stores from our calculation of same store sales in accordance with the following additional criteria: ● stores that are closed for five or fewer consecutive days in any fiscal month are included in same store sales; ● stores that are closed temporarily, but for more than five consecutive days in any fiscal month, are excluded from same store sales beginning in the fiscal month in which the temporary closure begins (and for the comparable periods of the prior or subsequent fiscal periods for comparative purposes) ; until the first full month of operation once the store re-opens; ● stores that are closed temporarily and relocated within their respective trade areas are included in same store sales; ● stores that are permanently closed are excluded from same store sales beginning in the month preceding closure (and for the comparable periods of the prior or subsequent fiscal periods for comparative purposes) ; and ● acquired stores are added to same store sales beginning on the later of (a) the applicable acquisition date and (b) the first day of the first fiscal month after the store has been open for at least 13 full fiscal months regardless of whether the store has been operated under our management or predecessor management.
Our broad geographic footprint, which comprises more than three times as many stores as our nearest direct competitor that sells primarily western and work wear, provides us with significant economies of scale, enhanced supplier relationships, the ability to recruit and retain high quality store associates and the ability to reinvest in our business at levels that we believe exceed those of our competition.
Our broad geographic footprint, which comprises more than four times as many stores as our nearest direct competitor that sells primarily western and work wear, provides us with significant economies of scale, enhanced supplier relationships, the ability to recruit and retain high quality store associates and the ability to reinvest in our business at levels that we believe exceed those of our competition.
The base rate is calculated as the highest of (a) the federal funds rate plus 0.5%, (b) the Wells Fargo prime rate and (c) Term SOFR for a one month tenor in effect on such day plus 1.0%. The applicable margin is calculated based on a pricing grid that in each case is linked to quarterly average excess availability.
The base rate is calculated at the highest of (a) the federal funds rate plus 0.5%, (b) the Wells Fargo prime rate and (c) Term SOFR for a one-month tenor in effect on such day plus 1.0%. The applicable margin is calculated based on a pricing grid that in each case is linked to quarterly average excess availability.
Our actual results could differ materially from those contained in or implied by any forward-looking statements. 38 Table of Contents We have omitted discussion of our fiscal 2022 results where it would be redundant of information previously disclosed.
Our actual results could differ materially from those contained in or implied by any forward-looking statements. 38 Table of Contents We have omitted discussion of our fiscal 2023 results where it would be redundant of information previously disclosed.
These operating leases expire at various dates through fiscal 2035, and contain various provisions for rental adjustments, including, in certain cases, adjustments based on increases in the Consumer Price Index. They also generally contain renewal provisions for varying periods.
These operating leases expire at various dates through fiscal 2043, and contain various provisions for rental adjustments, including, in certain cases, adjustments based on increases in the Consumer Price Index. They also generally contain renewal provisions for varying periods.
All obligations under the Wells Fargo Revolver are unconditionally guaranteed by the Company and each of its direct and indirect wholly-owned domestic subsidiaries (other than certain immaterial subsidiaries) which are not named as borrowers under the Wells Fargo Revolver.
All obligations under the Wells Fargo Revolver are unconditionally guaranteed by the Company and each of its direct and indirect domestic subsidiaries (other than certain immaterial subsidiaries) which are not named as borrowers under the Wells Fargo Revolver.
If the undiscounted future cash flows are 50 Table of Contents less than the carrying value, an impairment loss is recognized, measured by the difference between the carrying value and the estimated fair value of the assets, with such estimated fair values determined using the best information available and in accordance with FASB ASC Topic 820, Fair Value Measurements (“ASC 820”).
If the undiscounted future cash flows are less than the carrying value, an impairment loss is recognized, measured by the difference between the carrying value and the estimated fair value of the assets, with such estimated fair values determined using the best information available and in accordance with FASB ASC Topic 820, Fair Value Measurements (“ASC 820”).
In addition, we also review other important metrics, such as same store sales, new store openings, and selling, general and administrative (“SG&A”) expenses, and operating income. 39 Table of Contents Net sales Net sales reflect revenue from the sale of our merchandise at retail locations, as well as sales of merchandise through our e-commerce websites.
In addition, we also review other important metrics, such as same store sales, new store openings, selling, general and administrative (“SG&A”) expenses, and operating income. Net sales Net sales reflect revenue from the sale of our merchandise at retail locations, as well as sales of merchandise through our e-commerce websites.
The Wells Fargo Revolver also requires the Company to pay additional interest of 2.0% per annum upon triggering certain specified events of default set forth therein. For financial accounting purposes, the requirement for the Company to pay a higher interest rate upon an event of default is an embedded derivative.
The Wells Fargo Revolver also requires the Company to pay additional interest of 2.0% per annum upon triggering certain specified events of default set forth therein. For financial accounting purposes, the requirement for the Company 45 Table of Contents to pay a higher interest rate upon an event of default is an embedded derivative.
A provision is recorded to reduce the cost of inventories to the estimated net realizable values, if appropriate. 49 Table of Contents To the extent that management’s estimates differ from actual results, additional markdowns may be required that could reduce our gross profit, operating income and the carrying value of inventories.
A provision is recorded to reduce the cost of inventories to the estimated net realizable values, if appropriate. To the extent that management’s estimates differ from actual results, additional markdowns may be required that could reduce our gross profit, operating income and the carrying value of inventories.
We have considered the retirement and forfeiture provisions of the options and utilized the simplified method to estimate the expected life of the options. We base the risk-free interest rate on the yield of a zero-coupon U.S. Treasury security with a maturity equal to the expected life of the option from the date of the grant.
We have considered the retirement and forfeiture provisions of the options and utilized the simplified method to estimate the expected life of the options. We base the risk-free interest rate on the yield of a zero-coupon U.S. Treasury security with a maturity equal to 50 Table of Contents the expected life of the option from the date of the grant.
For a comparison of our fiscal 2022 versus fiscal 2021 results, please see the discussion previously included in Part II, Item 7 of our fiscal 2022 Annual Report on Form 10-K filed with the SEC on May 12, 2022. ​ Overview We are the largest lifestyle retail chain devoted to western and work-related footwear, apparel and accessories in the United States.
For a comparison of our fiscal 2023 versus fiscal 2022 results, please see the discussion previously included in Part II, Item 7 of our fiscal 2023 Annual Report on Form 10-K filed with the SEC on May 18, 2023. ​ Overview We are the largest lifestyle retail chain devoted to western and work-related footwear, apparel and accessories in the United States.
We recognize revenue upon the purchase of merchandise by customers at our stores and upon delivery of the product in the case of our e-commerce websites. Net sales also include shipping and handling fees for e-commerce shipments that have been delivered to our customers.
We recognize revenue upon the purchase of merchandise by customers at our stores 39 Table of Contents and upon delivery of the product in the case of our e-commerce websites. Net sales also include shipping and handling fees for e-commerce shipments that have been delivered to our customers.
The third quarter of our fiscal year, which includes the Christmas shopping season, has historically produced higher sales and disproportionately higher operating results than the other quarters of our fiscal year. In fiscal 2023, fiscal 2022 and fiscal 2021 we generated approximately 31%, 33% and 34% of our net sales during our third fiscal quarter, respectively.
The third quarter of our fiscal year, which includes the Christmas shopping season, has historically produced higher sales and disproportionately higher operating results than the other quarters of our fiscal year. In fiscal 2024, fiscal 2023 and fiscal 2022 we generated approximately 31%, 31% and 33% of our net sales during our third fiscal quarter, respectively.
Merchandise returns are often resalable merchandise and the purchase price is generally refunded by issuing the same tender used in the original purchase. Merchandise exchanges of the same product and price are not considered merchandise returns and, therefore, are not included in the population 48 Table of Contents when calculating our sales returns reserve.
Merchandise returns are often resalable merchandise and the purchase price is generally refunded by issuing the same tender used in the original purchase. Merchandise exchanges of the same product and price are not considered merchandise returns and, therefore, are not included in the population when calculating our sales returns reserve.
See Note 12 to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for further information regarding our tax disclosures. 51 Table of Contents
See Note 12 to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for further information regarding our tax disclosures.
We also pay a commitment fee of 0.25% per annum of the actual daily amount of the unutilized revolving loans. The borrowing base of the Wells Fargo Revolver is calculated on a monthly basis and is based on the amount of eligible credit card receivables, commercial accounts, inventory, and available reserves.
The Company also pays a commitment fee of 0.25% per annum of the actual daily amount of the unutilized revolving loans. The borrowing base of the Wells Fargo Revolver is calculated on a monthly basis and is based on the amount of eligible credit card receivables, commercial accounts, inventory, and available reserves.
Our gift cards, gift certificates and store credits do not have expiration dates, and unredeemed gift cards, gift certificates and store credits are subject to state escheatment laws. Amounts remaining after escheatment are recognized in net sales in the period escheatment occurs and the liability is considered to be extinguished.
Our gift cards, gift certificates and store credits do not have expiration dates, and unredeemed gift cards, gift certificates and store credits are 48 Table of Contents subject to state escheatment laws. Amounts remaining after escheatment are recognized in net sales in the period escheatment occurs and the liability is considered to be extinguished.
Total interest expense incurred in fiscal 2023 on the Wells Fargo Revolver was $5.2 million, and the weighted average interest rate for fiscal 2023 was 4.3%. Total interest expense incurred in fiscal 2022 on the Wells Fargo Revolver was $0.7 million, and the weighted average interest rate for fiscal 2022 was 3.4%.
Total interest expense incurred in fiscal 2024 on the Wells Fargo Revolver was $1.7 million and the weighted average interest rate for fiscal 2024 was 7.0%. Total interest expense incurred in fiscal 2023 on the Wells Fargo Revolver was $5.2 million and the weighted average interest rate for fiscal 2023 was 4.3%.
The following discussion contains references to fiscal 2023, fiscal 2022, and 42 Table of Contents fiscal 2021, which represent our fiscal years ended April 1, 2023, March 26, 2022 and March 27, 2021.
The following discussion contains references to fiscal 2024, fiscal 2023, and 42 Table of Contents fiscal 2022, which represent our fiscal years ended March 30, 2024, April 1, 2023 and March 26, 2022.
Intangible assets with indefinite lives include the Boot Barn trademark that was acquired as part of the recapitalization with Freeman Spogli & Co. on December 12, 2011, the Sheplers trademark acquired as part of the Sheplers Acquisition, the cost to register the Boot Barn trademark in Hong Kong, and the www.countryoutfitter.com website trademark we acquired as part of our asset acquisition in February of fiscal 2017.
Intangible assets with indefinite lives include the Boot Barn trademark that was acquired as part of the recapitalization with Freeman Spogli & Co. on December 12, 2011, the Sheplers trademark acquired as part of our acquisition of Sheplers, Inc. and Sheplers Holding Corporation in June of fiscal 2016, the cost to register the Boot Barn trademark in Hong Kong, and the www.countryoutfitter.com website trademark we acquired as part of our asset acquisition in 49 Table of Contents February of fiscal 2017.
In a 52-week fiscal year, each quarter includes thirteen weeks of operations; in a 53-week fiscal year, the first, second and third quarters each include thirteen weeks of operations and the fourth quarter includes fourteen weeks of operations. Fiscal 2023 was a 53-week fiscal year and fiscal 2022 and 2021 were each 52-week fiscal years.
In a 52-week fiscal year, each quarter includes thirteen weeks of operations; in a 53-week fiscal year, the first, second and third quarters each include thirteen weeks of operations and the fourth quarter includes fourteen weeks of operations. Fiscal 2024 was a 52-week period, fiscal 2023 was a 53-week period and fiscal 2022 was a 52-week period.
We reduced our line of credit borrowings by $28.5 million and repaid $112.3 million on our debt and capital lease obligations during the period. We also received $5.8 million from the exercise of stock options. Other obligations Contractual obligations. We enter into long-term contractual obligations and commitments in the normal course of business, primarily non-cancelable operating and finance leases.
We increased our line of credit borrowings by $37.5 million and repaid $0.8 million on our debt and capital lease obligations during the period. We also received $1.2 million from the exercise of stock options. Other obligations Contractual obligations. We enter into long-term contractual obligations and commitments in the normal course of business, primarily non-cancelable operating and finance leases.
Net cash used in investing activities was $124.5 million for fiscal 2023, which was primarily attributable to capital expenditures related to store construction, investments in a new distribution center in Kansas City, Missouri, improvements to our e-commerce information technology infrastructure, and improvements to our stores and distribution facilities.
Net cash used in investing activities was $118.8 million for fiscal 2024, which was primarily attributable to capital expenditures related to store construction, investments in our Kansas City, Missouri distribution center, improvements to our e-commerce information technology infrastructure, and improvements to our distribution facilities.
As of April 1, 2023, we operated 345 stores in 43 states, as well as an e-commerce channel, consisting primarily of bootbarn.com, sheplers.com, countryoutfitter.com, idyllwind.com and third-party marketplaces. Our stores feature a comprehensive assortment of brands and styles, coupled with attentive, knowledgeable store associates.
As of March 30, 2024, we operated 400 stores in 45 states, as well as an e-commerce channel, consisting primarily of bootbarn.com, sheplers.com, countryoutfitter.com, idyllwind.com and third-party marketplaces. Our stores feature a comprehensive assortment of brands and styles, coupled with attentive, knowledgeable store associates.
Following the 2022 Wells Amendment, revolving credit loans bear interest at per annum rates equal to, at the Company’s option, either (i) Adjusted Term SOFR (defined as Term SOFR for the applicable interest period plus a fixed credit spread adjustment of 0.10%) plus an applicable margin for Term SOFR loans, or (ii) the base rate plus an applicable margin for base rate loans.
Revolving credit loans under the Wells Fargo Revolver bear interest at per annum rates equal to, at the Company’s option, either (i) Adjusted Term Secured Overnight Financing Rate (defined as “Term SOFR” for the applicable interest period plus a fixed credit spread adjustment of 0.10%) plus an applicable margin for Term SOFR loans, or (ii) the base rate plus an applicable margin for base rate loans.
The following table presents summary cash flow information for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ April 1, March 26, March 27, ​ ​ 2023 ​ 2022 ​ 2021 ​ ​ (In thousands) Net cash provided by/(used in): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating activities ​ $ 88,887 ​ $ 88,864 ​ $ 155,922 ​ Investing activities ​ (124,534) ​ (60,443) ​ ​ (28,424) ​ Financing activities ​ 33,166 ​ (80,895) ​ ​ (123,913) ​ Net (decrease)/increase in cash ​ $ (2,481) ​ $ (52,474) ​ $ 3,585 ​ ​ Operating activities Cash provided by operating activities consists primarily of net income adjusted for non-cash items including depreciation, amortization and stock-based compensation, plus the effect on cash of changes during the year in our assets and liabilities.
The following table presents summary cash flow information for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ March 30, April 1, March 26, ​ ​ 2024 ​ 2023 ​ 2022 ​ ​ (In thousands) Net cash provided by/(used in): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating activities ​ $ 236,080 ​ $ 88,887 ​ $ 88,864 ​ Investing activities ​ (118,782) ​ (124,534) ​ (60,443) ​ Financing activities ​ (59,644) ​ 33,166 ​ (80,895) ​ Net (decrease)/increase in cash ​ $ 57,654 ​ $ (2,481) ​ $ (52,474) ​ ​ Operating activities Cash provided by operating activities consists primarily of net income adjusted for non-cash items including depreciation, amortization and stock-based compensation, plus the effect on cash of changes during the year in our assets and liabilities.
Inventories increased $115.2 million as a result of an increase in purchases. Accounts payable and accrued expenses and other current liabilities decreased by $21.2 million due to the timing of payments. Net cash provided by operating activities was $88.9 million for the fiscal year ended March 26, 2022.
Inventories increased $9.6 million as a result of an increase in purchases. Accounts payable and accrued expenses and other current liabilities decreased by $5.8 million due to the timing of payments. Net cash provided by operating activities was $88.9 million for the fiscal year ended April 1, 2023.
Store Operating Data The following table presents store operating data for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ April 1, ​ March 26, ​ March 27, ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ Selected Store Data (unaudited): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Same Store Sales (decline)/growth ​ (0.1) % 53.7 % 3.1 % Stores operating at end of period ​ 345 ​ 300 ​ 273 ​ Total retail store square footage, end of period (in thousands) ​ 3,735 ​ 3,194 ​ 2,854 ​ Average store square footage, end of period ​ 10,825 ​ 10,648 ​ 10,455 ​ Average net sales per store (in thousands) (1) ​ $ 4,190 ​ $ 4,194 ​ $ 2,602 ​ (1) Average net sales per store is calculated by dividing store net sales for the applicable period by the number of stores operating at the end of the period. ​ Liquidity and Capital Resources We rely on cash flows from operating activities and our credit facility as our primary sources of liquidity.
Store Operating Data The following table presents store operating data for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ March 30, ​ April 1, ​ March 26, ​ ​ ​ 2024 ​ 2023 ​ 2022 ​ Selected Store Data (unaudited): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Same Store Sales (decline)/growth ​ (6.2) % (0.1) % 53.7 % Stores operating at end of period ​ 400 ​ 345 ​ 300 ​ Comparable stores open at end of period ​ ​ 335 ​ ​ 290 ​ ​ 265 ​ Total retail store square footage, end of period (in thousands) ​ 4,371 ​ 3,735 ​ 3,194 ​ Average store square footage, end of period ​ 10,929 ​ 10,825 ​ 10,648 ​ Average sales per comparable store (in thousands) (1) ​ $ 4,081 ​ $ 4,554 ​ $ 4,449 ​ (1) Average sales per comparable store is calculated by dividing comparable store trailing twelve-month sales for the applicable period by the number of comparable stores operating at the end of the period. ​ Liquidity and Capital Resources We rely on cash flows from operating activities and our credit facility as our primary sources of liquidity.
Net sales in fiscal 2023 increased by $169.4 million, or 11.4%, to $1.658 billion compared to $1.488 billion in fiscal 2022. Consolidated same store sales decreased 0.1%. Excluding the impact of the 10.2% decrease in e-commerce same store sales, same store sales increased by 1.8%.
Net sales in fiscal 2024 increased by $9.4 million, or 0.6%, to $1.667 billion compared to $1.658 billion in fiscal 2023. Consolidated same store sales decreased 6.2%. Excluding the impact of the 10.6% decrease in e-commerce same store sales, same store sales decreased by 5.6%.
We estimate that our capital expenditures in fiscal 2024 will be between approximately $90.0 million and $95.0 million, net of landlord tenant allowances, and we anticipate that we will use cash flows from operations to fund these expenditures.
We estimate that our capital expenditures in fiscal 2025 will be between approximately $115.0 million and $120.0 million, which is net of estimated landlord tenant allowances of $30.2 million. We anticipate that we will use cash flows from operations to fund these expenditures.
The key indicators we use to evaluate the financial condition and operating performance of our business are net sales and gross profit.
How We Assess the Performance of Our Business In assessing the performance of our business, we consider a variety of performance and financial measures. The key indicators we use to evaluate the financial condition and operating performance of our business are net sales and gross profit.
As a percentage of net sales, income from operations was 14.0% and 17.4% for fiscal 2023 and fiscal 2022, respectively. The change in income from operations was attributable to the factors noted above. Interest expense. Interest expense increased by $0.1 million, or 1.7%, to $5.9 million in fiscal 2023 from $5.8 million in fiscal 2022.
As a percentage of net sales, income from operations was 11.9% and 14.0% for fiscal 2024 and fiscal 2023, respectively. The change in income from operations was attributable to the factors noted above. Interest expense. Interest expense decreased by $3.6 million, or 61.9%, to $2.2 million in fiscal 2024 from $5.9 million in fiscal 2023.
The amount outstanding under the Wells Fargo Revolver and letter of credit commitments as of April 1, 2023 were $66.0 million and $0.8 million, respectively. T he amounts outstanding under the Wells Fargo Revolver and letter of credit commitments as of March 26, 2022 were $28.5 million and zero, respectively.
The amounts outstanding under the Wells Fargo Revolver and letter of credit commitments as of March 30, 2024 were zero and $2.3 million, respectively. The amounts outstanding under the Wells Fargo Revolver and letter of credit commitments as of April 1, 2023 were $66.0 million and $0.8 million, respectively.
As a percentage of net sales, gross profit was 36.8% and 38.6% for fiscal 2023 and fiscal 2022, respectively. Gross profit increased primarily due to higher sales.
As a percentage of net sales, gross profit was 36.9% and 36.8% for fiscal 2024 and fiscal 2023, respectively. Gross profit increased primarily due to merchandise margin expansion and sales growth.
Net cash provided by operating activities was $88.9 million for the fiscal year ended April 1, 2023. The significant components of cash flows provided by operating activities were net income of $170.6 million, the add-back of non-cash depreciation and amortization expense of $35.9 million and stock-based compensation expense of $9.7 million.
Net cash provided by operating activities was $236.1 million for the fiscal year ended March 30, 2024. The significant components of cash flows provided by operating activities were net income of $147.0 million, the add-back of non-cash depreciation and amortization expense of $49.5 million and stock-based compensation expense of $12.9 million.
Inventories increased $198.5 million as a result of an increase in purchases. Accounts payable and accrued expenses and other current liabilities increased by $70.7 million due to the timing of payments. Investing activities Cash used in investing activities consists primarily of purchases of property and equipment.
Accounts payable and accrued expenses and other current liabilities decreased by $21.2 million due to the timing of payments. Investing activities Cash used in investing activities consists primarily of purchases of property and equipment.
Since future events and their impact cannot be determined with absolute certainty, our actual results will inevitably differ from our estimates. We believe that the application of our accounting policies, and the estimates inherently required therein, are reasonable. Our accounting policies and estimates are re-evaluated on an ongoing basis and adjustments are made when facts and circumstances dictate a change.
We believe that the application of our accounting policies, and the estimates inherently required therein, are reasonable. Our accounting policies and estimates are re-evaluated on an ongoing basis and adjustments are made when facts and circumstances dictate a change.
Additional interest expense relating to our Wells Fargo Revolver was determined using an interest rate of 0.25% applied to the unutilized portion of the $250.0 million revolving line of credit on April 1, 2023, the last day of the fiscal year. Off-balance sheet arrangements. We are not a party to any off-balance sheet arrangements, except for purchase obligations.
Interest expense on line of credit relates to our Wells Fargo Revolver and was determined using an interest rate of 0.25% applied to the unutilized portion of the $250.0 million revolving line of credit on March 30, 2024, the last day of the fiscal year. Off-balance sheet arrangements.
As a percentage of net sales, gross profit decreased 180 basis points primarily as a result of 110 basis points of deleverage in buying, occupancy and distribution center costs and a 70 basis point decrease in merchandise margin rate.
As a percentage of net sales, gross profit rate was approximately flat driven primarily by a 160 basis-point increase in merchandise margin rate offset by 160 basis points of deleverage in buying, occupancy and distribution center costs.
Net income decreased by $21.9 million, or 11.4%, to $170.6 million in fiscal 2023 from net income of $192.5 million in fiscal 2022. The change in net income was attributable to the factors noted above.
Net income decreased by $23.6 million, or 13.8%, to $147.0 million in fiscal 2024 from net income of $170.6 million in fiscal 2023. The change in net income was attributable to the factors noted above.
Critical Accounting Policies and Estimates The preparation of financial statements in conformity with GAAP requires the appropriate application of certain accounting policies, some of which require us to make estimates and assumptions about future events and their impact on amounts reported in our financial statements.
Critical Accounting Policies and Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires the appropriate application of certain accounting policies, some of which require us to make estimates and assumptions about future events and their impact on amounts reported in our financial statements. 47 Table of Contents Since future events and their impact cannot be determined with absolute certainty, our actual results will inevitably differ from our estimates.
Net cash used in investing activities was $60.4 million for fiscal 2022, which was primarily attributable to capital expenditures related to store construction, improvements to our e-commerce information technology infrastructure, and improvements to our distribution facilities. Financing activities Cash provided by/(used in) financing activities consists primarily of repayments on our term loan and credit facility.
Net cash used in investing activities was $124.5 million for fiscal 2023, which was primarily attributable to capital expenditures related to store construction, investments in a new distribution center in Kansas City, Missouri, improvements to our e-commerce information technology infrastructure, and improvements to our stores and distribution facilities. 46 Table of Contents Financing activities Cash used in financing activities consists primarily of repayments on our line of credit borrowings.
Opening new stores is an important part of our growth strategy. We opened 45, 28, and 15 stores in fiscal 2023, 2022, and 2021, respectively. We also closed one store in each of fiscal 2022 and fiscal 2021 (and none in fiscal 2023).
Opening new stores is an important part of our growth strategy. We opened 55, 45, and 28 stores in fiscal 2024, 2023 and 2022, respectively. We also closed one store in fiscal 2022 (and none in fiscal 2024 or 2023). Accordingly, same store sales are only one measure we use to assess the success of our business and growth strategy.
Our effective tax rate was 24.5% and 23.8% for fiscal 2023 and fiscal 2022, respectively. The effective tax rate for fiscal 2023 is higher than fiscal 2022 primarily due to a lower tax benefit from income tax accounting for share-based compensation as a percentage of taxable income in the current year, compared to the prior-year period. Net income.
Our effective tax rate was 25.5% and 24.5% for fiscal 2024 and fiscal 2023, respectively. The effective tax rate for fiscal 2024 is higher than fiscal 2023 primarily due to changes to state enacted tax rates, partially offset by a higher tax benefit due to income tax accounting for share-based compensation compared to the prior year. Net income.
We expect our cash from operations will continue to be sufficient to support our operations and anticipated capital expenditures for the foreseeable future.
Our primary ongoing sources of liquidity include funds provided by operations and borrowings under our revolving credit facility. We expect our cash from operations will continue to be sufficient to support our operations and anticipated capital expenditures for the foreseeable future.
Total interest expense incurred in fiscal 2022 on the 2015 Golub Term Loan was $2.5 million, and the weighted average interest rate for fiscal 2022 was 5.5%. Total interest expense incurred in fiscal 2021 on the 2015 Golub Term Loan was $6.3 million, and the weighted average interest rate for fiscal 2021 was 5.7%.
Total interest expense incurred in fiscal 2022 on the Wells Fargo Revolver was $0.7 million and the weighted average interest rate for fiscal 2022 was 3.4%.
The Wells Fargo Revolver contains customary provisions relating to mandatory prepayments, restricted payments, voluntary payments, affirmative and negative covenants, and events of default, and requires the Company to maintain, on a consolidated basis, a Consolidated Fixed Charge Coverage Ratio of at least 1.00:1.00 during such times as a covenant trigger event shall exist.
In addition, the terms of the Wells Fargo Revolver require the Company to maintain, on a consolidated basis, a Consolidated Fixed Charge Coverage Ratio (as defined in the Wells Fargo Revolver) of at least 1.00:1.00 during such times as a covenant trigger event shall exist.
Our cash flows from operations increased in fiscal 2023 when compared to cash flows from operations in fiscal 2022, primarily as a result of a $83.3 million decrease in cash paid for inventories year-over-year and a $13.3 million decrease in cash paid for prepaid expenses and other current assets.
Our cash flows from operations increased in fiscal 2024 compared to fiscal 2023, primarily as a result of a $105.6 million decrease 44 Table of Contents in cash paid for inventories year-over-year, a $14.8 million decrease in cash paid for prepaid expenses and other current assets, and a $15.4 million increase in cash provided by accounts payable and accrued expenses and other current liabilities.
For a discussion of factors that affect the comparability of our results of operations, see “Item 1—Business—Acquisitions.” Growth Strategies and Outlook Over the long-term we plan to continue to expand our business, increase our sales growth and profitability and enhance our competitive position by executing the following strategies: ● continuing omni-channel leadership; ● driving same store sales growth; ● building our exclusive brand portfolio; ● expanding our store base; and ● enhancing brand awareness.
Growth Strategies and Outlook Over the long-term we plan to continue to expand our business, increase our sales growth and profitability and enhance our competitive position by executing the following strategies: ● continuing omni-channel leadership; ● driving same store sales growth; ● building our exclusive brand portfolio; and ● expanding our store base Since the founding of Boot Barn in 1978, we have grown both organically and through successful strategic acquisitions of competing chains.
SG&A expenses as a percentage of net sales increased by approximately 160 basis points primarily as a result of an increase in store-related expenses, store payroll, and marketing expenses. 43 Table of Contents Income from operations. Income from operations decreased by $26.6 million, or 10.3%, to $231.8 million for fiscal 2023 from $258.3 million for fiscal 2022.
SG&A expenses as a percentage of net sales increased by approximately 210 basis points primarily as a result of higher general and administrative expenses and store payroll costs. Income from operations. Income from operations decreased by $33.6 million, or 14.5%, to $198.2 million for fiscal 2024 from $231.8 million for fiscal 2023.
Net cash provided by financing activities was $33.2 million for fiscal 2023. We increased our line of credit borrowings by $37.5 million and repaid $0.8 million on our debt and capital lease obligations during the period. We also received $1.2 million from the exercise of stock options. Net cash used in financing activities was $80.9 million for fiscal 2022.
Net cash used in financing activities was $59.6 million for fiscal 2024. We paid $66.0 million on our revolving line of credit and paid $2.5 million in taxes related to the vesting of restricted stock. We also received $9.7 million from the exercise of stock options. Net cash provided by financing activities was $33.2 million for fiscal 2023.
We believe that our business model and scale provide us with competitive advantages that have contributed to our consistent financial performance, generating sufficient cash flow to support national growth. How We Assess the Performance of Our Business In assessing the performance of our business, we consider a variety of performance and financial measures.
We have rebranded and remerchandised the acquired chains under the Boot Barn banner, resulting in sales increases over their original concepts. We believe that our business model and scale provide us with competitive advantages that have contributed to our consistent financial performance, generating sufficient cash flow to support national growth.
As of April 1, 2023, the fair value of this embedded derivative was estimated and was not significant. As of April 1, 2023, we were in compliance with the Wells Fargo Revolver covenant. ​ Cash Position and Cash Flow Cash and cash equivalents were $18.2 million as of April 1, 2023 compared to $20.7 million as of March 26, 2022.
As of March 30, 2024, the Company was in compliance with the Wells Fargo Revolver debt covenants. ​ Cash Position and Cash Flow Cash and cash equivalents were $75.8 million as of March 30, 2024 compared to $18.2 million as of April 1, 2023.
Net sales increased primarily due to the incremental sales from new stores opened over the past twelve months and additional sales from the 53 rd week. Gross profit. Gross profit increased by $35.5 million, or 6.2%, to $610.6 million in fiscal 2023 from $575.1 million in fiscal 2022.
Net sales increased primarily due to the incremental sales from new stores opened over the past twelve months partially offset by the decrease in consolidated same store sales and sales from the 53rd week in the prior year. Gross profit. Gross profit increased by $3.8 million, or 0.6%, to $614.4 million in fiscal 2024 from $610.6 million in fiscal 2023.
Our future operating lease obligations would change if we were to exercise these renewal provisions or if we were willing to enter into additional operating leases. Finance lease obligations primarily relate to the acquisition of two retail stores, two office buildings, one distribution center facility and land as part of the Sheplers Acquisition.
Our future operating lease obligations would change if we were to exercise these renewal provisions or if we were willing to enter into additional operating leases.
The significant components of cash flows provided by operating activities were net income of $192.5 million, the add-back of non-cash depreciation and amortization expense of $27.4 million, stock-based compensation expense of $9.5 million, 46 Table of Contents and amortization of debt issuance fees and debt discount of $1.9 million.
The significant components of cash flows provided by operating activities were net income of $170.6 million, the add-back of non-cash depreciation and amortization expense of $35.9 million and stock-based compensation expense of $9.7 million. Inventories increased $115.2 million as a result of an increase in purchases.
The increase in interest expense was primarily the result of interest expense incurred on the revolving line of credit during fiscal 2023 at a higher interest rate than fiscal 2022. Income tax expense. Income tax expense was $55.3 million in fiscal 2023 compared to $60.1 million in fiscal 2022.
The decrease in interest expense was primarily the result of a lower debt balance, partially offset by a higher weighted average interest rate compared to the prior year . Income tax expense. Income tax expense was $50.4 million in fiscal 2024 compared to $55.3 million in fiscal 2023.
On July 11, 2022, the Company entered into a further amendment to the Wells Fargo Revolver (the “2022 Wells Amendment”), which amended and restated the credit agreement to, among other things, increase the aggregate revolving credit facility to $250.0 million, increase the sublimit for letters of credit to $10.0 million, and extend the maturity date to July 11, 2027.
Current Credit Facility The Company currently has a $250.0 million syndicated senior secured asset-based revolving credit facility for which Wells Fargo Bank, National Association is agent (“Wells Fargo Revolver”). Under the Wells Fargo Revolver, the sublimit for letters of credit is $10.0 million and the current maturity date is July 11, 2027.
The decline in merchandise margin rate was driven primarily by a 100 basis-point headwind from higher freight expense, partially offset by 30 basis points of product margin expansion resulting from growth in exclusive brand penetration. Selling, general and administrative expenses. SG&A expenses increased by $62.1 million, or 19.6%, to $378.8 million in fiscal 2023 from $316.7 million in fiscal 2022.
The increase in merchandise margin rate was driven primarily by a 120 basis-point improvement in freight expense as a percentage of net sales and 40 basis points of product margin expansion resulting primarily from growth in exclusive brand penetration and buying economies of scale.
As of April 1, 2023, our contractual cash obligations over the next several periods are set forth below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payments Due by Period ​ (In thousands) ​ Total ​ Less Than 1 Year ​ 1 - 2 Years ​ 3 - 5 Years ​ More Than 5 Years ​ Operating lease obligations ​ $ 447,605 ​ $ 58,011 ​ $ 125,466 ​ $ 133,192 ​ $ 130,936 ​ Finance lease obligations ​ ​ 20,726 ​ ​ 1,544 ​ ​ 3,068 ​ ​ 4,888 ​ ​ 11,226 ​ Line of credit ​ ​ 66,043 ​ ​ — ​ ​ — ​ ​ 66,043 ​ ​ — ​ Interest expense on line of credit ​ ​ 18,981 ​ ​ 4,426 ​ ​ 8,852 ​ ​ 5,703 ​ ​ — ​ Total ​ $ 553,355 ​ $ 63,981 ​ $ 137,386 ​ $ 209,826 ​ $ 142,162 ​ ​ We lease our stores, facilities and certain other equipment under non-cancelable operating leases.
As of March 30, 2024, our contractual cash obligations over the next several periods are set forth below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payments Due by Period ​ (In thousands) ​ Total ​ Less Than 1 Year ​ 1 - 2 Years ​ 3 - 5 Years ​ More Than 5 Years ​ Operating lease obligations ​ $ 554,488 ​ $ 74,848 ​ $ 154,542 ​ $ 171,177 ​ $ 153,921 ​ Finance lease obligations ​ ​ 19,181 ​ ​ 1,515 ​ ​ 3,142 ​ ​ 5,007 ​ ​ 9,517 ​ Line of credit ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Unutilized line of credit fees ​ ​ 2,055 ​ ​ 625 ​ ​ 1,250 ​ ​ 180 ​ ​ — ​ Total ​ $ 575,724 ​ $ 76,988 ​ $ 158,934 ​ $ 176,364 ​ $ 163,438 ​ ​ We lease our stores, facilities and certain other equipment under non-cancelable operating leases.
As a percentage of net sales, SG&A expenses were 22.9% for fiscal 2023 compared to 21.3% for fiscal 2022. SG&A expenses increased primarily as a result of higher store payroll and store-related expenses, increased marketing expenses in the current year compared to the prior year, and additional operating expenses in the 53 rd week.
SG&A expenses increased by $37.4 million, or 9.9%, to $416.2 million in fiscal 2024 from $378.8 million in fiscal 2023. As a percentage of net sales, SG&A expenses were 25.0% for fiscal 2024 compared to 22.9% for fiscal 2023.
Removed
Since the founding of Boot Barn in 1978, we have grown both organically and through successful strategic acquisitions of competing chains. We have rebranded and remerchandised the acquired chains under the Boot Barn banner, resulting in sales increases over their original concepts.
Added
The deleverage in buying, occupancy and distribution center costs was driven primarily by the higher occupancy costs of new stores, depreciation expense related to the opening of the new Kansas City distribution center and the impact of a 52-week year when compared to a 53-week year last year. Selling, general and administrative expenses.
Removed
We anticipate that a percentage of our net sales in the near future will come from stores not included in our same store sales calculation. Accordingly, same store sales are only one measure we use to assess the success of our business and growth strategy.
Added
SG&A expenses increased primarily as a result of higher general and 43 Table of Contents administrative expenses, store payroll associated with operating 55 new stores and other operating expenses in the current year.
Removed
Interest expense in fiscal 2022 includes the write off of $1.4 million in debt issuance costs and debt discount associated with the $111.5 million prepayment on the 2015 Golub Term Loan. Excluding the write off, interest expense was $5.9 million for fiscal 2023 compared to $4.4 million in fiscal 2022.
Added
As of the end of fiscal 2024, we did not have any material capital expenditure commitments. As of March 30, 2024, we did not have an amount outstanding under the Wells Fargo Revolver. We had $250.0 million of remaining availability under the Wells Fargo Revolver and $75.8 million of cash on hand as of March 30, 2024.
Removed
These decreases were partially offset by a $91.9 million decrease in cash 44 Table of Contents provided by accounts payable and accrued expenses and other current liabilities in fiscal 2023 compared to fiscal 2022, due to the timing of payments. As of the end of fiscal 2023, we did not have any material capital expenditure commitments.
Added
The Company previously had a $200.0 million syndicated senior secured term loan for which GCI Capital Markets LLC was agent (“2015 Golub Term Loan”).
Removed
As of April 1, 2023, we had $66.0 million drawn on our $250.0 million revolving credit facility. We had $184.0 million of remaining availability under our revolving credit facility and $18.2 million of cash on hand as of April 1, 2023. Our primary ongoing sources of liquidity include funds provided by operations and borrowings under our revolving credit facility.
Added
The Wells Fargo Revolver contains customary provisions relating to mandatory prepayments, restricted payments, voluntary payments, affirmative and negative covenants, and events of default.
Removed
Current Credit Facility On June 29, 2015, we, as guarantor, and our wholly-owned primary operating subsidiary, Boot Barn, Inc., refinanced a previous Wells Fargo credit facility with a $125 million syndicated senior secured asset-based revolving credit facility for which Wells Fargo Bank, National Association is agent (“Wells Fargo Revolver”), and the $200 million syndicated senior secured term loan for which GCI Capital Markets LLC was agent (“2015 Golub Term Loan”).
Added
As of March 30, 2024, the fair value of this embedded derivative was estimated and was not significant.
Removed
On May 26, 2017, the Company entered into an amendment to the Wells Fargo Revolver increasing the aggregate revolving credit facility to $135.0 million and extending the maturity date. On June 6, 2019, the Company entered into a further amendment to the credit agreement further increasing the aggregate revolving credit facility to $165.0 million and further extending the maturity date.
Added
Finance lease obligations primarily relate to the acquisition of two retail stores, two office buildings, one distribution center facility and land as part of our acquisition of Sheplers, Inc. and Sheplers Holding Corporation in June of fiscal 2016. The lease related to these finance lease obligations expires in fiscal 2036.
Removed
On July 26, 2021, the lenders under the Wells Fargo Revolver agreed to increase the aggregate revolving credit facility to $180.0 million.
Added
As of March 30, 2024, we did not have an amount outstanding under the Wells Fargo Revolver. The maturity date of the Wells Fargo Revolver is July 11, 2027.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

3 edited+0 added−1 removed0 unchanged
Biggest changeWe do not hedge using any derivative instruments and historically have not been impacted by changes in exchange rates. Impact of inflation Our results of operations and financial condition are presented based on historical cost.
Biggest changeForeign exchange rate risk We currently purchase all of our merchandise through domestic and international suppliers on a U.S. dollar-denominated basis. We do not hedge using any derivative instruments and historically have not been impacted by changes in exchange rates. Impact of inflation Our results of operations and financial condition are presented based on historical cost.
While it is difficult to accurately measure the impact of inflation due to the imprecise nature of the estimates required, we believe that the effects of inflation, if any, on our results of operations and financial condition have been immaterial. ​ 52 Table of Contents ​
While it is difficult to accurately measure the impact of inflation due to the imprecise nature of the estimates required, we believe that the effects of inflation, if any, on our results of operations and financial condition have been immaterial. 51 Table of Contents
Item 7A. Quantitative and Qualitative Disclosures About Market Risk s Interest rate risk We are subject to interest rate risk in connection with borrowings under our credit facility, which bears interest at variable rates. As of April 1, 2023, we had $66.0 million drawn under our revolving credit facility.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk s Interest rate risk We are subject to interest rate risk in connection with borrowings under our credit facility, which bears interest at variable rates. As of March 30, 2024, we did not have an amount outstanding on our revolving credit facility.
Removed
The impact of a 1.0% rate change on the outstanding balance as of April 1, 2023 would be approximately $0.7 million. Foreign exchange rate risk We currently purchase all of our merchandise through domestic and international suppliers on a U.S. dollar-denominated basis.

Other BOOT 10-K year-over-year comparisons