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Boot Barn Holdings, Inc. (BOOT - Free Report) reported impressive third-quarter fiscal 2025 results, wherein revenues met the Zacks Consensus Estimate and earnings beat the same. Also, the top and bottom lines increased year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
This growth was driven by broad-based strength across merchandise categories, channels and geographies, along with an increase in consolidated same-store sales. Maintaining a full-price selling model contributed to merchandise margin improvement. Following the impressive performance, this Irvine, CA-based footwear company raised its fiscal 2025 guidance.
Boot Barn Holdings, Inc. Price, Consensus and EPS Surprise
BOOT’s earnings of $2.43 per share increased 34.3% from $1.81 in the year-ago quarter. Also, the metric beat the Zacks Consensus Estimate of $2.38.
Net sales of $608.2 million jumped 16.9% year over year. The rise in net sales was attributed to additional sales from store openings and the rise in consolidated same-store sales. The company opened 13 stores in the fiscal third quarter, bringing its total store count to 438.
Consolidated same-store sales rose 8.6% year over year, driven by an 8.2% increase in retail store sales and an 11.1% increase in e-commerce sales. The Zacks Consensus Estimate for same-store sales growth was pegged at 8.7% for the quarter under review.
BOOT’s Margin & Cost Update
Gross profit increased 20% to $238.9 million. The metric increased mainly due to higher sales and improved merchandise margins, partially offset by occupancy costs from store openings.
The gross margin increased 100 basis points (bps) to 39.3% year over year due to a 130-bps improvement in the merchandise margin, partially offset by a 30-bps deleverage in buying, occupancy and distribution center costs. The merchandise margin rate improvement stemmed from supply-chain efficiencies, better purchasing economies of scale and increased penetration of exclusive brands. Meanwhile, higher buying, occupancy and distribution center costs were mainly attributed to new store occupancy expenses.
Selling, general and administrative (SG&A) expenses were $139.4 million, up 12.5% year over year. The increase was mainly led by higher store payroll and store-related costs from operating more locations, and increased marketing expenses and incentive-based compensation. This was partially offset by the forfeiture of unvested long-term equity incentive compensation by the company's former CEO and the reversal of the fiscal 2025 cash incentive bonus expenses following his resignation.
As a percentage of net sales, SG&A expenses declined 90 bps year over year to 22.9% due to the forfeiture of unvested equity compensation and the bonus expense reversal.
Operating income increased 32.4% year over year to $99.5 million. The operating margin of 16.4% increased 200 bps from 14.4% last year.
BOOT Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Boot Barn’s Financial Health Snapshot
BOOT ended the quarter with $152.9 million in cash and cash equivalents. Notably, the company did not draw any funds from its $250-million revolving credit facility during the quarter. Average inventory per store increased approximately 1% on a same-store basis from Dec. 30, 2023.
BOOT’s Q4 Outlook
For the fiscal fourth quarter, Boot Barn estimates net sales of $451-$460 million, indicating growth of 16.1-18.4% from the year-ago reported level.
The company expects same-store sales to increase 5.3-7.8%. Retail store same-store sales are anticipated to rise 4.7-7.2% and e-commerce same-store sales are likely to grow 9.6-12.1%. Gross profit is expected between $163.1 million and $167.8 million, implying 36.2-36.5% of sales.
SG&A expenses are projected between $115.4 million and $116.4 million, or 25.6-25.3% of sales. Operating income is estimated between $47.7 million and $51.4 million, or 10.6-11.2% of sales. Earnings are projected to be $1.17-$1.26 per share.
What to Expect From Boot Barn in FY25?
In fiscal 2025, management expects to open 60 stores. It foresees total revenues of $1.91-$1.92 billion, up from the previously mentioned $1.87-$1.91 billion, indicating growth of 14.5-15.1% from the year-ago reported level. BOOT anticipates same-store sales to increase 5.4-5.9%. Retail store same-store sales are likely to grow 4.8-5.4% and e-commerce same-store sales are expected to improve 9.7- 10.2%.
Gross profit is envisioned between $711.6 million and $716.3 million, or 37.3-37.4% of sales. SG&A expenses are expected between $474.3 million and $475.2 million. The metric is likely to be 24.9-24.8% of sales.
Income from operations is projected between $237.3 million and $241.1 million, or 12.4-12.6% of sales. Net income is estimated at $179.4-$182.2 million. Earnings are projected to be $5.81-$5.90 per share compared with the previously stated $5.30-$5.60.
Capital expenditure is predicted between $115 million and $120 million, net of estimated landlord-tenant allowances of $30.2 million.
Shares of this Zacks Rank #1 (Strong Buy) company have gained 30.3% compared with the industry’s 26.5% growth in the past three months.
The Zacks Consensus Estimate for Abercrombie’s fiscal 2025 earnings and sales indicates growth of 69.4% and 15.1%, respectively, from the fiscal 2024 reported levels. ANF delivered a trailing four-quarter average earnings surprise of 14.8%.
lululemon is a yoga-inspired athletic apparel company that creates lifestyle components. It presently has a Zacks Rank #2.
The Zacks Consensus Estimate for LULU’s fiscal 2025 earnings and sales indicates growth of 12.5% and 9.7%, respectively, from the fiscal 2024 reported figures. LULU delivered a trailing four-quarter average earnings surprise of 6.7%.
Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It presently has a Zacks Rank #2.
The Zacks Consensus Estimate for Gap’s fiscal 2025 earnings and sales indicates growth of 41.3% and 0.7%, respectively, from the fiscal 2024 reported figures. GAP delivered a trailing four-quarter average earnings surprise of 101.2%.
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BOOT Q3 Earnings Beat, Gross Margin Rises Y/Y, FY25 Guidance Up
Boot Barn Holdings, Inc. (BOOT - Free Report) reported impressive third-quarter fiscal 2025 results, wherein revenues met the Zacks Consensus Estimate and earnings beat the same. Also, the top and bottom lines increased year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
This growth was driven by broad-based strength across merchandise categories, channels and geographies, along with an increase in consolidated same-store sales. Maintaining a full-price selling model contributed to merchandise margin improvement. Following the impressive performance, this Irvine, CA-based footwear company raised its fiscal 2025 guidance.
Boot Barn Holdings, Inc. Price, Consensus and EPS Surprise
Boot Barn Holdings, Inc. price-consensus-eps-surprise-chart | Boot Barn Holdings, Inc. Quote
Boot Barn’s Quarterly Performance: Key Insights
BOOT’s earnings of $2.43 per share increased 34.3% from $1.81 in the year-ago quarter. Also, the metric beat the Zacks Consensus Estimate of $2.38.
Net sales of $608.2 million jumped 16.9% year over year. The rise in net sales was attributed to additional sales from store openings and the rise in consolidated same-store sales. The company opened 13 stores in the fiscal third quarter, bringing its total store count to 438.
Consolidated same-store sales rose 8.6% year over year, driven by an 8.2% increase in retail store sales and an 11.1% increase in e-commerce sales. The Zacks Consensus Estimate for same-store sales growth was pegged at 8.7% for the quarter under review.
BOOT’s Margin & Cost Update
Gross profit increased 20% to $238.9 million. The metric increased mainly due to higher sales and improved merchandise margins, partially offset by occupancy costs from store openings.
The gross margin increased 100 basis points (bps) to 39.3% year over year due to a 130-bps improvement in the merchandise margin, partially offset by a 30-bps deleverage in buying, occupancy and distribution center costs. The merchandise margin rate improvement stemmed from supply-chain efficiencies, better purchasing economies of scale and increased penetration of exclusive brands. Meanwhile, higher buying, occupancy and distribution center costs were mainly attributed to new store occupancy expenses.
Selling, general and administrative (SG&A) expenses were $139.4 million, up 12.5% year over year. The increase was mainly led by higher store payroll and store-related costs from operating more locations, and increased marketing expenses and incentive-based compensation. This was partially offset by the forfeiture of unvested long-term equity incentive compensation by the company's former CEO and the reversal of the fiscal 2025 cash incentive bonus expenses following his resignation.
As a percentage of net sales, SG&A expenses declined 90 bps year over year to 22.9% due to the forfeiture of unvested equity compensation and the bonus expense reversal.
Operating income increased 32.4% year over year to $99.5 million. The operating margin of 16.4% increased 200 bps from 14.4% last year.
BOOT Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Boot Barn’s Financial Health Snapshot
BOOT ended the quarter with $152.9 million in cash and cash equivalents. Notably, the company did not draw any funds from its $250-million revolving credit facility during the quarter. Average inventory per store increased approximately 1% on a same-store basis from Dec. 30, 2023.
BOOT’s Q4 Outlook
For the fiscal fourth quarter, Boot Barn estimates net sales of $451-$460 million, indicating growth of 16.1-18.4% from the year-ago reported level.
The company expects same-store sales to increase 5.3-7.8%. Retail store same-store sales are anticipated to rise 4.7-7.2% and e-commerce same-store sales are likely to grow 9.6-12.1%. Gross profit is expected between $163.1 million and $167.8 million, implying 36.2-36.5% of sales.
SG&A expenses are projected between $115.4 million and $116.4 million, or 25.6-25.3% of sales. Operating income is estimated between $47.7 million and $51.4 million, or 10.6-11.2% of sales. Earnings are projected to be $1.17-$1.26 per share.
What to Expect From Boot Barn in FY25?
In fiscal 2025, management expects to open 60 stores. It foresees total revenues of $1.91-$1.92 billion, up from the previously mentioned $1.87-$1.91 billion, indicating growth of 14.5-15.1% from the year-ago reported level. BOOT anticipates same-store sales to increase 5.4-5.9%. Retail store same-store sales are likely to grow 4.8-5.4% and e-commerce same-store sales are expected to improve 9.7- 10.2%.
Gross profit is envisioned between $711.6 million and $716.3 million, or 37.3-37.4% of sales. SG&A expenses are expected between $474.3 million and $475.2 million. The metric is likely to be 24.9-24.8% of sales.
Income from operations is projected between $237.3 million and $241.1 million, or 12.4-12.6% of sales. Net income is estimated at $179.4-$182.2 million. Earnings are projected to be $5.81-$5.90 per share compared with the previously stated $5.30-$5.60.
Capital expenditure is predicted between $115 million and $120 million, net of estimated landlord-tenant allowances of $30.2 million.
Shares of this Zacks Rank #1 (Strong Buy) company have gained 30.3% compared with the industry’s 26.5% growth in the past three months.
Other Key Picks
Some other top-ranked stocks are Abercrombie & Fitch Co. (ANF - Free Report) , lululemon athletica inc. (LULU - Free Report) and The Gap, Inc. (GAP - Free Report) .
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It has a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie’s fiscal 2025 earnings and sales indicates growth of 69.4% and 15.1%, respectively, from the fiscal 2024 reported levels. ANF delivered a trailing four-quarter average earnings surprise of 14.8%.
lululemon is a yoga-inspired athletic apparel company that creates lifestyle components. It presently has a Zacks Rank #2.
The Zacks Consensus Estimate for LULU’s fiscal 2025 earnings and sales indicates growth of 12.5% and 9.7%, respectively, from the fiscal 2024 reported figures. LULU delivered a trailing four-quarter average earnings surprise of 6.7%.
Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It presently has a Zacks Rank #2.
The Zacks Consensus Estimate for Gap’s fiscal 2025 earnings and sales indicates growth of 41.3% and 0.7%, respectively, from the fiscal 2024 reported figures. GAP delivered a trailing four-quarter average earnings surprise of 101.2%.