Boot Barn Holdings, Inc. reported earnings in the fiscal third quarter ended December 27 climbed 14.2 percent, driven by a 5.7 percent increase, topping company guidance. The Western-themed footwear retailer expects fiscal fourth-quarter comps to climb 3.0 percent to 5.0 percent.

Results for the quarter were in line with a pre-announcement given on January 11.

For the quarter ended December 27, 2025 compared to the quarter ended December 28, 2024:

  • Net sales increased 16.0 percent over the prior-year period to $705.6 million.
  • Same store sales increased 5.7 percent, with retail store same store sales increasing 3.7 percent and e-commerce same store sales increasing 19.6 percent.
  • Net income was $85.8 million, or $2.79 per diluted share, compared to $75.1 million, or $2.43 per diluted share, in the prior-year period.
  • The company opened 25 new stores, bringing its total store count to 514 as of the quarter end.

Company guidance had called for sales between $688 million and $700 million, same-store sales to increase in the range of 2.5 percent to 4.5 percent, and EPS between $2.47 to $2.59.

“We are very pleased with our third quarter results and the strength of our holiday performance across the chain,” commented John Hazen, chief executive officer. “Sales increased 16 percent year over year, reflecting broad-based demand across merchandise categories, channels, and geographies. Merchandise margin expanded by 110 basis points, and combined with solid expense control, drove strong earnings per diluted share of $2.79.”

Hazen continued, “We are encouraged by the start to our fourth fiscal quarter. Through the first three and a half weeks of the quarter, prior to recent winter storms, consolidated same store sales grew high-single-digits. Including the impact of these storms, consolidated same store sales increased 5.7 percent for the first five weeks of the fourth fiscal quarter.”

Operating Results for the Third Quarter Ended December 27, 2025
(compared to the Third Quarter Ended December 28, 2024)

Net sales increased 16.0 percent to $705.6 million from $608.2 million in the prior-year period. Consolidated same store sales increased 5.7 percent, with retail store same store sales increasing 3.7 percent and e-commerce same store sales increasing 19.6 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 $281.2 million, or 39.9 percent of net sales, compared to $238.9 million, or 39.3 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 60 basis-point increase in gross profit rate was driven primarily by a 110 basis-point increase in merchandise margin rate, partially offset by 50 basis points of deleverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was primarily the result of buying economies of scale, supply chain efficiencies and growth in exclusive brand penetration. The deleverage in buying, occupancy and distribution center costs was primarily driven by the occupancy costs of new stores.

Selling, general and administrative (SG&A) expenses were $166.5 million, or 23.6 percent of net sales, compared to $139.4 million, or 22.9 percent of net sales, in the prior-year period. The increase in SG&A expenses compared to the prior-year period was primarily the 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 period. SG&A expenses as a percentage of net sales deleveraged by 70 basis points compared to the prior-year period. Included in the prior-year period is a net benefit of $6.7 million related to the company’s former Chief Executive Officer’s (CEO) resignation. Excluding this benefit in the prior-year period, SG&A expenses as a percentage of net sales leveraged by 40 basis points.

Income from operations increased $15.3 million to $114.8 million, or 16.3 percent of net sales, compared to $99.5 million, or 16.4 percent of net sales, in the prior-year period, primarily due to the factors noted above.

Income tax expense was $28.9 million, or a 25.2 percent effective tax rate, compared to $24.1 million, or a 24.3 percent effective tax rate, in the prior-year period. The increase in the effective tax rate was primarily due to fewer nondeductible expenses in the prior-year period.

Net income was $85.8 million, or $2.79 per diluted share, compared to $75.1 million, or $2.43 per diluted share, in the prior-year period. Included in net income per diluted share in the prior-year period is a net benefit of $6.7 million, or $0.22 per share, related to the company’s former CEO’s resignation. The increase in net income was primarily attributable to the factors noted above.

Operating Results for the Nine Months Ended December 27, 2025
(compared to the Nine Months Ended December 28, 2024)

Net sales increased 17.7 percent to $1.715 billion from $1.457 billion in the prior-year period. Consolidated same store sales increased 7.6 percent, with retail store same store sales increasing 6.6 percent and e-commerce same store sales increasing 15.6 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 $662.6 million, or 38.6 percent of net sales, compared to $548.5 million, or 37.6 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 increase in gross profit rate was driven primarily by a 120 basis-point increase in merchandise margin rate, partially offset by 20 basis points of deleverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was primarily the result of better buying economies of scale, growth in exclusive brand penetration, and supply chain efficiencies. The deleverage in buying, occupancy and distribution center costs was primarily driven by the occupancy costs of new stores.

SG&A expenses were $420.7 million, or 24.5 percent of net sales, compared to $358.8 million, or 24.6 percent of net sales, in the prior-year period. The increase in SG&A expenses compared to the prior-year period was primarily the 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 period. SG&A expenses as a percentage of net sales leveraged by 10 basis points primarily as a result of lower corporate general and administrative expenses and legal expenses in the current-year period. Included in the prior-year period is a net benefit of $6.7 million related to the company’s former CEO’s resignation. Excluding this benefit in the prior-year period, SG&A expenses as a percentage of net sales leveraged by 60 basis points.

Income from operations increased $52.3 million to $241.9 million, or 14.1 percent of net sales, compared to $189.7 million, or 13.0 percent of net sales, in the prior-year period, primarily due to the factors noted above.

Income tax expense was $61.5 million, or a 25.3 percent effective tax rate, compared to $46.8 million, or a 24.6 percent effective tax rate, in the prior-year period. The increase in the effective tax rate was primarily due to a lower income tax benefit from income tax accounting for stock-based compensation in the current-year period and changes to state enacted tax rates for the period ended December 27, 2025.

Net income was $181.4 million, or $5.90 per diluted share, compared to $143.4 million, or $4.64 per diluted share, in the prior-year period. Included in net income per diluted share in the prior-year period is a net benefit of $6.7 million, or $0.22 per share, related to the company’s former CEO’s resignation. The increase in net income was primarily attributable to the factors noted above.

Balance Sheet Highlights as of December 27, 2025

  • Cash of $200 million.
  • The company repurchased 67,279 and 218,032 shares of its common stock during the thirteen and thirty-nine weeks ended December 27, 2025, respectively, for an aggregate purchase price of $12.5 million and $37.5 million, respectively, under its $200 million authorized repurchase program.
  • Average inventory per store increased approximately 4.1 percent on a same-store basis compared to the quarter ended December 28, 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 in its entirety the previous guidance issued in its second quarter earnings report on October 29, 2025. For the fiscal year ending March 28, 2026, the company now expects:

  • To open 70 new stores.
  • Total sales of $2.24 billion to $2.25 billion, representing growth of 17 percent to 18 percent over fiscal year 2025.
  • Consolidated same store sales growth of 6.5 percent to 7.0 percent, with retail store same store sales growth of 5.5 percent to 6.0 percent and e-commerce same store sales growth of 14.5 percent to 15.0 percent.
  • Merchandise margin between $1.138 billion and $1.144 billion, or approximately 50.8 percent of sales.
  • Gross profit between $850 million and $855 million, or approximately 37.9 percent to 38.0 percent of sales.
  • SG&A expenses between $553 million and $554 million, or approximately 24.7 percent to 24.6 percent of sales.
  • Income from operations between $297 million and $301 million, or approximately 13.3 percent to 13.4 percent of sales.
  • Net income of $222.8 million to $225.8 million.
  • Net income per diluted share of $7.25 to $7.35, based on 30.7 million weighted average diluted shares outstanding.
  • Effective tax rate of 26.0 percent for the remaining three months of the fiscal year.
  • Capital expenditures between $125.0 million and $130.0 million, which is net of estimated landlord tenant allowances of $45.0 million.

For the fourth fiscal quarter ending March 28, 2026, the company expects:

  • Total sales of $525 million to $535 million, representing growth of 16 percent to 18 percent over the prior-year period.
  • Consolidated same store sales growth of 3.0 percent to 5.0 percent, with retail store same store sales growth of 2.2 percent to 4.2 percent and e-commerce same store sales growth of 11.0 percent to 13.0 percent.
  • Merchandise margin between $265 million and $270 million, or approximately 50.4 percent to 50.5 percent of sales.
  • Gross profit between $187 million and $193 million, or approximately 35.7 percent to 36.1 percent of sales.
  • Selling, general and administrative expenses between $132 million and $134 million, or approximately 25.1 percent to 25.0 percent of sales.
  • Income from operations between $55 million and $59 million, or approximately 10.5 percent to 11.1 percent of sales.
  • Net income per diluted share of $1.35 to $1.45, based on 30.7 million weighted average diluted shares outstanding.

Image courtesy Boot Barn