US Market News
4週前
Boot Barn Holdings, Inc. Announces Fourth Quarter and Fiscal 2026 Financial ResultsMay 14, 2026 4:05 PM
Business Wire Boot Barn Holdings, Inc. (NYSE: BOOT) (the “Company,” “we,” “us,” and “our””) today announced its financial results for the fourth fiscal quarter and fiscal year ended March 28, 2026. A Supplemental Financial Presentation is available at investor.bootbarn.com. For the quarter ended March 28, 2026 compared to the quarter ended March 29, 2025: Net sales increased 18.7% over the prior-year period to $538.8 million. Same store sales increased 6.1%, with retail store same store sales increasing 5.2% and e-commerce same store sales increasing 14.1%. Net income was $44.4 million, or $1.45 per diluted share, compared to $37.5 million, or $1.22 per diluted share, in the prior-year period. The Company opened 25 new stores, bringing its total store count to 539 as of the quarter end. For the fiscal year ended March 28, 2026 (“Fiscal 2026”) compared to the fiscal year ended March 29, 2025 (“Fiscal 2025”): Net sales increased 17.9% over the prior year to $2.254 billion. Same store sales increased 7.2%, with retail store same store sales increasing 6.2% and e-commerce same store sales increasing 15.3%. Net income was $225.9 million, or $7.35 per diluted share, compared to $180.9 million, or $5.88 per diluted share, in Fiscal 2025. The Company opened 80 new stores, bringing its total store count to 539 as of the fiscal year end. John Hazen, Chief Executive Officer, commented, “I am very proud of our performance in Fiscal 2026, which marked a record year for Boot Barn and reflects the strength of our business and the dedication of our team. We delivered strong results across key metrics, including 18% total sales growth, 80 basis points of merchandise margin expansion, and 25% growth in earnings per diluted share. We opened 80 new stores and generated 7.2% same store sales growth. The broad-based strength across merchandise categories, channels, and geographic regions underscores the strong appeal of the brand and the disciplined execution of our strategic initiatives. Looking ahead, I believe Boot Barn is well positioned to build on this foundation, and I remain confident in our ability to drive continued growth and deliver long-term value for our shareholders.” Operating Results for the Fourth Quarter Ended March 28, 2026 Compared to the Fourth Quarter Ended March 29, 2025 Net sales increased 18.7% to $538.8 million from $453.7 million in the prior-year period. Consolidated same store sales increased 6.1%, with retail store same store sales increasing 5.2% and e-commerce same store sales increasing 14.1%. 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 $195.7 million, or 36.3% of net sales, compared to $168.6 million, or 37.1% of net sales, in the prior-year period. The increase in gross profit was primarily due to an increase in sales, partially offset by the occupancy costs of new stores. The 80 basis-point decrease in gross profit rate was driven primarily by 50 basis points of deleverage in buying, occupancy and distribution center costs and a 30 basis-point decrease in merchandise margin rate. The deleverage in buying, occupancy and distribution center costs was primarily driven by the occupancy costs of new stores. The decrease in merchandise margin rate was primarily the result of cycling low shrink and low freight expense in the prior-year period, partially offset by better buying economies of scale and growth in exclusive brand penetration in the current-year period. Selling, general and administrative (“SG&A”) expenses were $138.5 million, or 25.7% of net sales, compared to $118.9 million, or 26.2% 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 leveraged by 50 basis points primarily as a result of lower corporate general and administrative expenses in the current-year period. Income from operations increased $7.5 million to $57.2 million, or 10.6% of net sales, compared to $49.7 million, or 11.0% of net sales, in the prior-year period, primarily due to the factors noted above. Income tax expense was $13.2 million, or a 22.9% effective tax rate, compared to $12.4 million, or a 24.8% effective tax rate, in the prior-year period. The decrease in the effective tax rate was primarily due to discrete tax benefits recorded in the current-year period, including return-to-provision adjustments, updates to state apportionment factors, and the effects of tax law changes enacted in the current-year period. Net income was $44.4 million, or $1.45 per diluted share, compared to $37.5 million, or $1.22 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 Fiscal 2026 Compared to Fiscal 2025 Net sales increased 17.9% to $2.254 billion from $1.911 billion in Fiscal 2025. Consolidated same store sales increased 7.2%, with retail store same store sales increasing 6.2% and e-commerce same store sales increasing 15.3%. 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 $858.4 million, or 38.1% of net sales, compared to $717.0 million, or 37.5% of net sales, in Fiscal 2025. 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 an 80 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 driven by the occupancy costs of new stores. SG&A expenses were $559.2 million, or 24.8% of net sales, compared to $477.7 million, or 25.0% of net sales, in the prior year. The increase in SG&A expenses compared to Fiscal 2025 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 Fiscal 2026. SG&A expenses as a percentage of net sales leveraged by 20 basis points primarily as a result of lower corporate general and administrative expenses in Fiscal 2026. Included in Fiscal 2025 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, SG&A expenses as a percentage of net sales leveraged by 50 basis points. Income from operations increased $59.8 million to $299.1 million, or 13.3% of net sales, compared to $239.4 million, or 12.5% of net sales, in Fiscal 2025, primarily due to the factors noted above. Income tax expense was $74.7 million, or a 24.9% effective tax rate, compared to $59.2 million, or a 24.6% effective tax rate, in Fiscal 2025. The increase in the effective tax rate was primarily due to a decrease in excess tax benefits on stock-based compensation. Net income was $225.9 million, or $7.35 per diluted share, compared to $180.9 million, or $5.88 per diluted share, in Fiscal 2025. Included in net income per diluted share in Fiscal 2025 is a net benefit of $6.7 million, or $0.22 per share, related to the Company’s former Chief Executive Officer’s resignation. 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. Preliminary Thirteen Weeks Preliminary Two Weeks Ended Four Weeks Four Weeks Five Weeks Four Weeks Ended March 28, 2026 Fiscal January Fiscal February Fiscal March Fiscal April May 9, 2026 Total Net Sales Growth 18.7 % 21.6 % 20.4 % 15.6 % Retail Stores SSS 5.2 % 5.9 % 6.9 % 3.5 % 3.8 % 5.0 % E-commerce SSS 14.1 % 12.9 % 15.0 % 14.5 % 18.3 % 5.1 % Consolidated SSS 6.1 % 6.7 % 7.7 % 4.5 % 5.0 % 5.0 % Balance Sheet Highlights as of March 28, 2026 Cash of $141 million. The Company repurchased 68,472 and 286,504 shares of its common stock during the thirteen and fifty-two weeks ended March 28, 2026, respectively, for an aggregate purchase price of $12.5 million and $50.0 million, respectively, under its $200 million authorized repurchase program. Average inventory per store decreased approximately 0.6% on a same-store basis compared to Fiscal 2025. Zero drawn under the $250 million revolving credit facility. Fiscal Year 2027 Outlook The Company is providing guidance for what it can reasonably expect at this time. For the fiscal year ending March 27, 2027 the Company expects: To open 70 stores, in addition to 10 stores that were accelerated and opened in the fourth quarter of Fiscal 2026. Total sales of $2.578 billion to $ 2.623 billion, representing growth of 14% to 16% over Fiscal 2026. Consolidated same store sales growth of 2.0% to 4.0%, with retail store same store sales growth of 1.0 % to 3.0% and e-commerce same store sales growth of 11.0% to 13.0%. Merchandise margin between $1.326 billion and $1.349 billion, or approximately 51.4% of sales. Gross profit between $971 million and $994 million, or approximately 37.7% to 37.9% of sales. SG&A expenses between $636 million and $641 million, or approximately 24.7% to 24.4% of sales. Income from operations between $335 million and $353 million, or approximately 13.0% to 13.5% of sales. Net income of $251.1 million to $264.5 million. Net income per diluted share of $8.21 to $8.64, based on 30.6 million weighted average diluted shares outstanding. Effective tax rate of 25.7%. Capital expenditures between $125 million and $130 million, which is net of estimated landlord tenant allowances of $47.6 million. For the first fiscal quarter ending June 27, 2026, the Company expects: Total sales of $574 million to $584 million, representing growth of 14% to 16% over the prior-year period. Consolidated same store sales growth of 2.0% to 4.0%, with retail store same store sales growth of 1.0% to 3.0% and e-commerce same store sales growth of 12.0% to 14.0%. Merchandise margin between $295 million and $300 million, or approximately 51.5% of sales. Gross profit between $213 million and $218 million, or approximately 37.1% to 37.3% of sales. SG&A expenses between $147 million and $149 million, or approximately 25.7% to 25.5% of sales. Income from operations between $65 million and $69 million, or approximately 11.4% to 11.9% of sales. Net income per diluted share of $1.62 to $1.71, based on 30.6 million weighted average diluted shares outstanding. Conference Call Information A conference call to discuss the financial results for the fourth fiscal quarter and fiscal year ended March 28, 2026, is scheduled for today, May 14, 2026, at 4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in participating in the call are invited to dial (844) 825-9789. The conference call will also be available to interested parties through a live webcast at investor.bootbarn.com. Please visit the website and select the “Events and Presentations” link at least 15 minutes prior to the start of the call to register and download any necessary software. A Supplemental Financial Presentation is also available on the investor relations section of the Company’s website. A telephone replay of the call will be available until June 14, 2026, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 10208791. Please note participants must enter the conference identification number in order to access the replay. About Boot Barn Boot Barn is the nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children. The Company offers its loyal customer base a wide selection of work and lifestyle brands. As of the date of this release, Boot Barn operates 552 stores in 49 states. For more information, call 888-Boot-Barn or visit www.bootbarn.com. Forward Looking Statements This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements refer to the Company’s current expectations and projections relating to, by way of example and without limitation, the Company’s financial condition, liquidity, profitability, results of operations, margins, plans, objectives, strategies, future performance, business, and industry. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan“, “intend”, “believe”, “may”, “might”, “will”, “could”, “should”, “can have”, “likely”, “outlook”, and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. These forward-looking statements are based on assumptions that the Company’s management has made in light of their industry experience and on their perceptions of historical trends, current conditions, expected future developments and other factors that they believe are appropriate under the circumstances. As you consider this press release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond the Company’s control) and assumptions. These risks, uncertainties, and assumptions include, but are not limited to, the following: decreases in consumer spending due to declines in consumer confidence, local economic conditions, or changes in consumer preferences; the impact that import tariffs and other trade restrictions imposed by the U.S. or other countries have had, and may continue to have, on our product costs and changes to U.S. or other countries’ trade policies and tariff and import/export regulations; the Company’s ability to effectively execute on its growth strategy; and the Company’s failure to maintain and enhance its strong brand image, to compete effectively, to maintain good relationships with its key suppliers, and to improve and expand its exclusive product offerings. The Company discusses the foregoing risks and other risks in greater detail under the heading “Risk factors” in the periodic reports filed by the Company with the Securities and Exchange Commission. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the Company’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. Because of these factors, the Company cautions that you should not place undue reliance on any of these forward-looking statements. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict those events or how they may affect the Company. Further, any forward-looking statement speaks only as of the date on which it is made. Except as required by law, the Company does not intend to update or revise the forward-looking statements in this press release after the date of this press release. Boot Barn Holdings, Inc. Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) March 28, March 29, 2026 2025 Assets Current assets: Cash and cash equivalents $ 141,036 $ 69,770 Accounts receivable, net 15,264 10,263 Inventories 844,637 747,191 Prepaid expenses and other current assets 33,462 36,736 Total current assets 1,034,399 863,960 Property and equipment, net 514,108 422,079 Right-of-use assets, net 638,425 469,461 Goodwill 197,502 197,502 Intangible assets, net 58,981 58,677 Other assets 6,660 6,342 Total assets $ 2,450,075 $ 2,018,021 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 142,126 $ 134,450 Accrued expenses and other current liabilities 159,103 146,038 Short-term lease liabilities 89,743 72,861 Total current liabilities 390,972 353,349 Deferred taxes 51,711 39,317 Long-term lease liabilities 683,737 490,182 Other liabilities 4,999 4,116 Total liabilities 1,131,419 886,964 Stockholders’ equity: Common stock, $0.0001 par value; March 28, 2026 - 100,000 shares authorized, 30,998 shares issued; March 29, 2025 - 100,000 shares authorized, 30,892 shares issued 3 3 Preferred stock, $0.0001 par value; 10,000 shares authorized, no shares issued or outstanding — — Additional paid-in capital 263,253 246,725 Retained earnings 1,129,848 903,968 Less: Common stock held in treasury, at cost, 614 and 298 shares at March 28, 2026 and March 29, 2025, respectively (74,448 ) (19,639 ) Total stockholders’ equity 1,318,656 1,131,057 Total liabilities and stockholders’ equity $ 2,450,075 $ 2,018,021 Boot Barn Holdings, Inc. Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Thirteen Weeks Ended Thirteen Weeks Ended Fifty-Two Weeks Ended Fifty-Two Weeks Ended March 28, March 29, March 28, March 29, 2026 2025 2026 2025 Net sales $ 538,753 $ 453,749 $ 2,253,859 $ 1,911,104 Cost of goods sold 343,008 285,187 1,395,504 1,194,066 Gross profit 195,745 168,562 858,355 717,038 Selling, general and administrative expenses 138,524 118,875 559,210 477,686 Income from operations 57,221 49,687 299,145 239,352 Interest expense 346 346 1,527 1,497 Other income, net 749 607 2,971 2,262 Income before income taxes 57,624 49,948 300,589 240,117 Income tax expense 13,184 12,409 74,709 59,175 Net income $ 44,440 $ 37,539 $ 225,880 $ 180,942 Earnings per share: Basic $ 1.46 $ 1.23 $ 7.40 $ 5.93 Diluted $ 1.45 $ 1.22 $ 7.35 $ 5.88 Weighted average shares outstanding: Basic 30,414 30,593 30,505 30,524 Diluted 30,716 30,771 30,735 30,773 Boot Barn Holdings, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Fiscal Year Ended March 28, March 29, March 30, 2026 2025 2024 Cash flows from operating activities Net income $ 225,880 $ 180,942 $ 146,996 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 78,654 62,462 49,531 Stock-based compensation 16,103 10,978 12,935 Amortization of intangible assets — 20 54 Impairment of intangible assets — — 2,000 Noncash lease expense 80,781 66,994 55,148 Amortization and write-off of debt issuance fees 108 108 108 Loss on disposal of property and equipment 492 299 660 Deferred taxes 12,394 (2,716 ) 8,773 Changes in operating assets and liabilities: Accounts receivable, net (4,866 ) (240 ) 3,282 Inventories (97,446 ) (148,071 ) (9,626 ) Prepaid expenses and other current assets 3,166 7,664 3,515 Other assets (318 ) (766 ) 613 Accounts payable 8,159 210 425 Accrued expenses and other current liabilities 19,408 17,989 (6,208 ) Other liabilities 883 311 1,057 Operating leases (38,495 ) (48,644 ) (33,183 ) Net cash provided by operating activities $ 304,903 $ 147,540 $ 236,080 Cash flows from investing activities Purchases of property and equipment $ (178,561 ) $ (148,293 ) $ (118,782 ) Proceeds from sale of property and equipment 60 55 — Net cash used in investing activities $ (178,805 ) $ (148,238 ) $ (118,782 ) Cash flows from financing activities Payments on line of credit - net $ — $ — $ (66,043 ) Repayments on debt and finance lease obligations (948 ) (873 ) (863 ) Repurchases of common stock (50,006 ) — — Tax withholding payments for net share settlement (4,303 ) (7,617 ) (2,475 ) Proceeds from the exercise of stock options 425 3,111 9,737 Net cash used in financing activities $ (54,832 ) $ (5,379 ) $ (59,644 ) Net increase/(decrease) in cash and cash equivalents 71,266 (6,077 ) 57,654 Cash and cash equivalents, beginning of period 69,770 75,847 18,193 Cash and cash equivalents, end of period $ 141,036 $ 69,770 $ 75,847 Supplemental disclosures of cash flow information: Cash paid for income taxes, net of refunds $ 62,034 $ 59,929 $ 57,157 Cash paid for interest $ 1,400 $ 1,381 $ 2,385 Supplemental disclosure of non-cash activities: Unpaid purchases of property and equipment $ 20,551 $ 29,584 $ 17,269 Boot Barn Holdings, Inc. Store Count Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended March 28, December 27, September 27, June 28, March 29, December 28, September 28, June 29, 2026 2025 2025 2025 2025 2024 2024 2024 Store Count (BOP) 514 489 473 459 438 425 411 400 Opened/Acquired 25 25 16 14 21 13 15 11 Closed — — — — — — (1) — Store Count (EOP) 539 514 489 473 459 438 425 411 Boot Barn Holdings, Inc. Selected Store Data Thirteen Weeks Ended March 28, December 27, September 27, June 28, March 29, December 28, September 28, June 29, 2026 2025 2025 2025 2025 2024 2024 2024 Selected Store Data: Same Store Sales growth 6.1 % 5.7 % 8.4 % 9.4 % 6.0 % 8.6 % 4.9 % 1.4 % Stores operating at end of period 539 514 489 473 459 438 425 411 Comparable stores open during period(1) 441 426 411 401 382 374 363 349 Total retail store selling square footage, end of period (in thousands) 6,147 5,810 5,495 5,307 5,133 4,877 4,720 4,547 Average retail store selling square footage, end of period 11,404 11,304 11,238 11,220 11,183 11,134 11,105 11,063 Average sales per comparable store (in thousands)(2) $ 934 $ 1,291 $ 996 $ 1,031 $ 926 $ 1,301 $ 952 $ 980 ____________________________________ (1) Comparable stores have been open at least 13 full fiscal months as of the end of the applicable reporting period. (2) Average sales per comparable store is calculated by dividing comparable store trailing three-month sales for the applicable period by the number of comparable stores operating during the period. Included in this calculation are stores opened in recent years that have not yet reached sales maturity. View source version on businesswire.com: https://www.businesswire.com/news/home/20260514680338/en/ Investor Contact:
ICR, Inc.
Brendon Frey, 203-682-8216
BootBarnIR@icrinc.com or Company Contact:
Boot Barn Holdings, Inc.
Mark Dedovesh, 949-453-4489
Senior Vice President, Investor Relations & Financial Planning
BootBarnIRMedia@bootbarn.com Original: Boot Barn Holdings, Inc. Announces Fourth Quarter and Fiscal 2026 Financial Results
US Market News
4月前
Boot Barn Holdings, Inc. Announces Third Quarter Fiscal Year 2026 Financial ResultsFebruary 4, 2026 4:10 PM
Business Wire
Boot Barn Holdings, Inc. (NYSE: BOOT) (the “Company”) today announced its financial results for the third fiscal quarter ended December 27, 2025. A Supplemental Financial Presentation is available at investor.bootbarn.com.
For the quarter ended December 27, 2025 compared to the quarter ended December 28, 2024:
Net sales increased 16.0% over the prior-year period to $705.6 million.
Same store sales increased 5.7%, with retail store same store sales increasing 3.7% and e-commerce same store sales increasing 19.6%.
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.
“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% 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.”
Mr. 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% 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% to $705.6 million from $608.2 million in the prior-year period. Consolidated same store sales increased 5.7%, with retail store same store sales increasing 3.7% and e-commerce same store sales increasing 19.6%. 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% of net sales, compared to $238.9 million, or 39.3% 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% of net sales, compared to $139.4 million, or 22.9% 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% of net sales, compared to $99.5 million, or 16.4% 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% effective tax rate, compared to $24.1 million, or a 24.3% 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% to $1.715 billion from $1.457 billion in the prior-year period. Consolidated same store sales increased 7.6%, with retail store same store sales increasing 6.6% and e-commerce same store sales increasing 15.6%. 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% of net sales, compared to $548.5 million, or 37.6% 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% of net sales, compared to $358.8 million, or 24.6% 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% of net sales, compared to $189.7 million, or 13.0% 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% effective tax rate, compared to $46.8 million, or a 24.6% 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.
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.
Preliminary
Thirteen Weeks
Five Weeks
Ended
Four Weeks
Four Weeks
Five Weeks
Ended
December 27, 2025
Fiscal October
Fiscal November
Fiscal December
January 31, 2026
Total Net Sales Growth
16.0
%
19.5
%
17.1
%
13.9
%
Retail Stores SSS
3.7
%
7.1
%
4.0
%
1.9
%
4.7
%
E-commerce SSS
19.6
%
24.0
%
23.6
%
17.1
%
13.1
%
Consolidated SSS
5.7
%
8.8
%
6.1
%
4.2
%
5.7
%*
E-commerce as a % of Net Sales
12.8
%
10.0
%
10.9
%
15.0
%
*Preliminary consolidated same store sales for the five weeks (35 days) ended January 31, 2026 were negatively impacted by an estimated $5 million due to store closures resulting from recent winter storms. Preliminary consolidated same store sales growth for the 26 days prior to the winter storms was 9.1%.
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% 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% to 18% over fiscal year 2025.
Consolidated same store sales growth of 6.5% to 7.0%, with retail store same store sales growth of 5.5% to 6.0% and e-commerce same store sales growth of 14.5% to 15.0%.
Merchandise margin between $1.138 billion and $1.144 billion, or approximately 50.8% of sales.
Gross profit between $850 million and $855 million, or approximately 37.9% to 38.0% of sales.
SG&A expenses between $553 million and $554 million, or approximately 24.7% to 24.6% of sales.
Income from operations between $297 million and $301 million, or approximately 13.3% to 13.4% 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% 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% to 18% over the prior-year period.
Consolidated same store sales growth of 3.0% to 5.0%, with retail store same store sales growth of 2.2% to 4.2% and e-commerce same store sales growth of 11.0% to 13.0%.
Merchandise margin between $265 million and $270 million, or approximately 50.4% to 50.5% of sales.
Gross profit between $187 million and $193 million, or approximately 35.7% to 36.1% of sales.
Selling, general and administrative expenses between $132 million and $134 million, or approximately 25.1% to 25.0% of sales.
Income from operations between $55 million and $59 million, or approximately 10.5% to 11.1% of sales.
Net income per diluted share of $1.35 to $1.45, based on 30.7 million weighted average diluted shares outstanding.
Conference Call Information
A conference call to discuss the financial results for the third fiscal quarter ended December 27, 2025, is scheduled for today, February 4, 2026, at 4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in participating in the call are invited to dial (844) 825-9789. The conference call will also be available to interested parties through a live webcast at investor.bootbarn.com. Please visit the website and select the “Events and Presentations” link at least 15 minutes prior to the start of the call to register and download any necessary software. A Supplemental Financial Presentation is also available on the investor relations section of the Company’s website. A telephone replay of the call will be available until March 5, 2026, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 10206289. Please note participants must enter the conference identification number in order to access the replay.
About Boot Barn
Boot Barn is the nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children. The Company offers its loyal customer base a wide selection of work and lifestyle brands. As of the date of this release, Boot Barn operates 524 stores in 49 states. For more information, call 888-Boot-Barn or visit www.bootbarn.com.
Forward Looking Statements
This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements refer to the Company’s current expectations and projections relating to, by way of example and without limitation, the Company’s financial condition, liquidity, profitability, results of operations, margins, plans, objectives, strategies, future performance, business, and industry. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan“, “intend”, “believe”, “may”, “might”, “will”, “could”, “should”, “can have”, “likely”, “outlook”, and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. These forward-looking statements are based on assumptions that the Company’s management has made in light of their industry experience and on their perceptions of historical trends, current conditions, expected future developments and other factors that they believe are appropriate under the circumstances. As you consider this press release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond the Company’s control) and assumptions. These risks, uncertainties, and assumptions include, but are not limited to, the following: decreases in consumer spending due to declines in consumer confidence, local economic conditions, or changes in consumer preferences; the impact that import tariffs and other trade restrictions imposed by the U.S., China, or other countries have had, and may continue to have, on our product costs and changes to U.S. or other countries’ trade policies and tariff and import/export regulations; the Company’s ability to effectively execute on its growth strategy; and the Company’s failure to maintain and enhance its strong brand image, to compete effectively, to maintain good relationships with its key suppliers, and to improve and expand its exclusive product offerings. The Company discusses the foregoing risks and other risks in greater detail under the heading “Risk factors” in the periodic reports filed by the Company with the Securities and Exchange Commission. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the Company’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. Because of these factors, the Company cautions that you should not place undue reliance on any of these forward-looking statements. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict those events or how they may affect the Company. Further, any forward-looking statement speaks only as of the date on which it is made. Except as required by law, the Company does not intend to update or revise the forward-looking statements in this press release after the date of this press release.
Boot Barn Holdings, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
December 27,
March 29,
2025
2025
Assets
Current assets:
Cash and cash equivalents
$
200,071
$
69,770
Accounts receivable, net
14,207
10,263
Inventories
805,471
747,191
Prepaid expenses and other current assets
37,867
36,736
Total current assets
1,057,616
863,960
Property and equipment, net
490,733
422,079
Right-of-use assets, net
586,527
469,461
Goodwill
197,502
197,502
Intangible assets, net
58,981
58,677
Other assets
7,097
6,342
Total assets
$
2,398,456
$
2,018,021
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
147,305
$
134,450
Accrued expenses and other current liabilities
214,944
146,038
Short-term lease liabilities
79,156
72,861
Total current liabilities
441,405
353,349
Deferred taxes
43,667
39,317
Long-term lease liabilities
624,910
490,182
Other liabilities
5,429
4,116
Total liabilities
1,115,411
886,964
Stockholders’ equity:
Common stock, $0.0001 par value; December 27, 2025 - 100,000 shares authorized, 30,990 shares issued; March 29, 2025 - 100,000 shares authorized, 30,892 shares issued
3
3
Preferred stock, $0.0001 par value; 10,000 shares authorized, no shares issued or outstanding
—
—
Additional paid-in capital
259,455
246,725
Retained earnings
1,085,408
903,968
Less: Common stock held in treasury, at cost, 545 and 298 shares at December 27, 2025 and March 29, 2025, respectively
(61,821)
(19,639)
Total stockholders’ equity
1,283,045
1,131,057
Total liabilities and stockholders’ equity
$
2,398,456
$
2,018,021
Boot Barn Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Thirteen Weeks Ended
Thirty-Nine Weeks Ended
December 27,
December 28,
December 27,
December 28,
2025
2024
2025
2024
Net sales
$
705,643
$
608,170
$
1,715,106
$
1,457,355
Cost of goods sold
424,403
369,301
1,052,496
908,879
Gross profit
281,240
238,869
662,610
548,476
Selling, general and administrative expenses
166,459
139,405
420,686
358,811
Income from operations
114,781
99,464
241,924
189,665
Interest expense
435
416
1,181
1,151
Other income, net
405
110
2,222
1,655
Income before income taxes
114,751
99,158
242,965
190,169
Income tax expense
28,941
24,092
61,525
46,766
Net income
$
85,810
$
75,066
$
181,440
$
143,403
Earnings per share:
Basic
$
2.82
$
2.46
$
5.94
$
4.70
Diluted
$
2.79
$
2.43
$
5.90
$
4.64
Weighted average shares outstanding:
Basic
30,471
30,559
30,536
30,501
Diluted
30,726
30,898
30,742
30,876
Boot Barn Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Thirty-Nine Weeks Ended
December 27,
December 28,
2025
2024
Cash flows from operating activities
Net income
$
181,440
$
143,403
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
57,063
45,801
Stock-based compensation
12,501
8,194
Amortization of intangible assets
—
20
Noncash lease expense
56,564
49,316
Amortization of debt issuance fees
81
81
Loss on disposal of assets
429
119
Deferred taxes
4,350
(4,244)
Changes in operating assets and liabilities:
Accounts receivable, net
(3,918)
(252)
Inventories
(58,280)
(91,165)
Prepaid expenses and other current assets
(1,196)
(1,515)
Other assets
(755)
(676)
Accounts payable
14,930
(3,388)
Accrued expenses and other current liabilities
76,691
80,678
Other liabilities
1,313
655
Operating leases
(31,930)
(36,340)
Net cash provided by operating activities
$
309,283
$
190,687
Cash flows from investing activities
Purchases of property and equipment
(136,424)
(108,361)
Purchases of intangible assets
(304)
—
Proceeds from sale of property and equipment
43
55
Net cash used in investing activities
$
(136,685)
$
(108,306)
Cash flows from financing activities
Repayments on finance lease obligations
(719)
(646)
Repurchases of common stock
(37,504)
—
Tax withholding payments for net share settlement
(4,303)
(7,617)
Proceeds from the exercise of stock options
229
2,949
Net cash used in financing activities
$
(42,297)
$
(5,314)
Net increase in cash and cash equivalents
130,301
77,067
Cash and cash equivalents, beginning of period
69,770
75,847
Cash and cash equivalents, end of period
$
200,071
$
152,914
Supplemental disclosures of cash flow information:
Cash paid for income taxes
$
42,045
$
29,220
Cash paid for interest
$
1,020
$
1,047
Supplemental disclosure of non-cash activities:
Unpaid purchases of property and equipment
$
17,641
$
28,370
Boot Barn Holdings, Inc.
Store Count
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
December 27,
September 27,
June 28,
March 29,
December 28,
September 28,
June 29,
March 30,
2025
2025
2025
2025
2024
2024
2024
2024
Store Count (BOP)
489
473
459
438
425
411
400
382
Opened/Acquired
25
16
14
21
13
15
11
18
Closed
—
—
—
—
—
(1)
—
—
Store Count (EOP)
514
489
473
459
438
425
411
400
Boot Barn Holdings, Inc.
Selected Store Data
Thirteen Weeks Ended
December 27,
September 27,
June 28,
March 29,
December 28,
September 28,
June 29,
March 30,
2025
2025
2025
2025
2024
2024
2024
2024
Selected Store Data:
Same Store Sales growth/(decline)
5.7
%
8.4
%
9.4
%
6.0
%
8.6
%
4.9
%
1.4
%
(5.9)
%
Stores operating at end of period
514
489
473
459
438
425
411
400
Comparable stores open during period(1)
426
411
401
382
374
363
349
335
Total retail store selling square footage, end of period (in thousands)
5,810
5,495
5,307
5,133
4,877
4,720
4,547
4,371
Average retail store selling square footage, end of period
11,304
11,238
11,220
11,183
11,134
11,105
11,063
10,929
Average sales per comparable store (in thousands)(2)
$
1,291
$
996
$
1,031
$
926
$
1,301
$
952
$
980
$
917
____________________________________
(1)
Comparable stores have been open at least 13 full fiscal months as of the end of the applicable reporting period.
(2)
Average sales per comparable store is calculated by dividing comparable store trailing three-month sales for the applicable period by the number of comparable stores operating during the period. Included in this calculation are stores opened in recent years that have not yet reached sales maturity.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260204413507/en/
Investor Contact:
ICR, Inc.
Brendon Frey, 203-682-8216
BootBarnIR@icrinc.com
or
Company Contact:
Boot Barn Holdings, Inc.
Mark Dedovesh, 949-453-4489
Senior Vice President, Investor Relations & Financial Planning
BootBarnIRMedia@bootbarn.com
Original: Boot Barn Holdings, Inc. Announces Third Quarter Fiscal Year 2026 Financial Results
realfast95
7年前
Boot Barn - A Top Pick For 2019 With 40% Upside
Dec. 26, 2018 11:10 AM ET|
3 comments |
About: Boot Barn Holdings (BOOT)
https://seekingalpha.com/article/4230200-boot-barn-top-pick-2019-40-percent-upside
Summary
Boot Barn stock has shredded 47% since September, but investors are still not convinced of this bargain opportunity.
There will be headwinds in the near future, but the company has what it takes to steer through the difficult times and achieve growth.
The company management has taken a few initiatives to achieve future growth, which are commendable.
Shares are trading at a discount of 40% to its intrinsic value.
Executive summary
Boot Barn (NASDAQ:BOOT) has declined 47% since early September, along with the market rout, and the company now trades at very attractive multiples.
(Source - Morningstar)
The overall fundamental picture of the company is promising, supported by growing earnings, improving balance sheet strength, and increasing free cash flows. The company management has introduced an array of initiatives, which are aimed at achieving robust financial performance in the coming years, and in my opinion, these initiatives will drive company profits in the future. The macro-economic environment remains positive for company operations, but there could be headwinds for the company, if economic growth slows down. Even after factoring in such a slowdown in economic growth, I find Boot Barn to be still undervalued, which presents investors with an attractive investment opportunity.
Company overview and business strategy
Boot Barn Holdings is a lifestyle retail chain, operating specialty retail stores in the United States. The company specializes in offering western and work-related footwear, apparel and accessories. Not surprisingly, the footwear segment dominates company operations and accounts for more than 50% of company revenues.
(Source – Company presentation)
The brand portfolio of the company is impressive, and is spread across boot brands, work brands and clothing brands.
(Source – Company website)
Boot Barn currently operates more than 200 stores in 31 States, which is proof of Boot Barn’s wide reach.
(Source – Company website)
While the company remains focused on expanding its store network and growing same-store sales, the company management has placed a special emphasis on improving the e-commerce segment, which will be a catalyst for future growth, as consumers are more inclined to make online purchases, rather than visit brick and mortar stores. This strategic move will play a key role in expanding the brand name internationally, and the company has taken commendable measures to support international shipping.
Industry analysis
The western wear market value on a worldwide basis is set to grow at a stellar rate for years to come, as per latest analyst estimates. Such industry-wide growth will surely help companies representing the industry, but the industry might become much more competitive than it is at present, which would result in lower profit margins.
Western wear market value (2016 – 2023e)
(Source – Statista)
The workwear industry, on the other hand, is expected to deliver robust growth, driven by a few catalysts.
Blue collar jobs growth hit a 30 year high in 2018, which is as healthy as it can get for the workwear industry. Significant growth in blue collar jobs will present a robust growth opportunity for companies operating in the workwear segment.
(Source - The Washington Post)
The recovery of the oil and gas industry has been a major growth driver for the workwear industry, in the recent past. However, oil prices have fallen drastically over a couple of months, and this could affect the growth in workwear industry, as exploration related activities might subside. The massive growth in jobs surrounding oil exploration activities should cease to grow, and existing jobs might turn out to be at risk, if oil prices continue to decline, resulting in lower profits for companies representing this industry.
However, despite the recent pull-back in oil prices, PwC estimates that the North American region will continue to invest billions in the oil and gas industry.
(Source – PwC)
Demand for workwear was fueled by the strong growth in construction spending, particularly in the North American region. While this has supported the workwear industry during the best part of last 2 decades, the future does not look as impressive as it did a year back. Construction spending in the U.S. fell 0.1% in October, even though economists had predicted an improvement.
Company performance and financial statements analysis
Boot Barn has been a true growth story, as the company has been able to grow its revenues more than three folds over the last 5 years.
(Source - Author prepared based on company filings)
On top of favorable industry conditions, forward-looking strategies that were implemented during this period were instrumental in achieving this growth. With a view of capturing the massive growth opportunity presented by changing consumer preferences, the company has expanded its store network rapidly, developed a streamlined online purchasing platform and focused on driving same-store sales growth.
Same-store sales growth over years
(Source – Company presentation)
Historical store base
(Source – Company presentation)
In my opinion, the expanding store network will continue to boost revenues for the company, coupled with same-store sales growth. Western and workwear segments have room for growth, and can be seen as relatively under-penetrated, in comparison with other retail categories. Operating in a macro-economic environment of this nature, the company will benefit from relatively low competition, if the company can expand its store network to regions that are barely touched by its competitors.
As of the fiscal year ended 31st March 2018, the western wear segment accounts for 70% of total revenue, which I consider as a healthy trend. The workwear segment is more susceptible to an economic slowdown, and this segment could be hurt badly if growth in industrial segments slows down.
(Source - Author prepared based on company filings)
Boot Barn has seen its margins expand over time, in line with revenue growth. Expanding margins place the company in a better position to face industry-wide headwinds in the future, and the company will be able to keep its profitability intact, even if revenues take a hit.
(Source - Author prepared based on company filings)
Despite being engaged in growth activities, Boot Barn has a strong balance sheet, which is reflected in the manageable level of debt in its capital structure, healthy cash balance and impressive current ratio.
Debt to equity
(Source - Author prepared based on Morningstar data)
While free cash flows are important to any company, this is especially true for retail companies, as there are a lot of cash related expenses to deal with. I believe the company’s ability to generate healthy free cash flows will be instrumental in achieving future growth through expanding its store network, extending the product line and penetrating additional markets. All of these growth projects are capital intensive, and Boot Barn’s ability to generate sufficient cash to support these growth operations is critical to its future growth.
(Source - Author prepared based on company filings)
Overall, the company has performed soundly over the last few years and is expected to carry forward this momentum to the future. Despite possible industry-wide headwinds, Boot Barn’s prospects look attractive.
Future outlook
Driving same-store sales remains a core strategy of the company, and will remain the same in the future. In line with this strategic objective, the company has upgraded the look of its stores along with its product offering, which will lead more potential customers to its stores.
In comparison to FY 2017, the company has revamped its marketing strategies as well, with the objective of increasing same-store sales and repeat sales. The company is seeing better returns on dollars spent for marketing, which will prompt the company to further ramp up its spending on marketing to attract and retain customers.
(Source – Company presentation)
Improving the e-commerce segment is another initiative, which will drive future sales and support the thesis for overall company growth. The company management has implemented strategies to enhance Search Engine Optimization (SEO), improve the overall look and feel of their websites and enhance the product listing. On top of these, the company has launched a few additional websites, including wonderweststyle.com and Shyanne.com to cater to a more niche customer base, which, in my opinion, will help the company gain traction in these segments.
Apart from these strategies with a focus on improving sales, the company is planning to build a loyal customer base around its exclusive branded products.
(Source – Company presentation)
Contribution from the exclusive brands segment to company revenue has increased over time, and this is a positive sign for the company, as margins in this segment are comparatively high.
The growth story of Boot Barn is intact, driven by major initiatives taken by the company management to drive future revenues. As the brand value expands, Boot Barn would be able to price their products much better and expand its margins further, as economies of scale comes into play.
Valuation
As growth prospects improved for Boot Barn over the years, shares tended to trade at rich valuation multiples. However, along with the recent downturn in broad markets, the share price has declined to lows which now undervalues company prospects significantly. In my opinion, the current valuation multiples fail to capture the expected revenue and profit growth of Boot Barn.
(Source – Morningstar)
At just 12 times its forward earnings, the company is attractively priced to capture future growth. The company need not converge with its historical valuation multiples to yield an attractive return to investors, as a partial convergence will still provide a formidable return.
By performing a Discounted Cash Flow analysis along with EBITDA multiples to calculate terminal value, I arrived at a fair value estimate of $21.82 for Boot Barn, which represents a 40% upside.
(Source - Author calculated and prepared on Finbox.io, with data from company filings)
Management review
James Conroy serves as the president and CEO of the company, and has been serving in these capacities since 2012. James has been employed in the retail industry for over 22 years and can be considered an industry veteran. His expertise in streamlining operational activities is driving the company forward in achieving not only revenue growth, but cost savings. Cost savings will be key in expanding profit margins further, which will in turn increase the profitability of the company.
Greg Hackman serves as the Chief Financial Officer of the company, a position he has occupied since 2015. He also hails from the retail industry and has more than 20 years of experience in the industry.
Risks and uncertainty
A global economic slowdown remains the primary risk of investing in Boot Barn, as it will not only result in a decline in discretionary spending, but will also affect the workwear segment. A particular decline in oil exploration related activities could drive revenue in the workwear segment lower, in which case the company would not be able to achieve its same-store revenue targets. The company has already embarked on a journey to expand its store network, and an economic slowdown will adversely affect the company as newly opened stores will fail to capture desired results, driving overheads higher.
Even though the company is operating in a niche segment, competition will build up eventually. Increased competition will have a negative impact on profit margins, as Boot Barn would be forced to give away its economic profits to remain the leader in a niche segment.
The company faces another inherent risk in the retail industry; changing consumer preferences. Retail companies have had a tough time in keeping up pace with dynamically changing consumer preferences, both in the way they shop and products they chose, and the situation will only aggravate in the future. Companies who fail to innovate and address growing demands of consumers will fail to grow.
Conclusion
Boot Barn is a retail growth story, that serves a niche segment, and the company is expected to grow in line with the initiatives taken by the management to secure a market leading position in the western and workwear segments, in the United States. Even though there are industry-wide headwinds, Boot Barn will benefit from its exposure to the western wear segment, which is independent from the workwear segment. Even if the global economy contracts, Boot Barn does not deserve to be trading at current valuation multiples, and presents an upside of above 40% from the current market price.
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