Core Insights - Boot Barn Holdings, Inc. (BOOT) reported a strong performance in Q3 of fiscal 2026, with revenue increasing by 16% year over year to $706 million and same-store sales rising by 5.7% [1][9] Financial Performance - Quarterly revenue reached $706 million, marking a 16% increase year over year, with consolidated same-store sales up 5.7% [1][9] - Retail store same-store sales increased by 3.7%, while e-commerce same-store sales surged by 19.6% [1][9] - For the first five weeks of Q4, same-store sales rose by 5.7%, with an even higher rate of approximately 9.1% before weather disruptions [4][9] Category Performance - All major product categories showed robust growth, with men's and women's Western boots achieving high single-digit comparable sales growth [3] - Apparel outperformed the chain average, particularly denim, which saw mid-teens same-store sales growth [3] - Work boots also experienced mid-single-digit comparable sales growth, indicating sustained consumer demand across footwear and apparel [3] Digital and E-commerce Growth - The digital segment benefited from newly launched standalone websites for exclusive brands, attracting new customers [2] - Management plans to launch dedicated websites for additional brands, further enhancing digital presence [2] Market Position and Outlook - Boot Barn's sales growth, expanding margins, and strong digital traction support confidence in its long-term growth strategy and store expansion targets [5] - BOOT's shares have increased by 10% year to date, outperforming the industry average of 3.7% [8] - The Zacks Consensus Estimate indicates a year-over-year earnings growth of 26% for the current fiscal year and 16.1% for the next [12]

Core Insights - The Q4 earnings season for 2025 has been positive, with strong growth and many companies exceeding expectations, except for NVIDIA [1] Boot Barn (BOOT) - Boot Barn reported a 16% year-over-year increase in sales, with same-store sales rising by 5.7%, indicating strong performance in existing stores while expanding [2][4] - The company opened 25 new locations, bringing the total to 514, and achieved a gross margin of 39.9%, up from 39.3% year-over-year, reflecting improved profitability [4][6] - Boot Barn anticipates opening 70 new stores in FY26, with projected sales between $2.24 billion and $2.25 billion, and same-store sales growth expected to be between 6.5% and 7.5% [8] Cardinal Health (CAH) - Cardinal Health experienced an 18.8% year-over-year sales increase and a 36.3% growth in adjusted EPS, marking a significant recovery after stagnation in 2024 [9][12] - Sales growth was broad-based, with Pharmaceuticals and Specialty Solutions up 19% year-over-year, contributing approximately 90% of total sales [12] - The company raised its FY26 outlook for adjusted EPS to a range of $10.15 to $10.35, suggesting a 24.5% year-over-year growth [14] Overall Market Sentiment - Both Boot Barn and Cardinal Health have raised their guidance following strong quarterly results, indicating potential near-term outperformance [16]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Boot Barn identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Group 1: Earnings Growth - Boot Barn has a historical EPS growth rate of 12.5%, but projected EPS growth for this year is significantly higher at 26.4%, surpassing the industry average of 15.4% [5]. Group 2: Cash Flow Growth - The year-over-year cash flow growth for Boot Barn stands at 20.7%, which is notably higher than the industry average of -2.2% [6]. - Over the past 3-5 years, Boot Barn's annualized cash flow growth rate has been 19.5%, compared to the industry average of 7.6% [7]. Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Boot Barn, with the Zacks Consensus Estimate for the current year increasing by 3.7% over the past month [8]. Group 4: Overall Assessment - Boot Barn has achieved a Growth Score of A and holds a Zacks Rank 1, indicating it is a potential outperformer and a solid choice for growth investors [10].

Core Insights - Boot Barn Holdings, Inc. (BOOT) reported strong third-quarter results for 2026, with both revenue and earnings meeting expectations and showing year-over-year growth, leading management to raise its fiscal 2026 guidance [1][9] Quarterly Performance - BOOT's earnings per share (EPS) for the quarter was $2.79, an increase from $2.43 in the same period last year, which had included a 22-cent benefit from the former CEO's resignation [2] - Net sales reached $705.6 million, reflecting a 16% year-over-year increase, driven by new store openings and same-store sales growth [2] Same-Store Sales and Expansion - Consolidated same-store sales grew by 5.7% year over year, with retail same-store sales increasing by 3.7% and e-commerce same-store sales rising significantly by 19.6% [3] - The company opened 25 new stores during the quarter, bringing the total to 514 stores [3] Margin and Cost Performance - Gross profit increased by 17.7% year over year to $281.2 million, with gross margin improving by 60 basis points to 39.9% [4] - Selling, General and Administrative (SG&A) expenses rose to $166.5 million from $139.4 million, primarily due to higher payroll and operational costs associated with more stores [5] - Income from operations was $114.8 million, up from $99.5 million, although operating margin contracted by 10 basis points to 16.3% [6] Financial Health - At the end of the quarter, BOOT had $200 million in cash and cash equivalents and total shareholders' equity of $1.28 billion [7] - The company repurchased 67,279 shares for $12.5 million during the quarter and anticipates capital expenditures of $125-$130 million, net of estimated landlord tenant allowances [7] Future Guidance - For the fourth quarter, BOOT plans to open 15 new stores and expects net sales between $525 million and $535 million, indicating year-over-year growth of 16% to 18% [8] - Consolidated same-store sales are projected to increase by 3% to 5%, with retail and e-commerce same-store sales expected to grow by 2.2%-4.2% and 11%-13%, respectively [8] Updated Fiscal 2026 Guidance - BOOT now anticipates fiscal 2026 net sales between $2.24 billion and $2.25 billion, representing a 17% to 18% year-over-year growth, an increase from the previous guidance of $2.20 billion to $2.23 billion [12] - Consolidated same-store sales growth is now forecasted between 6.5% and 7%, improved from the earlier estimate of 4%-6% [12] - Retail same-store sales are expected to be in the range of 5.5%-6%, while e-commerce same-store sales are projected to be 14.5%-15% [12] Earnings Projections - The company expects merchandise margin of $1.138 billion to $1.144 billion, representing about 50.8% of sales, with gross profit projected between $850 million and $855 million [13] - Income from operations is expected to be in the range of $297 million to $301 million, with projected earnings per share between $7.25 and $7.35, an improvement from $5.82 reported in fiscal 2025 [13]

Core Viewpoint - Boot Barn Holdings Inc. is projected to double by 2030, with strong fundamentals and a significant EPS growth exceeding 20% [1][4]. Group 1: Company Performance - Piper Sandler raised its price target for Boot Barn to $229 from $220, citing robust fundamentals and multiple drivers for revenue and gross margin expansion [1]. - Citi also increased its price target for Boot Barn to $230 from $225, maintaining a Buy rating, and noted attractive share prices following a decline after the FQ3 preannouncement [4]. - The company is experiencing strength in denim sales and a recovery in work boots, contributing to its overall performance [4]. Group 2: Market Position - Boot Barn operates specialty retail stores in the US and internationally, focusing on western and work-related footwear, apparel, and accessories [5]. - The company is well-positioned to benefit from the growing popularity of the Country Lifestyle customer segment [2].

Core Insights - Boot Barn reported revenue of $705.64 million for the quarter ended December 2025, reflecting a 16% increase year-over-year, and EPS of $2.79 compared to $2.43 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $705.61 million by 0.01%, and the EPS also surpassed the consensus estimate by 0.15% [1] Financial Performance Metrics - Same Store Sales growth was 5.7%, matching the average estimate from three analysts [4] - The company opened or acquired 25 stores, aligning with the average estimate from two analysts [4] - Average retail store selling square footage at the end of the period was 11,304, slightly above the average estimate of 11,238 from two analysts [4] - Total retail store selling square footage reached 5.81 million, exceeding the estimated 5.62 million by two analysts [4] - The total store count at the end of the period was 514, consistent with the average estimate from two analysts [4] Stock Performance - Boot Barn's shares have returned -7.2% over the past month, while the Zacks S&P 500 composite increased by 0.9% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

分组1 - Boot Barn reported quarterly earnings of $2.79 per share, matching the Zacks Consensus Estimate, and showing an increase from $2.43 per share a year ago, representing an earnings surprise of +0.15% [1] - The company posted revenues of $705.64 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.01% and increasing from $608.17 million year-over-year [2] - Boot Barn has outperformed the S&P 500, gaining about 3% since the beginning of the year compared to the S&P 500's gain of 1.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.43 on revenues of $524.91 million, and for the current fiscal year, it is $7.33 on revenues of $2.24 billion [7] - The Zacks Industry Rank for Retail - Apparel and Shoes is in the top 17% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Business Operations - Boot Barn operates 514 stores across 49 states and has a strong e-commerce presence through multiple websites and an app[109]. - The company assesses performance using key indicators such as net sales, gross profit, same store sales, and operating income[112]. - Economic conditions and consumer confidence significantly influence Boot Barn's business performance[107]. Sales Performance - Net sales include revenue from retail locations and e-commerce, with fluctuations due to seasonality and external factors[113][115]. - Same store sales reflect net sales from stores open for at least 13 months, including e-commerce sales, and are a critical measure of performance[116][120]. - Net sales increased by $97.5 million, or 16.0%, to $705.6 million for the thirteen weeks ended December 27, 2025, compared to $608.2 million for the same period in 2024[135]. - For the thirty-nine weeks ended December 27, 2025, net sales increased by $257.8 million, or 17.7%, to $1.715 billion, with consolidated same store sales growth of 7.6%[144]. Profitability - Gross profit is calculated as net sales minus cost of goods sold, which includes significant expenses that are expected to rise with growth[123][124]. - Gross profit rose by $42.4 million, or 17.7%, to $281.2 million for the thirteen weeks ended December 27, 2025, with a gross profit margin of 39.9%, up from 39.3% in the prior year[136]. - Gross profit for the thirty-nine weeks ended December 27, 2025, increased by $114.1 million, or 20.8%, to $662.6 million, with a gross profit margin of 38.6%[145]. - Income from operations increased by $15.3 million, or 15.4%, to $114.8 million for the thirteen weeks ended December 27, 2025, with an operating margin of 16.3%[140]. - Income from operations for the thirty-nine weeks ended December 27, 2025, increased by $52.3 million, or 27.6%, to $241.9 million, with an operating margin of 14.1%[148]. - Net income for the thirteen weeks ended December 27, 2025, was $85.8 million, compared to $75.1 million for the same period in 2024, reflecting a net income margin of 12.2%[143]. Expenses - Selling, general and administrative (SG&A) expenses are anticipated to increase due to stock-based compensation and expansion-related costs[127]. - Selling, general and administrative (SG&A) expenses increased by $27.1 million, or 19.4%, to $166.5 million for the thirteen weeks ended December 27, 2025, resulting in a SG&A margin of 23.6%[137][139]. - SG&A expenses for the thirty-nine weeks ended December 27, 2025, rose by $61.9 million, or 17.2%, to $420.7 million, achieving a SG&A margin of 24.5%[146][147]. Capital Expenditures and Investments - New store openings are a key growth strategy, with pre-opening costs impacting initial profitability[121][122]. - The company plans to invest between $125.0 million and $130.0 million in capital expenditures for fiscal 2026, focusing on new store openings and improvements to distribution and IT infrastructure[156]. Cash Flow and Financing - As of December 27, 2025, cash and cash equivalents were $200.1 million, up from $69.8 million as of March 29, 2025[165]. - Net cash provided by operating activities for the thirty-nine weeks ended December 27, 2025, was $309.3 million, compared to $190.7 million for the same period in 2024[166][167]. - Net cash used in investing activities was $136.7 million for the thirty-nine weeks ended December 27, 2025, primarily for capital expenditures related to store construction[169]. - Net cash used in financing activities was $42.3 million for the thirty-nine weeks ended December 27, 2025, including $37.5 million for share repurchases[171]. - The Company has a $250.0 million Wells Fargo Revolver with a maturity date of July 11, 2027[157]. - The Company was in compliance with the Wells Fargo Revolver debt covenants as of December 27, 2025[163]. - The borrowing base for the Wells Fargo Revolver is calculated monthly based on eligible credit card receivables, commercial accounts, inventory, and available reserves[159]. - The applicable margin for Term SOFR loans under the Wells Fargo Revolver ranges from 1.00% to 1.25%[158]. - The Company paid a commitment fee of 0.25% per annum on the unutilized revolving loans under the Wells Fargo Revolver[158]. - Total interest expense incurred on the Wells Fargo Revolver for the thirty-nine weeks ended December 27, 2025, was $0.6 million, with a weighted average interest rate of 7.1%[160]. Fiscal Year Information - The fiscal year ends on the last Saturday of March, with both fiscal 2026 and fiscal 2025 consisting of 52 weeks[132]. - The company does not plan to update forward-looking statements unless required by law, acknowledging inherent risks and uncertainties[106].

Financial Data and Key Metrics Changes - Revenue increased by 16% year-over-year to $706 million, with same-store sales growth of 5.7% [5][14] - Earnings per diluted share rose to $2.79, compared to $2.43 in the prior year, marking a 14.8% increase [16][17] - Gross profit increased by 18% to $281 million, with a gross profit rate of 39.9% [14][15] Business Line Data and Key Metrics Changes - Consolidated same-store sales grew 5.7%, with brick-and-mortar same-store sales increasing by 3.7% and e-commerce same-store sales growing by 19.6% [6][14] - Men's and ladies' Western boots saw high single-digit comp growth, while men's and ladies' apparel experienced mid-teen same-store sales growth in denim [8][9] Market Data and Key Metrics Changes - The company opened a record 25 new stores in the third quarter, bringing the total to 514 stores [7] - The company plans to open 15 additional stores in the fourth quarter, aiming for a total of 70 new stores for the fiscal year [8] Company Strategy and Development Direction - The company is focused on four strategic initiatives: new store growth, same-store sales, omnichannel development, and merchandise margin expansion [5][8] - The target is to expand to 1,200 stores in the U.S. over the coming years, supported by strong new store performance [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying business tone and the start of the fourth quarter, despite recent winter storms impacting sales [6][7] - The company anticipates total sales for the full fiscal year to reach $2.25 billion, representing an 18% growth over fiscal 2025 [20] Other Important Information - The company has maintained a strong inventory position, with a 17% increase year-over-year to $805 million [17] - The company repurchased approximately 67,000 shares for $12.5 million as part of its $200 million share repurchase program [17] Q&A Session Summary Question: Can you elaborate on the drivers of acceleration seen in January? - Management noted that the acceleration was broad-based across major merchandise categories, with work apparel being slightly softer due to warmer weather [27][28] Question: What is the overall visibility for planning the business moving forward? - Management indicated confidence in maintaining low to mid-single-digit comp growth, with no structural concerns affecting performance [30][32] Question: Can you elaborate on the merchandise margin outlook for the fourth quarter? - Management expects a headwind from shrink and freight, with exclusive brand penetration contributing to margin expansion [36][39] Question: Are there any specific categories gaining momentum outside of denim? - Management confirmed that traditional Western silhouettes remain strong, with no significant shifts towards more contemporary styles [104] Question: How is the performance of exclusive brand websites compared to bootbarn.com? - Management highlighted that the exclusive brand sites have attracted new customers and contributed positively to online growth [72][74]

Financial Data and Key Metrics Changes - Revenue increased by 16% year-over-year to $706 million, with same-store sales growth of 5.7% [5][14] - Earnings per diluted share rose to $2.79, compared to $2.43 in the prior year, marking a 14.8% increase [16][17] - Gross profit increased by 18% to $281 million, with a gross profit rate of 39.9%, up 60 basis points from the prior year [14][15] Business Line Data and Key Metrics Changes - Consolidated same-store sales grew 5.7%, with brick-and-mortar same-store sales increasing by 3.7% and e-commerce same-store sales growing by 19.6% [6][14] - Men's and ladies' western boots saw high single-digit comp growth, while men's and ladies' apparel outperformed the chain average, particularly in denim with mid-teen growth [8][9] Market Data and Key Metrics Changes - The company opened a record 25 new stores in the third quarter, bringing the total to 514 stores, with plans for 15 additional openings in the fourth quarter [7][8] - The company aims for a total of 70 new stores for the fiscal year and estimates 20 openings in the first quarter of fiscal 2027 [8] Company Strategy and Development Direction - The company is focused on four strategic initiatives: new store growth, same-store sales, omnichannel expansion, and merchandise margin expansion [5][10] - Plans to launch standalone websites for additional exclusive brands to enhance customer engagement and sales [10][74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying business tone and anticipated continued strength in same-store sales despite recent winter storms [6][23] - The company raised its full-year guidance, expecting total sales of $2.25 billion, representing an 18% growth over fiscal 2025 [20][21] Other Important Information - Inventory increased by 17% year-over-year to $805 million, with markdowns as a percentage of inventory below historical levels [17] - The company repurchased approximately 67,000 shares for $12.5 million as part of its $200 million share repurchase program [17] Q&A Session Questions and Answers Question: Can you elaborate on the drivers of acceleration seen in January before the storms? - Management noted that the acceleration was broad-based across most major merchandise categories, with work apparel being slightly softer due to warmer weather [27][28] Question: What is the overall visibility for planning the business moving forward? - Management indicated confidence in maintaining low to mid-single-digit comp growth, supported by new store productivity and broad performance across merchandise categories [30][32] Question: Can you elaborate on the merchandise margin outlook for the fourth quarter? - Management expects a headwind from shrink and freight, with exclusive brand penetration contributing to margin expansion [36][39] Question: How are you thinking about the price points between exclusive brands and national brands? - Management believes that price points will normalize over time, with careful consideration to avoid breaking psychological price points [92][96] Question: What are the expectations for new store openings in fiscal 2027? - Management is confident in maintaining a 12%-15% new unit growth rate, with a strong pipeline for the first quarter [40][41]