10q10k10q10k.net

What changed in Boot Barn Holdings, Inc.'s 10-K — 2022 vs 2023

vs

Paragraph-level year-over-year comparison of Boot Barn Holdings, Inc.'s 2022 and 2023 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 2023 report.

+108 added−119 removedSource: 10-K (2023-05-18) vs 10-K (2022-05-12)

Top changes in Boot Barn Holdings, Inc.'s 2023 10-K

108 paragraphs added · 119 removed · 98 edited across 6 sections

Item 2. Properties

Properties — owned and leased real estate

4 edited+1 added−0 removed2 unchanged
Biggest changeThe lease expires September 30, 2023 and does not contain an option to renew. 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 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.
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, and new store openings.
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.
Of the store leases that will reach their termination date during fiscal 2023, sixteen 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. 37 Table of Contents
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.
Item 2. Propertie s Our Store Support Center, e-commerce operations and distribution centers are located in California and Kansas. As of March 26, 2022, 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 April 1, 2023, our Store Support Center is located in Irvine, California, where we currently occupy an 84,580 square foot building.
Added
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.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

3 edited+1 added−2 removed6 unchanged
Biggest changeThe complaint seeks an unspecified amount of damages and penalties. The Company intends to defend this claim vigorously. As of March 26, 2022, the Company has recorded an amount for the estimated probable loss, which is not material to the consolidated financial statements.
Biggest changeAs 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.
Mine Safety Disclosure s Not applicable. ​ 38 Table of Contents PART I I
Mine Safety Disclosure s Not applicable. ​ 36 Table of Contents PART I I
On May 8, 2019, Sheplers, Inc., a wholly-owned subsidiary of the Company (now known as Sheplers, LLC), 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 alleges deceptive pricing on merchandise sold in Sheplers’ e-commerce site.
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 estimated cost of the matter has been accrued as of March 26, 2022.
Added
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
Depending on the actual outcome of pending litigation, charges in excess of such recorded amount could be recorded in the future, which may have a material adverse effect on the Company’s financial position, results of operations or liquidity.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+0 added−1 removed3 unchanged
Biggest changeThe graph also assumes that the initial price of our common stock, the NYSE composite Total Return index and the Peer Group on October 30, 2014 were the closing prices on that trading day. 39 Table of Contents Comparison of Cumulative Total Return Assumes Initial Investment of $100 April 2017 - March 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ April 1, ​ March 31, ​ March 30, ​ March 28, ​ March 27, ​ March 26, ​ ​ 2017 ​ 2018 ​ 2019 ​ 2020 ​ 2021 ​ 2022 Boot Barn Holdings, Inc. 56.68 ​ 101.60 ​ 168.71 ​ 76.62 ​ 362.75 ​ 553.18 NYSE Composite—Total Return 114.09 ​ 126.75 ​ 132.51 ​ 109.07 ​ 171.84 ​ 187.96 Peer Group 109.84 ​ 100.19 ​ 135.57 ​ 95.40 ​ 225.54 ​ 264.12 ​ ​ 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 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]
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 10, 2022, 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 17, 2023, we had 3 stockholders of record.
Stock Performance Graph The graph set forth below compares the cumulative stockholder return on our common stock between April 1, 2017 and March 26, 2022 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 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”).
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 2022 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 26, 2022 (the “2022 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 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”).
This graph assumes an initial investment of $100 on October 30, 2014 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 29, 2018 in our common stock, the NYSE Composite Total Return index and the Peer Group, and assumes the reinvestment of dividends, if any.
Removed
Cabela’s Inc. and Finish Line, Inc. which had previously been part of the Peer Group, were acquired in 2017 and 2018, respectively, and are no longer public companies. As a result, Cabela’s Inc. and Finish Line, Inc. have been removed from the Peer Group Index and Stock Performance Graph beginning in the fiscal 2019 and fiscal 2020 periods presented, respectively.

Item 6. [Reserved]

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

1 edited+0 added−0 removed0 unchanged
Biggest changeItem 6. ​ [Reserved] ​ 40 ​ Item 7. ​ Management’s Discussion and Analysis of Financial Condition and Results of Operations ​ 40 ​ Item 7A. ​ Quantitative and Qualitative Disclosures About Market Risk ​ 54 ​ Item 8. ​ Consolidated Financial Statements and Supplementary Data ​ 55 ​
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 ​

Item 7. Management's Discussion & Analysis

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

82 edited+8 added−18 removed72 unchanged
Biggest changeFiscal 2022, 2021 and 2020 were all 52-week periods. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ March 26, March 27, March 28, (dollars in thousands) 2022 ​ 2021 ​ 2020 Consolidated Statements of Operations Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 1,488,256 ​ $ 893,491 ​ $ 845,575 ​ Cost of goods sold ​ 913,183 ​ 598,612 ​ 569,084 ​ Gross profit ​ 575,073 ​ 294,879 ​ 276,491 ​ Selling, general and administrative expenses ​ 316,735 ​ 208,553 ​ 202,823 ​ Income from operations ​ 258,338 ​ 86,326 ​ 73,668 ​ Interest expense ​ 5,780 ​ 9,442 ​ 13,310 ​ Other income/(loss), net ​ ​ 35 ​ ​ 366 ​ ​ (45) ​ Income before income taxes ​ 252,593 ​ 77,250 ​ 60,313 ​ Income tax expense ​ 60,143 ​ 17,864 ​ 12,364 ​ Net income ​ $ 192,450 ​ $ 59,386 ​ $ 47,949 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage of Net Sales (1) : ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ 100.0 % 100.0 % 100.0 % Cost of goods sold ​ 61.4 % 67.0 % 67.3 % Gross profit ​ 38.6 % 33.0 % 32.7 % Selling, general and administrative expenses ​ 21.3 % 23.3 % 24.0 % Income from operations ​ 17.4 % 9.7 % 8.7 % Interest expense ​ 0.4 % 1.1 % 1.6 % Other income/(loss), net ​ ​ — % ​ — % ​ — % Income before income taxes ​ 17.0 % 8.6 % 7.1 % Income tax expense ​ 4.0 % 2.0 % 1.5 % Net income ​ 12.9 % 6.6 % 5.7 % (1) Percentages may not total 100% due to rounding. ​ Fiscal 2022 compared to Fiscal 2021 Net sales.
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.
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, utilities, 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 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.
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; ● enhancing brand awareness; and ● increasing profitability.
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.
The fair value of our restricted stock awards, 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. 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.
Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the requisite service period based on the number of years for which the requisite service is expected to be rendered. Forfeitures are recognized as incurred.
Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period based on the number of years for which the requisite service is expected to be rendered. Forfeitures are recognized as incurred.
If the carrying amount of the reporting unit exceeds the reporting unit’s fair value, we recognize an impairment loss equal to the difference between the carrying amount and the estimated fair value of the reporting unit. Definite-lived intangible assets and long-lived assets. Definite-lived intangible assets consist of certain trademarks and customer lists.
If the carrying amount of the reporting unit exceeds the reporting unit’s fair value, we recognize an impairment loss equal to the difference between the carrying amount and the estimated fair value of the reporting unit. Definite-lived intangible assets and long-lived assets. Definite-lived intangible assets consist of certain customer lists.
The June 2015 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.
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, 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. 41 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, 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.
The June 2015 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 to pay a higher interest rate upon an event of default is an embedded derivative.
Stock-based compensation We account for employee stock options, restricted stock awards, restricted stock units and performance share units in accordance with relevant authoritative literature.
Stock-based compensation We account for employee stock options, restricted stock units and performance share units in accordance with relevant authoritative literature.
Current Credit Facility June 2015 Wells Fargo Revolver ​ 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 the $125 million syndicated senior secured asset-based revolving credit facility for which Wells Fargo Bank, National Association (“June 2015 Wells Fargo Revolver”), is agent, and the $200 million syndicated senior secured term loan for which GCI Capital Markets LLC (“2015 Golub Term Loan”) was agent.
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”).
For ease of reference, we identify our fiscal years by reference to the calendar year in which the fiscal year ends. 44 Table of Contents Results of Operations The following table summarizes key components of our results of operations for the periods indicated, both in dollars and as a percentage of our net sales.
For ease of reference, we identify our fiscal years by reference to the calendar year in which the fiscal year ends. Results of Operations The following table summarizes key components of our results of operations for the periods indicated, both in dollars and as a percentage of our net sales.
These operating leases expire at various dates through fiscal 2034, 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 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.
We perform periodic physical inventory counts for our entire chain of stores and our distribution center and adjust the inventory shrinkage reserve accordingly. If actual physical inventory losses differ significantly from the estimate, our results of operations could be adversely impacted.
We perform periodic physical inventory counts for our entire chain of stores and our distribution centers and adjust the inventory shrinkage reserve accordingly. If actual physical inventory losses differ significantly from the estimate, our results of operations could be adversely impacted.
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 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”).
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.
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.
We 53 Table of Contents consider the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. We account for uncertain tax positions in accordance with ASC 740, which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements.
We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. We account for uncertain tax positions in accordance with ASC 740, which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements.
The estimate of the transit times for these shipments is based on shipping terms and historical 50 Table of Contents delivery times. Shipping and handling fees billed to customers for online sales are included in net sales and the related shipping and handling costs are classified as cost of goods sold in the consolidated statements of operations.
The estimate of the transit times for these shipments is based on shipping terms and historical delivery times. Shipping and handling fees billed to customers for online sales are included in net sales and the related shipping and handling costs are classified as cost of goods sold in the consolidated statements of operations.
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 2022, fiscal 2021 and fiscal 2020 we generated approximately 33%, 34% 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 2023, fiscal 2022 and fiscal 2021 we generated approximately 31%, 33% and 34% of our net sales during our third fiscal quarter, respectively.
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, 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 $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.
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. 43 Table of Contents 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 cost of goods sold.
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.
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.
Sales as a result of an e-commerce asset acquisition, such as Country Outfitter, are excluded from same store sales until the 13 th full fiscal month subsequent to the Company’s acquisition of such assets. 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. 40 Table of Contents Measuring the change in year-over-year same store sales allows us to evaluate how our store base is performing.
All obligations under the June 2015 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 June 2015 Wells Fargo Revolver.
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.
Net cash used in investing activities was $28.4 million for fiscal 2021, 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 used in financing activities consists primarily of repayments on our term loan and credit facility.
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.
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 2020 on the 2015 Golub Term Loan was $8.5 million, and the weighted average interest rate for fiscal 2020 was 6.8%.
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%.
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 tax disclosures.
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
We also closed one store in each of fiscal 2022, 2021, and 2020. 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.
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.
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) one-month LIBOR 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 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.
Additional interest expense relating to our June 2015 Wells Fargo Revolver was determined using an interest rate of 0.25% applied to the unutilized portion of the $180.0 million revolving line of credit on March 26, 2022, 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.
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.
The following table presents summary cash flow information for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ March 26, March 27, March 28, ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ (In thousands) Net cash provided by/(used in): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating activities ​ $ 88,864 ​ $ 155,922 ​ $ 25,317 ​ Investing activities ​ (60,443) ​ (28,424) ​ ​ (40,166) ​ Financing activities ​ (80,895) ​ (123,913) ​ ​ 67,798 ​ Net (decrease)/increase in cash ​ $ (52,474) ​ $ 3,585 ​ $ 52,949 ​ ​ 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 ​ ​ 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.
We reduced our line of credit borrowings by $129.9 million and repaid $0.7 million on our debt and capital lease obligations during the period. We also received $7.4 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 finance and operating leases.
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.
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.
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.
The interest rate used represents the weighted average interest rate on the June 2015 Wells Fargo Revolver on the last day of fiscal 2022.
The interest rate used represents the weighted average interest rate on the Wells Fargo Revolver on the last day of fiscal 2023.
The effective tax rate for fiscal 2022 is higher than fiscal 2021 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 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.
Net cash used in financing activities was $80.9 million for fiscal 2022. We increased 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. Net cash used in financing activities was $123.9 million for fiscal 2021.
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.
Income from operations increased by $172.0 million, or 199.3%, to $258.3 million for fiscal 2022 from $86.3 million for fiscal 2021. As a percentage of net sales, income from operations was 17.4% and 9.7% for fiscal 2022 and fiscal 2021, respectively. The change in income from operations was attributable to the factors noted above. Interest expense.
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.
These increases were partially offset by a $33.4 million increase in cash provided by accounts payable and accrued expenses and other current liabilities in fiscal 2022 compared to fiscal 2021, due to the timing of payments. As of the end of fiscal 2022, we did not have any material capital expenditure commitments.
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.
Stock options granted have vesting provisions of either four or five years. Stock option grants are generally subject to forfeiture if employment terminates prior to vesting. We have selected the Black-Scholes option pricing model for estimating the grant date fair value of stock option awards granted.
Stock option grants are generally subject to forfeiture if employment terminates prior to vesting. We have selected the Black-Scholes option pricing model for estimating the grant date fair value of stock option awards granted with only service conditions.
As of March 26, 2022, we operated 300 stores in 38 states, as well as an e-commerce channel, consisting primarily of bootbarn.com, sheplers.com and countryoutfitter.com. Our stores feature a comprehensive assortment of brands and styles, coupled with attentive, knowledgeable store associates.
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.
Our primary cash needs are for inventories, operating expenses, occupancy expenses, capital expenditures associated with opening new stores and remodeling or refurbishing existing stores, improvements to our distribution facilities, marketing 46 Table of Contents and information technology expenditures, debt service and taxes.
Our primary cash needs are for inventories, operating expenses, occupancy expenses, capital expenditures associated with opening new stores and remodeling or refurbishing existing stores, improvements to our distribution facilities, marketing and information technology expenditures, debt service and taxes. We have historically used cash for acquisitions and the subsequent rebranding and integration of the stores acquired in those acquisitions.
Inventories increased $198.5 million as a result 48 Table of Contents 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. Net cash provided by operating activities was $155.9 million for the fiscal year ended March 27, 2021.
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.
Our cash flows from operations decreased in fiscal 2022 when compared to cash flows from operations in fiscal 2021, primarily as a result of a $211.5 million increase in cash paid for inventories year-over-year and a $26.0 million increase in cash paid for prepaid expenses and other current assets.
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.
Interest expense decreased by $3.7 million, or 38.8%, to $5.8 million in fiscal 2022 from $9.4 million in fiscal 2021. 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.
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.
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.
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.
The following discussion contains references to fiscal 2022, fiscal 2021, and fiscal 2020, which represent our fiscal years ended March 26, 2022, March 27, 2021 and March 28, 2020.
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.
On June 6, 2019, the Company entered into Amendment No. 3 to the Credit Agreement (the “2019 Wells Amendment”), further increasing the aggregate revolving credit facility to $165.0 million and extending the maturity date to June 6, 2024.
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.
Store Operating Data The following table presents store operating data for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ March 26, ​ March 27, ​ March 28, ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ Selected Store Data (unaudited): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Same Store Sales growth ​ 53.7 % 3.1 % 5.0 % Stores operating at end of period ​ 300 ​ 273 ​ 259 ​ Total retail store square footage, end of period (in thousands) ​ 3,194 ​ 2,854 ​ 2,722 ​ Average store square footage, end of period ​ 10,648 ​ 10,455 ​ 10,508 ​ Average net sales per store (in thousands) (1) ​ $ 4,194 ​ $ 2,602 ​ $ 2,684 ​ (1) Average net sales per store is calculated by dividing net sales for the applicable period by the number of stores operating at the end of the period.
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.
We expect our cash from operations will continue to be sufficient to support our operations and anticipated capital expenditures for the foreseeable future. We estimate that our capital expenditures in fiscal 2023 will be approximately $87.0 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 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.
Variable lease payments are recognized as lease expense as they are incurred. ​ Inventories Inventories, which consist primarily of general consumer merchandise held for sale, are valued at the lower of cost or net realizable value.
Variable lease payments are recognized as lease expense as they are incurred. ​ Inventories Inventories, which consist primarily of general consumer merchandise held for sale, are valued at the lower of cost or net realizable value. Cost is determined using the weighted-average cost method and includes the cost of merchandise and import related costs, including freight, duty and agent commissions.
As a percentage of net sales, gross profit was 38.6% and 33.0% for fiscal 2022 and fiscal 2021, respectively. Gross profit increased primarily due to higher sales and an increase in merchandise margin rate.
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.
During fiscal 2022, the Company repaid the remaining $111.5 million outstanding principal under the 2015 Golub Term Loan and terminated the agreement. 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 Wells Fargo Revolver was $1.5 million, and the weighted average interest rate for fiscal 2021 was 1.6%. 45 Table of Contents On December 14, 2021, the Company repaid the remaining outstanding principal under the 2015 Golub Term Loan and terminated the agreement.
Total interest expense incurred in fiscal 2021 on the June 2015 Wells Fargo Revolver was $1.5 million, and the weighted average interest rate for fiscal 2021 was 1.6%. Total interest expense incurred in fiscal 2020 on the June 2015 Wells Fargo Revolver was $3.1 million, and the weighted average interest rate for fiscal 2020 was 3.3%.
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%. 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%.
As of March 26, 2022, we had $28.5 million drawn on our $180.0 million revolving credit facility. We had $151.5 million of remaining availability under our revolving credit facility and $20.7 million of cash on hand as of March 26, 2022. Our primary ongoing sources of liquidity include funds provided by operations and borrowings under our revolving credit facility.
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.
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. We regularly analyze the components of gross profit, as well as gross profit as a percentage of net sales.
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.
The borrowing base of the June 2015 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.
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.
Stock volatility for each grant is measured using the weighted average of historical daily price changes of our stock and our competitors’ common stock over the most recent period equal to the expected option term of the awards.
Stock volatility for each grant is measured using historical daily price changes of our stock and our competitors’ common stock over the most recent period equal to the expected option term of the awards. The fair value of stock options granted with both service and market vesting conditions is estimated using a Monte Carlo simulation model.
Cost of goods sold includes the cost of merchandise, obsolescence and shrinkage provisions, store and warehouse occupancy costs (including rent, depreciation and utilities), inbound and outbound freight, supplier allowances, occupancy-related taxes, compensation costs for merchandise purchasing and warehouse personnel, and other inventory acquisition-related costs. These costs are significant and can be expected to continue to increase as we grow.
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.
Cost is determined using the weighted-average cost method (which approximates the first-in, first-out method) and includes the cost of merchandise and import related costs, including freight, duty and agent commissions. 51 Table of Contents During each accounting period, we record adjustments to our inventories, which are reflected in cost of goods sold, if the cost of specific inventory items on hand exceeds the amount that we expect to realize from the ultimate sale or disposal of the inventory.
During each accounting period, we record adjustments to our inventories, which are reflected in cost of goods sold, if the cost of specific inventory items on hand exceeds the amount that we expect to realize from the ultimate sale or disposal of the inventory.
We have also used cash for acquisitions, the subsequent rebranding and integration of the stores acquired in those acquisitions and costs to consolidate the corporate offices. In addition to cash and cash equivalents, the most significant components of our working capital are accounts receivable, inventories, accounts payable and accrued expenses and other current liabilities.
In addition to cash and cash equivalents, the most significant components of our working capital are accounts receivable, inventories, accounts payable and accrued expenses and other current liabilities.
As of March 26, 2022, we were in compliance with the June 2015 Wells Fargo Revolver covenant. ​ Cash Position and Cash Flow Cash and cash equivalents were $20.7 million as of March 26, 2022 compared to $73.1 million as of March 27, 2021.
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.
For a comparison of our fiscal 2021 versus fiscal 2020 results, please see the discussion previously included in Part II, Item 7 of our fiscal 2021 Annual Report on Form 10-K filed with the SEC on May 13, 2021.
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.
The significant components of cash flows provided by operating activities were net income of $59.4 million, the add-back of non-cash depreciation and amortization expense of $24.1 million, stock-based compensation expense of $7.2 million, and amortization of debt issuance fees and debt discount of $0.9 million.
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.
Specifically, we examine the initial markup on purchases, markdowns and reserves, shrinkage, buying costs, distribution costs and occupancy costs.
We regularly analyze the components of gross profit, as well as gross profit as a percentage of net sales. Specifically, we examine the initial markup on purchases, markdowns and reserves, shrinkage, buying costs, distribution costs and occupancy costs.
Net sales in fiscal 2022 increased by $594.8 million, or 66.6%, to $1.488 billion compared to $893.5 million in fiscal 2021. Consolidated same store sales increased 53.7%. Excluding the impact of the 38.7% increase in e-commerce same store sales, same store sales increased by 57.2%.
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%.
The interest expense relating to our June 2015 Wells Fargo Revolver was determined using an interest rate of 3.50% applied to the revolving line of credit balance of $28.5 million on March 26, 2022, the last day of the fiscal year.
Interest expense on debt consists of scheduled interest payments under our Wells Fargo Revolver. The interest expense relating to our Wells Fargo Revolver was determined using an interest rate of 6.00% applied to the revolving line of credit balance of $66.0 million on April 1, 2023, the last day of the fiscal year.
Customers can return merchandise purchased in-store within 30 days of the original purchase date, return merchandise purchased at bootbarn.com and countryoutfitter.com within 60 days of the original purchase date, and return sheplers.com merchandise within 90 days of the original purchase date.
We reserve for projected merchandise returns based upon historical experience and various other assumptions that we believe to be reasonable. Customers can return merchandise purchased in-store within 30 days of the original purchase date and can return merchandise purchased at bootbarn.com, countryoutfitter.com, sheplers.com and idyllwind.com within 60 days of the original purchase date.
Opening new stores is an important part of our growth strategy. We opened or acquired 28, 15, and 20 stores in fiscal 2022, 2021, and 2020, respectively. Included in these added stores are 28, 15, and 19 new stores in fiscal 2022, 2021, and 2020, and 0, 0, and 1 acquired stores in fiscal 2022, 2021, and 2020, respectively.
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).
The period of amortization for customer lists is five years and for definite-lived trademarks is three years. Long-lived assets consist of leasehold improvements, machinery and equipment, furniture and fixtures, software and vehicles. Long-lived assets are subject to depreciation and amortization.
Customer lists are amortized over a five year useful life based on their estimated attrition rate. Long-lived assets consist of leasehold improvements, machinery and equipment, furniture and fixtures, software and vehicles. Long-lived assets are subject to depreciation and amortization.
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. Beginning on their respective dates of acquisition, sales from the acquired Wood’s Boots stores, Lone Star stores, Drysdales stores and G.&L. Clothing store have been included in same store sales.
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.
Inventories decreased $13.0 million as a result of a reduction in purchases due to the COVID-19 crisis. Accounts payable and accrued expenses and other current liabilities increased by $37.4 million due to the timing of payments.
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.
For LIBOR loans, the applicable margin ranges from 1.00% to 1.25%, and for base rate loans it ranges from 0.00% to 0.25%. We also pay a commitment fee of 0.25% per annum of the actual daily amount of the unutilized revolving loans.
For Term SOFR loans, the applicable margin ranges from 1.00% to 1.25% and for base rate loans it ranges from 0.00% to 0.25%.
Borrowings under the June 2015 Wells Fargo Revolver bear interest at per annum rates equal to, at our option, either (i) LIBOR plus an applicable margin for LIBOR loans, or (ii) the base rate plus an applicable margin for base rate loans.
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.
SG&A expenses increased primarily as a result of higher store payroll and overhead and increased marketing expenses in the current-year period compared to the prior-year period. SG&A expenses as a percentage of net sales decreased by approximately 210 basis points primarily as a result of expense leverage on higher sales. Income from operations.
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.
Net income increased by $133.1 million, or 224.1%, to $192.5 million in fiscal 2022 from net income of $59.4 million in fiscal 2021. The change in net income was attributable to the factors noted above. We have omitted discussion of our fiscal 2021 results where it would be redundant of information previously disclosed.
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 sales increased primarily due to the increase in same store sales during fiscal 2022, the incremental sales from new stores opened over the past twelve months, and the sales contribution from temporarily closed stores that were excluded from the comp base.
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.
As a percentage of net sales, consolidated gross profit increased primarily as a result of 290 basis points of leverage in buying and occupancy costs and a 270 basis point increase in merchandise margin rate. The higher merchandise margin was driven primarily by better full-price selling and increased exclusive brand penetration. 45 Table of Contents Selling, general and administrative expenses.
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.
Our actual results could differ materially from those contained in or implied by any forward-looking statements. 40 Table of Contents Overview We are the largest lifestyle retail chain devoted to western and work-related footwear, apparel and accessories in the U.S.
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 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. Debt consists of $28.5 million outstanding under our June 2015 Wells Fargo Revolver as of March 26, 2022. Payments with respect to the June 2015 Wells Fargo Revolver are due June 6, 2024.
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.
The interest on the June 2015 Wells Fargo Revolver is payable in quarterly installments ending on the maturity date.
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.

… 28 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

3 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 26, 2022, we had a $28.5 million drawn under 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 April 1, 2023, we had $66.0 million drawn under 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. 54 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 ​
The impact of a 1.0% rate change on the outstanding balance as of March 26, 2022 would be approximately $0.3 million. Foreign exchange rate risk We currently purchase all of our merchandise through domestic and international suppliers on a U.S. dollar-denominated basis.
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