Boot Barn Holdings reported preliminary results for the third quarter of fiscal year 2022 ended December 25 that were ahead of Wall Street consensus targets.

The retailer updated its guidance in advance of its participation in the ICR Conference on Monday, January 10.

Due to the impact of COVID-19 on the company’s results in its third fiscal quarter ended December 26, 2020, it has provided the below quarterly highlights in comparison to its third fiscal quarter ended December 28, 2019, two years ago.

Preliminary Results for the Third Quarter of Fiscal Year 2022

For the third quarter ended December 25, 2021, the company expects to report:

  • Net sales increased 71.1 percent to approximately $485.9 million, compared to the quarter ended December 28, 2019, two years ago;
  • Compared to the quarter ended December 28, 2019, same-store sales increased approximately 61.0 percent, including an increase in retail store same-store sales of approximately 59.1 percent and an increase in e-commerce sales of approximately 69.3 percent;
  • Net income per diluted share of approximately $2.27 based on 30.4 million weighted average diluted shares outstanding, compared to net income per diluted share of approximately $0.85 in the two-year ago period. Net income per diluted share in both periods includes an approximately $0.04 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 175 percent to $2.23, compared to $0.81 in the two-year ago period; and
  • Cash of $115.0 million. During the third quarter, the Company paid off the remaining $50.0 million term loan and ended the quarter with no debt outstanding.

Sales of $485.9 million are ahead of Wall Street’s consensus estimate of $452.7 million. EPS of $2.27 was ahead of the consensus estimate of $1.93.

Jim Conroy, president and chief executive officer, said, “Following an incredibly strong first half of fiscal 2022, we delivered outstanding sales growth once again in the third quarter. Our results were a combination of ongoing customer growth coupled with great preparation and excellent execution by the entire team. Despite supply chain and labor challenges in the retail industry at large, we were able to successfully maintain a strong inventory position and recruit enough seasonal associates for our stores to drive outsized sales performance and continue to grow our market share. The performance was further highlighted by strong full-price selling and expansion of our exclusive brand penetration which helped fuel a 420-basis point increase in merchandise margin when compared to the period 2 years ago and a 175 percent improvement in earnings per share. We are very pleased that our momentum has continued into the fourth quarter, particularly as we cycled strong results in the last year period fueled by government stimulus payments.”

Boot Barn provided the update in anticipation of management’s appearance at the 2022 ICR conference.

Photo courtesy Boot Barn