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Jul 01, 2023
Boot Barn Q1 2024 Earnings Report
Boot Barn's financial performance was announced for the first quarter of fiscal year 2024, with revenue growth driven by new store performance amidst a slight same-store sales decline.
Key Takeaways
Boot Barn Holdings, Inc. reported a 4.9% increase in net sales to $383.7 million for the first quarter of fiscal year 2024. Same store sales decreased by 2.9%, but earnings surpassed expectations due to an increase in exclusive brand penetration and improving retail store sales trends.
Net sales increased by 4.9% to $383.7 million, driven by new store performance.
Same store sales decreased by 2.9%, with retail store sales declining by 1.8% and e-commerce sales decreasing by 10.8%.
Net income was $34.3 million, or $1.13 per diluted share, compared to $39.3 million, or $1.29 per diluted share, in the prior-year period.
The company opened 16 new stores, bringing the total store count to 361.
Boot Barn
Boot Barn
Forward Guidance
The Company is providing updated guidance for the fiscal year ending March 30, 2024, superseding in its entirety the previous guidance issued in its fourth quarter and fiscal year 2023 earnings report on May 17, 2023.
Positive Outlook
- Total sales of $1.715 billion to $1.748 billion, representing growth of 3.5% to 5.5% over the prior year.
- Gross profit between $629.7 million and $645.7 million, or approximately 36.7% to 36.9% of sales.
- Gross profit reflects an estimated 160 basis-point increase in merchandise margin, including a 100 basis-point improvement from freight expense.
- Selling, general and administrative expenses between $419.3 million and $422.9 million. This represents approximately 24.4% to 24.2% of sales.
- Income from operations between $210.4 million and $222.8 million. This represents approximately 12.3% to 12.7% of sales.
Challenges Ahead
- Same store sales decline of approximately (5.0)% to (3.0)%, with retail store same store sales declines of (5.5)% to (3.5)% and an e-commerce same store sales decline of (4.0)% to flat.
- We anticipate 150 basis points of deleverage in buying, occupancy and distribution center costs.
- Same store sales decline of approximately (5.5)% to (3.5)%, with retail store same store sales declines of (4.5)% to (2.5)% and e-commerce same store sales declines of (11.0)% to (9.0)%.
- Gross profit reflects 180 basis points of deleverage in buying, occupancy and distribution center costs, and an estimated 50 basis-point increase in merchandise margin, including flat freight expense year-over-year.
- Net income per diluted share of $0.84 to $0.90 based on 30.6 million weighted average diluted shares outstanding.