Boot Barn NYSE: BOOT reported second-quarter fiscal 2027 net sales of $582 million, up 15% from a year earlier, as new store openings and positive comparable-store sales supported growth. Diluted earnings per share rose 26% to $1.73, exceeding the high end of the company’s guidance by $0.08.
Consolidated same-store sales increased 1.4%, following an 8.4% gain in the prior-year period. Store comparable sales rose 1%, driven by a 2% increase in average unit retail that was partly offset by lower transactions. E-commerce comparable sales increased 5.2%, after growing 14% in the prior-year quarter.
Chief Executive Officer John Hazen said the quarter showed healthy demand across most major merchandise categories, including men’s and women’s apparel, denim, cowboy hats and ball caps. However, men’s and women’s western boots were softer as the company faced difficult comparisons from the previous year.
Margins and earnings improve
Gross profit rate increased 80 basis points from the prior year, reflecting 190 basis points of merchandise margin expansion, partly offset by deleverage in buying, occupancy and distribution-center costs. Merchandise margin benefited from lower freight expense, tariff refunds and product-margin improvement.
Excluding tariff refunds, merchandise margin expanded 150 basis points in the quarter. For the first six months of fiscal 2027, merchandise margin rose 60 basis points excluding tariff refunds.
Selling, general and administrative expense totaled $146 million, or 25.1% of sales, improving 10 basis points as a percentage of revenue. Operating income increased to $70 million, or 12.1% of sales, from $56 million, or 11.2% of sales, a year earlier.
Inventory rose 14% year over year to $975 million and increased 3% on a same-store basis. Chief Financial Officer Jim Watkins said the total inventory increase reflected new-store growth, exclusive-brand expansion and inventory purchased at volume discounts.
Store expansion accelerates
Boot Barn opened 19 stores during the quarter, bringing its footprint to 584 locations in 49 states. The company has opened 46 stores year to date and added 126 locations over the last 18 months, equal to roughly 20% of its current store base.
The recent group of 126 stores is expected to generate average first-year sales of about $3.4 million, approximately $200,000 above the company’s original projection. In response to its real estate pipeline, Boot Barn raised its fiscal 2027 store-opening plan to 75 to 80 locations from 70 locations.
Management continues to underwrite new stores at approximately $3.2 million in first-year sales and reiterated its long-term opportunity to reach 1,200 locations nationwide. Watkins said new-store performance has helped reduce the comparable-sales growth needed to achieve operating-margin leverage this year.
The company also approved plans for a second distribution center in Kansas City that is expected to become operational in calendar 2028. Watkins said the facility will expand distribution capacity for the company’s growing store base.
Holiday preparations and category trends
Through the first four weeks of the fiscal third quarter, consolidated same-store sales were slightly positive. Hazen said the company was lapping a 9% comparable-sales gain in October of the prior year, including a 7% store gain and 24% online growth, while also facing unseasonably warm weather in several key markets.
Management said October’s moderation was broad-based across major merchandise categories rather than tied to a single area. The company cited continued strength in men’s and women’s western apparel, denim, hats, work boots and work apparel, while pointing to softness in western boot categories.
Boot Barn is refreshing its women’s western boot assortment ahead of the holiday season with new styles, colors and silhouettes. It has selectively promoted slower-moving merchandise to make room for new arrivals, while expecting overall markdown levels to remain below the prior year. Hazen said softer men’s rubber-soled western boots appeared to reflect a combination of discretionary spending pressure and unusually hot weather in Western and Southwestern markets.
The retailer is also changing certain store presentations, including moving premium denim toward the front of stores and revising hat visuals and signage. It is adding seasonal associates and focusing on conversion as holiday traffic builds.
For marketing, Boot Barn shifted from regional television advertising to a nationwide holiday campaign. The company expects about 1 billion television impressions during the holiday season, compared with 175 million last year. The campaign will feature country artist Riley Green.
Workforce platform, capital returns and outlook
Boot Barn relaunched its business-to-business program under the name Boot Barn Workforce. The business generated about $100 million in sales in the last fiscal year. Management said the rebuilt platform includes sales dashboards, lead tracking, safety-manager portals and digital vouchers, with a mobile app planned for the future. Hazen said the company expects the business, which has been growing in the 20% range, could grow 40% to 50%.
During the second quarter, Boot Barn repurchased approximately 241,000 shares for $35 million. It repurchased another approximately 190,000 shares for $23 million through the first four weeks of the third quarter. The board authorized an additional $400 million for share repurchases. The company ended the quarter with $97 million in cash and no borrowings under its $500 million credit line.
At the high end of its fiscal 2027 outlook, Boot Barn expects sales of $2.6 billion, up 15%, with a 2% comparable-sales increase and diluted EPS of $9. For the third quarter, the company expects sales of $802 million at the high end of its range, a 1% comparable-sales increase and EPS of $3.19.
About Boot Barn (NYSE:BOOT)
Boot Barn Holdings, Inc is a specialty retailer focused on Western and work-related apparel, footwear and accessories. The company sells products including cowboy boots, work boots, jeans, shirts, hats, outerwear, belts and other accessories from a range of national and private-label brands.
Boot Barn serves customers through a network of retail stores across the United States, as well as through its e-commerce platform. Its merchandise is marketed to Western lifestyle customers, workers who need durable clothing and footwear, and consumers participating in activities such as rodeo, riding and outdoor recreation.
The company traces its beginnings to 1978 and is headquartered in Irvine, California.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Boot Barn, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Boot Barn wasn't on the list.
While Boot Barn currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Tesla, Nvidia, and Google helped shape the last era of market growth, but the next wave could come from a new group of companies. Inside this report, you’ll find 7 stocks that could play a major role in the next tech-driven market boom.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
