Boot Barn Holdings, Inc. Announces Preliminary Third Quarter Results, Appointment of New Chief Digital Officer, and Participation in the 2025 ICR Conference

Rhea-AI Summary

Boot Barn Holdings (NYSE: BOOT) has released preliminary results for Q3 FY2025, showing strong performance with net sales of $608.2 million, up 16.9% year-over-year. The company reported same-store sales growth of 8.6%, with retail stores up 8.2% and e-commerce up 11.1%. Income from operations reached $99.5 million, including a $6.7 million benefit related to CEO transition.

The company expects to report net income per diluted share of $2.43, compared to $1.81 in the prior year, including a $0.22 benefit from the CEO transition. Boot Barn opened 13 new stores in Q3, bringing the total store count to 438. The company experienced growth across all channels, geographies, and merchandise categories, with ladies and men's western businesses leading the growth.

Additionally, Boot Barn announced the appointment of Jonathon D. Kosoff as Chief Digital Officer, effective January 27, 2025.

Positive

• Net sales increased 16.9% YoY to $608.2 million
• Same store sales grew 8.6%, with e-commerce up 11.1%
• Income from operations increased to $99.5 million from $75.1 million
• Merchandise margin expanded by 130 basis points
• 13 new stores opened in Q3, reaching 438 total stores
• Strong performance in ladies and men's western businesses

Negative

• None.

Insights

Financial Analyst

Boot Barn's preliminary Q3 results showcase remarkable financial performance with net sales reaching $608.2 million, marking a robust 16.9% year-over-year growth. The 8.6% same-store sales growth, coupled with an impressive 11.1% e-commerce growth, demonstrates strong omnichannel execution. Operating income of $99.5 million reflects substantial improvement from the prior year's $75.1 million.

The company's store expansion strategy remains aggressive, with 13 new locations in Q3 bringing the total to 438 stores. The 130 basis points merchandise margin expansion is particularly noteworthy, indicating strong pricing power and inventory management. The diluted EPS of $2.43 significantly outperforms the previous year's $1.81, even after accounting for the $0.22 CEO transition benefit.

The broad-based growth across channels, geographies and merchandise categories suggests sustainable momentum, with western wear categories showing particular strength. This performance amid a challenging retail environment positions Boot Barn favorably for continued market share gains.

Retail Market Analyst

The strategic metrics reveal Boot Barn's successful execution in both traditional and digital retail channels. The 8.2% retail store same-store sales growth alongside 11.1% e-commerce growth indicates effective channel integration. The appointment of Jonathon Kosoff as CDO, with his extensive digital commerce experience from Tillys and Taco Bell, signals a strategic focus on enhancing digital capabilities.

Strong full-price selling during the holiday quarter, typically a promotional period, demonstrates brand strength and customer loyalty. The western wear category's performance, particularly in ladies' (low-double digits) and men's (high-single digits) segments, suggests successful merchandise assortment and targeting. The expansion pace of 39 new stores year-to-date reflects confidence in the brick-and-mortar model while maintaining healthy same-store metrics.

IRVINE, Calif.--(BUSINESS WIRE)-- Boot Barn Holdings, Inc. (NYSE: BOOT) (the “Company,” “we,” “us,” and “our”) today announced preliminary results for the third quarter of fiscal year 2025 ended December 28, 2024 in advance of its participation in the ICR Conference on Monday, January 13, 2025. A Supplemental Financial Presentation is available at investor.bootbarn.com.

Preliminary Results for the Third Quarter of Fiscal Year 2025

For the third quarter ended December 28, 2024, the Company expects to report:

• Net sales of approximately $608.2 million, representing growth of 16.9% over the prior year.
• Same store sales growth of approximately 8.6%, with retail store same store sales growth of approximately 8.2% and e-commerce same store sales growth of approximately 11.1%.
• Income from operations of approximately $99.5 million compared to $75.1 million in the prior-year period. Included in income from operations is a net benefit of $6.7 million related to the Chief Executive Officer (“CEO”) transition. This benefit primarily relates to the forfeiture of unvested long-term equity incentive compensation and reversal of fiscal 2025 cash incentive bonus expense for the Company’s former CEO. These expenses were not deductible for income taxes.
• Net income per diluted share of approximately $2.43 based on 30.9 million weighted average diluted shares outstanding and a 24.3% effective tax rate, compared to net income per diluted share of $1.81 in the prior-year period. Included in net income per diluted share is an estimated $0.22 benefit related to the CEO transition.
• The Company opened 13 new stores in the third quarter, or 39 stores year-to-date, bringing its total store count to 438.

John Hazen, Interim Chief Executive Officer, commented, “I am very pleased with our third quarter results. We once again experienced broad-based growth, driving same store sales up 8.6% versus last year and above our expectations. Both channels and all geographies and major merchandise categories were nicely positive, with the latter led by our ladies and men’s western businesses, which were up low-double digits and high-single digits, respectively. We are pleased that our sales outperformance, driven by strong full-price selling, translated into strong earnings per share as we expanded merchandise margin approximately 130 basis points. I am proud of the entire team for delivering a strong holiday quarter, and I look forward to a successful finish to our fiscal year.”

The foregoing expected results are preliminary and remain subject to the completion of normal quarter-end accounting procedures and closing adjustments. The Company currently plans to report third quarter results on January 30, 2025, at which time it will also provide fourth quarter guidance.

Appointment of New Chief Digital Officer

The Company has appointed Jonathon D. Kosoff to serve as its Chief Digital Officer, effective January 27, 2025. Mr. Kosoff previously served as the Chief Digital Officer for Tillys, Inc. from February 2020 to January 2025. Mr. Kosoff was Vice President of E-commerce and Performance Marketing at Taco Bell, a subsidiary of Yum! Brands, Inc., from January 2018 to February 2020.

2025 ICR Conference

The Company will be hosting a fireside chat at the 2025 ICR Conference on Monday, January 13, 2025 at 10:30 a.m. Eastern Time. The fireside chat will be webcast live over the internet and can also be accessed at http://investor.bootbarn.com. An online archive will be available for a period of 90 days on the investor page of the Company’s website.

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 438 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250110378200/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) same-store sales growth in Q3 FY2025?

Boot Barn reported same-store sales growth of 8.6%, with retail stores up 8.2% and e-commerce up 11.1%.

How many new stores did Boot Barn (BOOT) open in Q3 2025?

Boot Barn opened 13 new stores in Q3 FY2025, bringing the total store count to 438.

What was Boot Barn's (BOOT) earnings per share in Q3 FY2025?

Boot Barn expects to report net income per diluted share of $2.43, including a $0.22 benefit from CEO transition, compared to $1.81 in the prior year.

Who is Boot Barn's (BOOT) new Chief Digital Officer?

Jonathon D. Kosoff has been appointed as Boot Barn's new Chief Digital Officer, effective January 27, 2025. He previously served as Chief Digital Officer for Tillys, Inc.

What was Boot Barn's (BOOT) merchandise margin improvement in Q3 FY2025?

Boot Barn expanded its merchandise margin by approximately 130 basis points in Q3 FY2025.