IRVINE, Calif. - Boot Barn (NYSE:BOOT) Holdings, Inc. (NYSE: BOOT), a leading lifestyle retailer of western and work-related footwear, apparel, and accessories, reported fourth-quarter earnings that slightly exceeded Wall Street's expectations.
However, shares fell sharply by 7.9% due to the company's weaker-than-expected guidance for the upcoming fiscal year.
For the fourth quarter ended March 30, 2024, Boot Barn announced a net income of $29.4 million, or $0.96 per share, surpassing analysts' estimates by $0.05. Revenue for the quarter was also marginally higher than expected at $388.5 million compared to the consensus estimate of $386.96 million.
The company's guidance for fiscal year 2025 anticipates earnings per share (EPS) in the range of $4.55 to $4.85, which is below the analyst consensus of $5.16. Revenue projections of $1.766 to $1.8 billion also fell short of the expected $1.82 billion. This cautious outlook reflects the challenges Boot Barn anticipates in the retail environment, including a potential continued cautious consumer spending pattern.
Jim Conroy, president and chief executive officer of Boot Barn, stated, "I am pleased with our fourth quarter performance and proud of the efforts of the entire Boot Barn team." He highlighted the company's achievement of crossing the 400-store milestone and expressed optimism about the improvement in same store sales towards the end of the quarter. Conroy believes the company is well-positioned to execute on its long-term strategic initiatives despite expecting consumers to remain cautious in the foreseeable future.
The fourth quarter saw a decrease in net sales of 8.7% compared to the same period last year, which included an extra week of sales. When adjusting for this, net sales saw a smaller decline of 2.2%. Gross profit as a percentage of net sales decreased slightly from 36.6% to 35.9%, primarily due to a decrease in sales, partially offset by merchandise margin expansion.
As Boot Barn prepares for the fiscal year ahead, the company plans to open 60 new stores and anticipates a same store sales decline of approximately 3.6% to 1.6%. These projections suggest a cautious but strategic approach to growth in an uncertain retail climate.
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