Boot Barn (BOOT) Piper Sandler 5th Annual Growth Frontiers Conference summary

Business performance and guidance

• Q2 sales and EPS are expected at the high end of guidance, with same-store sales within the guided range after a flat July impacted by fewer concerts and the World Cup.

• August and September saw comps improve to +2% as business normalized post-July disruptions.

• Blue-collar employment trends and resilience across income segments support ongoing sales strength.

• No signs of trading down or K-shaped consumer behavior; customer base remains stable.

Category and merchandising updates

• Work business has shown five consecutive quarters of comp improvement, driven by needs-based demand.

• Ladies Western boot sales remain challenged, with efforts underway to refresh styles ahead of the holiday season.

• Work boots are performing strongly, especially third-party brands, temporarily flattening exclusive brand penetration.

• Denim merchandising shifted to highlight premium products up front, with value options moved to the back wall.

• Cowboy hats are being re-merchandised by quality, price, and brand to simplify the buying process.

Product margin and sourcing

• Merchandise margin has grown over 600 basis points in six years, with exclusive brands contributing about a quarter.

• Margin expansion is driven by economies of scale, improved sourcing, and reduced markdowns.

• Guidance for merchandise margin is up 60 basis points this year (excluding tariff refunds), with 30–50 basis points expected annually going forward.

• Sourcing improvements are expected to benefit margins more significantly next year.