Leases

6 Months Ended

Sep. 27, 2025

8. 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 or 10 years, with one or more renewal periods of five years, 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. The Company did not record ROU asset impairment charges related to its stores during the thirteen and twenty-six weeks ended September 27, 2025 and September 28, 2024.

ROU assets and lease liabilities as of September 27, 2025 and March 29, 2025 consisted of the following:


		September 27, 2025		March 29, 2025
	Balance Sheet Classification	(in thousands)		(in thousands)
Assets
Finance lease assets	Right-of-use assets, net	$	7,415	$	7,789
Operating lease assets	Right-of-use assets, net		552,180		461,672
Total lease assets		$	559,595	$	469,461

Liabilities
Current
Finance	Short-term lease liabilities	$	987	$	948
Operating	Short-term lease liabilities		75,869		71,913
Total short-term lease liabilities		$	76,856	$	72,861

Non-Current
Finance	Long-term lease liabilities	$	12,981	$	13,480
Operating	Long-term lease liabilities		578,113		476,702
Total long-term lease liabilities		$	591,094	$	490,182
Total lease liabilities		$	667,950	$	563,043

Total lease costs for the thirteen and twenty-six weeks ended September 27, 2025 and September 28, 2024 were:


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
(in thousands)	September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024
Finance lease cost
Amortization of right-of-use assets	$	187	$	187	$	374	$	374
Interest on lease liabilities		150		160		303		321
Total finance lease cost	$	337	$	347	$	677	$	695

Operating lease cost	$	26,901	$	22,248	$	52,036	$	43,670
Short-term lease cost		926		961		2,009		1,620
Variable lease cost		8,864		7,715		17,426		15,067
Total lease cost	$	37,028	$	31,271	$	72,148	$	61,052

The following table summarizes future lease payments as of September 27, 2025:


	Operating Leases		Finance Leases
Fiscal Year	(in thousands)		(in thousands)
2026 (Remainder)	$	33,637		781
2027		117,456		1,590
2028		113,678		1,629
2029		106,232		1,669
2030		97,627		1,709
Thereafter		346,069		9,517
Total		814,699		16,895
Less: Imputed interest		(160,717)		(2,927)
Present value of net lease payments	$	653,982	$	13,968

As of September 27, 2025, the Company’s minimum lease commitment for operating leases signed but not yet commenced was $143.3 million.

The following table includes supplemental lease information:


	Twenty-Six Weeks Ended
Supplemental Cash Flow Information (dollars in thousands)	September 27, 2025			September 28, 2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	62,365		$	44,320
Operating cash flows used for finance leases		298			317
Financing cash flows used for finance leases		474			436
	$	63,137		$	45,073
Lease liabilities arising from new right-of-use assets
Operating leases	$	126,888		$	70,748
Finance leases	$	—		$	—

Weighted average remaining lease term (in years)
Operating leases		7.8			7.8
Finance leases		9.9			10.9

Weighted average discount rate
Operating leases		5.3	%		5.1	%
Finance leases		10.9	%		10.9	%

Boot Barn Holdings, Inc. 10-Q