Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 29, 2024 | Aug. 06, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 29, 2024 | |
Entity File Number | 001-36711 | |
Entity Registrant Name | Boot Barn Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-0776290 | |
Entity Address, Address Line One | 15345 Barranca Pkwy | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92618 | |
City Area Code | 949 | |
Local Phone Number | 453-4400 | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Trading Symbol | BOOT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 30,503,687 | |
Current Fiscal Year End Date | --03-29 | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001610250 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 29, 2024 | Mar. 30, 2024 |
Current assets: | ||
Cash and cash equivalents | $ 83,387 | $ 75,847 |
Accounts receivable, net | 7,916 | 9,964 |
Inventories | 627,108 | 599,120 |
Prepaid expenses and other current assets | 37,572 | 44,718 |
Total current assets | 755,983 | 729,649 |
Property and equipment, net | 346,668 | 323,667 |
Right-of-use assets, net | 409,794 | 390,501 |
Goodwill | 197,502 | 197,502 |
Intangible assets, net | 58,685 | 58,697 |
Other assets | 5,827 | 5,576 |
Total assets | 1,774,459 | 1,705,592 |
Current liabilities: | ||
Accounts payable | 133,974 | 132,877 |
Accrued expenses and other current liabilities | 121,378 | 116,477 |
Short-term lease liabilities | 67,764 | 63,454 |
Total current liabilities | 323,116 | 312,808 |
Deferred taxes | 42,111 | 42,033 |
Long-term lease liabilities | 423,374 | 403,303 |
Other liabilities | 4,036 | 3,805 |
Total liabilities | 792,637 | 761,949 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Common stock, $0.0001 par value; June 29, 2024 - 100,000 shares authorized, 30,800 shares issued; March 30, 2024 - 100,000 shares authorized, 30,572 shares issued | 3 | 3 |
Preferred stock, $0.0001 par value; 10,000 shares authorized, no shares issued or outstanding | ||
Additional paid-in capital | 239,351 | 232,636 |
Retained earnings | 761,935 | 723,026 |
Less: Common stock held in treasury, at cost, 297 and 228 shares at June 29, 2024 and March 30, 2024, respectively | (19,467) | (12,022) |
Total stockholders' equity | 981,822 | 943,643 |
Total liabilities and stockholders' equity | $ 1,774,459 | $ 1,705,592 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 29, 2024 | Mar. 30, 2024 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, shares issued (in shares) | 30,799,513 | 30,572,000 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, shares held in treasury (in shares) | 297,000 | 228,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net sales | $ 423,386 | $ 383,695 |
Type of Revenue | us-gaap:ProductMember | us-gaap:ProductMember |
Cost of goods sold | $ 266,637 | $ 241,732 |
Type of Cost of Service | us-gaap:ProductMember | us-gaap:ProductMember |
Gross profit | $ 156,749 | $ 141,963 |
Selling, general and administrative expenses | 106,527 | 95,718 |
Income from operations | 50,222 | 46,245 |
Interest expense | 351 | 1,023 |
Other income, net | 596 | 224 |
Income before income taxes | 50,467 | 45,446 |
Income tax expense | 11,558 | 11,193 |
Net income | $ 38,909 | $ 34,253 |
Earnings per share: | ||
Basic (in dollars per share) | $ 1.28 | $ 1.14 |
Diluted (in dollars per share) | $ 1.26 | $ 1.13 |
Weighted average shares outstanding: | ||
Basic (in shares) | 30,433 | 29,922 |
Diluted (in shares) | 30,815 | 30,444 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Shares | Total |
Balance at Apr. 01, 2023 | $ 3 | $ 209,964 | $ 576,030 | $ (9,547) | $ 776,450 |
Balance (in shares) at Apr. 01, 2023 | 30,072,000 | ||||
Balance - Treasury Shares (in shares) at Apr. 01, 2023 | (192,000) | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net Income (Loss) | 34,253 | 34,253 | |||
Issuance of common stock related to stock-based compensation | 345 | 345 | |||
Issuance of common stock related to stock-based compensation (in shares) | 123,000 | ||||
Tax withholding for net share settlement | $ (2,305) | (2,305) | |||
Tax withholding for net share settlement (in shares) | (34,000) | ||||
Stock-based compensation expense | 4,953 | 4,953 | |||
Balance at Jul. 01, 2023 | $ 3 | 215,262 | 610,283 | $ (11,852) | 813,696 |
Balance (in shares) at Jul. 01, 2023 | 30,195,000 | ||||
Balance - Treasury Shares (in shares) at Jul. 01, 2023 | (226,000) | ||||
Balance at Mar. 30, 2024 | $ 3 | 232,636 | 723,026 | $ (12,022) | $ 943,643 |
Balance (in shares) at Mar. 30, 2024 | 30,572,000 | ||||
Balance - Treasury Shares (in shares) at Mar. 30, 2024 | (228,000) | (228,000) | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net Income (Loss) | 38,909 | $ 38,909 | |||
Issuance of common stock related to stock-based compensation | 951 | 951 | |||
Issuance of common stock related to stock-based compensation (in shares) | 228,000 | ||||
Tax withholding for net share settlement | $ (7,445) | (7,445) | |||
Tax withholding for net share settlement (in shares) | (69,000) | ||||
Stock-based compensation expense | 5,764 | 5,764 | |||
Balance at Jun. 29, 2024 | $ 3 | $ 239,351 | $ 761,935 | $ (19,467) | $ 981,822 |
Balance (in shares) at Jun. 29, 2024 | 30,800,000 | 30,502,351 | |||
Balance - Treasury Shares (in shares) at Jun. 29, 2024 | (297,000) | (297,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Cash flows from operating activities | ||
Net income | $ 38,909 | $ 34,253 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 14,268 | 10,603 |
Stock-based compensation | 5,764 | 4,953 |
Amortization of intangible assets | 12 | 14 |
Noncash lease expense | 15,908 | 13,117 |
Amortization and write-off of debt issuance fees and debt discount | 27 | 27 |
Loss on disposal of assets | 55 | 176 |
Deferred taxes | 78 | 727 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 2,059 | 1,452 |
Inventories | (27,988) | 23,200 |
Prepaid expenses and other current assets | 6,909 | 11,486 |
Other assets | (251) | 354 |
Accounts payable | 1,848 | (24,872) |
Accrued expenses and other current liabilities | (6,108) | 158 |
Other liabilities | 231 | 498 |
Operating leases | (10,410) | (5,344) |
Net cash provided by operating activities | 41,311 | 70,802 |
Cash flows from investing activities | ||
Purchases of property and equipment | (27,066) | (29,895) |
Net cash used in investing activities | (27,066) | (29,895) |
Cash flows from financing activities | ||
Payments on line of credit, net | (39,828) | |
Repayments on debt and finance lease obligations | (211) | (213) |
Tax withholding payments for net share settlement | (7,445) | (2,305) |
Proceeds from the exercise of stock options | 951 | 345 |
Net cash used in financing activities | (6,705) | (42,001) |
Net increase/(decrease) in cash and cash equivalents | 7,540 | (1,094) |
Cash and cash equivalents, beginning of period | 75,847 | 18,193 |
Cash and cash equivalents, end of period | 83,387 | 17,099 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | 584 | 646 |
Cash paid for interest | 322 | 1,151 |
Supplemental disclosure of non-cash activities: | ||
Unpaid purchases of property and equipment | $ 23,197 | $ 17,517 |
Business Operations
Business Operations | 3 Months Ended |
Jun. 29, 2024 | |
Business Operations | |
Business Operations | BOOT BARN HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENT S (Unaudited) 1. Business Operations Boot Barn Holdings, Inc. (the “Company”), the parent holding company of the group of operating subsidiaries that conduct the Boot Barn business, was formed on November 17, 2011, and is incorporated in the State of Delaware. The equity of the Company consists of 100,000,000 authorized shares and 30,799,513 issued and 30,502,351 outstanding shares of common stock as of June 29, 2024. The shares of common stock have voting rights of one vote per share. The Company operates specialty retail stores and e-commerce websites that sell western and work boots and related apparel and accessories. The Company operates retail locations throughout the United States and sells its merchandise via the internet. The Company operated a total of 411 stores in 46 states as of June 29, 2024 and 400 stores in 45 states as of March 30, 2024. As of June 29, 2024, all stores operate under the Boot Barn name. Recent Developments Our business and opportunities for growth depend on consumer discretionary spending, and as such, the Company’s results are particularly sensitive to economic conditions and consumer confidence. I nflation and other challenges affecting the global economy could impact operations and Basis of Presentation The Company’s consolidated financial statements as of June 29, 2024 and March 30, 2024 and for the thirteen weeks ended June 29, 2024 and July 1, 2023 are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), and include the accounts of the Company and each of its subsidiaries, consisting of Boot Barn, Inc., RCC Western Stores, Inc., Baskins Acquisition Holdings, LLC, Sheplers, LLC and Sheplers Holding LLC (collectively with Sheplers, LLC, “Sheplers”). All intercompany accounts and transactions among the Company and its subsidiaries have been eliminated in consolidation. The vast majority of the Company’s identifiable assets are in the United States. Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements have been condensed or omitted. In the opinion of management, the interim consolidated financial statements reflect all adjustments that are of a normal and recurring nature necessary to fairly present the Company’s financial position, results of operations and cash flows in all material respects as of the dates and for the periods presented. The results of operations presented in the interim consolidated financial statements are not necessarily indicative of the results that may be expected for the fiscal year ending March 29, 2025. Fiscal Periods The Company reports its results of operations and cash flows on a 52- or 53-week basis ending on the last Saturday of March unless April 1st is a Saturday, in which case the fiscal year ends on April 1st. In a 52-week 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. Both the current fiscal year ending on March 29, 2025 (“fiscal 2025”) and the fiscal year ended on March 30, 2024 (“fiscal 2024”) consist of 52 weeks. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 29, 2024 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Information regarding the Company’s significant accounting policies is contained in Note 2, “Summary of Significant Accounting Policies”, to the consolidated financial statements included in the Company’s Fiscal 2024 10-K. Presented below and in the following notes is supplemental information that should be read in conjunction with those consolidated financial statements. Comprehensive Income The Company does not have any components of other comprehensive income recorded within its consolidated financial statements and, therefore, does not separately present a statement of comprehensive income in its consolidated financial statements. Segment Reporting 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’s retail stores and e-commerce websites represent two operating segments. Given the similar qualitative and economic characteristics of the two operating segments, the Company’s retail stores and e-commerce websites are aggregated into one reporting segment in accordance with guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Among the significant estimates affecting the Company’s consolidated financial statements are those relating to revenue recognition, lease accounting, inventories, goodwill, intangible and long-lived assets, stock-based compensation and income taxes. Management regularly evaluates its estimates and assumptions based upon historical experience and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. To the extent actual results differ from those estimates, the Company’s future results of operations may be affected. Inventories Inventories consist primarily of purchased merchandise and 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. The Company assesses the recoverability of inventory through a periodic review of historical usage and present demand. When the inventory on hand exceeds the foreseeable demand, the value of inventory that, at the time of the review, is not expected to be sold at or above cost is written down to its estimated net realizable value. Leases Operating and finance lease liabilities are recognized at the lease commencement date based on the present value of the fixed lease payments using the Company's incremental borrowing rates for its population of leases. Related operating and finance lease right-of-use (“ROU”) 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. Amortization of both operating and finance lease right-of-use assets is performed on a straight-line basis and recorded as part of rent expense in cost of goods sold and selling, general and administrative expenses on the consolidated statements of operations. The majority of total lease costs is recorded as part of cost of goods sold, with the balance recorded in selling, general and administrative expenses on the consolidated statements of operations. The interest expense amortization component of the finance lease liabilities is recorded within interest expense on the consolidated statements of operations. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Variable lease payments are recognized as lease expense as they are incurred. Fair Value of Certain Financial Assets and Liabilities The Company follows FASB ASC Topic 820, Fair Value Measurements and Disclosures ● Level 1 uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. ● Level 2 uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates, incremental borrowing rates, and volatility, can be corroborated by readily observable market data. ● Level 3 uses one or more significant inputs that are unobservable and supported by little or no market activity, and reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation. The Company’s Level 3 assets include certain acquired businesses and the evaluation of store impairment. Cash and cash equivalents, accounts receivable and accounts payable are classified according to the lowest level input that is significant to the fair value measurement. As a result, the asset or liability could be classified as Level 2 or Level 3 even though there may be certain significant inputs that are readily observable. The Company believes that the recorded value of its financial instruments approximates their current fair values because of their nature and respective relatively short maturity dates or duration. Although market quotes for the fair value of the outstanding debt arrangement discussed in Note 4, “Revolving Credit Facility”, is not readily available, the Company believes its carrying value approximates fair value due to the variable interest rates, which are Level 2 inputs. There were no financial assets or liabilities Revenue Recognition Revenue is recorded for store sales upon the purchase of merchandise by customers. Sales are recorded net of taxes collected from customers. Transfer of control takes place at the point at which the customer receives and pays for the merchandise at the register. E-commerce sales are recorded when control transfers to the customer, which generally occurs upon delivery of the product. Shipping and handling revenues are included in total net sales. Shipping costs incurred by the Company are included in cost of goods sold. Revenue is recorded net of estimated and actual sales returns and deductions for coupon redemptions, estimated future award redemption and other promotions. The sales returns reserve reflects an estimate of sales returns based on projected merchandise returns determined through the use of historical average return percentages. The total reserve for returns is recorded in accrued expenses and other current liabilities in the consolidated balance sheets. The Company accounts for the return asset and liability separately on a gross basis. The Company maintains a customer loyalty program. Under the program, customers accumulate points based on purchase activity. For customers to maintain their active point balance, they must make a qualifying purchase of merchandise at least once in a 365-day period. Once a loyalty program member achieves a certain point level, the member earns awards that may be redeemed for credits on merchandise purchases. To redeem awards, the member must make a qualifying purchase of merchandise within 60 days of the date the award was granted. Unredeemed awards and accumulated partial points are accrued as unearned revenue until redemption or expiration and, upon redemption or expiration, as an adjustment to net sales using the relative standalone selling price method. The unearned revenue for this program is recorded in accrued expenses and other current liabilities on the consolidated balance sheets and was $5.2 million as of June 29, 2024, and $4.3 million as of July 1, 2023. The following table provides a reconciliation of the activity related to the Company’s customer loyalty program: Customer Loyalty Program (in thousands) June 29, 2024 July 1, 2023 Beginning balance as of March 30, 2024 and April 1, 2023, respectively $ 5,050 $ 4,145 Year-to-date provisions 4,051 3,562 Year-to-date award redemptions (3,883) (3,391) Ending balance $ 5,218 $ 4,316 Proceeds from the sale of gift cards are deferred until the customers use the cards to acquire merchandise. 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. The Company defers recognition of a layaway sale and its related profit to the accounting period when the customer receives the layaway merchandise. Income from the redemption of gift cards, gift card breakage, and the sale of layaway merchandise is included in net sales. Deferred revenue is recorded in accrued expenses and other current liabilities in the consolidated balance sheets. The following table provides a reconciliation of the activity related to the Company’s gift card program: Gift Card Program (in thousands) June 29, 2024 July 1, 2023 Beginning balance as of March 30, 2024 and April 1, 2023, respectively $ 23,649 $ 19,855 Year-to-date issued 7,688 7,262 Year-to-date redemptions (8,167) (7,620) Ending balance $ 23,170 $ 19,497 Disaggregated Revenue The Company disaggregates net sales into the following major merchandise categories: Thirteen Weeks Ended % of Net Sales June 29, 2024 July 1, 2023 Footwear 49% 49% Apparel 34% 34% Hats, accessories and other 17% 17% Total 100% 100% The Company further disaggregates net sales between stores and e-commerce: Thirteen Weeks Ended % of Net Sales June 29, 2024 July 1, 2023 Stores 91% 90% E-commerce 9% 10% Total 100% 100% Recent Accounting Pronouncements In December 2023, the FASB issued Accounting Standards Update (“ASU’) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The ASU requires disaggregated information about an entity’s effective tax rate reconciliation, as well as information on income taxes paid. The amendments in this ASU are required to be adopted for fiscal years beginning after December 15, 2024. The amendments should be applied on a prospective basis, although retrospective application is permitted. The Company is currently evaluating the impact of adoption on its financial disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The amendment improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. The Company is currently evaluating the impact of adoption on its financial disclosures. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 3 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets, Net | |
Goodwill and Intangible Assets, Net | 3. Goodwill and Intangible Assets, Net The Company performs its annual goodwill impairment assessment on the first day of its fourth fiscal quarter, or more frequently if it believes that indicators of impairment exist. The Company’s goodwill balance was $197.5 million as of both June 29, 2024 and March 30, 2024. As of June 29, 2024, the Company had identified no indicators of impairment with respect to its goodwill and intangible asset balances. During both the thirteen weeks ended June 29, 2024 and July 1, 2023, the Company did not record any long-lived asset impairment charges. Net intangible assets as of June 29, 2024 and March 30, 2024 consisted of the following (in thousands, except for weighted average useful life): June 29, 2024 Gross Weighted Carrying Accumulated Average Amount Amortization Net Useful Life Customer lists—definite lived $ 345 $ (337) $ 8 5.0 Trademarks—indefinite lived 58,677 — 58,677 Total intangible assets $ 59,022 $ (337) $ 58,685 March 30, 2024 Gross Weighted Carrying Accumulated Average Amount Amortization Net Useful Life Customer lists—definite lived $ 345 $ (325) $ 20 5.0 Trademarks—indefinite lived 58,677 — 58,677 Total intangible assets $ 59,022 $ (325) $ 58,697 Amortization expense for intangible assets totaled less than $0.1 million for both the thirteen weeks ended June 29, 2024 and July 1, 2023, and is included in selling, general and administrative expenses. As of June 29, 2024, estimated future amortization of intangible assets was as follows: Fiscal Year (in thousands) 2025 (Remainder) $ 8 Thereafter - Total $ 8 |
Revolving Credit Facilities
Revolving Credit Facilities | 3 Months Ended |
Jun. 29, 2024 | |
Revolving Credit Facilities | |
Revolving Credit Facilities | 4. Revolving 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. Revolving credit loans under the Wells Fargo Revolver bear interest at per annum rates equal to, at the Company’s option, either (i) Adjusted Term Secured Overnight Financing Rate (defined as “Term SOFR” for the applicable interest period plus a fixed credit spread adjustment of 0.10%) plus an applicable margin for Term SOFR loans, or (ii) the base rate plus an applicable margin for base rate loans. The base rate is calculated at the highest of (a) the federal funds rate plus 0.5%, (b) the Wells Fargo prime rate and (c) Term SOFR for a one-month tenor in effect on such day plus 1.0%. The applicable margin is calculated based on a pricing grid that in each case is linked to quarterly average excess availability. 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%. The interest on base rate loans under the Wells Fargo Revolver is payable in quarterly installments ending on the maturity date and for Term SOFR loans is payable on the earlier of the last day of each interest period applicable thereto, or on each three-month interval of such interest period. The Company also pays a commitment fee of 0.25% per annum of the actual daily amount of the unutilized revolving loans. The borrowing base of the Wells Fargo Revolver is calculated on a monthly basis and is based on the amount of eligible credit card receivables, commercial accounts, inventory, and available reserves. The amounts outstanding under the Wells Fargo Revolver and letter of credit commitments as of June 29, 2024 and March 30, 2024 were zero and $2.3 million, respectively. Total interest expense incurred on the Wells Fargo Revolver during the thirteen weeks ended June 29, 2024 was $0.2 million, and the weighted average interest rate for the thirteen weeks ended June 29, 2024 was 8.5%. Total interest expense incurred on the Wells Fargo Revolver during the thirteen weeks ended July 1, 2023 was $0.9 million, and the weighted average interest rate for the thirteen weeks ended July 1, 2023 was 6.6%. All obligations under the Wells Fargo Revolver are unconditionally guaranteed by the Company and each of its direct and indirect domestic subsidiaries (other than certain immaterial subsidiaries), which are not named as borrowers under the Wells Fargo Revolver. The Wells Fargo Revolver contains customary provisions relating to mandatory prepayments, restricted payments, voluntary payments, affirmative and negative covenants, and events of default. In addition, the terms of the Wells Fargo Revolver require the Company to maintain, on a consolidated basis, a Consolidated Fixed Charge Coverage Ratio (as defined in the Wells Fargo Revolver) of at least 1.00:1.00 during such times as a covenant trigger event shall exist. 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. As of June 29, 2024, the fair value of this embedded derivative was estimated and was not significant. As of June 29, 2024, the Company was in compliance with the Wells Fargo Revolver debt covenants. Debt Issuance Costs Debt issuance costs totaling $1.7 million have been incurred under the Wells Fargo Revolver and are included as assets on the consolidated balance sheets in prepaid expenses and other current assets. Total unamortized debt issuance costs were $0.3 million and $0.4 million as of June 29, 2024 and March 30, 2024, respectively. These amounts are being amortized to interest expense over the term of the Wells Fargo Revolver. Total amortization expense of less than $0.1 million related to the Wells Fargo Revolver is included as a component of interest expense in both the thirteen weeks ended June 29, 2024 and July 1, 2023. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 29, 2024 | |
Stock-Based Compensation | |
Stock-Based Compensation | 5. Stock-Based Compensation Equity Incentive Plans On October 19, 2014, the Company approved the 2014 Equity Incentive Plan, which was amended as of August 24, 2016 (as amended, the “2014 Plan”). The 2014 Plan authorizes the Company to issue awards to employees, consultants and directors for up to a total of 3,600,000 shares of common stock, par value $0.0001 per share eight four one one four On August 26, 2020 (the “Effective Date”), the Company’s stockholders approved the Boot Barns Holdings, Inc. 2020 Equity Incentive Plan, and on August 25, 2021, the Company’s stockholders approved Amendment No. 2021-1 to the Boot Barn Holdings, Inc. 2020 Equity Incentive Plan (as amended, the “2020 Plan”). Following the approval of the 2020 Plan, no further grants have been made under the 2014 Plan. The 2020 Plan authorizes the issuance of awards to employees (including executive officers) of the Company or any of its subsidiaries or other Affiliates (as defined in the 2020 Plan) and non-employee directors of the Company’s board of directors or any member of any board of directors of any Affiliate for up to a total of 2,000,000 shares of common stock, par value $0.0001 per share one three Stock Options During both the thirteen weeks ended June 29, 2024 and July 1, 2023, the Company did not grant options to purchase shares. The following table summarizes the stock option activity for the thirteen weeks ended June 29, 2024: Grant Date Weighted Weighted Average Aggregate Stock Average Remaining Intrinsic Options Exercise Price Contractual Life Value (1) (in years) (in thousands) Outstanding at March 30, 2024 340,605 $ 40.00 Granted — — Exercised (40,470) 23.49 $ 3,585 Cancelled, forfeited or expired — — Outstanding at June 29, 2024 300,135 $ 42.23 5.7 $ 26,021 Vested and expected to vest after June 29, 2024 300,135 $ 42.23 5.7 $ 26,021 Exercisable at June 29, 2024 208,237 $ 24.23 4.9 $ 21,803 (1) Intrinsic value for stock options is defined as the difference between the market price of the Company’s common stock on the last business day of the fiscal quarter and the weighted average exercise price of the in-the-money stock options outstanding at the end of each fiscal period. A summary of the status of non-vested stock options as of June 29, 2024, including changes during the thirteen weeks ended June 29, 2024, is presented below: Weighted- Average Grant Date Shares Fair Value Nonvested at March 30, 2024 154,487 $ 30.63 Granted — — Vested (62,589) 10.58 Nonvested shares forfeited — — Nonvested at June 29, 2024 91,898 $ 44.28 Restricted Stock Units During the thirteen weeks ended June 29, 2024, the Company granted 96,060 restricted stock units to various non-employee directors and employees under the 2020 Plan. The restricted stock units granted to employees vest in three first During the thirteen weeks ended July 1, 2023, the Company granted 132,713 restricted stock units to various non-employee directors and employees under the 2020 Plan. The restricted stock units granted to employees vest in three first Performance Share Units During the thirteen weeks ended June 29, 2024 and July 1, 2023, the Company granted 61,530 and 112,740 performance share units, respectively, to various employees under the 2020 Plan with grant date fair values of $6.9 million and $7.3 million, respectively. Performance share units are stock-based awards in which the number of shares ultimately received depends on the Company’s performance against its cumulative earnings per share target over a three-year performance period. The performance period for the awards granted during the thirteen weeks ended June 29, 2024 began March 31, 2024 and ends March 27, 2027, and the performance period for the awards granted during the thirteen weeks ended July 1, 2023 began April 2, 2023 and ends March 28, 2026. The performance metrics for these awards were established at the beginning of the performance periods. At the end of the performance periods, the number of performance share units to be issued is fixed based upon the degree of achievement of the performance goals. If the cumulative three-year performance goals are below the threshold level, the number of performance share units to vest will be 0%, if the performance goals are at the threshold level, the number of performance share units to vest will be 50% of the target amounts, if the performance goals are at the target level, the number of performance share units to vest will be 100% of the target amounts, and if the performance goals are at the maximum level, the number of performance share units to vest will be 200% of the target amounts, each subject to continued service by the applicable award recipients through the last day of the performance periods (subject to certain exceptions). If performance is between threshold and target goals or between target and maximum goals, the number of performance share units to vest will be determined by linear interpolation. The number of shares ultimately issued can range from 0% to 200% of the participant’s target award. The grant date fair value of the performance share units granted during both the thirteen weeks ended June 29, 2024 and July 1, 2023, respectively, was initially measured using the Company's closing stock price on the dates of grant with the resulting stock compensation expense recognized on a straight-line basis over the three-year vesting periods (subject to certain exceptions). The expense recognized over the vesting periods is adjusted up or down on a quarterly basis based on the anticipated performance level during the performance periods. If the performance metrics are not probable of achievement during the performance periods, any previously recognized stock compensation expense is reversed. The awards are forfeited if the threshold performance goals are not achieved as of the end of the performance periods. Stock-Based Compensation Expense Stock-based compensation expense was $5.8 million and $5.0 million for the thirteen weeks ended June 29, 2024 and July 1, 2023, respectively. Stock-based compensation expense of $1.8 million and $1.4 million was recorded in cost of goods sold in the consolidated statements of operations for the thirteen weeks ended June 29, 2024 and July 1, 2023, respectively. All other stock-based compensation expense is included in selling, general and administrative expenses in the consolidated statements of operations. As of June 29, 2024, there was $1.2 million of total unrecognized stock-based compensation expense related to unvested stock options, with a weighted-average remaining recognition period of 0.87 years. As of June 29, 2024, there was $15.0 million of total unrecognized stock-based compensation expense related to restricted stock units, with a weighted-average remaining recognition period of 2.17 years. As of June 29, 2024, there was $8.7 million of total unrecognized stock-based compensation expense related to performance share units, with a weighted-average remaining recognition period of 2.49 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 29, 2024 | |
Commitments and Contingencies | |
Commitments and Contingencies | 6. Commitments and Contingencies The Company is involved, from time to time, in litigation that is incidental to its business. The Company has 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 The Company is also subject to certain other pending or threatened litigation matters incidental to its business. In management's opinion, none of these legal matters, individually or in the aggregate, will have a material effect on the Company's financial position, results of operations, or liquidity. During the normal course of its business, the Company has made certain indemnifications and commitments under which the Company may be required to make payments for certain transactions. These indemnifications include those given to various lessors in connection with facility leases for certain claims arising from such facility leases, and indemnifications to directors and officers of the Company to the maximum extent permitted under the laws of the State of Delaware. The majority of these indemnifications and commitments do not provide for any limitation of the maximum potential future payments the Company could be obligated to make, and their duration may be indefinite. The Company has not recorded any liability for these indemnifications and commitments in the consolidated balance sheets as the impact is expected to be immaterial. |
Leases
Leases | 3 Months Ended |
Jun. 29, 2024 | |
Leases | |
Leases | 7. Leases The Company does not own any real estate. Instead, most of its retail store locations are occupied under operating leases. The store leases generally have a base lease term of five , on average, exercisable at the Company’s option. The Company is generally responsible for the payment of property taxes and insurance, utilities and common area maintenance fees. Some leases also require additional payments based on percentage of sales. Lease terms include the non-cancellable portion of the underlying leases along with any reasonably certain lease periods associated with available renewal periods, termination options and purchase options. ROU assets are tested for impairment in the same manner as long-lived assets. During the thirteen weeks ended June 29, 2024 and July 1, 2023, the Company did not record ROU asset impairment charges related to its stores. ROU assets and lease liabilities as of June 29, 2024 and March 30, 2024 consisted of the following: June 29, 2024 March 30, 2024 Balance Sheet Classification (in thousands) (in thousands) Assets Finance lease assets Right-of-use assets, net $ 8,350 $ 8,537 Operating lease assets Right-of-use assets, net 401,444 381,964 Total lease assets $ 409,794 $ 390,501 Liabilities Current Finance Short-term lease liabilities $ 891 $ 873 Operating Short-term lease liabilities 66,873 62,581 Total short-term lease liabilities $ 67,764 $ 63,454 Non-Current Finance Long-term lease liabilities $ 14,199 $ 14,428 Operating Long-term lease liabilities 409,175 388,875 Total long-term lease liabilities $ 423,374 $ 403,303 Total lease liabilities $ 491,138 $ 466,757 Total lease costs for the thirteen weeks ended June 29, 2024 and July 1, 2023 were: Thirteen Weeks Ended (in thousands) June 29, 2024 July 1, 2023 Finance lease cost Amortization of right-of-use assets $ 187 $ 207 Interest on lease liabilities 162 172 Total finance lease cost $ 349 $ 379 Operating lease cost $ 21,422 $ 17,302 Short-term lease cost 659 806 Variable lease cost 7,351 5,941 Total lease cost $ 29,781 $ 24,428 The following table summarizes future lease payments as of June 29, 2024: Operating Leases Finance Leases Fiscal Year (in thousands) (in thousands) 2025 (Remainder) $ 58,636 $ 1,143 2026 89,516 1,552 2027 80,866 1,590 2028 70,358 1,629 2029 62,862 1,669 Thereafter 220,651 11,226 Total 582,889 18,809 Less: Imputed interest (106,841) (3,719) Present value of net lease payments $ 476,048 $ 15,090 As of June 29, 2024, the Company’s minimum lease commitment for operating leases The following table includes supplemental lease information: Thirteen Weeks Ended Thirteen Weeks Ended Supplemental Cash Flow Information (dollars in thousands) June 29, 2024 July 1, 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 21,387 $ 17,848 Operating cash flows used for finance leases 160 170 Financing cash flows used for finance leases 212 215 $ 21,759 $ 18,233 Lease liabilities arising from new right-of-use assets Operating leases $ 35,201 $ 20,897 Finance leases $ — $ — Weighted average remaining lease term (in years) Operating leases 7.8 8.1 Finance leases 11.2 12.1 Weighted average discount rate Operating leases 5.0 % 4.7 % Finance leases 10.9 % 10.9 % |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 29, 2024 | |
Income Taxes | |
Income Taxes | 8. Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, Income Taxes The income tax rate was 22.9% and 24.6% for the thirteen weeks ended June 29, 2024 and July 1, 2023, respectively. The tax rate for the thirteen weeks ended June 29, 2024 was lower than the tax rate for the thirteen weeks ended July 1, 2023, primarily due to a higher tax benefit due to income tax accounting for share-based compensation compared to the thirteen weeks ended July 1, 2023. Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amounts expected to be realized. To this end, the Company has considered and evaluated its sources of taxable income, including forecasted future taxable income, and has concluded that a valuation allowance is not required as of June 29, 2024. The Company will continue to evaluate the need for a valuation allowance at each period end. The Company’s policy is to accrue interest and penalties related to unrecognized tax benefits as a component of income tax expense. At June 29, 2024 and March 30, 2024, the Company had no accrued liability for penalties and interest. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. As of June 29, 2024, the Company was not aware of tax examinations (current or potential) in any tax jurisdictions. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Jun. 29, 2024 | |
Related Party Transactions | |
Related Party Transactions | 9. Related Party Transactions During the thirteen weeks ended June 29, 2024, the Company had no capital expenditures with Floor & Decor Holdings, Inc., a specialty retail vendor in the flooring market. During the thirteen weeks ended July 1, 2023, the Company had capital expenditures with Floor & Decor Holdings, Inc., that amounted to less than $0.1 million, and were recorded as property and equipment, net on the consolidated balance sheet. One member of the Company’s board of directors currently serves on the board of directors at Floor & Decor Holdings, Inc. Additionally, one member of the Company’s board of directors served as an executive officer at Floor & Decor Holdings, Inc. through April 2022. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share | |
Earnings Per Share | 10. Earnings Per Share Earnings per share is computed under the provisions of FASB ASC Topic 260, Earnings Per Share The components of basic and diluted earnings Thirteen Weeks Ended June 29, July 1, (in thousands, except per share data) 2024 2023 Net income $ 38,909 $ 34,253 Weighted average basic shares outstanding 30,433 29,922 Dilutive effect of options and restricted stock 382 522 Weighted average diluted shares outstanding 30,815 30,444 Basic earnings per share $ 1.28 $ 1.14 Diluted earnings per share $ 1.26 $ 1.13 During the thirteen weeks ended June 29, 2024 and July 1, 2023, securities outstanding totaling approximately zero and 87,229 shares, respectively, comprised of options and restricted stock, were excluded from the computation of weighted average diluted common shares outstanding, as the effect of doing so would have been anti-dilutive. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 38,909 | $ 34,253 |
Insider Trading Arrangements
Insider Trading Arrangements - James Watkins | 3 Months Ended |
Jun. 29, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On May 31, 2024, James Watkins, the Company’s Chief Financial Officer and Secretary, adopted a written plan for the sale of the Company’s common stock that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (a “10b5-1 Plan”). The 10b5-1 Plan provides for the potential sale of up to 9,356 shares of the Company’s common stock, including the sale of up to 3,601 shares of the Company’s common stock that Mr. Watkins may acquire upon the exercise of outstanding stock options, beginning August 30, 2024 through January 29, 2027. |
Name | James Watkins |
Title | Chief Financial Officer and Secretary |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | May 31, 2024 |
Expiration Date | Jan. 29, 2027 |
Aggregate Available | 9,356 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 29, 2024 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The Company’s consolidated financial statements as of June 29, 2024 and March 30, 2024 and for the thirteen weeks ended June 29, 2024 and July 1, 2023 are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), and include the accounts of the Company and each of its subsidiaries, consisting of Boot Barn, Inc., RCC Western Stores, Inc., Baskins Acquisition Holdings, LLC, Sheplers, LLC and Sheplers Holding LLC (collectively with Sheplers, LLC, “Sheplers”). All intercompany accounts and transactions among the Company and its subsidiaries have been eliminated in consolidation. The vast majority of the Company’s identifiable assets are in the United States. Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements have been condensed or omitted. In the opinion of management, the interim consolidated financial statements reflect all adjustments that are of a normal and recurring nature necessary to fairly present the Company’s financial position, results of operations and cash flows in all material respects as of the dates and for the periods presented. The results of operations presented in the interim consolidated financial statements are not necessarily indicative of the results that may be expected for the fiscal year ending March 29, 2025. |
Fiscal Periods | Fiscal Periods The Company reports its results of operations and cash flows on a 52- or 53-week basis ending on the last Saturday of March unless April 1st is a Saturday, in which case the fiscal year ends on April 1st. In a 52-week 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. Both the current fiscal year ending on March 29, 2025 (“fiscal 2025”) and the fiscal year ended on March 30, 2024 (“fiscal 2024”) consist of 52 weeks. |
Comprehensive Income | Comprehensive Income The Company does not have any components of other comprehensive income recorded within its consolidated financial statements and, therefore, does not separately present a statement of comprehensive income in its consolidated financial statements. |
Segment Reporting | Segment Reporting 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’s retail stores and e-commerce websites represent two operating segments. Given the similar qualitative and economic characteristics of the two operating segments, the Company’s retail stores and e-commerce websites are aggregated into one reporting segment in accordance with guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Among the significant estimates affecting the Company’s consolidated financial statements are those relating to revenue recognition, lease accounting, inventories, goodwill, intangible and long-lived assets, stock-based compensation and income taxes. Management regularly evaluates its estimates and assumptions based upon historical experience and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. To the extent actual results differ from those estimates, the Company’s future results of operations may be affected. |
Inventories | Inventories Inventories consist primarily of purchased merchandise and 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. The Company assesses the recoverability of inventory through a periodic review of historical usage and present demand. When the inventory on hand exceeds the foreseeable demand, the value of inventory that, at the time of the review, is not expected to be sold at or above cost is written down to its estimated net realizable value. |
Leases | Leases Operating and finance lease liabilities are recognized at the lease commencement date based on the present value of the fixed lease payments using the Company's incremental borrowing rates for its population of leases. Related operating and finance lease right-of-use (“ROU”) 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. Amortization of both operating and finance lease right-of-use assets is performed on a straight-line basis and recorded as part of rent expense in cost of goods sold and selling, general and administrative expenses on the consolidated statements of operations. The majority of total lease costs is recorded as part of cost of goods sold, with the balance recorded in selling, general and administrative expenses on the consolidated statements of operations. The interest expense amortization component of the finance lease liabilities is recorded within interest expense on the consolidated statements of operations. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Variable lease payments are recognized as lease expense as they are incurred. |
Fair Value of Certain Financial Assets and Liabilities | Fair Value of Certain Financial Assets and Liabilities The Company follows FASB ASC Topic 820, Fair Value Measurements and Disclosures ● Level 1 uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. ● Level 2 uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates, incremental borrowing rates, and volatility, can be corroborated by readily observable market data. ● Level 3 uses one or more significant inputs that are unobservable and supported by little or no market activity, and reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation. The Company’s Level 3 assets include certain acquired businesses and the evaluation of store impairment. Cash and cash equivalents, accounts receivable and accounts payable are classified according to the lowest level input that is significant to the fair value measurement. As a result, the asset or liability could be classified as Level 2 or Level 3 even though there may be certain significant inputs that are readily observable. The Company believes that the recorded value of its financial instruments approximates their current fair values because of their nature and respective relatively short maturity dates or duration. Although market quotes for the fair value of the outstanding debt arrangement discussed in Note 4, “Revolving Credit Facility”, is not readily available, the Company believes its carrying value approximates fair value due to the variable interest rates, which are Level 2 inputs. There were no financial assets or liabilities |
Revenue Recognition | Revenue Recognition Revenue is recorded for store sales upon the purchase of merchandise by customers. Sales are recorded net of taxes collected from customers. Transfer of control takes place at the point at which the customer receives and pays for the merchandise at the register. E-commerce sales are recorded when control transfers to the customer, which generally occurs upon delivery of the product. Shipping and handling revenues are included in total net sales. Shipping costs incurred by the Company are included in cost of goods sold. Revenue is recorded net of estimated and actual sales returns and deductions for coupon redemptions, estimated future award redemption and other promotions. The sales returns reserve reflects an estimate of sales returns based on projected merchandise returns determined through the use of historical average return percentages. The total reserve for returns is recorded in accrued expenses and other current liabilities in the consolidated balance sheets. The Company accounts for the return asset and liability separately on a gross basis. The Company maintains a customer loyalty program. Under the program, customers accumulate points based on purchase activity. For customers to maintain their active point balance, they must make a qualifying purchase of merchandise at least once in a 365-day period. Once a loyalty program member achieves a certain point level, the member earns awards that may be redeemed for credits on merchandise purchases. To redeem awards, the member must make a qualifying purchase of merchandise within 60 days of the date the award was granted. Unredeemed awards and accumulated partial points are accrued as unearned revenue until redemption or expiration and, upon redemption or expiration, as an adjustment to net sales using the relative standalone selling price method. The unearned revenue for this program is recorded in accrued expenses and other current liabilities on the consolidated balance sheets and was $5.2 million as of June 29, 2024, and $4.3 million as of July 1, 2023. The following table provides a reconciliation of the activity related to the Company’s customer loyalty program: Customer Loyalty Program (in thousands) June 29, 2024 July 1, 2023 Beginning balance as of March 30, 2024 and April 1, 2023, respectively $ 5,050 $ 4,145 Year-to-date provisions 4,051 3,562 Year-to-date award redemptions (3,883) (3,391) Ending balance $ 5,218 $ 4,316 Proceeds from the sale of gift cards are deferred until the customers use the cards to acquire merchandise. 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. The Company defers recognition of a layaway sale and its related profit to the accounting period when the customer receives the layaway merchandise. Income from the redemption of gift cards, gift card breakage, and the sale of layaway merchandise is included in net sales. Deferred revenue is recorded in accrued expenses and other current liabilities in the consolidated balance sheets. The following table provides a reconciliation of the activity related to the Company’s gift card program: Gift Card Program (in thousands) June 29, 2024 July 1, 2023 Beginning balance as of March 30, 2024 and April 1, 2023, respectively $ 23,649 $ 19,855 Year-to-date issued 7,688 7,262 Year-to-date redemptions (8,167) (7,620) Ending balance $ 23,170 $ 19,497 Disaggregated Revenue The Company disaggregates net sales into the following major merchandise categories: Thirteen Weeks Ended % of Net Sales June 29, 2024 July 1, 2023 Footwear 49% 49% Apparel 34% 34% Hats, accessories and other 17% 17% Total 100% 100% The Company further disaggregates net sales between stores and e-commerce: Thirteen Weeks Ended % of Net Sales June 29, 2024 July 1, 2023 Stores 91% 90% E-commerce 9% 10% Total 100% 100% |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2023, the FASB issued Accounting Standards Update (“ASU’) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The ASU requires disaggregated information about an entity’s effective tax rate reconciliation, as well as information on income taxes paid. The amendments in this ASU are required to be adopted for fiscal years beginning after December 15, 2024. The amendments should be applied on a prospective basis, although retrospective application is permitted. The Company is currently evaluating the impact of adoption on its financial disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The amendment improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. The Company is currently evaluating the impact of adoption on its financial disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jun. 29, 2024 | |
Schedule of disaggregated revenue | The Company disaggregates net sales into the following major merchandise categories: Thirteen Weeks Ended % of Net Sales June 29, 2024 July 1, 2023 Footwear 49% 49% Apparel 34% 34% Hats, accessories and other 17% 17% Total 100% 100% The Company further disaggregates net sales between stores and e-commerce: Thirteen Weeks Ended % of Net Sales June 29, 2024 July 1, 2023 Stores 91% 90% E-commerce 9% 10% Total 100% 100% |
Customer Loyalty Program | |
Schedule of reconciliation of the activity related to contracts with customers | Customer Loyalty Program (in thousands) June 29, 2024 July 1, 2023 Beginning balance as of March 30, 2024 and April 1, 2023, respectively $ 5,050 $ 4,145 Year-to-date provisions 4,051 3,562 Year-to-date award redemptions (3,883) (3,391) Ending balance $ 5,218 $ 4,316 |
Gift Card Program | |
Schedule of reconciliation of the activity related to contracts with customers | Gift Card Program (in thousands) June 29, 2024 July 1, 2023 Beginning balance as of March 30, 2024 and April 1, 2023, respectively $ 23,649 $ 19,855 Year-to-date issued 7,688 7,262 Year-to-date redemptions (8,167) (7,620) Ending balance $ 23,170 $ 19,497 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 3 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets, Net | |
Schedule of net finite-lived intangible assets | Net intangible assets as of June 29, 2024 and March 30, 2024 consisted of the following (in thousands, except for weighted average useful life): June 29, 2024 Gross Weighted Carrying Accumulated Average Amount Amortization Net Useful Life Customer lists—definite lived $ 345 $ (337) $ 8 5.0 Trademarks—indefinite lived 58,677 — 58,677 Total intangible assets $ 59,022 $ (337) $ 58,685 March 30, 2024 Gross Weighted Carrying Accumulated Average Amount Amortization Net Useful Life Customer lists—definite lived $ 345 $ (325) $ 20 5.0 Trademarks—indefinite lived 58,677 — 58,677 Total intangible assets $ 59,022 $ (325) $ 58,697 |
Schedule of net indefinite-lived intangible assets | Net intangible assets as of June 29, 2024 and March 30, 2024 consisted of the following (in thousands, except for weighted average useful life): June 29, 2024 Gross Weighted Carrying Accumulated Average Amount Amortization Net Useful Life Customer lists—definite lived $ 345 $ (337) $ 8 5.0 Trademarks—indefinite lived 58,677 — 58,677 Total intangible assets $ 59,022 $ (337) $ 58,685 March 30, 2024 Gross Weighted Carrying Accumulated Average Amount Amortization Net Useful Life Customer lists—definite lived $ 345 $ (325) $ 20 5.0 Trademarks—indefinite lived 58,677 — 58,677 Total intangible assets $ 59,022 $ (325) $ 58,697 |
Schedule of estimated future amortization of intangible assets | As of June 29, 2024, estimated future amortization of intangible assets was as follows: Fiscal Year (in thousands) 2025 (Remainder) $ 8 Thereafter - Total $ 8 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 29, 2024 | |
Stock-Based Compensation | |
Schedule of stock option activity | The following table summarizes the stock option activity for the thirteen weeks ended June 29, 2024: Grant Date Weighted Weighted Average Aggregate Stock Average Remaining Intrinsic Options Exercise Price Contractual Life Value (1) (in years) (in thousands) Outstanding at March 30, 2024 340,605 $ 40.00 Granted — — Exercised (40,470) 23.49 $ 3,585 Cancelled, forfeited or expired — — Outstanding at June 29, 2024 300,135 $ 42.23 5.7 $ 26,021 Vested and expected to vest after June 29, 2024 300,135 $ 42.23 5.7 $ 26,021 Exercisable at June 29, 2024 208,237 $ 24.23 4.9 $ 21,803 (1) Intrinsic value for stock options is defined as the difference between the market price of the Company’s common stock on the last business day of the fiscal quarter and the weighted average exercise price of the in-the-money stock options outstanding at the end of each fiscal period. |
Schedule of non-vested stock options | A summary of the status of non-vested stock options as of June 29, 2024, including changes during the thirteen weeks ended June 29, 2024, is presented below: Weighted- Average Grant Date Shares Fair Value Nonvested at March 30, 2024 154,487 $ 30.63 Granted — — Vested (62,589) 10.58 Nonvested shares forfeited — — Nonvested at June 29, 2024 91,898 $ 44.28 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 29, 2024 | |
Leases | |
Schedule of ROU assets and liabilities | ROU assets and lease liabilities as of June 29, 2024 and March 30, 2024 consisted of the following: June 29, 2024 March 30, 2024 Balance Sheet Classification (in thousands) (in thousands) Assets Finance lease assets Right-of-use assets, net $ 8,350 $ 8,537 Operating lease assets Right-of-use assets, net 401,444 381,964 Total lease assets $ 409,794 $ 390,501 Liabilities Current Finance Short-term lease liabilities $ 891 $ 873 Operating Short-term lease liabilities 66,873 62,581 Total short-term lease liabilities $ 67,764 $ 63,454 Non-Current Finance Long-term lease liabilities $ 14,199 $ 14,428 Operating Long-term lease liabilities 409,175 388,875 Total long-term lease liabilities $ 423,374 $ 403,303 Total lease liabilities $ 491,138 $ 466,757 |
Schedule of total lease cost | Total lease costs for the thirteen weeks ended June 29, 2024 and July 1, 2023 were: Thirteen Weeks Ended (in thousands) June 29, 2024 July 1, 2023 Finance lease cost Amortization of right-of-use assets $ 187 $ 207 Interest on lease liabilities 162 172 Total finance lease cost $ 349 $ 379 Operating lease cost $ 21,422 $ 17,302 Short-term lease cost 659 806 Variable lease cost 7,351 5,941 Total lease cost $ 29,781 $ 24,428 |
Schedule of future lease payments | The following table summarizes future lease payments as of June 29, 2024: Operating Leases Finance Leases Fiscal Year (in thousands) (in thousands) 2025 (Remainder) $ 58,636 $ 1,143 2026 89,516 1,552 2027 80,866 1,590 2028 70,358 1,629 2029 62,862 1,669 Thereafter 220,651 11,226 Total 582,889 18,809 Less: Imputed interest (106,841) (3,719) Present value of net lease payments $ 476,048 $ 15,090 |
Schedule of supplemental lease information | The following table includes supplemental lease information: Thirteen Weeks Ended Thirteen Weeks Ended Supplemental Cash Flow Information (dollars in thousands) June 29, 2024 July 1, 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 21,387 $ 17,848 Operating cash flows used for finance leases 160 170 Financing cash flows used for finance leases 212 215 $ 21,759 $ 18,233 Lease liabilities arising from new right-of-use assets Operating leases $ 35,201 $ 20,897 Finance leases $ — $ — Weighted average remaining lease term (in years) Operating leases 7.8 8.1 Finance leases 11.2 12.1 Weighted average discount rate Operating leases 5.0 % 4.7 % Finance leases 10.9 % 10.9 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share | |
Schedule of the components of basic and diluted (loss)/earnings per share of common stock | The components of basic and diluted earnings Thirteen Weeks Ended June 29, July 1, (in thousands, except per share data) 2024 2023 Net income $ 38,909 $ 34,253 Weighted average basic shares outstanding 30,433 29,922 Dilutive effect of options and restricted stock 382 522 Weighted average diluted shares outstanding 30,815 30,444 Basic earnings per share $ 1.28 $ 1.14 Diluted earnings per share $ 1.26 $ 1.13 |
Business Operations (Details)
Business Operations (Details) | 12 Months Ended | ||
Mar. 29, 2025 | Mar. 30, 2024 state store shares | Jun. 29, 2024 store state Vote shares | |
Business Operations | |||
Number of shares authorized | 100,000,000 | 100,000,000 | |
Number of shares issued | 30,572,000 | 30,799,513 | |
Number of shares outstanding | 30,502,351 | ||
Number of votes per common share | Vote | 1 | ||
Number of stores | store | 400 | 411 | |
Number of states in which the Company operates | state | 45 | 46 | |
Fiscal Year | |||
Fiscal year period | 364 days | ||
Subsequent Event | |||
Fiscal Year | |||
Fiscal year period | 364 days |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended |
Jun. 29, 2024 USD ($) item segment | |
Segment Reporting | |
Operating segments | segment | 2 |
Reportable segments | segment | 1 |
Number of reporting units | item | 2 |
Fair Value of Certain Financial Assets and Liabilities | |
Financial assets requiring fair value measurements on a recurring basis | $ | $ 0 |
Financial liabilities requiring fair value measurements on a recurring basis | $ | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Customer Loyalty Program (Details) - Customer Loyalty Program - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Customer Loyalty Program | ||
Number of days in which customers must make a qualifying purchase in order to maintain an active point balance | 365 days | |
Number of days from award grant date in which the customer has to make a qualifying purchase to redeem the awards | 60 days | |
Unearned revenue | $ 5,218 | $ 4,316 |
Reconciliation of Activity in Program | ||
Beginning balance | 5,050 | 4,145 |
Year-to-date provisions | 4,051 | 3,562 |
Year-to-date award redemptions | (3,883) | (3,391) |
Ending balance | $ 5,218 | $ 4,316 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Gift Card Program (Details) - Gift Card Program - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Reconciliation of Activity in Program | ||
Beginning balance | $ 23,649 | $ 19,855 |
Year-to-date issued | 7,688 | 7,262 |
Year-to-date redemptions | (8,167) | (7,620) |
Ending balance | $ 23,170 | $ 19,497 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Disaggregated Revenue (Details) | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Disaggregation Of Revenue | ||
Net sales percentage | 100% | 100% |
Stores | ||
Disaggregation Of Revenue | ||
Net sales percentage | 91% | 90% |
E-commerce | ||
Disaggregation Of Revenue | ||
Net sales percentage | 9% | 10% |
Footwear | ||
Disaggregation Of Revenue | ||
Net sales percentage | 49% | 49% |
Apparel | ||
Disaggregation Of Revenue | ||
Net sales percentage | 34% | 34% |
Hats, accessories and other | ||
Disaggregation Of Revenue | ||
Net sales percentage | 17% | 17% |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Change in Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended | ||
Jun. 29, 2024 USD ($) item | Jul. 01, 2023 USD ($) | Mar. 30, 2024 USD ($) | |
Goodwill and Intangible Assets, Net | |||
Goodwill | $ 197,502 | $ 197,502 | |
Number of indicators of impairment for goodwill | item | 0 | ||
Impairments of long lived assets | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Mar. 30, 2024 | |
Intangible assets, net | |||
Accumulated Amortization | $ (337) | $ (325) | |
Gross carrying amount | 59,022 | 59,022 | |
Intangible assets, net | 58,685 | 58,697 | |
Amortization of intangible assets | 12 | $ 14 | |
Fiscal year | |||
2025 (Remainder) | 8 | ||
Total | 8 | ||
Trademarks | |||
Intangible assets, net | |||
Indefinite-lived intangible assets | 58,677 | 58,677 | |
Maximum | |||
Intangible assets, net | |||
Amortization of intangible assets | 100 | $ 100 | |
Customer lists | |||
Intangible assets, net | |||
Gross Carrying Amount | 345 | 345 | |
Accumulated Amortization | (337) | (325) | |
Net | $ 8 | $ 20 | |
Weighted Average Useful Life | 5 years | 5 years |
Revolving Credit Facilities - R
Revolving Credit Facilities - Revolving Credit Facilities and Long-Term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Mar. 30, 2024 | |
Wells Fargo Bank letters of credit | |||
Revolving credit facility and long-term debt | |||
Borrowing capacity | $ 10 | ||
Amount outstanding | 2.3 | $ 2.3 | |
Wells Fargo Revolver | |||
Revolving credit facility and long-term debt | |||
Borrowing capacity | $ 250 | ||
Commitment fee on unused capacity (as a percentage) | 0.25% | ||
Amount outstanding | $ 0 | 0 | |
Interest expense | $ 0.2 | $ 0.9 | |
Weighted average interest rate (as a percent) | 8.50% | 6.60% | |
Additional interest rate required if certain triggering events come into existence (as a percent) | 2% | ||
Deferred loan fees | $ 1.7 | ||
Unamortized value of the debt issuance costs and debt discount | 0.3 | $ 0.4 | |
Wells Fargo Revolver | Interest expense | |||
Revolving credit facility and long-term debt | |||
Amortization of deferred loan fees | $ 0.1 | $ 0.1 | |
Wells Fargo Revolver | Minimum | |||
Revolving credit facility and long-term debt | |||
Consolidated fixed charge coverage ratio | 1 | ||
Wells Fargo Revolver | SOFR | |||
Revolving credit facility and long-term debt | |||
Basis margin (as a percent) | 0.10% | ||
Wells Fargo Revolver | SOFR | Minimum | |||
Revolving credit facility and long-term debt | |||
Basis margin (as a percent) | 1% | ||
Wells Fargo Revolver | SOFR | Maximum | |||
Revolving credit facility and long-term debt | |||
Basis margin (as a percent) | 1.25% | ||
Wells Fargo Revolver | Base rate | Minimum | |||
Revolving credit facility and long-term debt | |||
Basis margin (as a percent) | 0% | ||
Wells Fargo Revolver | Base rate | Maximum | |||
Revolving credit facility and long-term debt | |||
Basis margin (as a percent) | 0.25% | ||
Wells Fargo Revolver | Federal funds rate | |||
Revolving credit facility and long-term debt | |||
Basis margin (as a percent) | 0.50% | ||
Wells Fargo Revolver | Adjusted Term SOFR | |||
Revolving credit facility and long-term debt | |||
Basis margin (as a percent) | 1% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Jun. 29, 2024 | Jul. 01, 2023 | Mar. 30, 2024 | Aug. 26, 2020 | Oct. 19, 2014 | |
Stock-Based Compensation | |||||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |||
Stock-based compensation expense | $ 5.8 | $ 5 | |||
Cost of goods sold | |||||
Stock-Based Compensation | |||||
Stock-based compensation expense | $ 1.8 | $ 1.4 | |||
Employee Stock Option | |||||
Stock-Based Compensation | |||||
Stock options granted | 0 | 0 | |||
Unrecognized stock-based compensation expense for option | $ 1.2 | ||||
Weighted-average recognition period | 10 months 13 days | ||||
Restricted Stock Awards | |||||
Stock-Based Compensation | |||||
Unrecognized stock-based compensation expense for other than option | $ 15 | ||||
Weighted-average recognition period | 2 years 2 months 1 day | ||||
Performance share units | |||||
Stock-Based Compensation | |||||
Unrecognized stock-based compensation expense | $ 8.7 | ||||
Weighted-average recognition period | 2 years 5 months 26 days | ||||
2014 Plan | |||||
Stock-Based Compensation | |||||
Shares authorized | 3,600,000 | ||||
Common stock, par value (in dollars per share) | $ 0.0001 | ||||
2014 Plan | Employee Stock Option | Minimum | |||||
Stock-Based Compensation | |||||
Expiration period | 8 years | ||||
Vesting period | 4 years | ||||
2014 Plan | Employee Stock Option | Maximum | |||||
Stock-Based Compensation | |||||
Expiration period | 10 years | ||||
Vesting period | 5 years | ||||
2014 Plan | Restricted Stock Awards | Minimum | |||||
Stock-Based Compensation | |||||
Vesting period | 1 year | ||||
2014 Plan | Restricted Stock Awards | Maximum | |||||
Stock-Based Compensation | |||||
Vesting period | 4 years | ||||
2014 Plan | Restricted Stock Units | Tranche One | |||||
Stock-Based Compensation | |||||
Vesting period | 1 year | ||||
2014 Plan | Restricted Stock Units | Tranche Two | |||||
Stock-Based Compensation | |||||
Vesting period | 4 years | ||||
2014 Plan | Restricted Stock Units | Tranche Three | |||||
Stock-Based Compensation | |||||
Vesting period | 5 years | ||||
2020 Plan | |||||
Stock-Based Compensation | |||||
Shares authorized | 2,000,000 | ||||
Common stock, par value (in dollars per share) | $ 0.0001 | ||||
2020 Plan | Restricted Stock Units | |||||
Stock-Based Compensation | |||||
Restricted stock or performance share units granted | 96,060 | 132,713 | |||
Restricted stock or performance share units granted fair value | $ 10.7 | $ 8.6 | |||
2020 Plan | Restricted Stock Units | Employees | |||||
Stock-Based Compensation | |||||
Vesting period | 3 years | 3 years | |||
2020 Plan | Restricted Stock Units | Director | |||||
Stock-Based Compensation | |||||
Vesting period | 1 year | 1 year | |||
2020 Plan | Restricted Stock Units | Tranche One | |||||
Stock-Based Compensation | |||||
Vesting period | 1 year | ||||
2020 Plan | Restricted Stock Units | Tranche Two | |||||
Stock-Based Compensation | |||||
Vesting period | 3 years | ||||
2020 Plan | Restricted Stock Units | Tranche Three | |||||
Stock-Based Compensation | |||||
Vesting period | 4 years | ||||
2020 Plan | Performance share units | |||||
Stock-Based Compensation | |||||
Vesting period | 3 years | 3 years | |||
Restricted stock or performance share units granted | 61,530 | 112,740 | |||
Restricted stock or performance share units granted fair value | $ 6.9 | $ 7.3 | |||
2020 Plan | Performance share units | Minimum | |||||
Stock-Based Compensation | |||||
Vesting percentage | 0% | 0% | |||
2020 Plan | Performance share units | Maximum | |||||
Stock-Based Compensation | |||||
Vesting percentage | 200% | 200% | |||
2020 Plan | Performance share units | Below Threshold | |||||
Stock-Based Compensation | |||||
Vesting percentage | 0% | 0% | |||
2020 Plan | Performance share units | Threshold | |||||
Stock-Based Compensation | |||||
Vesting percentage | 50% | 50% | |||
2020 Plan | Performance share units | Target | |||||
Stock-Based Compensation | |||||
Vesting percentage | 100% | 100% | |||
2020 Plan | Performance share units | Maximum Level | |||||
Stock-Based Compensation | |||||
Vesting percentage | 200% | 200% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options and Significant Valuation Assumptions (Details) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Stock Options | ||
Outstanding at the beginning of period | 340,605 | |
Granted | 0 | 0 |
Exercised | (40,470) | |
Outstanding at the end of period | 300,135 | |
Vested and expected to vest after end of period | 300,135 | |
Exercisable at end of period | 208,237 | |
Grant Date Weighted-Average Exercise Price | ||
Outstanding at the beginning of period | $ 40 | |
Exercise price (in dollars per share) | 23.49 | |
Outstanding at the end of period | 42.23 | |
Vested and expected to vest at end of period | 42.23 | |
Exercisable at end of period | $ 24.23 | |
Weighted Average Remaining Contractual Life | ||
Weighted average remaining contractual life, awards outstanding | 5 years 8 months 12 days | |
Weighted average remaining contractual life, awards vested and expected to vest | 5 years 8 months 12 days | |
Weighted average remaining contractual life, awards exercisable | 4 years 10 months 24 days | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, awards exercised | $ 3,585 | |
Aggregate intrinsic value, awards outstanding | 26,021 | |
Aggregate intrinsic value, awards vested and expected to vest | 26,021 | |
Aggregate intrinsic value, awards exercisable | $ 21,803 |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-vested Options (Details) - Employee Stock Option - $ / shares | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Shares | ||
Nonvested at beginning of period | 154,487 | |
Granted | 0 | 0 |
Vested | (62,589) | |
Nonvested at end of period | 91,898 | |
Weighted-Average Grant Date Fair Value | ||
Nonvested at beginning of period | $ 30.63 | |
Vested | 10.58 | |
Nonvested at end of period | $ 44.28 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Leases | ||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | |
Operating lease renewal term | 5 years | |
ROU asset impairment charge | $ 0 | $ 0 |
Minimum | ||
Leases | ||
Operating lease term | 5 years | |
Maximum | ||
Leases | ||
Operating lease term | 10 years |
Leases - ROU assets and liabili
Leases - ROU assets and liabilities (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Mar. 30, 2024 |
ROU assets and liabilities | ||
Finance lease assets | $ 8,350 | $ 8,537 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Total lease assets | Total lease assets |
Operating lease assets | $ 401,444 | $ 381,964 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Total lease assets | Total lease assets |
Total lease assets | $ 409,794 | $ 390,501 |
Current finance lease liabilities | $ 891 | $ 873 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total short-term lease liabilities | Total short-term lease liabilities |
Current operating lease liabilities | $ 66,873 | $ 62,581 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total short-term lease liabilities | Total short-term lease liabilities |
Total short-term lease liabilities | $ 67,764 | $ 63,454 |
Finance Lease, Liability, Noncurrent | $ 14,199 | $ 14,428 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total long-term lease liabilities | Total long-term lease liabilities |
Operating Lease, Liability, Noncurrent | $ 409,175 | $ 388,875 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total long-term lease liabilities | Total long-term lease liabilities |
Total long-term lease liabilities | $ 423,374 | $ 403,303 |
Total lease liabilities | $ 491,138 | $ 466,757 |
Leases - Lease cost (Details)
Leases - Lease cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Lease cost | ||
Amortization of right-of-use assets | $ 187 | $ 207 |
Interest on lease liabilities | 162 | 172 |
Total finance lease cost | 349 | 379 |
Operating lease cost | 21,422 | 17,302 |
Short-term lease cost | 659 | 806 |
Variable lease cost | 7,351 | 5,941 |
Total lease cost | $ 29,781 | $ 24,428 |
Leases - Future lease payments
Leases - Future lease payments (Details) $ in Thousands | 3 Months Ended |
Jun. 29, 2024 USD ($) | |
Operating Leases | |
2025 (Remainder) | $ 58,636 |
2026 | 89,516 |
2027 | 80,866 |
2028 | 70,358 |
2029 | 62,862 |
Thereafter | 220,651 |
Total | 582,889 |
Less: Imputed interest | (106,841) |
Present value of net lease payments | $ 476,048 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Finance and Operating Lease, Liability, Current, Finance and Operating Lease, Liability, Noncurrent |
Finance Leases | |
2025 (Remainder) | $ 1,143 |
2026 | 1,552 |
2027 | 1,590 |
2028 | 1,629 |
2029 | 1,669 |
Thereafter | 11,226 |
Total | 18,809 |
Less: Imputed interest | (3,719) |
Present value of net lease payments | $ 15,090 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Finance and Operating Lease, Liability, Current, Finance and Operating Lease, Liability, Noncurrent |
Leases Signed but not yet Commenced | |
Unrecorded Unconditional Purchase Obligation, Category [Extensible Enumeration] | us-gaap:OperatingLeaseLeaseNotYetCommencedMember |
Minimum lease commitment for operating leases signed but not yet commenced | $ 89,100 |
Leases - Supplemental lease inf
Leases - Supplemental lease information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Supplemental Lease Information | ||
Operating cash flows used for operating leases | $ 21,387 | $ 17,848 |
Operating cash flows used for finance leases | 160 | 170 |
Financing cash flows used for finance leases | 212 | 215 |
Cash paid for amounts included in the measurement of lease liabilities | 21,759 | 18,233 |
Lease liabilities arising from new right-of-use assets-Operating leases | $ 35,201 | $ 20,897 |
Weighted average remaining lease term (in years)-Operating leases | 7 years 9 months 18 days | 8 years 1 month 6 days |
Weighted average remaining lease term (in years)-Finance leases | 11 years 2 months 12 days | 12 years 1 month 6 days |
Weighted average discount rate-Operating leases | 5% | 4.70% |
Weighted average discount rate-Finance leases | 10.90% | 10.90% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Mar. 30, 2024 | |
Income Taxes | |||
Effective tax rate | 22.90% | 24.60% | |
Accrued interest and penalties | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Related Party | Floor & Decor Holdings, Inc | ||
Related Party Transactions | ||
Capital expenditures related to specialty retail vendor | $ 0 | $ 0.1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Earnings Per Share | ||
Net Income (Loss) | $ 38,909 | $ 34,253 |
Weighted average basic shares outstanding | 30,433,000 | 29,922,000 |
Dilutive effect of options and restricted stock | 382,000 | 522,000 |
Weighted average diluted shares outstanding | 30,815,000 | 30,444,000 |
Basic earnings per share | $ 1.28 | $ 1.14 |
Diluted earnings per share | $ 1.26 | $ 1.13 |
Shares that were not included in the computation of weighted average diluted common shares amounts | 0 | 87,229 |