Boot Barn (BOOT) Q3 Earnings Resilient Despite Slowing Sales
Boot Barn Holdings, Inc. BOOT released preliminary results for the third quarter of fiscal 2024, which concluded on Dec 30, 2023. The company is expecting an increase in total sales primarily driven by the addition of new stores. Also, there is an expectation of continued expansion in merchandise margins.
Preliminary Outcome
BOOT expects a modest increase in net sales, amounting to a 1.1% rise to $520.4 million. However, this performance failed to meet management’s anticipation, as they had previously forecast sales in the range of $522-$535 million.
Per the preliminary results, the company witnessed a 9.7% fall in same-store sales in the quarter under review compared with a 3.6% decrease a year ago. The downtick can be attributed to a decline of 9.4% and 11.3% in retail store sales and e-commerce sales, respectively.
For the third quarter, the company expects earnings per share to be at or above $1.79 compared with $1.74 in third-quarter fiscal 2023. While the expected EPS performance was positive, it was majorly driven by strong expense control and discipline promotions.
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Boot Barn Holdings has demonstrated a significant expansion effort, opening 11 new stores in the quarter, thereby taking the total count to 382. This expansion is part of a broader strategy to increase store count by 15% annually.
Management expressed confidence in its model, highlighting its ability to navigate and drive earnings growth through various strategic levers. Despite a reduction in comparable store sales, average store revenues continue to significantly surpass pre-pandemic levels.
Boot Barn Holdings’ effective merchandising strategies, robust omnichannel capabilities, cost management and customer-centric approach have been collectively contributing to its performance.
Shares of this Zacks Rank #3 (Hold) company have declined 12.6% in the past six months against the industry’s growth of 17.6%
3 Picks to Consider
Here, we have highlighted three better-ranked stocks, namely Abercrombie & Fitch ANF, Hibbett HIBB and Deckers DECK.
Abercrombie & Fitch, an omnichannel specialty retailer of apparel and accessories for men, women and kids, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year revenues suggests growth of 13.3% from the year-ago figures. ANF has a trailing four-quarter earnings surprise of 713%, on average.
Hibbett, an athletic-inspired fashion retailer, flaunts a Zacks Rank #1 at present. The Zacks Consensus Estimate for Hibbett’s current fiscal-year sales suggests growth of 1.7% from the year-ago levels.
HIBB has a trailing four-quarter earnings surprise of 24.2%, on average.
Deckers, a global leader in designing, marketing and distributing innovative footwear, apparel and accessories, currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Deckers’ current fiscal-year sales and EPS indicates growth of 13.4% and 21.9%, respectively, from the year-ago actuals. DECK has a trailing four-quarter earnings surprise of 26.3%, on average.
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Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
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Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
