Boot Barn Holdings Inc. reported that results in the third quarter ended December 24 are expected to arrive at the lower end of its guidance.

Estimated results for the third quarter ended December 24, 2016 were as follows:

  • Preliminary net sales increased 3 percent to approximately $199 million.
  • Preliminary consolidated same-store sales increased approximately 0.2 percent, with e-commerce sales outperforming stores. This compares with previous third-quarter guidance of slightly positive consolidated same-store sales.
  • Preliminary net income per diluted share of approximately 39 cents, compared to previous guidance of 38 to 43 cents.
  • The company opened seven new stores.

Jim Conroy, chief executive officer, commented, “I am pleased with our performance in the third quarter, in which we delivered positive same-store sales growth, achieved earnings in line with our guidance and opened seven new stores. Despite macro challenges of unseasonably warm weather in our core markets, the presidential election and continued sales pressure in markets impacted by oil and other commodities, we were able to achieve 0.2 percent same-store sales growth. November was particularly challenging given external factors, but the business strengthened in December with same-store sales growth of 2.3 percent and we have seen that trend continue into the first two full weeks of our fiscal January. Additionally, we remained true to the Boot Barn brand by maintaining our everyday low price value proposition.”

Conroy continued, “We also reaffirmed our approach to omni-channel, with strong growth across both of our e-commerce sites as well as a very successful launch of our in-store touch screen shopping tablets, which enabled us to deliver on our We Have It Promise by offering our store customers access to a much broader assortment available for two-day shipping.”

At December 24, 2016, the company’s cash balance was $31 million and borrowings on the $125 million line of credit were reduced to $23 million. Average inventory per store was lower than the prior year by approximately 3 percent.

The company will report full third-quarter fiscal 2017 results and update full-year guidance on January 31, 2017.

The company will be presenting at the ICR Conference 2017 held at the JW Marriott Orlando Grande Lakes in Orlando, FL, on Tuesday, January 10, 2017 at 3:30 p.m. Eastern Standard Time.