Boot Barn Holdings Inc. said it expects both earnings and sales to top Wall Street’s consensus estimates in the third quarter ended December 26.
The retailer provided the update in advance of its participation in the ICR Conference on Monday, January 11, 2021.
For the third quarter ended December 26, 2020, the company expects to report:
- Net sales increased 6.5 percent to approximately $302.3 million. Wall Street’s consensus has been $297.2 million;
- Same-store sales increased approximately 4.6 percent, including an increase in retail store same-store sales of approximately 1.9 percent and an increase in e-commerce sales of approximately 16.3 percent; and
- Net income per diluted share of approximately $1.00 based on 29.6 million weighted average diluted shares outstanding, compared to net income per diluted share of approximately 85 cents in the prior-year period. Net income per diluted share in the current-year period includes an approximately $0.01 per share benefit due to income tax accounting for share-based compensation. Net income per diluted share in the prior-year period includes an approximately 4 cents per share benefit due to income tax accounting for share-based compensation. Excluding the tax benefit in both periods, net income per diluted share in the current-year period grew 22.2 percent to 99 cents, compared to 81 cents in the prior-year period. Adjusted earnings surpassed analysts’ average expectations of 87 cents.
“We are very pleased with our third-quarter performance as results exceeded our expectations across the board,” commented Jim Conroy, chief executive officer. “Our top-line was highlighted by mid-single-digit same-store sales growth as retail store comps returned to positive territory despite ongoing headwinds from COVID-19, and our e-commerce business remained strong. The combination of our innovative merchandise strategies, solid supply chain management and disciplined promotional activity fueled strong full-price selling and a meaningful improvement in merchandise margin. These dynamics contributed to higher profitability year-over-year, with EPS growing more than 20 percent when excluding the impact of tax benefits in both years. With the fourth quarter off to a strong start, we believe we are well-positioned for a solid finish to the current fiscal year.”
The foregoing expected results are preliminary and remain subject to the completion of normal quarter-end accounting procedures and closing adjustments. Due to the ongoing uncertainty created by COVID-19, the company is not providing fourth quarter and fiscal year 2021 guidance at this time.
Photo courtesy Boot Barn