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What changed in Boot Barn Holdings, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Boot Barn Holdings, Inc.'s 2024 and 2025 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 2025 report.

+95 added−97 removedSource: 10-K (2025-05-15) vs 10-K (2024-05-15)

Top changes in Boot Barn Holdings, Inc.'s 2025 10-K

95 paragraphs added · 97 removed · 92 edited across 7 sections

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeWe have developed a third-party vendor risk management program to assess and manage the risks associated with third-party partnerships, particularly in data security and cybersecurity.
Biggest changeWe have developed a third-party business partner risk management program to assess and manage the risks associated with third-party partnerships, particularly in data security and cybersecurity. We 36 Table of Contents conduct due diligence before onboarding new third-party business partners and maintain ongoing evaluations to ensure compliance with our security standards.
Notwithstanding the extensive approach we take to cybersecurity, we may not be successful in preventing or mitigating a cybersecurity incident that could have a material adverse effect on us.
Notwithstanding the extensive approach that we take to cybersecurity, we may not be successful in preventing or mitigating a cybersecurity incident that could have a material adverse effect on us.
The Audit Committee, under oversight of the Board of Directors, has responsibility for oversight of risks from cybersecurity threats, and the assessment and management of cybersecurity risks is the responsibility of the Information Security (“INFOSEC”) team. The INFOSEC team is managed by the Vice President, Information Technology, who reports to our Chief Executive Officer.
The Audit Committee, under oversight of the Board of Directors, has responsibility for oversight of risks from cybersecurity threats, and the assessment and management of cybersecurity risks is the responsibility of the Information Security (“INFOSEC”) team. The INFOSEC team is managed by the Vice President, Information Technology, who reports to our Chief Financial Officer.
Upon the identification of a cybersecurity incident, the Incident Response Team (IRT) initiates our Security Incident Response Policy. This includes determining the scope and risk level of the incident, the incident response, and the steps necessary to reduce the likelihood of reoccurrence.
Upon the identification of a cybersecurity incident, the Incident Response Team (“IRT”) initiates our Security Incident Response Policy. This includes determining the scope and risk level of the incident, the incident response, and the steps necessary to reduce the likelihood of reoccurrence.
Our third-party vendors and service providers also play a role in our cybersecurity. These third parties are integral to our operations but pose cybersecurity challenges due to their access to our data and our reliance for various aspects of our operations, including our supply chain.
Our third-party business partners also play a role in our cybersecurity. These third parties are integral to our operations but pose cybersecurity challenges due to their access to our data and our reliance for various aspects of our operations, including our supply chain.
Depending on the severity of the incident, the IRT communicates with the appropriate stakeholders, which may include the Audit Committee. In addition, a summary of cybersecurity incidents, results of testing, corporate security training and planned enhancements are reported to the Audit Committee at least quarterly by the Vice President, Information Technology.
Depending on the severity of the incident, the IRT reports the incident to the Audit Committee, as well as communicates with other appropriate stakeholders. In addition, a summary of cybersecurity incidents, results of testing, corporate security training and planned enhancements are reported to the Audit Committee at least quarterly by the Vice President, Information Technology.
We conduct due diligence before onboarding new vendors and maintain ongoing evaluations to ensure compliance with our security standards. 34 Table of Contents As of the date of this report, no cybersecurity incidents have had, either individually or in the aggregate, nor are we aware of any cybersecurity risks that are reasonably likely to have, a material adverse impact our business strategy, results of operations, or financial condition.
As of the date of this report, no cybersecurity incidents have had, either individually or in the aggregate, nor are we aware of any cybersecurity risks that are reasonably likely to have, a material adverse impact our business strategy, results of operations, or financial condition.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe 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.
Biggest changeAccordingly, we entered into lease agreements to lease a 116,261 square foot building in Irvine, California and fully relocated our Store Support Center during April 2025. The lease will expire on March 31, 2034 and contains one option to renew, for an additional period of five years.
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.
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 three-year extension.
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. 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.
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. Of the store leases that will reach their termination date during fiscal 2025, twelve of such 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 March 30, 2024, 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.
Added
As of March 29, 2025, our Store Support Center was located in Irvine, California, where we occupied an 84,580 square foot building; however, the lease expired on April 30, 2025, and did not contain an option to renew beyond the lease term.

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 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.
Biggest changeThe majority of 37 Table of Contents 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 3. Legal Proceeding s We are involved, from time to time, in litigation that is incidental to our business. We have reviewed these matters to determine if reserves are required for losses that are probable and reasonable to estimate in accordance with FASB ASC Topic 450, Contingencies .
Item 3. Legal Proceeding s We are involved, from time to time, in litigation that is incidental to our business. We have reviewed these matters to determine if reserves are required for losses that are probable and reasonable to estimate in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 450, Contingencies .
Item 4. Mine Safety Disclosure s Not applicable. ​ 36 Table of Contents PART I I
Item 4. Mine Safety Disclosure s Not applicable. PART I I

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 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]
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 28, 2020 were the closing prices on that trading day. 38 Table of Contents Comparison of Cumulative Total Return Assumes Initial Investment of $100 March 2020 – March 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 28, ​ March 27, ​ March 26, ​ April 1, ​ March 30, ​ March 29, ​ ​ 2020 ​ 2021 ​ 2022 ​ 2023 ​ 2024 ​ 2025 Boot Barn Holdings, Inc. $ 100.00 ​ $ 473.45 ​ $ 721.99 ​ $ 573.22 ​ $ 711.67 ​ $ 779.13 NYSE Composite—Total Return $ 100.00 ​ $ 157.55 ​ $ 172.33 ​ $ 161.84 ​ $ 197.48 ​ $ 212.23 Peer Group $ 100.00 ​ $ 237.48 ​ $ 250.74 ​ $ 268.18 ​ $ 304.27 ​ $ 307.21 ​ ​ 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 13, 2024, we had 4 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 9, 2025, we had 4 stockholders of record.
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”).
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 2025 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 29, 2025 (the “2025 Proxy Statement”).
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.
This graph assumes an initial investment of $100 on March 28, 2020 in our common stock, the NYSE Composite Total Return index and the Peer Group, and assumes the reinvestment of dividends, if any.
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”).
Stock Performance Graph The graph set forth below compares the cumulative stockholder return on our common stock between March 28, 2020 and March 29, 2025 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 ​ 51 ​ Item 8. ​ Consolidated Financial Statements and Supplementary Data ​ 52 ​
Biggest changeItem 6. ​ [Reserved] ​ 39 ​ Item 7. ​ Management’s Discussion and Analysis of Financial Condition and Results of Operations ​ 39 ​ Item 7A. ​ Quantitative and Qualitative Disclosures About Market Risk ​ 52 ​ Item 8. ​ Consolidated Financial Statements and Supplementary Data ​ 53 ​

Item 7. Management's Discussion & Analysis

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

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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.
Biggest changeFiscal 2025 and fiscal 2024 were both 52-week periods. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ March 29, March 30, (dollars in thousands) 2025 ​ 2024 ​ Consolidated Statements of Operations Data: ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 1,911,104 ​ $ 1,667,009 ​ Cost of goods sold ​ 1,194,066 ​ 1,052,585 ​ Gross profit ​ 717,038 ​ 614,424 ​ Selling, general and administrative expenses ​ 477,686 ​ 416,210 ​ Income from operations ​ 239,352 ​ 198,214 ​ Interest expense ​ 1,497 ​ 2,238 ​ Other income/(loss) net ​ ​ 2,262 ​ ​ 1,396 ​ Income before income taxes ​ 240,117 ​ 197,372 ​ Income tax expense ​ 59,175 ​ 50,376 ​ Net income ​ $ 180,942 ​ $ 146,996 ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage of Net Sales (1) : ​ ​ ​ ​ ​ ​ ​ Net sales ​ 100.0 % 100.0 % Cost of goods sold ​ 62.5 % 63.1 % Gross profit ​ 37.5 % 36.9 % Selling, general and administrative expenses ​ 25.0 % 25.0 % Income from operations ​ 12.5 % 11.9 % Interest expense ​ 0.1 % 0.1 % Other income/(loss) net ​ ​ 0.1 % ​ 0.1 % Income before income taxes ​ 12.6 % 11.8 % Income tax expense ​ 3.1 % 3.0 % Net income ​ 9.5 % 8.8 % (1) Percentages may not total 100% due to rounding. ​ Fiscal 2025 compared to Fiscal 2024 Net sales.
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.
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) and 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.
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.
Current Credit Facility The Company currently has a $250.0 million syndicated senior secured asset-based revolving credit facility (“Wells Fargo Revolver”) for which Wells Fargo Bank, National Association is agent (“Wells Fargo”). Under the Wells Fargo Revolver, the sublimit for letters of credit is $10.0 million and the current maturity date is July 11, 2027.
Specifically, our SG&A expenses include the following: ● Labor and related expenses —Labor and related expenses include all store-level salaries and hourly labor costs, including salaries, wages, benefits and performance incentives, labor taxes and other indirect labor costs. ● Other operating expenses —Other operating expenses include all operating costs, including those for advertising, pay-per-click, marketing campaigns, operating supplies, and repairs and maintenance, as well as credit card fees and costs of third-party services. ● General and administrative expenses —General and administrative expenses comprise expenses associated with corporate and administrative functions that support the development and operations of our stores, including compensation and benefits, travel expenses, corporate occupancy costs, stock compensation costs, legal and professional fees, insurance and other related corporate costs.
Specifically, our SG&A expenses include the following: ● Labor and related expenses —Labor and related expenses include all store-level salaries and hourly labor costs, including salaries, wages, benefits and performance incentives, labor taxes and other indirect labor costs. ● Other operating expenses —Other operating expenses include all operating costs, including those for advertising, pay-per-click, marketing campaigns, operating supplies, and repairs and maintenance, as well as credit card fees and costs of third-party services. ● General and administrative expenses —General and administrative expenses are comprised of expenses associated with corporate and administrative functions that support the development and operations of our stores, including compensation and benefits, travel expenses, corporate occupancy costs, stock compensation costs, legal and professional fees, insurance and other related corporate costs.
Sales as a result of an e-commerce asset acquisition are excluded from same store sales until the 13 th full fiscal month subsequent to the Company’s acquisition of such assets. 40 Table of Contents Measuring the change in year-over-year same store sales allows us to evaluate how our store base is performing.
Sales as a result of an e-commerce asset acquisition are excluded from same store sales until the 13 th full fiscal month subsequent to the Company’s acquisition of such assets. 41 Table of Contents Measuring the change in year-over-year same store sales allows us to evaluate how our store base is performing.
These costs are significant and can be expected to continue to increase as we grow. 41 Table of Contents The components of our reported cost of goods sold may not be comparable to those of other retail companies, including our competitors. Our gross profit generally follows changes in net sales.
These costs are significant and can be expected to continue to 42 Table of Contents increase as we grow. The components of our reported cost of goods sold may not be comparable to those of other retail companies, including our competitors. Our gross profit generally follows changes in net sales.
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”).
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 .
Pre-acquisition net sales numbers are derived from the books and records of the acquired company, as prepared prior to the acquisition, and have not been independently verified by us. In addition to retail store sales, same store sales also includes e-commerce sales, e-commerce shipping and handling revenue and actual retail store or e-commerce sales returns.
Pre-acquisition net sales numbers are derived from the books and records of the acquired company, as prepared prior to the acquisition, and are not independently verified by us. In addition to retail store sales, same store sales also includes e-commerce sales, e-commerce shipping and handling revenue and actual retail store or e-commerce sales returns.
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.
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 February of fiscal 2017.
The policies and estimates discussed below involve the selection or application of alternative accounting policies that are material to our financial statements. With respect to critical accounting policies, even a relatively minor variance between actual and expected experience can potentially have a materially favorable or unfavorable impact on subsequent results of operations.
The policies and estimates discussed below involve the selection or application of alternative accounting policies that are material to our financial statements. With respect to critical accounting policies, even a relatively minor 48 Table of Contents variance between actual and expected experience can potentially have a materially favorable or unfavorable impact on subsequent results of operations.
The fair value of our restricted stock units and performance share units is the closing price of our common stock on the grant date. Income taxes We account for income taxes in accordance with FASB ASC Topic 740, Income Taxes (“ASC 740”), which requires the asset and liability approach for financial accounting and reporting of income taxes.
The fair value of our restricted stock units and performance share units is the closing price of our common stock on the grant date. 51 Table of Contents Income taxes We account for income taxes in accordance with FASB ASC Topic 740, Income Taxes (“ASC 740”), which requires the asset and liability approach for financial accounting and reporting of income taxes.
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.
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.
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.
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.
Cost of goods sold includes the cost of merchandise, obsolescence and shrinkage provisions, store and distribution center occupancy costs (including rent, depreciation and utilities), inbound and outbound freight, supplier allowances, occupancy-related taxes, inventory acquisition-related costs, and compensation costs for merchandise purchasing, exclusive brand design and development and distribution center personnel.
Merchandise cost of goods sold includes the cost of merchandise, inbound and outbound freight, obsolescence and shrinkage provisions, supplier allowances, and inventory acquisition-related costs. Buying, occupancy, and distribution center expenses include store and distribution center occupancy costs (including rent, depreciation and utilities), occupancy-related taxes, and compensation costs for merchandise purchasing, exclusive brand design and development and distribution center personnel.
We test goodwill and indefinite-lived intangible assets for impairment at least annually on the first day of the fourth quarter or more frequently if indicators of impairment exist, in accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 350, Goodwill and Other .
We test goodwill and indefinite-lived intangible assets for impairment at least annually on the first day of the fourth quarter or more frequently if indicators of impairment exist, in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 350, Goodwill and Other .
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.
For a comparison of our fiscal 2024 versus fiscal 2023 results, please see the discussion previously included in Part II, Item 7 of our fiscal 2024 Annual Report on Form 10-K filed with the SEC on May 15, 2024. ​ Overview We are the largest lifestyle retail chain devoted to western and work-related footwear, apparel and accessories in the United States.
Related operating and finance lease right-of-use assets are recognized based on the initial present value of the fixed lease payments, reduced by cash payments received from landlords as lease incentives, plus any prepaid rent and other direct costs from executing the leases.
Related operating and finance lease right-of-use assets are recognized based on the initial present value of the fixed lease payments, reduced by cash payments received from 49 Table of Contents landlords as lease incentives, plus any prepaid rent and other direct costs from executing the leases.
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.
Interest expense on our 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 29, 2025, the last day of the fiscal year. Off-balance sheet arrangements.
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.
See Note 13 to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for further information regarding our income tax disclosures.
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.
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 2025, fiscal 2024 and fiscal 2023, we generated approximately 32%, 31% and 31% of our net sales during our third fiscal quarter, respectively.
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.
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 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.
Our actual results could differ materially from those contained in or implied by any forward-looking statements. 39 Table of Contents We have omitted discussion of our fiscal 2024 results where it would be redundant of information previously disclosed.
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.
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 2025 and fiscal 2024 were 52-week periods and fiscal 2023 was a 53-week period.
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.
Accounts payable and accrued expenses and other current liabilities decreased by $5.8 million due to the timing of payments. Investing activities Cash used in investing activities consists primarily of purchases of property and equipment.
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%.
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%.
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.
We estimate that our capital expenditures in fiscal 2026 will be between approximately $115.0 million and $120.0 million, which is net of estimated landlord tenant allowances of $35.5 million. We anticipate that we will use cash flows from operations to fund these expenditures.
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.
As of March 29, 2025, we did not have an amount outstanding under the Wells Fargo Revolver. The maturity date of the Wells Fargo Revolver is July 11, 2027.
Selling, general and administrative expenses Our selling, general and administrative (“SG&A”) expenses are composed of labor and related expenses, other operating expenses, and general and administrative expenses not included in cost of goods sold.
Selling, general and administrative expenses Our SG&A expenses are composed of labor and related expenses, other operating expenses, and general and administrative expenses not included in cost of goods sold.
We also review the actual number of stores opened in a fiscal year against the number of store openings that we included in our budget at the beginning of that fiscal year. Gross profit Gross profit is equal to our net sales less our cost of goods sold.
We also review the actual number of stores opened in a fiscal year against the number of store openings that we included in our budget at the beginning of that fiscal year. Gross profit Gross profit is equal to our net sales less our merchandise cost of goods sold, and buying, occupancy, and distribution center expenses.
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.
As of March 29, 2025, we operated 459 stores in 49 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.
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.
Store Operating Data The following table presents store operating data for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ March 29, ​ March 30, ​ April 1, ​ ​ ​ 2025 ​ 2024 ​ 2023 ​ Selected Store Data (unaudited): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Same Store Sales growth/(decline) ​ 5.5 % (6.2) % (0.1) % Stores operating at end of period ​ 459 ​ 400 ​ 345 ​ Comparable stores open during period ​ ​ 382 ​ ​ 335 ​ ​ 290 ​ Total retail store selling square footage, end of period (in thousands) ​ 5,133 ​ 4,371 ​ 3,735 ​ Average retail store selling square footage, end of period ​ 11,183 ​ 10,929 ​ 10,825 ​ Average sales per comparable store (in thousands) (1) ​ $ 4,116 ​ $ 4,081 ​ $ 4,554 ​ (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 during the period. ​ Liquidity and Capital Resources We rely on cash flows from operating activities and our credit facility as our primary sources of liquidity.
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.
The following table presents summary cash flow information for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ March 29, March 30, April 1, ​ ​ 2025 ​ 2024 ​ 2023 ​ ​ (In thousands) Net cash provided by/(used in): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating activities ​ $ 147,540 ​ $ 236,080 ​ $ 88,887 ​ Investing activities ​ (148,238) ​ (118,782) ​ (124,534) ​ Financing activities ​ (5,379) ​ (59,644) ​ 33,166 ​ Net (decrease)/increase in cash ​ $ (6,077) ​ $ 57,654 ​ $ (2,481) ​ ​ 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.
As of March 30, 2024, the fair value of this embedded derivative was estimated and was not significant.
As of March 29, 2025, the fair value of this embedded derivative was estimated and was not significant.
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 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 $9.6 million as a result of an increase in purchases.
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 also received $3.1 million from the exercise of stock options. 47 Table of Contents 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.
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.
As a percentage of net sales, income from operations was 12.5% and 11.9% for fiscal 2025 and fiscal 2024, respectively. The change in income from operations was attributable to the factors noted above. Interest expense. Interest expense decreased by $0.7 million, or 33.1%, to $1.5 million in fiscal 2025 from $2.2 million in fiscal 2024.
Our business is moderately seasonal and as a result our revenues fluctuate from quarter to quarter. In addition, our revenues in any given quarter can be affected by a number of factors including the timing of holidays and weather patterns.
Revenue from the sale of gift cards is deferred until the gift cards are used to purchase merchandise. Our business is moderately seasonal and as a result our revenues fluctuate from quarter to quarter. In addition, our revenues in any given quarter can be affected by a number of factors including the timing of holidays and weather patterns.
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.
As a percentage of net sales, gross profit rate increased by 70 basis points driven primarily by a 130 basis-point increase in merchandise margin rate partially offset by 60 basis points of deleverage in buying, occupancy and distribution center costs.
GAAP has established guidance for reporting information about a company’s operating segments, including disclosures related to a company’s products and services, geographic areas and major customers. We monitor and review our segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact our reportable segments.
GAAP has established guidance for reporting information about a company’s operating segments, including disclosures related to a company’s products and services, geographic areas and major customers. The Company monitors and reviews its segment reporting structure in accordance with authoritative guidance to determine whether any changes 50 Table of Contents have occurred that would impact its reportable segments.
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 2025 on the Wells Fargo Revolver was $0.8 million and the weighted average interest rate for fiscal 2025 was 7.8%. 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%.
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.
Critical Accounting 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.
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.
As of March 29, 2025, the Company was in compliance with the Wells Fargo Revolver debt covenants. ​ 46 Table of Contents Cash Position and Cash Flow Cash and cash equivalents were $69.8 million as of March 29, 2025 compared to $75.8 million as of March 30, 2024.
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.
The amounts outstanding under the Wells Fargo Revolver and letter of credit commitments as of March 29, 2025 were zero and $2.9 million, 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 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.
The following discussion contains references to fiscal 2025 and fiscal 2024, 43 Table of Contents which represent our fiscal years ended March 29, 2025 and March 30, 2024.
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%.
Net sales in fiscal 2025 increased by $244.1 million, or 14.6%, to $1.911 billion compared to $1.667 billion in fiscal 2024. Consolidated same store sales increased 5.5%. Excluding the impact of the 9.7% increase in e-commerce same store sales, same store sales increased by 5.0%.
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.
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.
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.
Net income increased by $33.9 million, or 23.1%, to $180.9 million in fiscal 2025 from net income of $147.0 million in fiscal 2024. The change in net income was attributable to the factors noted above.
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.
As of March 29, 2025, we did not have an amount outstanding under the Wells Fargo Revolver (as defined below). We had $250.0 million of remaining availability under the Wells Fargo Revolver and $69.8 million of cash on hand as of March 29, 2025.
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.
Opening new stores is an important part of our growth strategy. We opened 60, 55 and 45 stores in fiscal 2025, fiscal 2024 and fiscal 2023, respectively. We also closed one store in fiscal 2025 (and none in fiscal 2024 or fiscal 2023).
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.
Our cash flows from operations decreased in fiscal 2025 compared to fiscal 2024, primarily as a result of a $138.4 million increase in cash paid for inventories year-over-year, a $4.1 million decrease in cash paid for prepaid expenses and other current assets, and a $24.0 million increase in cash provided by accounts payable and accrued expenses and other current liabilities. 45 Table of Contents As of the end of fiscal 2025, we did not have any material capital expenditure commitments.
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.
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: ● strengthening omni-channel capabilities; ● driving same store sales growth; ● merchandise margin expansion and building our exclusive brand portfolio; and ● expanding our store base.
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.
Net cash provided by operating activities was $147.5 million for fiscal 2025. The significant components of cash flows provided by operating activities were net income of $180.9 million, the add-back of non-cash depreciation and amortization expense of $62.5 million and stock-based compensation expense of $11.0 million. Inventories increased $148.1 million as a result of an increase in purchases.
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.
Net cash used in investing activities was $148.2 million for fiscal 2025, which was primarily attributable to capital expenditures related to store construction, investments in our new Store Support Center, improvements to our distribution center facilities, and improvements to our e-commerce information technology infrastructure.
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.
We also received $9.7 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.
New store openings New store openings reflect the number of stores, excluding acquired stores, that are opened during a particular reporting period. In connection with opening new stores, we incur pre-opening costs.
As a result, data in this annual report regarding our same store sales may not be comparable to similar data made available by other retailers. New store openings New store openings reflect the number of stores, excluding acquired stores, that are opened during a particular reporting period. In connection with opening new stores, we incur pre-opening costs.
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.
Net sales increased primarily due to the incremental sales from new stores and the increase in consolidated same store sales. Gross profit. Gross profit increased by $102.6 million, or 16.7%, to $717.0 million in fiscal 2025 from $614.4 million in fiscal 2024.
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.
As a percentage of net sales, gross profit was 37.5% and 36.9% for fiscal 2025 and fiscal 2024, respectively. Gross profit increased primarily due to an increase in sales and merchandise margin, partially offset by the occupancy costs of new stores.
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.
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.
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.
As a percentage of net sales, SG&A expenses were 25.0% in both fiscal 2025 and fiscal 2024. 44 Table of Contents Income from operations. Income from operations increased by $41.1 million, or 20.8%, to $239.4 million for fiscal 2025 from $198.2 million for fiscal 2024.
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.
The decrease in interest expense was primarily the result of a lower average debt balance during the fiscal year. Income tax expense. Income tax expense was $59.2 million in fiscal 2025 compared to $50.4 million in fiscal 2024. Our effective tax rate was 24.6% and 25.4% for fiscal 2025 and fiscal 2024, respectively.
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.
Accounts payable and accrued expenses and other current liabilities increased by $18.2 million due to the timing of payments. Net cash provided by operating activities was $236.1 million for fiscal 2024.
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.
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. We recognize revenue upon the purchase of merchandise by customers at our stores 40 Table of Contents and upon delivery of the product in the case of 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 key indicators we use to evaluate the financial condition and operating performance of our business are net sales and gross profit. In addition, we also review other important metrics, such as same store sales, new store openings, selling, general and administrative (“SG&A”) expenses, operating income, and net income.
Net sales are net of returns on sales during the period as well as an estimate of returns and award redemptions expected in the future stemming from current period sales. Revenue from the sale of gift cards is deferred until the gift cards are used to purchase merchandise.
Net sales also include shipping and handling fees for e-commerce shipments that have been delivered to our customers. Net sales are net of returns on sales during the period as well as an estimate of returns and award redemptions expected in the future stemming from current period sales.
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 of March 29, 2025, 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 - 3 Years ​ 3 - 5 Years ​ More Than 5 Years ​ Operating lease obligations ​ $ 708,713 ​ $ 83,082 ​ $ 201,352 ​ $ 168,822 ​ $ 255,457 ​ Finance lease obligations ​ ​ 17,666 ​ ​ 1,552 ​ ​ 3,219 ​ ​ 3,378 ​ ​ 9,517 ​ Line of credit ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Unutilized line of credit fees ​ ​ 1,430 ​ ​ 625 ​ ​ 805 ​ ​ — ​ ​ — ​ Total ​ $ 727,809 ​ $ 85,259 ​ $ 205,376 ​ $ 172,200 ​ $ 264,974 ​ ​ We lease our stores, facilities and certain other equipment under non-cancelable operating leases.
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.
SG&A expenses increased by $61.5 million, or 14.8%, to $477.7 million in fiscal 2025 from $416.2 million in fiscal 2024. SG&A expenses increased primarily as a result of higher store payroll and store-related expenses associated with operating more stores, corporate general and administrative expenses, and marketing expenses in the current year.
Some of our competitors and other retailers may calculate “same” or “comparable” store sales differently than we do. As a result, data in this annual report regarding our same store sales may not be comparable to similar data made available by other retailers.
Accordingly, same store sales are only one measure we use to assess the success of our business and growth strategy. Some of our competitors and other retailers may calculate “same” or “comparable” store sales differently than we do.
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.
The increase in merchandise margin rate was primarily the result of supply chain efficiencies, lower shrink expense, better buying economies of scale, and growth in exclusive brand penetration. The deleverage in buying, occupancy and distribution center costs was driven by the occupancy costs of new stores. Selling, general and administrative expenses.
As a result of this, our operations represent two reporting units, retail stores and e-commerce, for the purpose of our goodwill impairment analysis.
The Company operates as one operating and one reportable segment. Further, the Company’s operations represent one reporting unit for the purpose of its goodwill impairment analysis.
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.
The effective tax rate for fiscal 2025 is lower than fiscal 2024 primarily due to reductions in nondeductible expenses, as well as an increase in pretax book income, partially offset by reduced stock-based compensation tax benefits. Net income.
Removed
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.
Added
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.
Removed
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.
Added
Financing activities Cash used in financing activities consists primarily of tax withholding payments related to the vesting of restricted stock. Net cash used in financing activities was $5.4 million for fiscal 2025. We paid $7.6 million in taxes related to the vesting of restricted stock.
Removed
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.
Removed
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
Our retail stores and e-commerce websites represent two operating segments. Given the similar qualitative and economic characteristics of the two operating segments, our retail stores and e-commerce websites were aggregated into one reporting segment in accordance with guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting (“ASC 280”).

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

2 edited+0 added−0 removed1 unchanged
Biggest changeItem 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.
Biggest changeItem 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 29, 2025, we did not have an amount outstanding on our revolving credit facility.
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
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

Other BOOT 10-K year-over-year comparisons