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Fast growing specialty retailer of western and work wear in the U.S. Our broad geographic footprint, which currently spans 26 states
and 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.
Attractive, loyal customer base.
Our customers come to us for many aspects of their everyday footwear and clothing needs because of the
breadth and availability of our product offering. In fiscal 2011 we implemented our customer loyalty program, B Rewarded, to enhance our
connection and relationship with our customers. Our loyalty program has grown rapidly since inception and includes approximately 2.8 million
members who have purchased merchandise from us. A vast majority of our sales are made to these customers. We leverage this database, which
provides useful information about our customers, to enhance our marketing activities across our channels, refine our merchandising and planning
efforts and assist in our selection of sites for new stores.
Differentiated shopping experience. We deliver a one-
stop shopping experience that engages our customers and, we believe, fulfills their
lifestyle needs. Our stores are designed to create an inviting and engaging experience and include prominent storefront signage, a simple and
easy-to-shop layout and a large and conveniently arranged self-service selection of boots. We offer significant inventory breadth and depth
across a range of boots, apparel and accessories. We believe that our strong, long-lasting supplier relationships enhance our ability to provide a
compelling merchandise assortment with a strong in-stock position both in-store and online. Our knowledgeable store associates are passionate
about our merchandise and deliver a high level of service to our customers. These elements help promote customer loyalty and drive repeat
visits.
Compelling merchandise assortment and strategy. We believe we offer a diverse merchandise assortment that features the most sought-
after western and work wear brands, well-regarded niche brands and exclusive private brands across a range of boots, apparel and accessories.
We have a core assortment of styles that serves as a foundation for our merchandising strategy and we augment and tailor that assortment by
region to cater to local preferences. In fiscal 2015, the vast majority of our merchandise sales were at full price, which, we believe, demonstrates
the strength of our brand and the less discretionary nature of our product offering.
Portfolio of exclusive private brands. We have leveraged our scale, merchandising experience and customer knowledge to launch a
portfolio of private brands exclusive to us, including Shyanne , Cody James , Moonshine Spirit by Brad Paisley, American Worker, El Dorado
and BB Ranch . Our private brands offer high-quality western and work boots as well as apparel and accessories for men, ladies and kids. Each
of our private brands, which address product and price segments that we believe are underserved by third-party brands, offers exclusive products
to our customers and achieves better merchandise margins. Customer receptivity and demand for our private brands has been strong,
demonstrated by the private brands' increasing penetration and significant sales momentum across our store base and online.
Versatile store model with compelling unit economics. We have successfully opened and currently operate stores that generate strong
cash flow, consistent store-level financial results and an attractive return on investment across a variety of geographies, markets, store sizes and
location types. We successfully operate stores in markets characterized as agribusiness centers, ranch regions, oil and gas markets, as well as in
various geographies in the U.S., such as California, the Southwest, the Midwest and the South. Our stores are successful in small, rural towns as
well as major metropolitan areas, such as Houston, Los Angeles, Nashville and Phoenix.
Our new store model requires an average net cash investment of approximately $0.8 million and targets an average payback period of less
than three years. Our lean operating structure, coupled with our strong supplier relationships, has allowed us to grow with minimal supply chain
investments as most of our products ship directly from our suppliers to our stores. We believe that our proven retail model
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