Core Insights - Boot Barn reported revenue of $388.46 million for the quarter ended March 2024, reflecting an 8.7% decline year-over-year, while EPS was $1.01 compared to $1.53 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $383.67 million by 1.25%, and the EPS surpassed the consensus estimate of $0.89 by 13.48% [1] Financial Performance Metrics - Same Store Sales declined by 5.9%, which was better than the four-analyst average estimate of a decline of 7.3% [4] - The number of stores operating at the end of the period was 400, exceeding the three-analyst average estimate of 397 [4] - Average store square footage at the end of the period was 10,929, compared to the two-analyst average estimate of 10,872 [4] - Boot Barn opened or acquired 18 stores, surpassing the two-analyst average estimate of 15 [4] Stock Performance - Boot Barn shares returned +8.9% over the past month, outperforming the Zacks S&P 500 composite's +2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Sales Performance - In fiscal 2024, sales from exclusive brand products accounted for approximately 37.7% of consolidated sales[413] - Three of the five top-selling brands as of March 30, 2024, were exclusive brands, which historically have a higher gross margin than third-party branded merchandise[413] - The company’s sales are typically higher in the third fiscal quarter due to the Christmas shopping season, which also incurs significant additional costs[427] - Sales significantly fluctuate based on shopping seasons, leading to disproportionate quarterly operational results[455] - Net sales disaggregation shows that stores accounted for 89% of total net sales as of March 30, 2024, compared to 87% in fiscal 2023 and 85% in fiscal 2022, while e-commerce sales decreased to 11% from 13% and 15% respectively[196] Financial Condition - Total current assets increased to $729.649 million as of March 30, 2024, up from $669.173 million on April 1, 2023, representing an increase of approximately 9%[1] - Cash and cash equivalents rose significantly to $75.847 million from $18.193 million, marking an increase of over 317%[1] - Net income for the period was $146.996 million, a decrease of 14% compared to $170.553 million in the previous fiscal year[2] - Net cash provided by operating activities surged to $236.080 million, compared to $88.887 million in the prior year, indicating a growth of approximately 165%[2] - Total liabilities increased to $761.949 million as of March 30, 2024, compared to $740.931 million on April 1, 2023, reflecting a rise of about 3%[1] - Total stockholders' equity rose to $943.643 million, up from $776.450 million, representing an increase of approximately 21%[1] - The company reported a decrease in accounts receivable to $9.964 million from $13.145 million, a decline of about 24%[1] - The company’s inventories increased slightly to $599.120 million from $589.494 million, showing a growth of approximately 2%[1] - Cash paid for income taxes was $57.157 million, down from $60.171 million, indicating a decrease of about 5%[2] Risks and Challenges - The company faces risks related to network security breaches, which could incur significant expenses and disrupt operations[414] - The company relies on vendors for quality merchandise compliance with product safety laws, and any failure could adversely affect its reputation and financial condition[439] - Changes in laws regarding product safety or consumer protection could lead to increased costs and operational challenges[440] - The company is subject to numerous regulations that, if violated, could increase costs, cause shipment delays, or harm reputation, adversely affecting business[468] - Litigation costs and outcomes could materially adversely affect the business[458] - Unseasonable or extreme weather could negatively impact sales, financial condition, and operational results[456] Debt and Financing - As of March 30, 2024, there was no outstanding indebtedness under the Wells Fargo Revolver, but the company may incur debt in the future[423] - The company's variable rate debt is currently indexed to the Secured Overnight Financing Rate (SOFR), which is volatile and difficult to predict, impacting interest payments[448] - The leverage may reduce cash flow available for business growth, limiting flexibility to respond to changing conditions and increasing borrowing costs[450][452] - The Company has a $250.0 million syndicated senior secured asset-based revolving credit facility with a maturity date of July 11, 2027[242] - The sublimit for letters of credit under the Wells Fargo Revolver is $10.0 million[242] - The Company is required to maintain a Consolidated Fixed Charge Coverage Ratio of at least 1.00:1.00 during covenant trigger events[244] Accounting and Compliance - The implementation of new accounting standards could increase operating costs and alter financial statements[453] - The Company is evaluating the impact of new accounting standards on its financial disclosures, including segment reporting and income tax disclosures[207][236] - The Company recognized an impairment charge of $2.0 million related to the Sheplers indefinite-lived trademark during fiscal 2024[3] - The goodwill balance remained unchanged at $197.5 million for fiscal 2024, with no impairment charges recorded for fiscal 2024, 2023, and 2022[209] Marketing and Advertising - The Company recognized $44.0 million in advertising costs during fiscal 2024, an increase from $40.7 million in fiscal 2023 and $34.5 million in fiscal 2022[228] - The Company incurred store opening costs, which include payroll, marketing, and initial inventory costs, all of which are expensed as incurred[198] Other Financial Metrics - The Company defers recognition of gift card sales until the cards are used, with no expiration dates for unredeemed cards[194] - As of March 30, 2024, the unearned revenue from the customer loyalty program was $5.0 million, up from $4.1 million in April 1, 2023, and $3.5 million in March 26, 2022[193] - Prepaid expenses and other current assets totaled $44.7 million as of March 30, 2024, down from $48.3 million in April 1, 2023[208] - Sales from the Company's three largest suppliers represented approximately 24% of net sales in fiscal 2024, consistent with fiscal 2023, and a slight decrease from 27% in fiscal 2022[206]

Sales Performance - Net sales for the fourth fiscal quarter decreased by 8.7% year-over-year to $388.5 million, with a 2.2% decrease when excluding $28.3 million from the prior year's 14th week[3] - Same store sales declined by 5.9% compared to the prior year, with retail store same store sales down 5.7% and e-commerce same store sales down 7.6%[3] - For the fiscal year, net sales increased by 0.6% to $1.667 billion, with a 2.3% increase when excluding $28.3 million from the 53rd week of the prior year[4] - Net sales for the quarter ended March 30, 2024, were $388.459 million, a decrease from $425.661 million for the quarter ended April 1, 2023, representing a decline of approximately 8.7%[35] - Net sales increased 0.6% to $1.667 billion from $1.658 billion in the prior year, with consolidated same store sales decreasing 6.2%[39] Profitability - Net income for the fourth quarter was $29.4 million, or $0.96 per diluted share, down from $46.4 million, or $1.53 per diluted share in the prior year[3] - Net income for the quarter ended March 30, 2024, was $29.439 million, compared to $46.409 million for the quarter ended April 1, 2023, indicating a decline of approximately 36.5%[35] - Gross profit for the quarter ended March 30, 2024, was $139.438 million, down from $155.832 million for the same quarter last year, reflecting a decrease of about 10.5%[35] - Gross profit was $139.4 million, or 35.9% of net sales, down from $155.8 million, or 36.6% in the prior-year period, primarily due to a decrease in sales[37] - Income from operations decreased by $24.5 million to $38.2 million, or 9.8% of net sales, compared to $62.7 million, or 14.7% in the prior-year period[46] Store Operations - The company opened 18 new stores in the fourth quarter, bringing the total store count to 400[3] - The company reported a total of 400 stores at the end of the period, with 18 new stores opened during the quarter[32] - The company expects to open 60 new stores in the fiscal year ending March 29, 2025, with total sales projected between $1.766 billion and $1.800 billion, representing growth of 5.9% to 8.0%[13] Future Projections - Same store sales for the upcoming fiscal year are expected to decline by approximately 3.6% to 1.6%, with retail store same store sales declines of 4.0% to 2.0%[13] - Gross profit for the upcoming fiscal year is projected to be between $647.2 million and $664.1 million, or approximately 36.6% to 36.9% of sales[13] Financial Position - Cash on hand was reported at $76 million, with no amounts drawn from the $250 million revolving credit facility[24] - Cash and cash equivalents increased to $75.847 million as of March 30, 2024, up from $18.193 million as of April 1, 2023[33] - Total assets as of March 30, 2024, were $1.706 billion, an increase from $1.517 billion as of April 1, 2023[33] - Total liabilities increased to $761.949 million as of March 30, 2024, compared to $740.931 million as of April 1, 2023[33] - The company reported a cash flow from operating activities of $236.080 million for the quarter ended March 30, 2024[31] Expenses - Selling, general and administrative expenses rose to $101.2 million, or 26.1% of net sales, compared to $93.1 million, or 21.9% in the prior-year period, reflecting higher marketing expenses and normalized incentive-based compensation[45] - Selling, general and administrative expenses for the fiscal year ended March 30, 2024, were $416.2 million, or 25.0% of net sales, up from $378.8 million, or 22.9% in the prior year[48] Margin Analysis - The decrease in gross profit rate of 70 basis points was driven by 230 basis points of deleverage in buying, occupancy, and distribution center costs[37] - The increase in merchandise margin rate was driven by a 160 basis-point improvement in freight expense and supply chain efficiencies as a percentage of net sales[37]

Core Viewpoint - Boot Barn Holdings, Inc. is expected to experience a decline in its revenue and earnings performance for the fourth quarter of fiscal 2024, with significant challenges impacting its financial outlook [1][2]. Revenue Performance - The Zacks Consensus Estimate for quarterly revenues is projected at $383.7 million, indicating a decline of 9.9% compared to the previous year [1]. - The company anticipates a total sales decline of 9.3-11.7% for the quarter, driven by various operational challenges [6]. Earnings Outlook - Analysts project earnings of 89 cents per share, reflecting a substantial decrease of 41.8% from the same period last year [2]. - The consensus estimate for earnings has been revised downward by 3.3% over the past 30 days, indicating cautious sentiment among analysts [2]. Key Challenges - Boot Barn faces several challenges, including soft same-store sales, e-commerce difficulties, regional variability, and a tough operational landscape [3]. - Management expects a decline in same-store sales ranging from 6.3% to 9%, with a notable 13% drop in e-commerce same-store sales due to reduced marketing spend [4]. Gross Margin and Cost Pressures - The company forecasts a gross margin of 34.8-35.2%, down from 36.6% in the previous year, attributed to a projected 310 basis points of deleverage in costs [6]. Strategic Initiatives - Despite the challenges, Boot Barn is focused on enhancing customer engagement and brand loyalty through initiatives such as expanding its store network and leveraging innovative AI technologies [7]. Earnings Prediction Model - The Zacks model indicates that Boot Barn does not have a favorable outlook for an earnings beat this quarter, with a Zacks Rank of 3 and an Earnings ESP of 0.00% [8].

Wall Street analysts forecast that Boot Barn (BOOT) will report quarterly earnings of $0.89 per share in its upcoming release, pointing to a year-over-year decline of 41.8%. It is anticipated that revenues will amount to $382.86 million, exhibiting a decline of 10.1% compared to the year-ago quarter.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of thi ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Boot Barn (BOOT) . This company, which is in the Zacks Retail - Apparel and Shoes industry, shows potential for another earnings beat.This Western apparel and footwear retailer has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise fo ...

Beyonce leaves the Luar fashion show at 154 Scott in Brooklyn during New York Fashion Week on February 13, 2024 in New York City.Western boots have a new protector in Beyoncé.The country fashion staple's sales surged more than 20% in the week after the music superstar released her "Cowboy Carter" album, according to consumer behavior firm Circana. That can spell good news for companies making the iconic shoe, as well as other items that fit the same Wild West aesthetic."Cowboy Carter," which came out late l ...

Boot Barn Holdings, Inc. (BOOT) has not only navigated market challenges but also showcased remarkable resilience and growth potential. Based in Irvine, CA, BOOT remains a beacon of resilience, adaptability and growth, with its stock surging an impressive 40.1% in the past three months compared with the industry's rise of 10.4%.The cornerstone of Boot Barn Holdings’ success lies in its effective merchandising strategies, robust omnichannel capabilities, meticulous expense management and customer-centric app ...

Boot Barn Holdings, Inc. (BOOT) posted third-quarter fiscal 2024 results, wherein revenues were in line and earnings beat the Zacks Consensus Estimate. The top and bottom lines grew year over year. This growth was led by the company’s expansion efforts and improved operational efficiencies, even amid market challenges and a decline in same-store sales.BOOT anticipates sales growth, driven by its strategy of opening new stores and enhancing merchandise margins. With 11 new stores recently added, bringing the ...

Financial Data and Key Metrics Changes - In the third quarter, net sales increased by 1.1% to $520 million, benefiting from new store openings, but offset by a same-store sales decline of 9.7% [11][12] - Income from operations was $75 million, or 14.4% of sales, compared to $72 million, or 14.1% of sales in the prior year [12] - Net income rose to $56 million, or $1.81 per diluted share, compared to $53 million, or $1.74 per diluted share in the prior year [12] - Gross profit increased by 6% to $199 million, reflecting a 180 basis point increase in gross profit rate [111] Business Line Data and Key Metrics Changes - Exclusive brand penetration increased by 310 basis points to 37.3%, despite softness in the Ladies' business [109] - Same-store sales in the more functional categories, such as men's Western boots and work boots, outperformed the discretionary ladies' departments [126] - The most recent 100 new stores generated approximately $3.3 million in annual revenue on average, significantly higher than the typical $2 million expectation [106] Market Data and Key Metrics Changes - Geographically, the West and North regions performed slightly better than the chain average, while the South and East regions were slightly worse [6] - Preliminary consolidated same-store sales for the first four weeks of fiscal fourth quarter declined by 8.1% compared to the prior year [110] Company Strategy and Development Direction - The company plans to open 15% new units in fiscal year 2025, with expectations for new stores to generate at least $3 million in sales during their first year [15] - The focus remains on executing four strategic initiatives, including expanding the store base, driving same-store sales growth, strengthening omnichannel leadership, and enhancing exclusive brands [5][126] - The company aims to maintain merchandise margin growth despite a negative same-store sales environment [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining elevated sales levels and average store volume despite recent declines in same-store sales [7][30] - The company anticipates a return to positive same-store sales growth in fiscal 2025, contingent on stabilizing the discretionary business [40][145] - Management acknowledged the impact of inflation on consumer spending but noted that the core customer remains relatively healthy [145] Other Important Information - The company expects total sales for the full fiscal year to be $1.66 billion, representing growth of 0.4% over fiscal 2023 [14] - SG&A expenses increased to $124 million, or 23.8% of sales, primarily due to higher overhead costs associated with operating additional stores [132] - The company is moving to a new corporate office building, which will increase lease costs and associated depreciation, impacting SG&A [136] Q&A Session All Questions and Answers Question: Can you elaborate on the regional improvement in January sales? - Management noted that the West and South regions improved sequentially, while the North and East regions experienced a decline due to weather impacts [18][130] Question: What is the expected impact of tariffs on sourcing from China? - Management indicated that approximately half of their products are sourced from China, but they do not foresee significant competitive disadvantages arising from potential tariffs [36][74] Question: How do you view the future of the online business and ad spend? - The company is cautious about increasing online marketing spend due to inefficiencies and aims to manage it algorithmically to avoid eroding EBIT [80] Question: When do you expect same-store sales to turn positive? - Management suggested that while it is difficult to predict, they believe improvements could occur in the next few quarters as underlying trends stabilize [175]