Profits at Boot Barn, Inc. advanced 13.4 percent in the fiscal first quarter. Sales grew 10 percent from new stores, 1.4 percent same-store growth and 6.7 percent e-commerce growth.

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

  • Net sales increased 10.3 percent over the prior-year period to $423.4 million, topping company guidance in the range of $399 million to $407 million
  • Same store sales increased 1.4 percent compared to the prior-year period, comprised of an increase of 0.8 percent in retail store same store sales and an increase of 6.7 percent in e-commerce same store sales. Guidance had called for same-store sales to be down in the range of 4.5 percent to 2.5 percent, with retail store same store sales declines of 5.0 percent to 3.0 percent and e-commerce same store sales growth of flat to up 2.0 percent.
  • 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. Guidance had called for EPS in the range of 94 cents to $1.00.
  • 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 percent 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 percent to $423.4 million from $383.7 million in the prior-year period. Consolidated same store sales increased 1.4 percent, with retail store same store sales increasing 0.8 percent and e-commerce same store sales increasing 6.7 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 $156.7 million, or 37.0 percent of net sales, compared to $142.0 million, or 37.0 percent 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 percent of net sales, compared to $95.7 million, or 24.9 percent 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 percent of net sales, compared to $46.2 million, or 12.1 percent 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.

Balance Sheet Highlights as of June 29, 2024

  • Cash of $83 million;
  • Zero drawn under the $250 million revolving credit facility; and
  • Average inventory per store increased approximately 6 percent 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 percent to 11.0 percent over the prior year.
    Same store sales decline of approximately (1.0) percent to growth of 1.2 percent, with a retail store same store sales decline of approximately (1.3) percent to growth of 0.7 percent and e-commerce same store sales growth of approximately 3.0 percent to 5.5 percent;
  • Gross profit between $672.0 million and $688.8 million, or approximately 37.0 percent to 37.2 percent of sales.
    Selling, general and administrative expenses between $464.9 million and $469.4 million, or approximately 25.6 percent to 25.4 percent of sales;
  • Income from operations between $207.0 million and $219.4 million, or approximately 11.4 percent to 11.9 percent of sales.
  • Effective tax rate of 26.3 percent for the remaining nine months of the fiscal year;
  • Net income of $156.1 million to $165.4 million; and
  • 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 percent to 10.0 percent over the prior-year period;
  • Same store sales decline of approximately (0.5) percent to growth of 1.4 percent, with a retail store same store sales decline of approximately (1.0) percent to growth of 1.0 percent and e-commerce same store sales growth of approximately 3.0 percent to 5.0 percent; and
  • Income from operations between $33.2 million and $35.7 million, or approximately 8.2 percent to 8.7 percent of sales.
  • Net income per diluted share of $0.81 to $0.87, based on 30.9 million weighted average diluted shares outstanding.

Image courtesy Boot Barn