Boot Barn Holdings, Inc. Announces Second Quarter Fiscal Year 2025 Financial Results and CEO Transition

Rhea-AI Summary

Boot Barn Holdings reported Q2 FY2025 financial results and announced CEO transition. Net sales increased 13.7% to $425.8 million, with same-store sales up 4.9%. Net income reached $29.4 million ($0.95 per diluted share), compared to $27.7 million ($0.90 per diluted share) in the prior year. The company opened 15 new stores, reaching 425 locations.

CEO Jim Conroy will step down effective November 22, 2024, to join Ross Stores. John Hazen, current Chief Digital Officer, will become Interim CEO, while Peter Starrett will assume the role of Executive Chairman. For FY2025, Boot Barn projects total sales of $1.874-1.907 billion and plans to open 60 new stores.

Positive

• Net sales increased 13.7% to $425.8 million
• Same store sales grew 4.9%, with e-commerce up 10.1%
• Net income increased to $29.4 million from $27.7 million YoY
• Gross profit margin improved by 10 basis points to 35.9%
• Merchandise margin rate increased by 70 basis points
• Opened 15 new stores during the quarter

Negative

• SG&A expenses increased to 26.5% of net sales from 25.5% YoY
• Operating margin decreased to 9.4% from 10.3% YoY
• CEO departure announced
• Average inventory per store increased 10.5% on same store basis

Insights

Financial Analyst

Boot Barn delivered strong Q2 FY2025 results with $425.8M in net sales, up 13.7% year-over-year. Notable metrics include 4.9% same-store sales growth and diluted EPS of $0.95, beating previous guidance. The company's expansion continues with 15 new stores opened, maintaining robust growth trajectory.

The financial outlook remains positive with projected FY2025 revenue of $1.874B to $1.907B, representing 12.4% to 14.4% growth. Margin performance shows stability with gross margin at 35.9%, slightly up from last year. The planned CEO transition, while significant, comes at a time of strong operational performance and clear succession planning.

The company's inventory position increased 10.5% per store, suggesting confidence in holiday season demand. With zero debt drawn on their $250M credit facility and $37M cash on hand, the balance sheet remains healthy for continued expansion.

Retail Industry Expert

The CEO transition marks a pivotal moment for Boot Barn, but several factors mitigate potential disruption. The incoming interim CEO, John Hazen, brings valuable digital expertise and internal knowledge from his CDO role. His background in implementing AI technologies and driving e-commerce growth (demonstrated by 10.1% e-commerce same-store sales increase) positions the company well for modern retail challenges.

The company's store expansion strategy remains aggressive with 60 planned openings for FY2025, indicating confidence in their brick-and-mortar model. Strong performance across both physical (4.3% SSS) and digital channels shows successful omnichannel execution. The executive chairman's increased involvement should provide stability during the transition period.

IRVINE, Calif.--(BUSINESS WIRE)-- Boot Barn Holdings, Inc. (NYSE: BOOT) (the “Company”) today announced its financial results for the second fiscal quarter ended September 28, 2024. A Supplemental Financial Presentation is available at investor.bootbarn.com.

In addition, the Company announced that Jim Conroy plans to step down as the Company’s Chief Executive Officer (CEO) and President and as a member of the Company’s Board of Directors, effective November 22, 2024, to pursue an opportunity as CEO of Ross Stores, Inc (NASDAQ: ROST).

CEO Transition

The Company further announced that John Hazen, the Company’s current Chief Digital Officer, will assume the role of Interim CEO, effective November 22, 2024. Mr. Hazen joined the Company in 2018 with responsibility for e-commerce, marketing, and the customer experience. Additionally, Peter Starrett, the Company’s current Chairman of the Board of Directors, will assume the role of Executive Chairman, effective November 22, 2024. Mr. Conroy will remain with the Company through November 22, 2024 to assist with an orderly transition.

Mr. Starrett stated, “John Hazen is very highly regarded within the Boot Barn organization and has a diverse background that includes brand building, digital, and store roles. He has a strong track record of growing sales and profits both at Boot Barn and prior to joining the Company. He also has been extremely instrumental in advancing Boot Barn’s customer-facing technology capabilities including many industry-leading applications of artificial intelligence. I am confident in his ability to step into the role as Interim CEO. Personally, I am looking forward to providing oversight and mentorship as Executive Chairman while the Board conducts an internal and external search before making a permanent decision on our next CEO.”

John Hazen commented, "I am deeply honored to step into this role and incredibly grateful to Jim for his visionary leadership and unwavering support. I also want to express my heartfelt thanks to the Board for their trust and to every member of this incredible team for their dedication that makes this Company exceptional. Together, we will continue building on the strong foundation that we have created and will move forward with confidence, tenacity, and purpose.”

Mr. Starrett added, “The Board recognizes the great contributions Jim has made during his tenure as Boot Barn’s CEO. When he assumed the CEO reins 12 years ago, Boot Barn was one of several regional retail chains specializing in western and work products. His focused approach on the execution of our strategic initiatives has led to one of the most exceptional growth stories in the retail industry. Today, Boot Barn is a national chain of 426 stores and the industry leader by a wide margin. On behalf of all Boot Barn partners, we wish Jim continued success in his next endeavor.”

Mr. Conroy commented, “After 12 incredible years, I am filled with immense gratitude for this Company and the extraordinary people who have been by my side throughout this journey. Together, we’ve built something truly special, and I will forever cherish the shared successes, challenges, and memories we created. Thank you for your trust, dedication, and passion—I leave with a heart full of pride and appreciation for every one of you.”

Second Quarter Fiscal Year 2025 Financial Results

For the quarter ended September 28, 2024 compared to the quarter ended September 30, 2023:

• Net sales increased 13.7% over the prior-year period to $425.8 million.
• Same store sales increased 4.9% compared to the prior-year period, comprised of an increase of 4.3% in retail store same store sales and an increase of 10.1% in e-commerce same store sales.
• Net income was $29.4 million, or $0.95 per diluted share, compared to $27.7 million, or $0.90 per diluted share, in the prior-year period.
• The Company opened 15 new stores, bringing its total store count to 425.

Jim Conroy, President and Chief Executive Officer said, "Our fiscal second quarter saw broad-based growth in same store sales, the addition of 15 new stores and a healthy beat to guidance in earnings per diluted share. Our team's excellent execution has driven improving trends across all channels, store geographies, and major merchandise classifications, positioning us well for the upcoming holiday season. As we manage through an orderly transition over the next month, I feel great about the condition of the business and am confident in the team’s ability, under John’s leadership, to execute on the four strategic initiatives and to drive future growth in sales and earnings."

Operating Results for the Second Quarter Ended September 28, 2024 Compared to the Second Quarter Ended September 30, 2023

• Net sales increased 13.7% to $425.8 million from $374.5 million in the prior-year period. Consolidated same store sales increased 4.9%, with retail store same store sales increasing 4.3% and e-commerce same store sales increasing 10.1%. 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 $152.9 million, or 35.9% of net sales, compared to $133.9 million, or 35.8% 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. The increase in gross profit rate of 10 basis points was driven primarily by a 70 basis-point increase in merchandise margin rate, partially offset by 60 basis points of deleverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was primarily the result of supply chain efficiencies, while the deleverage in buying, occupancy and distribution center costs was driven by the occupancy costs of new stores.

• Selling, general and administrative expenses were $112.9 million, or 26.5% of net sales, compared to $95.3 million, or 25.5% 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, incentive-based compensation, marketing expenses, and legal expenses in the current year. Selling, general and administrative expenses as a percentage of net sales increased by 100 basis points primarily as a result of higher incentive-based compensation, legal expenses, and marketing expenses in the current year, partially offset by lower store payroll expenses.

• Income from operations increased $1.4 million to $40.0 million, or 9.4% of net sales, compared to $38.6 million, or 10.3% of net sales, in the prior-year period, primarily due to the factors noted above.

• Net income was $29.4 million, or $0.95 per diluted share, compared to net income of $27.7 million, or $0.90 per diluted share, in the prior-year period. The increase in net income is primarily attributable to the factors noted above.

Operating Results for the Six Months Ended September 28, 2024 Compared to the Six Months Ended September 30, 2023

• Net sales increased 12.0% to $849.2 million from $758.2 million in the prior-year period. Consolidated same store sales increased 3.1%, with retail store same store sales increasing 2.5% and e-commerce same store sales increasing 8.4%. 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 $309.6 million, or 36.5% of net sales, compared to $275.9 million, or 36.4% 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. The increase in gross profit rate of 10 basis points was driven primarily by an 80 basis-point increase in merchandise margin rate, partially offset by 70 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 occupancy costs of new stores.

• Selling, general and administrative expenses were $219.4 million, or 25.8% of net sales, compared to $191.1 million, or 25.2% 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, marketing expenses, and incentive-based compensation in the current year. Selling, general and administrative expenses as a percentage of net sales increased by 60 basis points primarily as a result of higher incentive-based compensation and marketing expenses in the current year, partially offset by lower store payroll and store-related expenses.

• Income from operations increased $5.4 million to $90.2 million, or 10.6% of net sales, compared to $84.8 million, or 11.2% of net sales, in the prior-year period, primarily due to the factors noted above.

• Net income was $68.3 million, or $2.21 per diluted share, compared to net income of $61.9 million, or $2.03 per diluted share, in the prior-year period. The increase in net income is primarily attributable to the factors noted above.

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
		Ended				Four Weeks			Four Weeks			Five Weeks				Four Weeks
		September 28, 2024				Fiscal July			Fiscal August			Fiscal September				Fiscal October
Total Net Sales Growth		13.7	%			8.8	%		14.7	%		16.8	%			14.6	%
Retail Stores SSS		4.3	%			(0.9)	%		5.3	%		7.5	%			4.3	%
E-commerce SSS		10.1	%			5.0	%		12.1	%		12.2	%			12.5	%
Consolidated SSS		4.9	%			(0.3)	%		6.0	%		8.0	%			5.1	%
E-commerce as a % of Net Sales		9.5	%			9.2	%		9.4	%		9.9	%			9.3	%

Balance Sheet Highlights as of September 28, 2024

• Cash of $37 million.
• Zero drawn under the $250 million revolving credit facility.
• Average inventory per store increased approximately 10.5% on a same store basis compared to September 30, 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 first quarter earnings report on August 7, 2024. Please note that the Company’s guidance excludes any benefits and costs related to the CEO transition.

For the fiscal year ending March 29, 2025 the Company now expects:

• To open a total of 60 new stores.
• Total sales of $1.874 billion to $1.907 billion, representing growth of 12.4% to 14.4% over the prior year.
• Same store sales growth of approximately 3.0% to 5.0%, with retail store same store sales growth of approximately 2.5% to 4.5% and e-commerce same store sales growth of approximately 7.5% to 9.5%.
• Gross profit between $696.9 million and $713.4 million, or approximately 37.2% to 37.4% of sales.
• Selling, general and administrative expenses between $476.5 million and $480.4 million, or approximately 25.4% to 25.2% of sales.
• Income from operations between $220.4 million and $233.0 million, or approximately 11.8% to 12.2% of sales.
• Effective tax rate of 26.6% for the remaining six months of the fiscal year.
• Net income of $164.4 million to $173.7 million.
• Net income per diluted share of $5.30 to $5.60, based on 31.0 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 third quarter ending December 28, 2024, the Company now expects:

• Total sales of $582 million to $595 million, representing growth of 11.8% to 14.3% over the prior-year period.
• Same store sales growth of approximately 3.5% to 6.0%, with retail store same store sales growth of approximately 3.0% to 5.0% and e-commerce same store sales growth of approximately 7.5% to 10.0%.
• Income from operations between $82.7 million and $87.3 million, or approximately 14.2% to 14.7% of sales.
• Net income per diluted share of $1.96 to $2.07, based on 31.0 million weighted average diluted shares outstanding.

Conference Call Information

A conference call to discuss the financial results for the second quarter of fiscal year 2025 is scheduled for today, October 28, 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 (844) 481-2552. 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 November 28, 2024, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 10193684. 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 426 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)

		September 28,				March 30,
		2024				2024
Assets
Current assets:
Cash and cash equivalents		$	37,377			$	75,847
Accounts receivable, net			7,886				9,964
Inventories			712,991				599,120
Prepaid expenses and other current assets			48,851				44,718
Total current assets			807,105				729,649
Property and equipment, net			368,289				323,667
Right-of-use assets, net			429,020				390,501
Goodwill			197,502				197,502
Intangible assets, net			58,677				58,697
Other assets			6,184				5,576
Total assets		$	1,866,777			$	1,705,592
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	153,564			$	132,877
Accrued expenses and other current liabilities			134,302				116,477
Short-term lease liabilities			70,540				63,454
Total current liabilities			358,406				312,808
Deferred taxes			41,267				42,033
Long-term lease liabilities			446,068				403,303
Other liabilities			4,378				3,805
Total liabilities			850,119				761,949
Stockholders’ equity:
Common stock, $0.0001 par value; September 28, 2024 - 100,000 shares authorized, 30,824 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			244,931				232,636
Retained earnings			791,363				723,026
Less: Common stock held in treasury, at cost, 298 and 228 shares at September 28, 2024 and March 30, 2024, respectively			(19,639	)			(12,022	)
Total stockholders’ equity			1,016,658				943,643
Total liabilities and stockholders’ equity		$	1,866,777			$	1,705,592

Boot Barn Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

		Thirteen Weeks Ended							Twenty-Six Weeks Ended
		September 28,			September 30,				September 28,			September 30,
		2024			2023				2024			2023
Net sales		$	425,799		$	374,456			$	849,185		$	758,151
Cost of goods sold			272,941			240,540				539,578			482,272
Gross profit			152,858			133,916				309,607			275,879
Selling, general and administrative expenses			112,879			95,338				219,406			191,056
Income from operations			39,979			38,578				90,201			84,823
Interest expense			384			463				735			1,486
Other income (loss), net			949			(50	)			1,545			174
Income before income taxes			40,544			38,065				91,011			83,511
Income tax expense			11,116			10,385				22,674			21,578
Net income		$	29,428		$	27,680			$	68,337		$	61,933
Earnings per share:
Basic		$	0.96		$	0.92			$	2.24		$	2.06
Diluted		$	0.95		$	0.90			$	2.21		$	2.03
Weighted average shares outstanding:
Basic			30,510			30,137				30,471			30,029
Diluted			30,899			30,627				30,859			30,540

Boot Barn Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

		Twenty-Six Weeks Ended
		September 28,				September 30,
		2024				2023
Cash flows from operating activities
Net income		$	68,337			$	61,933
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			29,540				22,597
Stock-based compensation			10,864				7,833
Amortization of intangible assets			20				27
Noncash lease expense			32,229				26,487
Amortization and write-off of debt issuance fees and debt discount			54				54
Loss on disposal of assets			134				298
Deferred taxes			(766	)			2,993
Changes in operating assets and liabilities:
Accounts receivable, net			2,097				3,046
Inventories			(113,871	)			3,921
Prepaid expenses and other current assets			(4,397	)			9,243
Other assets			(608	)			1,302
Accounts payable			19,722				7,051
Accrued expenses and other current liabilities			9,897				13,600
Other liabilities			573				510
Operating leases			(20,283	)			(15,435	)
Net cash provided by operating activities		$	33,542			$	145,460
Cash flows from investing activities
Purchases of property and equipment			(65,403	)			(64,687	)
Net cash used in investing activities		$	(65,403	)		$	(64,687	)
Cash flows from financing activities
Payments on line of credit, net			—				(66,043	)
Repayments on debt and finance lease obligations			(423	)			(428	)
Tax withholding payments for net share settlement			(7,617	)			(2,412	)
Proceeds from the exercise of stock options			1,431				8,582
Net cash used in financing activities		$	(6,609	)		$	(60,301	)
Net (decrease)/increase in cash and cash equivalents			(38,470	)			20,472
Cash and cash equivalents, beginning of period			75,847				18,193
Cash and cash equivalents, end of period		$	37,377			$	38,665
Supplemental disclosures of cash flow information:
Cash paid for income taxes		$	17,770			$	2,822
Cash paid for interest		$	677			$	1,399
Supplemental disclosure of non-cash activities:
Unpaid purchases of property and equipment		$	24,061			$	14,103

Boot Barn Holdings, Inc.
Store Count

		Quarter Ended			Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended
		September 28,			June 29,		March 30,		December 30,		September 30,		July 1,		April 1,		December 24,
		2024			2024		2024		2023		2023		2023		2023		2022
Store Count (BOP)		411			400		382		371		361		345		333		321
Opened/Acquired		15			11		18		11		10		16		12		12
Closed		(1	)		—		—		—		—		—		—		—
Store Count (EOP)		425			411		400		382		371		361		345		333

Boot Barn Holdings, Inc.
Selected Store Data

																								Fourteen				Thirteen
		Thirteen Weeks Ended																						Weeks Ended				Weeks Ended
		September 28,			June 29,			March 30,				December 30,				September 30,				July 1,				April 1,				December 24,
		2024			2024			2024				2023				2023				2023				2023				2022
Selected Store Data:
Same Store Sales growth/(decline)			4.9	%		1.4	%		(5.9	)%			(9.7	)%			(4.8	)%			(2.9	)%			(5.5	)%			(3.6	)%
Stores operating at end of period			425			411			400				382				371				361				345				333
Comparable stores operating during period(1)			363			349			335				322				312				302				290				280
Total retail store selling square footage, end of period (in thousands)			4,720			4,547			4,371				4,153				4,027				3,914				3,735				3,598
Average retail store selling square footage, end of period			11,105			11,063			10,929				10,872				10,855				10,841				10,825				10,806
Average sales per comparable store (in thousands)(2)		$	952		$	980		$	917			$	1,256			$	950			$	1,014			$	1,092			$	1,424
(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/20241028994741/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 were Boot Barn's (BOOT) Q2 FY2025 earnings per share?

Boot Barn reported earnings of $0.95 per diluted share for Q2 FY2025, compared to $0.90 in the prior year period.

Why is Boot Barn's (BOOT) CEO Jim Conroy stepping down?

Jim Conroy is stepping down as CEO effective November 22, 2024, to pursue an opportunity as CEO of Ross Stores (ROST).

Who will be Boot Barn's (BOOT) new CEO?

John Hazen, the current Chief Digital Officer, will assume the role of Interim CEO effective November 22, 2024, while the board conducts an internal and external search for a permanent CEO.

What is Boot Barn's (BOOT) same-store sales growth for Q2 FY2025?

Boot Barn reported a 4.9% increase in same-store sales, with retail store same-store sales up 4.3% and e-commerce same-store sales up 10.1%.