Boot Barn Holdings Inc (BOOT) Reports 6.5% Increase in Total Net Sales for Q2 FY2024
Boot Barn Holdings Inc (NYSE:BOOT) reports a 6.5% increase in total net sales for Q2 FY2024.
Same store sales decline by 4.8% and e-commerce sales decline by 11.7%.
The company opened 10 new stores during the quarter, expanding its total store count to 371.
Net income for the quarter stands at $27.68 million, a decrease from the previous year's $32.05 million.
On November 2, 2023, Boot Barn Holdings Inc (NYSE:BOOT) released its financial results for the second fiscal quarter ended September 30, 2023. The company reported solid sales growth, merchandise margin expansion, and earnings achievement at the high end of their guidance range.
Performance and Challenges
Despite a modest 3.8% decline in retail store same store sales for the quarter, the company's average store sales volume remains at elevated levels. The company attributes the sequential decline in same store sales to a macro pull back in consumer demand. However, Boot Barn Holdings Inc (NYSE:BOOT) believes that its inventory levels and expense structure are well positioned as it enters the holiday season.
Financial Highlights
The company reported a total net sales growth of 6.5% for the quarter ended September 30, 2023. However, same store sales declined by 4.8% and e-commerce sales declined by 11.7%. Despite these declines, the company's President and CEO, Jim Conroy, expressed satisfaction with the second quarter results, stating,
I am pleased with our second quarter results which included solid sales growth, merchandise margin expansion and earnings achievement which was at the high end of our guidance range."
Income Statement and Balance Sheet Summary
The company's net income for the quarter was $27.68 million, a decrease from the previous year's $32.05 million. As of September 30, 2023, the company's total assets stood at $1.58 billion, an increase from April 1, 2023's total assets of $1.52 billion. The company's total liabilities as of September 30, 2023, were $725.82 million, a decrease from April 1, 2023's total liabilities of $740.93 million.
Outlook for Fiscal Year 2024
Boot Barn Holdings Inc (NYSE:BOOT) has provided updated guidance for the fiscal year ending March 30, 2024, superseding the previous guidance issued in its first quarter earnings report on August 2, 2023. However, the company did not provide specific details on this updated guidance in the earnings report.
The company's financial results and performance indicate a mixed picture with solid total net sales growth but a decline in same store sales. The company's future performance will depend on its ability to manage its inventory levels and expense structure effectively, especially as it enters the holiday season.
Explore the complete 8-K earnings release (here) from Boot Barn Holdings Inc for further details.
This article first appeared on GuruFocus.
