Boot Barn Holdings, Inc. Unveils Financial Performance for the Third Quarter of Fiscal Year 2024

Boot Barn Holdings, Inc. has reported its financial results for the third fiscal quarter concluding on December 30, 2023. The company’s net sales exhibited a 1.1% increase, reaching $520.4 million during this period. Although same-store sales experienced a 9.7% decline compared to the prior year, comprising a 9.4% decrease in retail store same-store sales and an 11.5% drop in e-commerce same-store sales, the company’s net income rose to $55.6 million, or $1.81 per diluted share, up from $52.8 million, or $1.74 per diluted share in the previous year.

Boot Barn expanded its retail presence by opening 11 new stores in the quarter, bringing the total store count to 382. Jim Conroy, President and Chief Executive Officer, expressed satisfaction with the performance, highlighting the addition of new stores and the company’s 38th consecutive quarter of year-over-year sales growth, excluding pandemic-affected quarters in 2020.

Comparing the third quarter of 2023 to the same period in 2022, net sales increased by 1.1% to $520.4 million. Gross profit also saw growth, reaching $199.1 million, or 38.3% of net sales, compared to $187.8 million, or 36.5% of net sales in the prior-year period. The increase in gross profit was attributed to merchandise margin expansion and sales growth. Operating income rose to $75.1 million, or 14.4% of net sales, reflecting a $2.6 million increase over the previous year.

For the nine months ended December 30, 2023, net sales increased by 3.8% to $1.279 billion, with consolidated same-store sales declining by 6.3%. Gross profit for the nine-month period was $475.0 million, or 37.2% of net sales, showcasing a 30 basis points increase compared to the prior-year period. The growth was driven by sales growth and merchandise margin expansion, partially offset by a 140 basis points deleverage in buying, occupancy, and distribution center costs.

Boot Barn’s consistent growth, strategic store openings, and effective cost management underscore the resilience of its business model, as highlighted by Jim Conroy.

Selling, general, and administrative expenses amounted to $315.0 million, constituting 24.6% of net sales, in contrast to the prior-year period where they stood at $285.7 million, accounting for 23.2% of net sales. The increase in these expenses compared to the previous year primarily stems from elevated store payroll, store-related expenses associated with operating 49 new stores, and general and administrative expenses in the current fiscal year. Consequently, selling, general, and administrative expenses as a percentage of net sales witnessed a rise of 140 basis points, primarily attributed to heightened payroll and overhead costs.

Income from operations experienced a decrease of $9.1 million, settling at $160.0 million, or 12.5% of net sales, in contrast to the prior-year period where it was $169.1 million, equivalent to 13.7% of net sales. This decline can be attributed to the factors mentioned above.

Net income for the period was $117.6 million, resulting in $3.84 per diluted share. This is in comparison to the net income of $124.1 million, translating to $4.09 per diluted share in the prior-year period. The net income per diluted share in the current-year period includes an approximate $0.01 per share tax benefit, primarily due to income tax accounting for share-based compensation, partially offset by changes to state tax rates. In the prior-year period, net income per diluted share included an approximate $0.03 per share tax benefit, primarily due to income tax accounting for share-based compensation. Excluding these net tax effects, net income per diluted share was $3.83 in the current-year period, compared to $4.06 in the prior-year period.

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