Boot Barn Holdings, Inc. lifted its guidance for the year after reporting second-quarter results that came in well ahead of expectations. For the quarter ended June 28, 2025, compared to the quarter ended June 29, 2024, Boot Barn reported:

  • Net sales increased 19.1 percent over the prior-year period to $504.1 million (guidance had called for sales in the range of $483 million to $491 million).
  • Same-store sales increased 9.4 percent, with retail store same-store sales increasing 9.5 percent and e-commerce same-store sales increasing 9.3 percent (guidance had called for same-store sales in the range of 4.0 percent to 6.0 percent).
  • Net income was $53.4 million, or $1.74 per diluted share, up 37.3 percent compared to $38.9 million, or $1.26 per diluted share, in the prior-year period (guidance had called for EPS in the range of $1.44 to $1.52).
  • The company opened 14 new stores, bringing its total store count to 473 as of the end of the quarter.

John Hazen, chief executive officer, commented, “We are pleased with our strong start to fiscal 2026, highlighted by high-single digit consolidated same-store sales growth and successful new store openings, which drove 19 percent overall revenue growth. Demand was broad-based, with strength across all major merchandise categories and geographies. At the same time, we improved gross profit 210 basis points, led by robust merchandise margin expansion, which, along with solid expense control, fueled a 38 percent increase in earnings per diluted share. As a result of our better-than-expected first quarter performance and the continued strength we have seen as we moved into our second quarter, we are raising our full-year outlook while maintaining our prior guidance for the second half of the year. With our four strategic initiatives delivering consistent results and the opportunity we have to double our store count, we remain confident in our ability to continue generating value for our shareholders over the long term.”

Operating Results for the First Quarter Ended June 28, 2025
(compared to the first quarter ended June 29, 2024)

  • Net sales increased 19.1 percent to $504.1 million from $423.4 million in the prior-year period. Consolidated same-store sales increased 9.4 percent, with retail store same-store sales increasing 9.5 percent and e-commerce same-store sales increasing 9.3 percent. 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 $197.2 million, or 39.1 percent of net sales, compared to $156.7 million, or 37.0 percent of net sales, in the prior-year period. The increase in gross profit was primarily due to an increase in sales and merchandise margin, partially offset by the occupancy costs of new stores. The 210 basis-point increase in gross profit rate was driven primarily by a 180 basis-point increase in merchandise margin rate and 30 basis points of leverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was primarily the result of better buying economies of scale, lower freight expense, and growth in exclusive brand penetration. The leverage in buying, occupancy and distribution center costs was driven by lower incentive-based compensation and lower distribution center labor costs in the current-year period, partially offset by the occupancy costs of new stores.
  • Selling, general and administrative expenses were $126.5 million, or 25.1 percent of net sales, compared to $106.5 million, or 25.2 percent of net sales, in the prior-year period. The increase in selling, general, and administrative expenses compared to the prior-year period was primarily the result of higher store payroll and store-related expenses associated with operating more stores, marketing expenses, and corporate general and administrative expenses in the current year. Selling, general and administrative expenses as a percentage of net sales decreased by 10 basis points primarily as a result of lower incentive-based compensation in the current-year period, partially offset by higher marketing expenses due to timing.
  • Income from operations increased $20.5 million to $70.7 million, or 14.0 percent of net sales, compared to $50.2 million, or 11.9 percent of net sales, in the prior-year period, primarily due to the factors noted above.
  • Income tax expense was $17.9 million, or a 25.1 percent effective tax rate, compared to $11.6 million, or a 22.9 percent effective tax rate, in the prior-year period. The increase in the effective tax rate was primarily due to a lower tax benefit from income tax accounting for stock-based compensation in the current year, compared to the prior year.
  • Net income was $53.4 million, or $1.74 per diluted share, compared to $38.9 million, or $1.26 per diluted share, in the prior-year period. The increase in net income is primarily attributable to the factors noted above

Balance Sheet Highlights as of June 28, 2025

  • Cash of $95 million.
  • The company repurchased 77,959 shares of its common stock for an aggregate purchase price of $12.5 million during the current year under its $200 million authorized repurchase program.
  • Average inventory per store increased approximately 2.7 percent on a same-store basis compared to the quarter ended June 29, 2024.
  • Zero drawn under the $250 million revolving credit facility.

Fiscal Year 2026 Outlook
The company is providing updated guidance for the fiscal year ending March 28, 2026, which supersedes the previous guidance issued in its fourth-quarter and fiscal year 2025 earnings report on May 14, 2025, in its entirety. For the fiscal year ending March 28, 2026, the company now expects:

  • To open between 65 and 70 new stores.
  • Total sales of $2.100 billion to $2.180 billion, representing growth of 10 percent to 14 percent over fiscal year 2025. Previously, guidance had called for sales in the range of $2.070 billion to $2.150 billion, representing growth of 8 percent to 13 percent.
  • Same-store sales declines of (0.5) percent to growth of 3.5 percent, with retail store same-store sales declines of (1.0) percent to growth of 3.0 percent and e-commerce same-store sales growth of 3.5 percent to 8.5 percent. Previously, guidance had called for same-store sales in the range of a decline of 2.0 percent to growth.
  • Merchandise margin between $1.048 billion and $1.096 billion, or approximately 49.9 percent to 50.3 percent of sales.
  • Gross profit between $764 million and $812 million, or approximately 36.4 percent to 37.2 percent of sales.
  • Selling, general and administrative expenses between $525 million and $535 million, or approximately 25.0 percent to 24.5 percent of sales.
  • Income from operations between $239 million and $277 million, or approximately 11.4 percent to 12.7 percent of sales.
  • Net income of $178.0 million to $205.8 million.
  • Net income per diluted share of $5.80 to $6.70, based on 30.7 million weighted average diluted shares outstanding.
  • The company now expects an effective tax rate of 26.0 percent for the remaining nine months of the fiscal year. Previously, the company had projected EPS of $5.50 to $6.40. This update increases previously anticipated earnings per share.
  • Capital expenditures between $115.0 million and $120.0 million, which is net of estimated landlord-tenant allowances of $35.5 million.

Image courtesy Boot Barn