Boot Barn Holdings Inc

Previous wording

included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), on May 18, 2023 (the “Fiscal 2023 10-K”). As used in this Quarterly Report on Form 10-Q, except where the context otherwise requires or where otherwise indicated, the terms “company”, “Boot Barn”, “we”, “our” and “us” refer to Boot Barn Holdings, Inc. and its subsidiaries.

Current wording

The following discussion and analysis of the financial condition and results of our operations should be read together with the unaudited financial statements and related notes of Boot Barn Holdings, Inc. and Subsidiaries included in Item 1 of this Quarterly Report on Form 10-Q and with our audited financial statements and the related notes included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), on May 15, 2024 (the “Fiscal 2024 10-K”). As used in this Quarterly Report on Form 10-Q, except where the context otherwise requires or where otherwise indicated, the terms “Company”, “Boot Barn”, “we”, “our” and “us” refer to Boot Barn Holdings, Inc. and its subsidiaries.

Previous wording

This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are often identified by the use of words such as, but not limited to, “anticipate”, “believe”, “can”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “project”, “seek”, “should”, “target”, “will”, “would” and similar expressions or variations intended to identify forward-looking statements. These statements are based on the beliefs and assumptions of our management based on information currently available to management. These forward-looking statements are subject to numerous risks and uncertainties, including the risks and uncertainties described under the section titled “Risk Factors” in our Fiscal 2023 10-K, and those identified in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in an evolving environment. New risks and uncertainties emerge from time to time and it is not possible for our management to predict all risks and uncertainties, nor can we assess the impact of all risks on our business or the extent to which any risk, or combination of risks, may cause actual results to differ materially from those contained in any forward-looking statement. We qualify all of our forward-looking statements by these cautionary statements.

Current wording

statements. These statements are based on the beliefs and assumptions of our management based on information currently available to management. These forward-looking statements are subject to numerous risks and uncertainties, including the risks and uncertainties described under the section titled “Risk Factors” in our Fiscal 2024 10-K, and those identified in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in an evolving environment. New risks and uncertainties emerge from time to time and it is not possible for our management to predict all risks and uncertainties, nor can we assess the impact of all risks on our business or the extent to which any risk, or combination of risks, may cause actual results to differ materially from those contained in any forward-looking statement. We qualify all of our forward-looking statements by these cautionary statements.

Previous wording

We believe that Boot Barn is the largest lifestyle retail chain devoted to western and work-related footwear, apparel and accessories in the U.S. As of December 30, 2023, we operated 382 stores in 44 states, as well as our e-commerce websites consisting primarily of bootbarn.com, sheplers.com, countryoutfitter.com, idyllwind.com and third-party marketplaces. Additionally, during fiscal 2023, we launched a Boot Barn app, which has become an additional sales channel for the business. Our product offering is anchored by an extensive selection of western and work boots and is complemented by a wide assortment of coordinating apparel and accessories. Our stores feature a comprehensive assortment of brands and styles, coupled with attentive, knowledgeable store associates. Many of the items that we offer are basics or necessities for our customers’ daily lives and typically represent enduring styles that are not meaningfully impacted by changing fashion trends.

Current wording

We believe that Boot Barn is the largest lifestyle retail chain devoted to western and work-related footwear, apparel and accessories in the U.S. As of June 29, 2024, we operated 411 stores in 46 states, as well as our e-commerce websites consisting primarily of bootbarn.com, sheplers.com, countryoutfitter.com, idyllwind.com and third-party marketplaces, as well as the Boot Barn app. Our product offering is anchored by an extensive selection of western and work boots and is complemented by a wide assortment of coordinating apparel and accessories. Our stores feature a comprehensive assortment of brands and styles, coupled with attentive, knowledgeable store associates. Many of the items that we offer are basics or necessities for our customers’ daily lives and typically represent enduring styles that are not meaningfully impacted by changing fashion trends.

Previous wording

We strive to offer an authentic, one-stop shopping experience that fulfills the everyday lifestyle needs of our customers, and as a result, many of our customers make purchases in both the western and work wear sections of our stores. We target a broad and growing demographic, ranging from passionate western and country enthusiasts, to workers seeking dependable, high-quality footwear and apparel. Our broad geographic footprint, which comprises more than three times as many stores as our nearest direct competitor that sells primarily western and work wear, provides us

Current wording

We strive to offer an authentic, one-stop shopping experience that fulfills the everyday lifestyle needs of our customers, and as a result, many of our customers make purchases in both the western and work wear sections of our stores. We target a broad and growing demographic, ranging from passionate western and country enthusiasts, to workers seeking dependable, high-quality footwear and apparel. Our broad geographic footprint, which comprises more than four times as many stores as our nearest direct competitor that sells primarily western and work wear, provides us with significant economies of scale, enhanced supplier relationships, the ability to recruit and retain high quality store associates and the ability to reinvest in our business at levels that we believe exceed those of our competition.

Previous wording

In assessing the performance of our business, we consider a variety of performance and financial measures. The key indicators we use to evaluate the financial condition and operating performance of our business are net sales and gross profit. In addition, we also review other important metrics, such as same store sales, new store openings, and selling, general and administrative (“SG&A”) expenses, and operating income.

Current wording

In assessing the performance of our business, we consider a variety of performance and financial measures. The key indicators that we use to evaluate the financial condition and operating performance of our business are net sales and gross profit. In addition, we also review other important metrics, such as same store sales, new store openings, and selling, general and administrative (“SG&A”) expenses, and operating income.

Previous wording

Net sales reflect revenue from the sale of our merchandise at retail locations, as well as sales of merchandise through our e-commerce websites and app. We recognize revenue upon the purchase of merchandise by customers at our stores and upon delivery of the product in the case of our e-commerce websites and app. Net sales also include shipping and handling fees for e-commerce shipments that have been delivered to our customers. Net sales are net of estimated and actual sales returns and deductions for estimated future award redemptions. Revenue from the sale of gift cards is deferred until the gift cards are used to purchase merchandise.

Current wording

Net sales reflect revenue from the sale of our merchandise at retail locations, as well as sales of merchandise through our e-commerce websites and app. We recognize revenue upon the purchase of merchandise by customers at our stores and upon delivery of the product in the case of our e-commerce websites and app. Net sales also include shipping and handling fees for e-commerce shipments that have been delivered to our customers. Net sales are net of estimated and

Previous wording

The term “same store sales” refers to net sales from stores that have been open at least 13 full fiscal months as of the end of the current reporting period, although we include or exclude stores from our calculation of same store sales in accordance with the following additional criteria:

Current wording

Theterm “same store sales” generally refers to net sales from stores that have been open at least 13 full fiscal months (“comparable stores”) as of the end of the current reporting period, although we include or exclude stores from our calculation of same store sales in accordance with the following additional criteria:

Previous wording

If the criteria described with respect to acquired stores above are met, then all net sales of such acquired store, excluding those net sales before our acquisition of that store, are included for the period presented. However, when an acquired store is included for the period presented, the net sales of such acquired store for periods before its acquisition are included (to the extent relevant) for purposes of calculating “same store sales growth” and illustrating the comparison between the applicable periods. Pre-acquisition net sales numbers are derived from the books and records of the acquired company, as prepared prior to the acquisition, and have not been independently verified by us.

Current wording

If the criteria described with respect to acquired stores above are met, then all net sales of such acquired store, excluding those net sales before our acquisition of that store, are included for the period presented. However, when an acquired store is included for the period presented, the net sales of such acquired store for periods before its acquisition are included (to the extent relevant) for purposes of calculating “same store sales growth” and illustrating the comparison between the applicable periods. Pre-acquisition net sales numbers are derived from the books and records of the acquired company, as prepared prior to the acquisition, and are not been independently verified by us.

Previous wording

In addition to retail store sales, same store sales also includes e-commerce sales, e-commerce shipping and handling revenue and actual retail store or e-commerce sales returns. Sales as a result of an e-commerce asset acquisition are excluded from same store sales until the 13th full fiscal month subsequent to the Company’s acquisition of such assets.

Current wording

In addition to retail store sales, same store sales also include e-commerce sales, e-commerce shipping and handling revenue and actual retail store or e-commerce sales returns. Sales as a result of an e-commerce asset acquisition are excluded from same store sales until the 13th full fiscal month subsequent to the Company’s acquisition of such assets.

Previous wording

Opening new stores is an important part of our growth strategy and we anticipate that a percentage of our net sales in the near future will come from stores not included in our same store sales calculation. Accordingly, same store sales are only one measure we use to assess the success of our business and growth strategy. Some of our competitors and other retailers may calculate “same” or “comparable” store sales differently than we do. As a result, data in this Quarterly Report on Form 10-Q regarding our same store sales may not be comparable to similar data made available by other retailers.

Current wording

Opening new stores is an important part of our growth strategy, and we anticipate that a percentage of our net sales in the near future will come from stores not included in our same store sales calculation. Accordingly, same store sales are only one measure that we use to assess the success of our business and growth strategy. Some of our competitors and other retailers may calculate “same” or “comparable” store sales differently than we do. As a result, data in this Quarterly Report on Form 10-Q regarding our same store sales may not be comparable to similar data made available by other retailers.

Previous wording

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as the related disclosures of contingent assets and liabilities at the date of the financial statements. A summary of our significant accounting policies is included in Note 2 to our consolidated financial statements included in the Fiscal 2023 10-K.

Current wording

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as the related disclosures of contingent assets and liabilities at the date of the financial statements. A summary of our significant accounting policies is included in Note 2 to the Company’s consolidated financial statements included in the Fiscal 2024 10-K.

Previous wording

We operate on a fiscal calendar that results in a 52- or 53-week fiscal year 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 fiscal year, each quarter includes thirteen weeks of operations; in a 53-week fiscal year, the first, second and third quarters each include thirteen weeks of operations and the fourth quarter includes fourteen weeks of operations. The current fiscal year ending on March 30, 2024 (“fiscal 2024”) will consist of 52 weeks; whereas the fiscal year ended on April 1, 2023 (“fiscal 2023”) consisted of 53 weeks. We identify our fiscal years by reference to the calendar year in which the fiscal year ends.

Current wording

We operate on a fiscal calendar that results in a 52- or 53-week fiscal year 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 fiscal year, each quarter includes thirteen weeks of operations; in a 53-week fiscal year, the first, second and third quarters each include thirteen weeks of operations and the fourth quarter includes fourteen weeks of operations. 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.

Previous wording

Net sales. Net sales increased $5.8 million, or 1.1%, to $520.4 million for the thirteen weeks ended December 30, 2023 from $514.6 million for the thirteen weeks ended December 24, 2022. Consolidated same store sales decreased 9.7%. Excluding the impact of the 11.5% decrease in e-commerce same store sales, same store sales decreased by 9.4%. The increase in net sales was the result of the incremental sales from new stores opened over the past twelve months, partially offset by the decrease in consolidated same store sales.

Current wording

Net sales. Net sales increased $39.7 million, or 10.3%, to $423.4 million for the thirteen weeks ended June 29, 2024 from $383.7 million for the thirteen weeks ended July 1, 2023. Consolidated same store sales increased 1.4%. Excluding the impact of the 6.7% increase in e-commerce same store sales, same store sales increased by 0.8%. The increase in net sales was the result of incremental sales from new stores and the increase in consolidated same store sales.

Previous wording

Gross profit. Gross profit increased $11.3 million, or 6.0%, to $199.1 million for the thirteen weeks ended December 30, 2023 from $187.8 million for the thirteen weeks ended December 24, 2022. As a percentage of net sales, gross profit was 38.3% and 36.5% for the thirteen weeks ended December 30, 2023 and December 24, 2022, respectively. Gross profit increased primarily due to merchandise margin expansion and sales growth. The increase in gross profit rate of 180 basis points was driven primarily by a 300 basis-point increase in merchandise margin rate partially offset by 120 basis points of deleverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was driven by a 250 basis-point improvement in freight expense as a percentage of net sales and 50 basis points of product margin expansion resulting primarily from lower promotional activity and growth in exclusive brand penetration. The deleverage in buying, occupancy and distribution center costs was driven primarily by the occupancy costs of 49 new stores and operating costs related to the new Kansas City distribution center.

Current wording

Gross profit. Gross profit increased $14.7 million, or 10.4%, to $156.7 million for the thirteen weeks ended June 29, 2024 from $142.0 million for the thirteen weeks ended July 1, 2023. As a percentage of net sales, gross profit was 37.0% for both the thirteen weeks ended June 29, 2024 and July 1, 2023. Gross profit increased primarily due to an increase in sales and merchandise margin, partially offset by the occupancy costs of new stores. Gross profit rate was flat when compared to the prior-year period, as a result of a 100 basis-point increase in merchandise margin rate, offset by 100 basis points of deleverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was the result of supply chain efficiencies, while the deleverage in buying, occupancy and distribution center costs was driven primarily by the addition of new stores.

Previous wording

Selling, general and administrative expenses. SG&A expenses increased $8.7 million, or 7.5%, to $124.0 million for the thirteen weeks ended December 30, 2023 from $115.3 million for the thirteen weeks ended December 24, 2022. The increase in SG&A expenses as compared to the prior-year period was primarily a result of higher general and administrative expenses, store payroll associated with operating 49 new stores and other operating expenses in the current year. As a percentage of net sales, SG&A increased by 140 basis points to 23.8% for the thirteen weeks ended December 30, 2023 from 22.4% for the thirteen weeks ended December 24, 2022 primarily as a result of higher overhead, payroll and other operating expenses.

Current wording

Selling, general and administrative expenses. SG&A expenses increased $10.8 million, or 11.3%, to $106.5 million for the thirteen weeks ended June 29, 2024 from $95.7 million for the thirteen weeks ended July 1, 2023. The increase in selling, general and administrative expenses as compared to the prior-year period was primarily a result of higher store payroll and store-related expenses associated with operating more stores, corporate general and administrative expenses, and marketing expenses in the current year. As a percentage of net sales, SG&A increased by 20 basis points to 25.2% for the thirteen weeks ended June 29, 2024 from 24.9% for the thirteen weeks ended July 1, 2023, primarily as a result of

Previous wording

Income from operations. Income from operations increased $2.6 million, or 3.7%, to $75.1 million for the thirteen weeks ended December 30, 2023 from $72.5 million for the thirteen weeks ended December 24, 2022. The increase in income from operations was attributable to the factors noted above. As a percentage of net sales, income from operations was 14.4% and 14.1% for the thirteen weeks ended December 30, 2023 and December 24, 2022, respectively.

Current wording

Income from operations. Income from operations increased $4.0 million, or 8.6%, to $50.2 million for the thirteen weeks ended June 29, 2024 from $46.2 million for the thirteen weeks ended July 1, 2023. The increase in income from operations was attributable to the factors noted above. As a percentage of net sales, income from operations was 11.9% and 12.1% for the thirteen weeks ended June 29, 2024 and July 1, 2023, respectively.

Previous wording

Interest expense. Interest expense was $0.5 million and $2.3 million for the thirteen weeks ended December 30, 2023 and December 24, 2022, respectively. The decrease in interest expense in the current-year period was primarily the result of a lower debt balance in the current year, partially offset by a higher weighted average interest rate compared to the prior-year period.

Current wording

Interest expense. Interest expense was $0.3 million and $1.0 million for the thirteen weeks ended June 29, 2024 and July 1, 2023, respectively. The decrease in interest expense in the current-year period was primarily the result of a lower debt balance in the current year.

Previous wording

Income tax expense. Income tax expense was $19.4 million for the thirteen weeks ended December 30, 2023, compared to $17.5 million for the thirteen weeks ended December 24, 2022. Our effective tax rate was 25.8% and 24.9% for the thirteen weeks ended December 30, 2023 and December 24, 2022, respectively. The tax rate for the thirteen weeks ended December 30, 2023 was higher than the tax rate for the thirteen weeks ended December 24, 2022, primarily due to changes to state enacted tax rates, partially offset by a higher tax benefit due to income tax accounting for share-based compensation compared to the thirteen weeks ended December 24, 2022.

Current wording

Income tax expense. Income tax expense was $11.6 million for the thirteen weeks ended June 29, 2024, compared to $11.2 million for the thirteen weeks ended July 1, 2023. Our effective 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.

Previous wording

Net income. Net income was $55.6 million for the thirteen weeks ended December 30, 2023 compared to $52.8 million for the thirteen weeks ended December 24, 2022. The increase in net income was primarily attributable to the factors noted above.

Current wording

Net income. Net income was $38.9 million for the thirteen weeks ended June 29, 2024 compared to $34.3 million for the thirteen weeks ended July 1, 2023. The increase in net income was primarily attributable to the factors noted above.

Previous wording

We rely on cash flows from operating activities and our credit facility as our primary sources of liquidity. Our primary cash needs are for inventories, operating expenses, occupancy expenses, capital expenditures associated with opening new stores and remodeling or refurbishing existing stores, improvements to our distribution facilities, marketing and information technology expenditures, debt service and taxes. We have historically used cash for acquisitions and the subsequent rebranding and integration of the stores acquired in those acquisitions. In addition to cash and cash equivalents, the most significant components of our working capital are accounts receivable, inventories, accounts payable and accrued expenses and other current liabilities. We believe that cash flows from operating activities and the

Current wording

We rely on cash flows from operating activities and our credit facility as our primary sources of liquidity. Our primary cash needs are for inventories, operating expenses, occupancy expenses, capital expenditures associated with opening new stores and remodeling or refurbishing existing stores, improvements to our distribution facilities, marketing and information technology expenditures, debt service and taxes. We have historically used cash for acquisitions and the subsequent rebranding and integration of the stores acquired in those acquisitions. In addition to cash and cash equivalents, the most significant components of our working capital are accounts receivable, inventories, accounts payable and accrued expenses and other current liabilities. We believe that cash flows from operating activities and the availability of cash under our credit facility will be sufficient to cover working capital requirements, anticipated capital expenditures and other anticipated cash needs for at least the next 12 months from the date of this filing.

Previous wording

We are planning to continue to open new stores, remodel and refurbish our existing stores, and make improvements to our e-commerce and information technology infrastructure, which will result in increased capital expenditures. Included in our fiscal 2024 capital expenditures are continued investments in our new distribution center in Kansas City, Missouri. We estimate that our total capital expenditures in fiscal 2024 will be between $95.0 million and $105.0 million (including the capital expenditures made during the thirty-nine weeks ended December 30, 2023), which is net of estimated landlord tenant allowances of $26.5 million. We anticipate that we will use cash flows from operations to fund these expenditures.

Current wording

We are planning to continue to open new stores, remodel and refurbish our existing stores, and make improvements to our e-commerce and information technology infrastructure, which will result in increased capital expenditures. Included in our fiscal 2025 capital expenditures are continued investments in our new distribution center in Kansas City, Missouri. We estimate that our total capital expenditures in fiscal 2025 will be between $115.0 million and $120.0 million (including the capital expenditures made during the thirteen weeks ended June 29, 2024), which is net of estimated landlord tenant allowances of $30.2 million. We anticipate that we will use cash flows from operations to fund these expenditures.

Previous wording

The amounts outstanding under the Wells Fargo Revolver and letter of credit commitments as of December 30, 2023 were zero and $2.3 million, respectively. The amounts outstanding under the Wells Fargo Revolver and letter of credit commitments as of April 1, 2023 were $66.0 million and $0.8 million, respectively. Total interest expense incurred in the thirteen and thirty-nine weeks ended December 30, 2023 on the Wells Fargo Revolver was $0.4 million and $1.5 million, respectively, and the weighted average interest rate for the thirteen weeks ended December 30, 2023 was 8.5%. Total interest expense incurred in the thirteen and thirty-nine weeks ended December 24, 2022 on the Wells Fargo Revolver was $2.1 million and $3.8 million, respectively, and the weighted average interest rate for the thirteen weeks ended December 24, 2022 was 4.9%.

Current wording

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%.

Previous wording

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

Current wording

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.

Previous wording

Cash and cash equivalents were $107.2 million as of December 30, 2023 compared to $18.2 million as of April 1, 2023.

Current wording

Cash and cash equivalents were $83.4 million as of June 29, 2024 compared to $75.8 million as of March 30, 2024.

Previous wording

Net cash provided by operating activities was $240.5 million for the thirty-nine weeks ended December 30, 2023. The significant components of cash flows provided by operating activities were net income of $117.6 million, the add-back of non-cash depreciation and intangible asset amortization expense of $35.8 million, and stock-based compensation expense of $10.4 million. Accounts payable and accrued expenses and other current liabilities increased by $31.1 million due to the timing of payments. Inventory decreased by $26.1 million as a result of a decrease in purchases.

Current wording

Net cash provided by operating activities was $41.3 million for the thirteen weeks ended June 29, 2024. The significant components of cash flows provided by operating activities were net income of $38.9 million, the add-back of non-cash depreciation and intangible asset amortization expense of $14.3 million, and stock-based compensation expense of $5.8 million. Accounts payable and accrued expenses and other current liabilities decreased by $4.3 million due to the timing of payments. Inventory increased by $28.0 million as a result of an increase in purchases.

Previous wording

Net cash provided by operating activities was $87.1 million for the thirty-nine weeks ended December 24, 2022. The significant components of cash flows used in operating activities were net income of $124.1 million, the add-back of non-cash depreciation and intangible asset amortization expense of $26.0 million, and stock-based compensation expense of $9.6 million. Accounts payable and accrued expenses and other current liabilities increased by $52.4 million due to the timing of payments. Inventory increased by $117.9 million as a result of an increase in purchases.

Current wording

Net cash provided by operating activities was $70.8 million for the thirteen weeks ended July 1, 2023. The significant components of cash flows used in operating activities were net income of $34.3 million, the add-back of non-cash depreciation and intangible asset amortization expense of $10.6 million, and stock-based compensation expense of $5.0 million. Accounts payable and accrued expenses and other current liabilities increased by $24.7 million due to the timing of payments. Inventory decreased by $23.2 million as a result of a decrease in purchases.

Previous wording

Net cash used in investing activities was $91.3 million for the thirty-nine weeks ended December 30, 2023, which was attributable to capital expenditures related to store construction, investments in our Kansas City, Missouri distribution center, improvements to our e-commerce information technology infrastructure, and improvements to our distribution facilities.

Current wording

Net cash used in investing activities was $27.1 million for the thirteen weeks ended June 29, 2024, which was attributable to capital expenditures related to store construction, continued investments in our Kansas City, Missouri distribution center, improvements to our e-commerce information technology infrastructure, and improvements to our distribution facilities.

Previous wording

Net cash used in investing activities was $83.1 million for the thirty-nine weeks ended December 24, 2022, which was attributable to $83.1 million in capital expenditures related to store construction, investments in a new distribution center in Kansas City, Missouri, improvements to our e-commerce information technology infrastructure, and improvements to our distribution facilities.

Current wording

Net cash used in investing activities was $29.9 million for the thirteen weeks ended July 1, 2023, which was attributable to $29.9 million in capital expenditures related to store construction, investments in our Kansas City, Missouri distribution center, improvements to our e-commerce information technology infrastructure, and improvements to our distribution facilities.

Previous wording

Net cash used in financing activities was $60.2 million for the thirty-nine weeks ended December 30, 2023. We paid $66.0 million on our revolving line of credit and paid $2.4 million in taxes related to the vesting of restricted stock. We also received $8.9 million from the exercise of stock options.

Current wording

Net cash used in financing activities was $6.7 million for the thirteen weeks ended June 29, 2024. We paid $7.4 million in taxes related to the vesting of restricted stock, partially offset by the receipt of $1.0 million related to the exercise of stock options.

Previous wording

Net cash provided by financing activities was $25.7 million for the thirty-nine weeks ended December 24, 2022. We borrowed $30.5 million on our revolving line of credit and paid $4.5 million in taxes related to the vesting of restricted stock.

Current wording

Net cash used in financing activities was $42.0 million for the thirteen weeks ended July 1, 2023. We paid $39.8 million on our revolving line of credit and paid $2.3 million in taxes related to the vesting of restricted stock.