BOOT Q2 Earnings Beat, Same-Store Sales Rise Y/Y, FY2025 Guidance Up

Core Insights - Boot Barn Holdings, Inc. reported strong second-quarter fiscal 2025 results, with revenues and earnings exceeding expectations and showing year-over-year growth [1][2] - The company raised its fiscal 2025 guidance following this performance [1] Financial Performance - Adjusted earnings were 95 cents per share, a 5.6% increase from 90 cents in the prior year, surpassing the Zacks Consensus Estimate of 93 cents [3] - Net sales reached $425.8 million, a 13.7% year-over-year increase, exceeding the Zacks Consensus Estimate of $423 million [4] - Consolidated same-store sales rose 4.9% year over year, driven by a 4.3% increase in retail store sales and a 10.1% increase in e-commerce sales, outperforming the expected growth of 3.2% [5] Margin and Cost Analysis - Gross profit increased by 14.1% to $152.9 million, attributed to higher sales and improved merchandise margins [6] - Gross margin improved by 10 basis points to 35.9%, with a 70-basis point increase in merchandise margin, partially offset by a 60-basis point increase in occupancy and distribution costs [7] - SG&A expenses rose 18.4% year over year to $112.9 million, primarily due to higher store payroll and related costs [8] Future Outlook - For the fiscal third quarter, Boot Barn estimates net sales between $582 million and $595 million, indicating growth of 11.8-14.3% from the previous year [11] - The company anticipates same-store sales growth of 3.5-6%, with retail store sales expected to increase by 3-5% and e-commerce sales by 7.5-10% [12] - For the full fiscal year, total revenues are projected to be between $1.87 billion and $1.91 billion, up from the previous estimate of $1.82 billion to $1.85 billion, reflecting a growth of 12.4-14.4% [13] Financial Health - Boot Barn ended the quarter with $37.4 million in cash and cash equivalents, without drawing from its $250 million revolving credit facility [10] - Average inventory per store increased approximately 10.5% on a same-store basis from September 30, 2023 [10]