Boot Barn Holdings, Inc. hiked its guidance for the year after reporting results for the fiscal second quarter ended September 27 that ran past targets with same-store sales jumping 8.4 percent. The retailer also increased its potential store count from 900 to 1,200 stores.

In the quarter, sales increased 18.7 percent over the prior-year period to $505.4 million. Guidance had called for sales in the range of $487 million to $495 million, representing growth of 14 percent to 16 percent.

Same-store sales increased 8.4 percent, with retail store same-store sales increasing 7.8 percent and e-commerce same-store sales increasing 14.4 percent. Guidance had called for same-store sales growth of 4.5 percent to 6.5 percent, with retail store same-store sales growth of 4.0 percent to 6.0 percent and e-commerce same-store sales growth of 8.0 percent to 10.0 percent.

Net income climbed 43.5 percent was $42.2 million, or $1.37 per diluted share, compared to $29.4 million, or $0.95 per diluted share, in the prior-year period. Guidance had called for net income per diluted share between $1.19 to $1.27.

John Hazen, chief executive officer, commented, “We delivered another strong quarter with high single-digit consolidated same-store sales growth and 19 percent total sales growth, demonstrating the continued resilience and broad appeal of our brand. This strength was evident across all major merchandise categories and geographies, with both our retail stores and e-commerce channels performing well. Importantly, we expanded our merchandise margin by 80 basis points, while maintaining disciplined expense control, which drove a 41 percent improvement in operating income and a 180 basis-point increase in operating margin to 11.2 percent. These results underscore the effectiveness of our strategic initiatives and our team’s ability to execute in a dynamic retail environment.”

Hazen further commented, “Following collaborative work with a third party, we are excited to announce that our updated market analysis reveals a significantly expanded Total Addressable Market (“TAM”) and store count potential. Our TAM is now estimated to be approximately $58 billion, with market growth across all categories. We now also believe we can operate 1,200 stores across the United States, an increase from our prior estimate of 900, which is more than double our current footprint. We are confident in our ability to capitalize on this expanded market opportunity while continuing to deliver strong returns for our stockholders.”

The company ended the second quarter with 489 stores, opening 16 during the period.

Operating Results for the Second Quarter Ended September 27, 2025 Compared to the Second Quarter Ended September 28, 2024

  • Net sales increased 18.7 percent to $505.4 million from $425.8 million in the prior-year period. Consolidated same store sales increased 8.4 percent, with retail store same store sales increasing 7.8 percent and e-commerce same store sales increasing 14.4 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 $184.1 million, or 36.4 percent of net sales, compared to $152.9 million, or 35.9 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 50 basis-point increase in gross profit rate was driven primarily by an 80 basis-point increase in merchandise margin rate, partially offset by 30 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 and growth in exclusive brand penetration, partially offset by higher freight expense. 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 $127.7 million, or 25.3 percent of net sales, compared to $112.9 million, or 26.5 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 and marketing expenses in the current-year period. SG&A expenses as a percentage of net sales decreased by 120 basis points primarily as a result of lower corporate general and administrative expenses and legal expenses in the current-year period.
  • Income from operations increased $16.4 million to $56.4 million, or 11.2 percent of net sales, compared to $40.0 million, or 9.4 percent of net sales, in the prior-year period, primarily due to the factors noted above.
  • Income tax expense was $14.7 million, or a 25.8 percent effective tax rate, compared to $11.1 million, or a 27.4 percent effective tax rate, in the prior-year period. The decrease in the effective tax rate was primarily due to reductions in nondeductible expenses in the current-year period.
  • Net income was $42.2 million, or $1.37 per diluted share, compared to $29.4 million, or $0.95 per diluted share, in the prior-year period. The increase in net income was primarily attributable to the factors noted above.

Operating Results for the Six Months Ended September 27, 2025 Compared to the Six Months Ended September 28, 2024

  • Net sales increased 18.9 percent to $1.009 billion from $849.2 million in the prior-year period. Consolidated same store sales increased 8.9 percent, with retail store same store sales increasing 8.6 percent and e-commerce same store sales increasing 11.8 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 $381.4 million, or 37.8 percent of net sales, compared to $309.6 million, or 36.5 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 130 basis-point increase in merchandise margin rate. The increase in merchandise margin rate was primarily the result of better buying economies of scale and growth in exclusive brand penetration.
  • SG&A expenses were $254.2 million, or 25.2 percent of net sales, compared to $219.4 million, or 25.8 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, marketing expenses, and corporate general and administrative expenses in the current-year period. SG&A expenses as a percentage of net sales decreased by 70 basis points primarily as a result of lower corporate general and administrative expenses and legal expenses in the current-year period.
  • Income from operations increased $36.9 million to $127.1 million, or 12.6 percent of net sales, compared to $90.2 million, or 10.6 percent of net sales, in the prior-year period, primarily due to the factors noted above.
  • Income tax expense was $32.6 million, or a 25.4 percent effective tax rate, compared to $22.7 million, or a 24.9 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.
  • Net income was $95.6 million, or $3.11 per diluted share, compared to $68.3 million, or $2.21 per diluted share, in the prior-year period. The increase in net income was primarily attributable to the factors noted above.

Sales by Channel
The following table includes total net sales growth, same store sales (“SSS”) growth and e-commerce as a percentage of net sales for the periods indicated below.

Balance Sheet Highlights as of September 27, 2025

  • Cash of $65 million.
  • The company repurchased 72,794 and 150,753 shares of its common stock during the thirteen and twenty-six weeks ended September 27, 2025, respectively, for an aggregate purchase price of $12.5 million and $25 million, respectively, under its $200 million authorized repurchase program.
  • Average inventory per store increased approximately 1.0 percent on a same-store basis compared to the quarter ended September 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 first quarter earnings report on July 31, 2025. For the fiscal year ending March 28, 2026, the company now expects:

  • To open 70 new stores.
  • Total sales of $2.197 billion to $2.235 billion, representing growth of 15 percent to 17 percent over fiscal year 2025.
  • Same store sales growth of 4.0 percent to 6.0 percent, with retail store same store sales growth of 3.3 percent to 5.3 percent and e-commerce same store sales growth of 11.0 percent to 13.0 percent.
  • Merchandise margin between $1.106 billion and $1.130 billion, or approximately 50.3 percent to 50.6 percent of sales.
  • Gross profit between $818 million and $842 million, or approximately 37.2 percent to 37.7 percent of sales.
  • SG&A expenses between $541 million and $548 million, or approximately 24.6 percent to 24.5 percent of sales.
  • Income from operations between $277 million and $294 million, or approximately 12.6 percent to 13.2 percent of sales.
  • Net income of $207.2 million to $219.6 million.
  • Net income per diluted share of $6.75 to $7.15, based on 30.7 million weighted average diluted shares outstanding.
  • Effective tax rate of 26.0 percent for the remaining six months of the fiscal year.
  • Capital expenditures between $125.0 million and $130.0 million, which is net of estimated landlord tenant allowances of $39.4 million.

Previously, guidance called for total sales of $2.100 billion to $2.180 billion, representing growth of 10 percent to 14 percent over fiscal year 2025; same-store sales declines of (0.5) percent to growth of 3.5 percent, with retail store same store sales declines of (1.0) percent to growth of 3.0 percent and e-commerce same store sales growth of 3.5 percent to 8.5 percent;  and net income per diluted share of $5.80 to $6.70.

For the third fiscal quarter ending December 27, 2025, the company expects:

  • Total sales of $688 million to $700 million, representing growth of 13 percent to 15 percent over the prior-year period.
  • Same store sales growth of 2.5 percent to 4.5 percent, with retail store same store sales growth of 1.0 percent to 3.0 percent and e-commerce same store sales growth of 13.0 percent to 15.0 percent.
  • Merchandise margin between $342 million and $348 million, or approximately 49.7 percent of sales.
  • Gross profit between $265 million and $272 million, or approximately 38.6 percent to 38.8 percent of sales.
  • Selling, general and administrative expenses between $163 million and $164 million, or approximately 23.8 percent to 23.5 percent of sales.
  • Income from operations between $102 million and $107 million, or approximately 14.8 percent to 15.3 percent of sales.
  • Net income per diluted share of $2.47 to $2.59, based on 30.7 million weighted average diluted shares outstanding.

Image courtesy Boot Barn