BOOT - Earnings call transcript Q2 2018 | Boot Barn Holdings, Inc.

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Operator

Greetings and welcome to the Boot Barn Holdings Second Quarter Fiscal Year 2018 Earnings Conference Call.

As a reminder, this conference is being recorded.

Now I'd like to turn the conference over to your host, Mr. Jim Watkins, Vice President, Investor Relations and External Reporting for Boot Barn. Mr. begin. may you Watkins,

Jim Watkins

days President a afternoon Boot as you these Investor XXXX remind company's you Officer. Barn's XX statements judgment on of Jim recording With Good Barn's forward-looking are we make after section Greg to website. as statements Officer; today release certain of presentation we Chief Hackman, earnings joining to will these me Conroy, reflect are be Boot statements. end call for call, discuss the in and second today's of a today's Financial the that Chief a everyone. the you. in Executive on like and and for I you and should Thank statements undue us results. today would expectations, and this Thank may is Investor not Relations Barn's Accordingly, call actual forward-looking the number current from available quarter Shortly on differ A at of business. section forward-looking bootbarn.com. copy of place of will analysis Relations on Boot only press materially available replay based Barn's website factors Boot this affecting results fiscal reliance

new to President Conroy, alter as call not update that included now you thorough refer or referenced any SEC do Jim? For Executive our to any be a information, and the obligation second forward-looking the our made Jim statements, as filings and regarding of over statements otherwise. events, in discussion well or in Officer. a we the earnings I'll uncertainties the forward-looking release, disclaimer Barn's with more statements future to turn whether and Boot quarter Chief call on undertake result risks the associated of is that We to webcast, as with fiscal this XXXX forward-looking disclaimer. conference

Jim Conroy

Jim. Thanks,

that with very our from Harvey X.X% sales offset solid the by Hurricanes partially expectations. light e-commerce decline top-line, first financial and sales. trends second in in sales our in same-store quarter disruptions our pleased following Intra quarter results temporary exceeded gain especially stores increased we're low-single-digit Irma. Starting Our accelerated some low-single-digit by driven of

able prior were growth of compared share brand in double penetration, This a XXX result to improvement expand share our us margins exclusive a increase and basis to promotions, A in our and we ahead points full our container allowed per to Importantly, commitment continued merchandize combination sales which range full year. merchandize was earnings to at guidance of purchases, reduction in price the growth an per $X.XX to to margins selling. breakeven of higher year-over-year $X.XX. was

our and been will value has by I with initiative steadfast strategic shareholder driving beginning same-store will growth our review drive initiatives believe greater commitment four we fueled long-term. growth. that increased performance our profitability progress the over recent Our to each sales for

in from Collectively quarter During our the drive than XX were Irma. of the resulted two these despite and Florida, in continue second we major Harvey the On positive for Texas, for growth and impact cases same-store of business disruption of XX of closure the closed top sales Georgia, stores approximately two sustained flooding hurricanes areas less a to in Hurricanes weeks. most store in Houston and this week. stores

get hurricane the basis sales due store estimate week by uptick lost and We locations. Post our North after we're and and including Dakota, stores points. Fortunately, restoration e-commerce in sales of certain damaged the construction in and at see one for to slightly week $Xmillion Wyoming, outdated replaced impacted oil cleanup sales clothing have eroded stores have the to stores the markets. store reopening our were we efforts. continue negatively in those of and stabilization goods to group to next second planning second Meanwhile in customers and in as seen states a commodities approximately Colorado. significant reopened rebuilding same-store sales reopen located closures XX this Same-store and coming following quarter there hurricanes earlier sales that we workers in and both are by positive an

While work same-store a we boots improvement a of apparel, the clothing. sales QX. state including work mid-single-digits strong in Texas flame From of and from again standpoint sequential sales resistant increased merchandizing

in assortment work broad growth the commercial expansion We continue stores. and workwear, in of to business, accounts our benefit from of a strong department further several

as increase well men's in boots, and men's also western a sales denim. We Ladies as modest saw

better continues shopping we continue store scheduling scale efforts head ensuring a times. labor into shopping organization. improving have our so, the and across in stores recently been our capitalize efficiently, now expense our to while sales dollar to and to nationally, our that to marketing staffing sales the enables by We've periods. enough build continue and peak shopping across we country portion television by rollout on we system more in store brand of customers national the our which season, radio suspend From new advertising us purchase scheduling helps level should As business. on the a to system drive hosting our we completed growth drive Doing we appropriate continue a busy on the our us of have can of labor received stores online our where holiday well same-store serving helps basis. optimize events labor a marketing has new to focus during our This perspective, experiential

Barn to and further second Boot higher time our better initiative drive the customer been card has pleased we will analytic expect this credit larger in loyalty; processing credit size; the capture to quarter introduced to transaction were positive. customer fees; the card response that augment Over Finally which customer capabilities. lower branded we're data report customer

second Moving initiative, channel omni to leadership. our strengthening our

migrating performance on benefits to a having of of digital began XXXX very sites calendar common on three To in-store or solid consolidated was WHIP, the and all leverage customer the businesses countryoutfitter.com portal platforms. initial one sales smoothly we to plus call business went migration platform the order e-commerce year and new center. our same During operational team, first WHIP capitalize our a of in service and both the e-commerce recap inventory, phase half center,

our that and However coupled months we had when search, we sequential have the Sheplers.com in transition site. Sheplers.com the spent lower experienced to post disruption new improvement from the conversion seen traffic business. due a last generated decline to site working improvements to the We migration platform in organic sales in on on few mobile with the

the fourth highlighted Combining we the e-commerce with of growth site our improvements at sales site on to e-commerce the in the phase of mitigate Outfitter Country from sales quarter. for more well, include low the migration is doubling When of digits growth to increased in the bootbarn.com the Sheplers.com bootbarn.com single to with perform from a migration double-digit the continued already executed new successfully we new quarter The and went September, continues outsized trend, nice the accelerating than well, by platform. were final of in baseline. e-commerce healthy extremely transition which improvement same-store in During bootbarn.com, our an total steps able which sales the our high-single-digits decline to the in QX. incremental we

capital our inventory system in customers our the digital held the new well material Wichita, new To this each to and can project of on completion expanded enhanced we system. in Wichita capital from in our center cost, by to e-commerce center remain turnaround existing four Kansas to will implementation as drive the are completed in sites that efficiencies, foreseeable automation spend sales are selection improvements support and time. product these our center improve of These warehouse digital Now also reduce conveyors enable of access care need the sites, distribution all the future. our a installing and management platforms. without our distribution accuracy further ticking recently handing distribution labor The order us expected significant

future system new capabilities foundation the serve going will this to our Finally, as forward. omnichannel for enhancements

brands one migrate and on actively with between shared sites. customers our each maximize platform the common provide different may on inventory, to e-commerce one update we're them growth Given we is an of the as the no will business, e-commerce we longer total now managing

exclusive exclusive brand our our represented increasing XXX initiative penetration to strategic expanding quarter, approximately total the than increased and basis more third and portfolio our second our by brand our XX% of sales. Now penetration In the margin. year-over-year of points merchandize

products We offering developing to complement our exclusive continue by assortment. high-quality our third-party on to focus expanding brand

Our strong improvement continued in driven the margin exclusive merchandized second in was part quarter our by brand. performance in

launch the which a brands. As a to Boots, technology of the with state-of-the-art are of Cody to zero El Exotic and Dorado gravity we look the momentum called third rollout Bing styles new new of exclusive Boots, quarter, building our line new James we platform brings of

and be line our Our existing with of creating the with the that in process relationship strong for new will our in core full is Lambert, the second development partnership began team-wide be Miranda to XXXX. customers, brands we've and with ladies product we also we of are resonating calendar Brad Paisley that half continues well launching

by continuing our purchasing our are discount purchasing boots and power. exclusive a vendors both our at higher to discounts margin and to container brands, due loads to from expansion more addition In receiving of achieve we deeper increased best-selling

initiative fourth base. our Finally, expanding our store

in Midland the Woods a of and region at former to to forward. Woods Western completed These U.S. and new grow at banner as Texas. help the the we acquisitions entered employment that tuck-in We offered to our the stores to located the quarter, two plan the is going opening locations in We to locations. these those Four-Store owner, complement we bridge inventory, as in leases four model presence we expected Boots Texas evaluate to acquisition During this payback team into our stores store Mexico in Boot all Boots New than less after Barn in holiday store potential convert acquisition purchased important continue years can operations us with the new the serve as and This plan season. of to the

stores. acquisition store bringing and organic us through count and that opportunity grow add store plan acquired to believe our to stores continue XX stores seven the to for both opening and half year fiscal We great of sales both for of to We a the XXXX consisting second is new profitability. in expansion

into current an to business, sales in-store in our by quarter retail book stores. the improvement sales accelerated has trend current turning the Now driven

of And we bottom-line turn momentum now the great full-year While quarter, achieve I opportunities call and there top is ahead us, our sales business, the still in growth of the and current generated updated over the to to deal Hackman. targets. our to like holiday are about the excited be a would ability to in Greg

Greg Hackman

million. sales $XXX gross to improvement in cost. of XX.X% sales XXX by to or a everyone. increase Thank you, afternoon merchandize margin million Four-Stores $XX.X XX.X% XX increase and quarter from from opened a contributions the buying stores of net acquired net In sales from points XX sales decrease period. prior increased sales X.X% growth new same-store or Good net from Woods was profit over sales profit site. point the basis second and a basis year occupancy Sales and Gross Outfitter compared driven Jim. profit in Country XXX Boots, The and $XX.X of the the increased resulted in the million past X.X% points months the XX.X% gross in to in basis

operating buying last and there timing discussed last impacted between that we QX expense call, and on As and were the occupancy QX costs some year. differences

buying the occupancy is QX. As than comparison basis rate result, Year-to-date favorable buying in QX points for but in was XX higher was occupancy and and last year. unfavorable a year-over-year our

our mentioned a opened was with period. prior which the driven we've $X.X net as increases employee a legal the the sales in in XX.X% our million to quarter associated $XX penetration from year past operating to excluding drive This stores differences improvement continue compares sales expectation. margin that expense settlement, exclusive or gain I were prior purchases contract to $XX.X year our third-party from brand XX.X% when and expect vendors. sales costs expense net in percentage the Looking volume million the additional the was The for by by from acquired the we from a or fiscal million Operating merchandize QX benefit increasing timing ahead, XXXX of of with bonus and in the was XX benefit lower line over or costs of months. and in Year-over-year, and line compensation above. sales in expense, a increase the

income for compared the million to million year expense in sales $X.X prior quarter $X.X period. the period. of the our $X.X quarter diluted prior period million compared fiscal was of was net second Our or to per million to prior income or share million in $X.X per from $X.XX compared Net to $X.X or operations the the X.X% $X.XX. in in million in was $X.X Interest the XXXX second diluted income and quarter compared net share of breakeven guidance year to or of $X.XX X.X%

decreased sheet, basis Turning inventory to average our year approximately XX% year. compared to $XXX million the On store basis a balance compared last consolidated on X% a ago. inventory rose to to an

in reduce are selection sales all the effort order and full exclusive of our fees, our to available to an program, margin. increased broader our have and inventory container these in We amount better purchasing shipped be warehouses improve warehousing of that to drive we of to from traffic product to brands, purchase support

entering inventory and is us the for season. current well quarter positions appropriate the at holiday third and Our levels

XX, September drawn and of of times. million credit we total $XXX net debt was debt XXXX, facility. our ratio million $XX million a revolving our leverage $X.X on including As outstanding $XXX had of cash X.X We of had million

are to of results fiscal and like with increase second We flat now on we XXXX. expectations our for to same-store Now raising outlook. for to to sales full-year expect turn third fiscal our Based compared I'd positive. guidance the full-year quarter our outlook low-single-digits slightly our previous XXXX our quarter,

of million earnings which our and year $X.X in Net represents than income million. between weighted to expect income $XX.X and X% higher of range estimated to grow from per high-end the expected $XX.X share. share we expect weighted million range quarter third to $X.XX to $X.XX to full same-store This income be $XX share guidance. a XXXX, X% from diluted We the to million now $X.XX range $XX for previous With operations the to XX.X respect be million to million share is fiscal the on per is the per count $X.XX to per in shares based year. average of the fiscal share of net sales diluted for of

call Now to I'd the like for turn closing some Jim back to remarks.

Jim Conroy

Greg. Thanks,

with pleased experiencing quarter positive and momentum across the are we the second are our results We business.

focused on base. our by same-store Looking forward, our improving we margin, capabilities, our store remain driving enhancing expanding value shareholder will sales, merchandize omnichannel growing and

in a entire across take very faced organization As to growth. up, we thank sales the are would to quarter a not we adversity coming to I to overcoming only continue the wrap I in accelerate our the that minute Barn solid unfortunate but like performance due together the Boot team the country as some external factors and

would I to to call Kevin? open your like up take Now the questions.

Operator

first [Operator Instructions]. you. Keith Piper go Peter We'll Jaffray. to Thank with

Peter Keith

the at and will quarters like your several total on improving business a Congratulations you quarter? was the the guys. in e-com do dynamics getting do better, this point bit for the little taking positive Sheplers trend think thanks digging sounds on here, I curious QX Hi Sheplers into be positive still go-forward e-commerce you trend, the thereby

Jim Conroy

question. It's a good

into is be thing that's case expecting a grown what the had of that's more e-commerce modeled best As way look the will pleasant we in in to than outsized much we bought been scenario. happened, positive. kind that when we sales a a platform, bootbarn.com are new One sales surprise we even have same-store QX,

I two the for can same-store know those where I we and stand; point, we Those from acquisition positive over bootbarn.com I'm to third of Sheplers.com But that the we have Sheplers.com. your the sales called think brands be brands question, I swear I’m I wants be the split another that And be positive. think sales Outfitter. root until them on had believe us at two our if quarter. mobile the we ago one bit I we those a same-store that So expect in. about that that I sequentially with it progress coming in will Barn's wrap plus months comprise and of declining Country better good working make Boot working e-com trajectory to now actually frankly out organic on of we decision. the may taking pleased a pleased were issues now, versus and business this were right performance little on both the we'll shop two customer site, we that since few started brand Sheplers.com and good about traffic, to issues brand we're search think But let traffic from conversion the gotten I that that of feel

Peter Keith

Okay, that's quarter-to-date, that ongoing or that of or it’s improvement some chain acceleration is Texas simply provide energy e-com just because hear markets across the and is improvement to seen the a good a maybe website. and in context kind broad-based follow-on, you’ve about feedback maybe encouraging of just just

Jim Conroy

things of we’ve improved Texas and seen Houston even is improved. and has of overarching business get that without strip the the continues better if to part that business the a regions. of kind across to basically underlying you But So has out, improvement as that the each the of lot -- recover. has certainly improved were three

the So four-and-a-half we're through feel XX-week I of the quarter; in a we are in while now. into condition. importance voice But just pretty are conservatism of like right where of of way we the suppose that our we're one-third with now pleased good And we quarter stand of a sales the weeks is we December. course part given now,

Peter Keith

good Okay, holiday sounds for lucky quarter. lot great. and Thanks the a

Jim Conroy

Thanks, Peter.

Operator

Komp Baird. Jonathan next We will with go to

Jonathan Komp

curious the prices, is least know starting business activity just back get questioning get line of just to and to you now I when some prices in your downturn have starting thoughts lagging with hi new -- the about in talked possibly and prices really your curious at oil actually see you’re your lagging the now, do the broader in I’m guys. some then commodity I benefit the last think to you’re is from there decline, they downturn want any signs took there? follow-up of know the of the benefit thoughts, to I just commodity rebound question when are Yes that thanks on some and the the of just and markets commodity

Jim Conroy

I not it’s do oil price certainly fact it's I and in of lag cases think with that there of like the is improved think day the November some stable. worth the XXXX, a

Greg Hackman

right? the stable XXs It's in

Jim Conroy

of and high stable and oil for than down the Right for some us states the when volume was certainly hovering our is better in XXs in XXs.

good of business were our think you things single year of this that biggest this feels this year, essentially largest the into in improved improvement quarter the in it So course business is different Texas year. second change consecutive mid-quoted for while components of a minus if the and is then turns improve and positive state with the I in probably in of then have the the X of that which still it and driver from last to first four quarter number the quarters of all trend over changed time the the

Texas, sort lot also So other of business stores single with lot the that’s of the XX in trajectory a in seen in we've areas. biggest improvement of that of change the

Jonathan Komp

how more question acquisitions? to long of opening Great. of that to to line additions a the reaccelerate kind unit And either get pace you follow-on through confidence would more but trend to see or need hold maybe to of forward-looking

Greg Hackman

top it's mean QX. pleased of with Jon, building we’re on Greg. Hey, QX I certainly

this open & can are talked side as to see QX, a we to store with a the strength always we able we’ve comment brick specific and pretty that business, a like about, the make lease stores stores through before sign we'd continue in mortar think quickly. I

be we'll that eventually to and able think quickly to feel holiday. pretty switch do we confident hit to that So

Operator

to We will Lejuez Citigroup. go next with Paul

Paul Lejuez

thanks. guys, Hey

the Lejuez Paul curious, Just way. by

so you thought, do you you much curious have your decision of you more Just to do what to didn't was you -- is? the strategic as your made as part you think about latter, less around function less why the promotions, or discount I on promotional that a was to guys a promotional, think comment it's of that environment guess that be it becoming

Jim Conroy

for was different was entered school it's a to factors we Boot, Texas big August which where point call strategic us way a of right Texas. few Stinky our it's back decision involved. It decent in big that nationally gotten had sale which is top business a big was a -- we've after we a to the us in for One on very business a

back modest So to we decided August. relatively into and is July for in school us, shorten Boot it to which sale price Stinky the move position promotional and a standalone let

second was and want coming be strong in or was a and piece to and we of bit saw of sale to that seen we of is there we strengthening Sales in full otherwise no have bit actually the sales continued improvement. maximize but it each reason and And the that a pickup business gamble decided of paid a is accelerated it price. a could customer be margin off. nice it little The just discount really value merchandize each a very to

a to it's to price and This retail deliver just promotional make it current of of gamble So a us but at higher continued in in-store we product of good work our priced. we I really how suppose was That’s that see the to and business a the you business as I priced it a we we're discount underscores to XX-plus-percent full off. to and today’s paradox value heavily anyway even the traffic. is paid try full don't thinking bit if And well know and of fair not coupon it for have drive and selling to strength it favor. right and -- think brand can seemed environment bit online can

Paul Lejuez

can versus terms thinking third about both how quarter comp traffic drivers of second just the and you in perspective? you about quarter in just the the And talk ticket Great. are

Jim Conroy

which the second measure -- drivers which I the in If think quarter essentially as a basket AUR answer right different about increase higher by about average and arithmetically the from spend. second to we transactions comp ways. when our promotional think was quarter store driven that Sure which was traffic back will a In higher flat came the comp I lower ties you few per as the see more business, is which in -- that's our us is work large see continue the which of standpoint, and is buyer department to department clothing very done fantastic kind as a a merchandising we The job. really both a growing drivers highest work boots, from continue we well for nice we and performance have. probably has department there to a work growth

or stores second The question helped albeit into other nice that few quarter think and was growth of further both ladies that was a I thing quarter. reminder to in expect the the that's drag the think e-commerce historically high-single-digit were kind same-store and can't first return we with Outfitters impacted slightly the by of the of enhance for paradox, into drivers be leisure, of and current our Country other to company, include meaningful will over Country in was from but overall certainly accelerated or count the had the the a in that e-commerce in towards tailwind which works. thing it's like comp last that a quarter sales would the Country Denim in headwind business, And trend Outfitter comp. kind that it one just the is would side which the comp been profitability as E-com the kind a again hopefully And Outfitter the a sales, we just sales saw revenue with panel what that inclusion the your bootbarn.com quarter a that of same-store years don't first our as men's growth is doesn't current four. positive plus I sale specific change. quarter and line within in on total and improved definition and some if QX consolidated same so one exact was on positive But the in quarter particularly has athletic second which Country way has was denim cost our new as Lady part was I ladies if Outfitter impact think quarter. be Sheplers.com in with direction the it is business is with this And you give view, been the And sales. have line of we leisure if and we in the right, e-commerce modest a about a business

business it’s an a same-store even our stronger So perspective. from than actually bit perspective, appear sales internal external from might it

Paul Lejuez

Thank you.

Jim Conroy

So hopefully plus answered your more. that some question I think

Paul Lejuez

very helpful. Yes,

of credit private Just label The did card, this business more. represent one percent what the that quarter?

Greg Hackman

card. just we business Yes, September’s credit on about launched if done at I our the was looked it the and quarter of during X% business

it's to So but us so so far. days early for measure to we are pleased hit the rollout

Operator

to Morgan. next J.P. go will with Matthew We Boss

Steven Zaccone

question. on for taking guys. Steven Matt. afternoon Thanks good our Zaccone for This Hi is

Just a and in the e-commerce bit business expansion following will here the level balance margin about year of the you the half, on shift hurt quarter can of continue then think thinking that you curious do line? little the second of grows we’re the saw margin, up through you this merchandize as just gross mix second the the on in

Greg Hackman

saw Boot roughly basis the is Good points expect the on we half question, Steven, Stinky timeframe expanding deepest our we promotion. margin expansion QX, The shorten promotion What outside quarter more shorten merchandise grow year, started we growth the XX and in outsized so in the we the in anticipate said margin. provided to When -- one-time thanks. merchandise have margin because we've in I we in we reducing year. that we didn't promotion that that nature we call run, did the would

that So fact for our and penetration year but obviously in the be are the improved pricing And vendors. get we’ll points the the and talked basis basis points Jim container the about third-party that more exclusive then that main drivers from XXX probably we branded quarter. includes over than brands XX better where the purchases

that QX grow to the penetration relates it extent in put in in in margin merchandize some to however it run will outsized because on on will to pressure holiday tends offset merchandize there initiatives we As specifically margin e-commerce does is e-commerce and the that that than e-commerce, some pressure got the typically some think we've to we so of lower that be pressure.

reiterate think about basis in to ongoing thinking points the expansion just I merchandized an of I we're growth XX margin XX what or was basis. on So

Steven Zaccone

Okay second all you was great, Outfitter accretive then quantify sales no the much EPS? did question, saw quarter many Country to helpful. at quick just that's modeling in how it one how and And from you whether

Jim Conroy

we it’s that, brands answer most the brand. more pleased center between I the other the are assortment What we’re be leveraging sales exact team trading some didn’t new net to about the same the broadly that the might and could and performance as and there addition for Country Outfitter comment business, overall part customers that with

So a a dollar of through Boot through comp the equivalent is Barn Country dollar or Outfitter Sheplers.com.

on that's kind all So commented we it. of

we’re quite with for brand was pleased think targeting that completely us customer. added different I that that a online acquisition a third

in restroom men's of that's brand Sheplers or it reminder type opens the but stores several online Barn living not a it’s way Western omnichannel are connected a our brand that how prices are Country slightly of up the to customers a that assortments and competes kind of assortment as and is Outfitters is targets customer boots necessarily of a lowest of outside Boot the broadest kind balanced they the our is brand, eye curative ladies work more and customers Road is much site more industry view our Just and a it bulls merchandize. brand Rover apparel. mega and core and lifestyle the more fastening that Western as sort in got and between a to that's nice,

in online So quite addition portfolio the purpose distinct the it and that have. pleased it has portfolio a we’re the we our of with brands into of

Steven Zaccone

great, detail. that Okay, thanks for

Greg Hackman

was million wanted not is we $XX.X full-year I our one $XX.X if for operations clear. I'm the in my than which prepared previous clarification between from make that got Just have be we may and before to guidance. $X.X to to sure income year that higher misspoken but remarks, expect million sure million

Operator

Instructions]. [Operator

with We Tom will to next go Wells Fargo. Nikic

Tom Nikic

and as the the guys, mentioned would question Hey a I at taking you thanks of question. strategy. chain like made that the why makes M&A way wondering just assessing stores of overall region to perfect acquisition there couple you just I of the a it’s it you Boots -- look know stores in and was that know know and from when also converted of Boot about for not to like sort a my Thanks. bit sense but acquisitions. sort those over, the acquire that appealing was after sort of Woods that of rebranding had I tuck-in little any comparison Sheplers to to matter. than bought I under you convert you, future and of you acquisitions potential on I potentially did as scratch what open little rather the disruption Barn sort do and them disruption a expect tuck-in them a doors potential make

Jim Conroy

Sure.

you Baskins, the one and Cavender's. would in go if every Four and industry again Baskins, a which Barns, question. had done years great up helped as But RCC, would tremendously The and it’s seen significant and strategically Boot those Sheplers as five moved RCC. of five reminder ago forward ago Texas, a any today us think looks great backfive significant in of step that profitability combined increases sales Sheplers do perspective. are immediate Now think Sheplers those acquisitions of at e-commerce an and we now Barn year genius. I look have and chains with way was acquisition size, really at years was a we into Boot [indiscernible] from acquired an you performance I

frankly we have now a Texas look in we very at based landscape, terrific competitor still called a formidable and the when So Cavender's.

stores. Beyond that have one stores three have the people or two, the most of industry in small that have actually handful most and one -- remain four

for it's the real the of risk So store. we a those simple really existing we're associated looking an acquisitions at as new think be versus acquisitions better estate and of payback store a where will equation

EBIT and their a For and on they in happen levels, do with were very own price, with estimating a it fantastic payback thought knew was Woods, operator we we the a we obviously we business knew way them, highly Woods we what were to sales we track erosion. her the attractive what notably purchase with would not could Sheplers based a sales promotional pull very since Notably brought risk very, business healthy cost that again that different business that we had low the experienced very of highly, in they away promotional were and and has comp.

their we benchmark market you likely is we at more stores will whose build open new at acquire the stores what out particular answer look Woods, both estate continue what the of the the combination stores. store. one, and built to more now the based or clear when and measure So or for out, us Does it new we rather positioning and how located, a is. whether with look But three up new than just building it want they're country, question? of the in does strategic a is market super to where that to be as available, we a to to two business next your on attractive real acquired assets than building acquire just of the And availability was business

Tom Nikic

perfectly. much. That very answers Thanks it

Jim Conroy

you. Thank

Operator

back that turn and I the And over session. does question-and-answer Ladies to remarks. like closing would to gentlemen additional any Conroy our call for Jim or conclude

Jim Conroy

to third today. New thank speaking call Take call the the Year. earnings everyone you wanted quarter care. our with Just joining Look forward to all on for after

Operator

today’s does that everyone’s conclude participation. again once do gentlemen, and We Ladies call. appreciate

Boot Barn (BOOT) 2 Nov 172018 Q2 Earnings call transcript