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Sep 24, 2022
Boot Barn Q2 2023 Earnings Report
Reported solid results for the second quarter of fiscal year 2023, exceeding expectations for both sales and earnings.
Key Takeaways
Boot Barn Holdings, Inc. reported a 12.4% increase in net sales to $351.5 million and net income of $32.1 million, or $1.06 per diluted share, for the second quarter ended September 24, 2022. The company opened 10 new stores, bringing the total store count to 321.
Net sales increased 12.4% year-over-year to $351.5 million.
Same store sales increased 2.3% compared to the prior year.
Net income was $32.1 million, or $1.06 per diluted share, compared to $37.9 million, or $1.25 per diluted share in the prior-year period.
The Company opened 10 new stores bringing its total count to 321.
Boot Barn
Boot Barn
Forward Guidance
The Company is providing updated guidance for the fiscal year ending April 1, 2023, superseding in its entirety the previous guidance issued in its first quarter earnings report on July 27, 2022.
Positive Outlook
- To open 40 new stores.
- Total sales of $1.65 billion to $1.67 billion, representing growth of 10.9% to 12.2% over the prior year.
- Same store sales range of approximately (1.0)% to 0.5%, with retail store same store sales of approximately 2.0% to 3.0% and e-commerce same store sales of (13.0)% to (11.0)%.
- Gross profit between $617 million and $625 million, or approximately 37.4% of sales. Gross profit includes an estimated 100 basis points of pressure from freight expense.
- Income from operations between $235 million and $243 million. This represents approximately 14.2% to 14.6% of sales.
Challenges Ahead
- Effective tax rate of 25.2% for the remaining six months of the year.
- Net income of $173.3 million to $179.3 million.
- Net income per diluted share of $5.70 to $5.90 based on 30.4 million weighted average diluted shares outstanding.
- Capital expenditures between $80 million and $87 million.
- Same store sales range of approximately (5.0)% to (3.0)%, with retail store same store sales of (2.0)% to flat and e-commerce same store sales of (21.0)% to (17.0)% for the fiscal third quarter ending December 24, 2022.