Boot Barn(BOOT) - 2026 Q1 - Quarterly Results

First Quarter Fiscal Year 2026 Financial Results and Outlook Q1 FY2026 Performance Highlights Boot Barn reported a strong start to fiscal year 2026, with a 19.1% increase in net sales driven by high-single-digit same-store sales growth and successful new store openings, leading to a 38% increase in earnings per diluted share and a raised full-year outlook - CEO John Hazen highlighted a strong start to fiscal 2026, driven by broad-based demand, robust merchandise margin expansion, and solid expense control, leading to a raised full-year outlook[2] Q1 FY2026 Key Performance Indicators (vs. Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $504.1M | $423.4M | +19.1% | | Consolidated Same Store Sales | +9.4% | N/A | N/A | | Net Income | $53.4M | $38.9M | +37.3% | | Diluted EPS | $1.74 | $1.26 | +38.1% | | New Stores Opened | 14 | N/A | N/A | Detailed Q1 FY2026 Operating Results The company's operating results for the first quarter showed significant year-over-year improvement, with net sales growth fueled by new store openings and a 9.4% increase in consolidated same-store sales, leading to a 210 basis point gross profit margin expansion and a 40.8% increase in income from operations Sales Performance Analysis Net sales grew 19.1% to $504.1 million, supported by strong performance across both physical and digital channels, with retail store same-store sales increasing by 9.5% and e-commerce same-store sales growing by 9.3% - The 19.1% increase in net sales was a result of incremental sales from new stores and a 9.4% increase in consolidated same-store sales[5] Q1 FY2026 Same Store Sales Growth | Channel | Same Store Sales Growth | | :--- | :--- | | Retail Stores | +9.5% | | E-commerce | +9.3% | | Consolidated | +9.4% | Sales Growth Trends by Month | Metric | Fiscal April | Fiscal May | Fiscal June | Preliminary Fiscal July | | :--- | :--- | :--- | :--- | :--- | | Total Net Sales Growth | 18.3% | 21.5% | 17.7% | 21.3% | | Consolidated SSS | 8.7% | 11.5% | 8.4% | 11.7% | Profitability and Margin Analysis Gross profit rose to $197.2 million, with the gross margin rate expanding by 210 basis points to 39.1%, primarily due to a 180 basis-point increase in merchandise margin, leading to a significant increase in income from operations to $70.7 million - The 210 basis-point increase in gross profit rate was driven by a 180 basis-point increase in merchandise margin rate and 30 basis points of leverage in buying, occupancy and distribution center costs[5] - Drivers for the merchandise margin rate increase included better buying economies of scale, lower freight expense, and growth in exclusive brand penetration[5] Q1 FY2026 Profitability Metrics (vs. Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Gross Profit | $197.2M (39.1%) | $156.7M (37.0%) | | Income from Operations | $70.7M (14.0%) | $50.2M (11.9%) | | Net Income | $53.4M | $38.9M | Expense Analysis Selling, general and administrative (SG&A) expenses increased to $126.5 million, primarily due to costs associated with operating more stores, but as a percentage of net sales, SG&A expenses slightly decreased by 10 basis points to 25.1% - The increase in SG&A expenses was primarily due to higher store payroll, store-related expenses from operating more stores, marketing, and corporate G&A[5] - SG&A as a percentage of sales decreased by 10 basis points, mainly from lower incentive-based compensation, which was partially offset by higher marketing expenses due to timing[5][6] Balance Sheet and Shareholder Activity As of June 28, 2025, the company maintained a healthy balance sheet with $95 million in cash and no outstanding debt on its $250 million revolving credit facility, while average inventory per store saw a modest increase of 2.7% and $12.5 million worth of common stock was repurchased - The company ended the quarter with $95 million in cash and zero drawn under its $250 million revolving credit facility[10] - Average inventory per store increased by approximately 2.7% on a same-store basis compared to the prior year[10] - The company repurchased 77,959 shares of its common stock for an aggregate price of $12.5 million[10] Updated Fiscal Year 2026 Guidance Following a strong first quarter, Boot Barn raised its guidance for the full fiscal year 2026, now expecting to open 65 to 70 new stores, achieve sales between $2.100 billion and $2.180 billion, and generate diluted EPS in the range of $5.80 to $6.70, with guidance for the second quarter also provided Full Fiscal Year 2026 Outlook For the full fiscal year 2026, the company projects opening 65-70 new stores, with total sales growth of 10% to 14%, same-store sales ranging from a slight decline of 0.5% to growth of 3.5%, net income between $178.0 million and $205.8 million, and capital expenditures planned at $115.0 to $120.0 million Full Fiscal Year 2026 Guidance | Metric | Guidance Range | | :--- | :--- | | New Stores | 65 to 70 | | Total Sales | $2.100B - $2.180B (+10% to +14%) | | Same Store Sales | (0.5)% to +3.5% | | Gross Profit | $764M - $812M (36.4% - 37.2% of sales) | | Income from Operations | $239M - $277M (11.4% - 12.7% of sales) | | Net Income | $178.0M - $205.8M | | Net Income per Diluted Share | $5.80 - $6.70 | | Capital Expenditures | $115.0M - $120.0M | Second Quarter Fiscal Year 2026 Outlook For the second fiscal quarter ending September 27, 2025, Boot Barn anticipates total sales between $487 million and $495 million, representing 14% to 16% growth, driven by same-store sales growth of 4.5% to 6.5%, with net income per diluted share projected to be in the range of $1.19 to $1.27 Q2 Fiscal Year 2026 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Sales | $487M - $495M (+14% to +16%) | | Same Store Sales Growth | +4.5% to +6.5% | | Income from Operations | $50M - $53M (10.3% - 10.7% of sales) | | Net Income per Diluted Share | $1.19 - $1.27 | Store Operations Data The company continued its aggressive store expansion, opening 14 new stores in the quarter to reach a total of 473 stores, representing a net addition of 62 stores over the past year, with same-store sales growth accelerating to 9.4% Store Count Growth | Period Ended | June 28, 2025 | March 29, 2025 | June 29, 2024 | | :--- | :--- | :--- | :--- | | Stores Opened | 14 | 21 | 11 | | Total Stores (EOP) | 473 | 459 | 411 | Selected Store Data | Metric | Q1 FY2026 (ended Jun 28, 2025) | Q1 FY2025 (ended Jun 29, 2024) | | :--- | :--- | :--- | | Same Store Sales Growth | 9.4% | 1.4% | | Total Stores | 473 | 411 | | Avg. Sales per Comparable Store | $1,031 thousand | $980 thousand | Consolidated Financial Statements (Unaudited) Consolidated Balance Sheets The balance sheet as of June 28, 2025, reflects total assets of $2.09 billion, an increase from $2.02 billion at the end of fiscal 2025, with key changes including a rise in cash and inventories, balanced by increases in accounts payable and lease liabilities, and total stockholders' equity growing to $1.17 billion Selected Balance Sheet Items (in thousands) | Account | June 28, 2025 | March 29, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $95,319 | $69,770 | | Inventories | $774,060 | $747,191 | | Total Assets | $2,093,826 | $2,018,021 | | Total current liabilities | $358,654 | $353,349 | | Total Liabilities | $922,420 | $886,964 | | Total Stockholders' Equity | $1,171,406 | $1,131,057 | Consolidated Statements of Operations For the first quarter of fiscal 2026, the company reported net sales of $504.1 million, a 19.1% increase from the prior year, with gross profit growing by 25.8% to $197.2 million, resulting in a 37.3% increase in net income, which reached $53.4 million, or $1.74 per diluted share Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Thirteen Weeks Ended June 28, 2025 | Thirteen Weeks Ended June 29, 2024 | | :--- | :--- | :--- | | Net sales | $504,067 | $423,386 | | Gross profit | $197,221 | $156,749 | | Income from operations | $70,720 | $50,222 | | Net income | $53,408 | $38,909 | | Diluted EPS | $1.74 | $1.26 | Consolidated Statements of Cash Flows In the first quarter, net cash provided by operating activities significantly increased to $73.9 million from $41.3 million in the prior-year period, driven by higher net income, with the company investing $31.5 million in property and equipment and using $16.8 million in financing activities, ending the quarter with a net increase in cash of $25.5 million Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Thirteen Weeks Ended June 28, 2025 | Thirteen Weeks Ended June 29, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $73,850 | $41,311 | | Net cash used in investing activities | $(31,462) | $(27,066) | | Net cash used in financing activities | $(16,839) | $(6,705) | | Net increase in cash | $25,549 | $7,540 | | Cash and cash equivalents, end of period | $95,319 | $83,387 | Company Information and Disclosures About Boot Barn Boot Barn is the leading lifestyle retailer in the United States for western and work-related footwear, apparel, and accessories, serving a loyal customer base through its 475 stores in 49 states and its e-commerce channels - Boot Barn is the nation's leading lifestyle retailer of western and work-related products for men, women, and children[12] - As of the release date, the company operates 475 stores in 49 states, in addition to its e-commerce websites www.bootbarn.com, www.sheplers.com, and www.countryoutfitter.com[12](index=12&type=chunk) Conference Call Information The company announced it would host a conference call on July 31, 2025, at 4:30 p.m. ET to discuss its first-quarter fiscal 2026 financial results, with details for accessing the live call, webcast, and a telephone replay provided for investors and analysts - A conference call to discuss Q1 FY2026 financial results was scheduled for July 31, 2025, at 4:30 p.m. ET[11] - A live webcast and a supplemental financial presentation are available on the company's investor relations website[11] Forward-Looking Statements This section serves as a legal disclaimer, cautioning that the press release contains forward-looking statements regarding the company's future performance and plans, highlighting that these statements are not guarantees and are subject to significant risks and uncertainties that could cause actual results to differ - The press release contains forward-looking statements related to the company's financial condition, results of operations, plans, and future performance[13] - These statements involve risks and uncertainties, and investors are cautioned not to place undue reliance on them as they are not guarantees of future performance[15] - Key risks include decreases in consumer spending, impact of import tariffs, ability to execute growth strategy, and competition[15]