Boot Barn Holdings, Inc. Announces First Quarter Fiscal Year 2025 Financial Results

Rhea-AI Summary

Boot Barn Holdings, Inc. (NYSE: BOOT) reported strong financial results for Q1 FY2025. Net sales increased 10.3% to $423.4 million, with same-store sales up 1.4%. Net income rose to $38.9 million, or $1.26 per diluted share, compared to $34.3 million, or $1.13 per share, in the prior year. The company opened 11 new stores, bringing its total to 411.

Key highlights include:

• Retail store same-store sales up 0.8%
• E-commerce same-store sales up 6.7%
• Gross profit of $156.7 million, or 37.0% of net sales
• Income from operations increased to $50.2 million

Boot Barn also provided updated guidance for FY2025, projecting total sales of $1.816-$1.850 billion and net income per diluted share of $5.05-$5.35.

Positive

• Net sales increased 10.3% to $423.4 million
• Same-store sales grew 1.4%, with e-commerce up 6.7%
• Net income rose to $38.9 million, or $1.26 per diluted share
• Opened 11 new stores, expanding total store count to 411
• Merchandise margin rate increased by 100 basis points
• Provided strong guidance for FY2025 with projected sales growth of 8.9% to 11.0%

Negative

• Selling, general and administrative expenses as a percentage of net sales increased by 20 basis points
• Income from operations as a percentage of net sales slightly decreased to 11.9% from 12.1% in the prior-year period
• Average inventory per store increased approximately 6% on a same store basis

Insights

Financial Analyst

Boot Barn's Q1 FY2025 results demonstrate solid performance with 10.3% revenue growth to $423.4 million and a 1.4% increase in same-store sales. The company's net income rose to $38.9 million ($1.26 per diluted share), up from $34.3 million in the prior year. This growth, coupled with an expansion of 11 new stores, signals strong execution of their growth strategy.

The gross profit margin remained steady at 37.0%, with a 100 basis-point increase in merchandise margin offset by deleverage in other costs. However, SG&A expenses increased slightly as a percentage of sales, which could be a point to watch. The company's updated guidance for FY2025, projecting total sales of $1.816-$1.850 billion, reflects confidence in continued growth despite potential macroeconomic challenges.

Retail Market Analyst

Boot Barn's performance is noteworthy in the current retail landscape. The 6.7% increase in e-commerce same-store sales outpacing the 0.8% growth in retail store sales highlights the importance of omnichannel strategies. The company's plan to open 60 new stores in FY2025 shows confidence in brick-and-mortar expansion, contrasting with many retailers scaling back physical presence.

The sequential improvement in consolidated same-store sales throughout Q1 is a positive indicator, especially given the company's low promotional posture. This suggests strong brand loyalty and effective inventory management. However, the projected same-store sales range of -1.0% to 1.2% for FY2025 indicates caution about consistent growth across all stores, which warrants monitoring in future quarters.

Supply Chain Expert

Boot Barn's supply chain management deserves attention. The 100 basis-point increase in merchandise margin rate, attributed to supply chain efficiencies, demonstrates effective cost management and potentially improved sourcing strategies. This is particularly impressive given the challenges many retailers face with supply chain disruptions and inflationary pressures.

The 6% increase in average inventory per store on a same-store basis compared to the previous year suggests a balanced approach to stock levels. While this increase could potentially pressure working capital, it also positions the company to meet growing demand and mitigate stock-outs. The ability to maintain gross profit margins while expanding inventory levels indicates strong inventory management and pricing strategies, which could be a competitive advantage in the current retail environment.

IRVINE, Calif.--(BUSINESS WIRE)-- Boot Barn Holdings, Inc. (NYSE: BOOT) (the “Company”) today announced its financial results for the first fiscal quarter ended June 29, 2024. A Supplemental Financial Presentation is available at investor.bootbarn.com.

For the quarter ended June 29, 2024 compared to the quarter ended July 1, 2023:

• Net sales increased 10.3% over the prior-year period to $423.4 million.
• Same store sales increased 1.4% compared to the prior-year period, comprised of an increase of 0.8% in retail store same store sales and an increase of 6.7% in e-commerce same store sales.
• Net income was $38.9 million, or $1.26 per diluted share, compared to $34.3 million, or $1.13 per diluted share, in the prior-year period. Net income per diluted share in the current-year and prior-year period includes an approximately $0.06 and $0.02 per share benefit, respectively, primarily due to income tax accounting for share-based compensation.
• The Company opened 11 new stores, bringing its total store count to 411.

Jim Conroy, President and Chief Executive Officer, commented, “I am very pleased with our first quarter results and want to thank the entire Boot Barn team across the country for excellent execution. We increased revenue by more than 10% with growth in sales from both new stores and same store sales and exceeded the high end of our guidance range across every metric, including a significant beat of earnings per share. The sequential improvement we have seen in consolidated same store sales growth not only continued into the first quarter but grew consistently from month to month within the quarter itself. We are encouraged by the building sales momentum we have seen, particularly while maintaining our low promotional posture. Looking forward, despite the potential macroeconomic challenges, we remain steadfast in maintaining our focus on our strategic initiatives and feel that we are well-positioned for long-term success.”

Operating Results for the First Quarter Ended June 29, 2024 Compared to the First Quarter Ended July 1, 2023

• Net sales increased 10.3% to $423.4 million from $383.7 million in the prior-year period. Consolidated same store sales increased 1.4%, with retail store same store sales increasing 0.8% and e-commerce same store sales increasing 6.7%. The increase in net sales was the result of incremental sales from new stores and the increase in consolidated same store sales.

• Gross profit was $156.7 million, or 37.0% of net sales, compared to $142.0 million, or 37.0% of net sales, in the prior-year period. 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.

• Selling, general and administrative expenses were $106.5 million, or 25.2% of net sales, compared to $95.7 million, or 24.9% of net sales, in the prior-year period. 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. Selling, general and administrative expenses as a percentage of net sales increased by 20 basis points primarily as a result of higher marketing expenses and higher corporate general and administrative expenses, partially offset by lower store-related expenses.

• Income from operations increased $4.0 million to $50.2 million, or 11.9% of net sales, compared to $46.2 million, or 12.1% of net sales, in the prior-year period, primarily due to the factors noted above.

• Net income was $38.9 million, or $1.26 per diluted share, compared to net income of $34.3 million, or $1.13 per diluted share in the prior-year period. The increase in net income is primarily attributable to the factors noted above. Net income per diluted share in the current-year and prior-year period includes an approximately $0.06 and $0.02 per share benefit, respectively, primarily due to income tax accounting for share-based compensation.

Sales by Channel

The following table includes total net sales growth, same store sales (“SSS”) growth/(decline) and e-commerce as a percentage of net sales for the periods indicated below.

		Thirteen Weeks										Preliminary		Preliminary
		Ended			Four Weeks		Four Weeks		Five Weeks			Four Weeks		One Week Ended
		June 29, 2024			Fiscal April		Fiscal May		Fiscal June			Fiscal July		August 3, 2024
Total Net Sales Growth		10.3%			8.2%		10.5%		12.0%			8.8%		11.7%
Retail Stores SSS		0.8%			(1.5)%		1.9%		1.8%			(0.9)%		1.6%
E-commerce SSS		6.7%			5.0%		6.0%		8.7%			5.0%		12.7%
Consolidated SSS		1.4%			(0.8)%		2.4%		2.5%			(0.3)%		2.6%
E-commerce as a % of Net Sales		9.5%			10.0%		9.5%		9.0%			9.2%		9.1%

Balance Sheet Highlights as of June 29, 2024

• Cash of $83 million.
• Zero drawn under the $250 million revolving credit facility.
• Average inventory per store increased approximately 6% on a same store basis compared to July 1, 2023.

Fiscal Year 2025 Outlook

The Company is providing updated guidance for the fiscal year ending March 29, 2025, superseding in its entirety the previous guidance issued in its fourth quarter and fiscal year 2024 earnings report on May 14, 2024. For the fiscal year ending March 29, 2025 the Company now expects:

• To open 60 new stores.
• Total sales of $1.816 billion to $1.850 billion, representing growth of 8.9% to 11.0% over the prior year.
• Same store sales decline of approximately (1.0)% to growth of 1.2%, with a retail store same store sales decline of approximately (1.3)% to growth of 0.7% and e-commerce same store sales growth of approximately 3.0% to 5.5%.
• Gross profit between $672.0 million and $688.8 million, or approximately 37.0% to 37.2% of sales.
• Selling, general and administrative expenses between $464.9 million and $469.4 million, or approximately 25.6% to 25.4% of sales.
• Income from operations between $207.0 million and $219.4 million, or approximately 11.4% to 11.9% of sales.
• Effective tax rate of 26.3% for the remaining nine months of the fiscal year.
• Net income of $156.1 million to $165.4 million.
• Net income per diluted share of $5.05 to $5.35, based on 30.9 million weighted average diluted shares outstanding.
• Capital expenditures between $115.0 million and $120.0 million, which is net of estimated landlord tenant allowances of $30.2 million.

For the fiscal second quarter ending September 28, 2024, the Company now expects:

• Total sales of $405 million to $412 million, representing growth of 8.2% to 10.0% over the prior-year period.
• Same store sales decline of approximately (0.5)% to growth of 1.4%, with a retail store same store sales decline of approximately (1.0)% to growth of 1.0% and e-commerce same store sales growth of approximately 3.0% to 5.0%.
• Income from operations between $33.2 million and $35.7 million, or approximately 8.2% to 8.7% of sales.
• Net income per diluted share of $0.81 to $0.87, based on 30.9 million weighted average diluted shares outstanding.

Conference Call Information

A conference call to discuss the financial results for the first quarter of fiscal year 2025 is scheduled for today, August 7, 2024, at 4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in participating in the call are invited to dial (866) 652-5200. The conference call will also be available to interested parties through a live webcast at investor.bootbarn.com. Please visit the website and select the “Events and Presentations” link at least 15 minutes prior to the start of the call to register and download any necessary software. A Supplemental Financial Presentation is also available on the investor relations section of the Company’s website. A telephone replay of the call will be available until September 7, 2024, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 10191114. Please note participants must enter the conference identification number in order to access the replay.

About Boot Barn

Boot Barn is the nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children. The Company offers its loyal customer base a wide selection of work and lifestyle brands. As of the date of this release, Boot Barn operates 412 stores in 46 states, in addition to an e-commerce channel www.bootbarn.com. The Company also operates www.sheplers.com, the nation’s leading pure play online western and work retailer and www.countryoutfitter.com, an e-commerce site selling to customers who live a country lifestyle. For more information, call 888-Boot-Barn or visit www.bootbarn.com.

Forward Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements refer to the Company’s current expectations and projections relating to, by way of example and without limitation, the Company’s financial condition, liquidity, profitability, results of operations, margins, plans, objectives, strategies, future performance, business and industry. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan“, “intend”, “believe”, “may”, “might”, “will”, “could”, “should”, “can have”, “likely”, “outlook” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. These forward-looking statements are based on assumptions that the Company’s management has made in light of their industry experience and on their perceptions of historical trends, current conditions, expected future developments and other factors that they believe are appropriate under the circumstances. As you consider this press release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond the Company’s control) and assumptions. These risks, uncertainties and assumptions include, but are not limited to, the following: decreases in consumer spending due to declines in consumer confidence, local economic conditions or changes in consumer preferences; the Company’s ability to effectively execute on its growth strategy; and the Company’s failure to maintain and enhance its strong brand image, to compete effectively, to maintain good relationships with its key suppliers, and to improve and expand its exclusive product offerings. The Company discusses the foregoing risks and other risks in greater detail under the heading “Risk factors” in the periodic reports filed by the Company with the Securities and Exchange Commission. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the Company’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. Because of these factors, the Company cautions that you should not place undue reliance on any of these forward-looking statements. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict those events or how they may affect the Company. Further, any forward-looking statement speaks only as of the date on which it is made. Except as required by law, the Company does not intend to update or revise the forward-looking statements in this press release after the date of this press release.

Boot Barn Holdings, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
		June 29,				March 30,
		2024				2024
Assets
Current assets:
Cash and cash equivalents		$	83,387			$	75,847
Accounts receivable, net			7,916				9,964
Inventories			627,108				599,120
Prepaid expenses and other current assets			37,572				44,718
Total current assets			755,983				729,649
Property and equipment, net			346,668				323,667
Right-of-use assets, net			409,794				390,501
Goodwill			197,502				197,502
Intangible assets, net			58,685				58,697
Other assets			5,827				5,576
Total assets		$	1,774,459			$	1,705,592
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	133,974			$	132,877
Accrued expenses and other current liabilities			121,378				116,477
Short-term lease liabilities			67,764				63,454
Total current liabilities			323,116				312,808
Deferred taxes			42,111				42,033
Long-term lease liabilities			423,374				403,303
Other liabilities			4,036				3,805
Total liabilities			792,637				761,949
Stockholders’ equity:
Common stock, $0.0001 par value; June 29, 2024 - 100,000 shares authorized, 30,800 shares issued; March 30, 2024 - 100,000 shares authorized, 30,572 shares issued			3				3
Preferred stock, $0.0001 par value; 10,000 shares authorized, no shares issued or outstanding			—				—
Additional paid-in capital			239,351				232,636
Retained earnings			761,935				723,026
Less: Common stock held in treasury, at cost, 297 and 228 shares at June 29, 2024 and March 30, 2024, respectively			(19,467	)			(12,022	)
Total stockholders’ equity			981,822				943,643
Total liabilities and stockholders’ equity		$	1,774,459			$	1,705,592

Boot Barn Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
		Thirteen Weeks Ended
		June 29,			July 1,
		2024			2023
Net sales		$	423,386		$	383,695
Cost of goods sold			266,637			241,732
Gross profit			156,749			141,963
Selling, general and administrative expenses			106,527			95,718
Income from operations			50,222			46,245
Interest expense			351			1,023
Other income, net			596			224
Income before income taxes			50,467			45,446
Income tax expense			11,558			11,193
Net income		$	38,909		$	34,253
Earnings per share:
Basic		$	1.28		$	1.14
Diluted		$	1.26		$	1.13
Weighted average shares outstanding:
Basic			30,433			29,922
Diluted			30,815			30,444

Boot Barn Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
		Thirteen Weeks Ended
		June 29,				July 1,
		2024				2023
Cash flows from operating activities
Net income		$	38,909			$	34,253
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			14,268				10,603
Stock-based compensation			5,764				4,953
Amortization of intangible assets			12				14
Noncash lease expense			15,908				13,117
Amortization and write-off of debt issuance fees and debt discount			27				27
Loss on disposal of assets			55				176
Deferred taxes			78				727
Changes in operating assets and liabilities:
Accounts receivable, net			2,059				1,452
Inventories			(27,988	)			23,200
Prepaid expenses and other current assets			6,909				11,486
Other assets			(251	)			354
Accounts payable			1,848				(24,872	)
Accrued expenses and other current liabilities			(6,108	)			158
Other liabilities			231				498
Operating leases			(10,410	)			(5,344	)
Net cash provided by operating activities		$	41,311			$	70,802
Cash flows from investing activities
Purchases of property and equipment			(27,066	)			(29,895	)
Net cash used in investing activities		$	(27,066	)		$	(29,895	)
Cash flows from financing activities
Payments on line of credit, net			—				(39,828	)
Repayments on debt and finance lease obligations			(211	)			(213	)
Tax withholding payments for net share settlement			(7,445	)			(2,305	)
Proceeds from the exercise of stock options			951				345
Net cash used in financing activities		$	(6,705	)		$	(42,001	)
Net increase/(decrease) in cash and cash equivalents			7,540				(1,094	)
Cash and cash equivalents, beginning of period			75,847				18,193
Cash and cash equivalents, end of period		$	83,387			$	17,099
Supplemental disclosures of cash flow information:
Cash paid for income taxes		$	584			$	646
Cash paid for interest		$	322			$	1,151
Supplemental disclosure of non-cash activities:
Unpaid purchases of property and equipment		$	23,197			$	17,517

Boot Barn Holdings, Inc.
Store Count
		Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended
		June 29,		March 30,		December 30,		September 30,		July 1,		April 1,		December 24,		September 24,
		2024		2024		2023		2023		2023		2023		2022		2022
Store Count (BOP)		400		382		371		361		345		333		321		311
Opened/Acquired		11		18		11		10		16		12		12		10
Closed		—		—		—		—		—		—		—		—
Store Count (EOP)		411		400		382		371		361		345		333		321

Boot Barn Holdings, Inc.
Selected Store Data
																									Fourteen
																									Weeks
	Thirteen Weeks Ended																								Ended					Thirteen Weeks Ended
	June 29,				March 30,					December 30,					September 30,					July 1,					April 1,					December 24,					September 24,
	2024				2024					2023					2023					2023					2023					2022					2022
Selected Store Data:
Same Store Sales growth/(decline)		1.4	%			(5.9	)	%			(9.7	)	%			(4.8	)	%			(2.9	)	%			(5.5	)	%			(3.6	)	%			2.3	%
Stores operating at end of period		411				400					382					371					361					345					333					321
Comparable stores operating during period(1)		349				335					322					312					302					290					280					275
Total retail store selling square footage, end of period (in thousands)		4,547				4,371					4,153					4,027					3,914					3,735					3,598					3,451
Average retail store selling square footage, end of period		11,063				10,929					10,872					10,855					10,841					10,825					10,806					10,751
Average sales per comparable store (in thousands)(2)	$	980			$	917				$	1,256				$	950				$	1,014				$	1,092				$	1,424				$	1,001

____________________________
(1)		Comparable stores have been open at least 13 full fiscal months as of the end of the applicable reporting period.
(2)		Average sales per comparable store is calculated by dividing comparable store trailing three-month sales for the applicable period by the number of comparable stores operating during the period.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240807317457/en/

Investor Contact:

ICR, Inc.

Brendon Frey, 203-682-8216

BootBarnIR@icrinc.com

or

Company Contact:

Boot Barn Holdings, Inc.

Mark Dedovesh, 949-453-4489

Senior Vice President, Investor Relations & Financial Planning

BootBarnIRMedia@bootbarn.com

Source: Boot Barn

FAQ

What was Boot Barn's (BOOT) net sales growth in Q1 FY2025?

Boot Barn's net sales increased 10.3% to $423.4 million in Q1 FY2025 compared to the same period last year.

How many new stores did Boot Barn (BOOT) open in Q1 FY2025?

Boot Barn opened 11 new stores in Q1 FY2025, bringing its total store count to 411.

What is Boot Barn's (BOOT) projected net income per diluted share for FY2025?

Boot Barn projects net income per diluted share of $5.05 to $5.35 for FY2025.

How did Boot Barn's (BOOT) e-commerce sales perform in Q1 FY2025?

Boot Barn's e-commerce same-store sales increased by 6.7% in Q1 FY2025 compared to the prior-year period.