Boot Barn Stock Gains Despite Q4 Earnings Missing Estimates

Boot Barn Holdings, Inc. BOOT reported fourth-quarter fiscal 2025 results, wherein revenues and earnings lagged the Zacks Consensus Estimate. However, both the top and bottom lines increased year over year. As a result, shares of this lifestyle retail chain gained 18% in the after-hours trading session yesterday.

This growth reflects the continued resilience of the core consumer base despite ongoing macroeconomic uncertainties. Strength was evident across key merchandise categories, sales channels and geographic regions, highlighting the broad appeal of the brand and the effectiveness of current strategic initiatives. 

Looking ahead, the business is positioned to effectively manage the current tariff landscape through diversified sourcing strategies and established vendor relationships. Overall, the company is positioned to maintain its progress and continue delivering value to shareholders.

Boot Barn’s Quarterly Performance: Key Insights

BOOT’s earnings of $1.22 per share increased 27.1% from 96 cents in the year-ago quarter. However, the metric missed the Zacks Consensus Estimate of $1.24. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Net sales of $453.7 million jumped 16.8% year over year and lagged the Zacks Consensus Estimate of $458 million. The rise in net sales was attributed to contributions from new store openings and the increase in same-store sales across the business. The company opened 21 stores in the fiscal fourth quarter, bringing its total store count to 459. It anticipates opening between 65 and 70 new stores during fiscal 2026. 

Consolidated same-store sales grew 6% year over year, driven by a 5.5% increase in retail store same-store sales and a 9.8% rise in e-commerce same-store sales. The Zacks Consensus Estimate for same-store sales growth was pegged at 7.3% for the quarter under review.

BOOT’s Margin & Cost Update

Gross profit increased 20.9% to $168.6 million. The increase was largely driven by higher sales and improved merchandise margins, partially offset by increased occupancy costs from new store openings. 

The gross margin increased 130 basis points (bps) year over year to 37.1% due to a 210 bps increase in the merchandise margin rate, which was partially offset by an 80 bps deleverage in buying, occupancy and distribution center costs. The improvement in the merchandise margin rate resulted from supply-chain efficiencies, reduced shrink expense, enhanced purchasing scale and greater penetration of exclusive brands. The deleverage in buying, occupancy and distribution center costs was primarily attributable to the occupancy expenses associated with new stores.

Selling, general and administrative (SG&A) expenses were $118.9 million, up 17.5% year over year. The increase was mainly led by higher store payroll and other store-related costs resulting from operating a larger store base, as well as increased corporate administrative expenses. As a percentage of net sales, SG&A expenses increased 10 bps year over year to 26.2% due to higher legal costs and store payroll, partially offset by lower marketing expenses.

Operating income increased 29.9% year over year to $49.7 million. The operating margin of 11% increased 120 bps from 9.8% last year.

Boot Barn’s Financial Health Snapshot

BOOT ended the quarter with $69.8 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 5.7% on a same-store basis from March 30, 2024.

BOOT Stock Past Three-Month Performance

BOOT’s Q1 Outlook

For the fiscal first quarter, the company expects total sales to be in the range of $483-$491 million, representing year-over-year growth of 14-16%. Same store sales growth is expected to be approximately 4-6%, with both retail store and e-commerce same store sales projected to grow within that same range.

Merchandise margin for the quarter is expected to be between $250 million and $254 million, or approximately 51.7% of sales. Gross profit is projected in the  range of $183-$188 million, representing approximately 37.9-38.2% of sales. Selling, general and administrative expenses are expected to be between $122 million and $124 million, or approximately 25.3-25.2% of sales.

Income from operations for the first quarter is forecasted between $61 million and $64 million, or approximately 12.6-13% of sales. Earnings per share are expected to be between $1.44 and $1.52.

What to Expect From Boot Barn in FY26?

The company has issued its guidance for fiscal 2026. Total sales are projected in the range of $2.07-$2.15 billion, reflecting growth of 8-13% from fiscal 2025.

Same-store sales are expected to decline 2% to grow approximately 2%. Within this, retail store same-store sales are projected to decline as much as 2.5% or grow 1.5%, while e-commerce same-store sales are expected to grow between approximately 1% and 7.5%.

Merchandise margin is expected to be between $1.03 billion and $1.08 billion, or approximately 49.8-50.1% of total sales. Gross profit is forecasted in the range of $747-$793 million, or about 36.1-36.9% of sales. Selling, general and administrative expenses are projected to be between $519 million and $527 million, representing approximately 25.1-24.5% of sales.

Income from operations is expected to be in the range of $228-$266 million, or approximately 11-12.4% of sales. Net income is projected between $169 million and $197 million, resulting in earnings per share of $5.50-$6.40. Capital expenditures are projected to be between $115 million and $120 million, net of estimated landlord-tenant allowances of $35.5 million.

Shares of this Zacks Rank #3 (Hold) company have lost 3.2% compared with the industry’s 4.7% decline in the past three months.

Key Picks

Some better-ranked stocks are Nordstrom Inc. JWN, Stitch Fix SFIX and Canada Goose GOOS.

Nordstrom is a leading fashion specialty retailer. It has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Nordstrom’s fiscal 2025 earnings and revenues indicates growth of 1.8% and 2.2%, respectively, from the fiscal 2024 reported levels. JWN delivered a negative trailing four-quarter average earnings surprise of 26.1%.

Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It currently has a Zacks Rank of 2.

The Zacks Consensus Estimate for SFIX’s fiscal 2025 earnings implies growth of 64.7% from the year-ago actual. SFIX delivered a trailing four-quarter average earnings surprise of 48.9%.

Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for Canada Goose’s current fiscal year’s earnings and revenues implies a decline of 1.4% and 4.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 71.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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